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Year End Trading Update

20 Apr 2022 07:00

RNS Number : 6510I
Real Good Food PLC
20 April 2022
 

20 April 2022

 

Real Good Food plc

("RGF" or "Group")

 

Year End Trading Update

 

Real Good Food plc (AIM:RGD) today provides the following update on trading for its financial year ended 31 March 2022.

 

Trading update

Revenue for the year ended 31 March 2022 was £40.5m, an increase of 9.0% on last year, but below the pre-pandemic prior year. Adjusted EBITDA was just under £0.7m compared to £0.2m in FY21, equating to an expected, much reduced, Loss before tax of £2.8m (2021: Loss before tax £6.1m). Overall, this performance is below that which the Board had anticipated exiting the half year.

 

Unaudited numbers:

 

FY22

FY21

FY20

£'m

Cake Decoration

Head Office

Continuing Operations

Cake Decoration

Head Office

Continuing Operations

Cake Decoration

Head Office

Continuing Operations

3rd Party Revenue

40.5

-

40.5

37.3

-

37.3

41.2

-

41.2

Adjusted EBITDA

0.9

(0.2)

0.7

0.3

(0.1)

0.2

1.4

(3.1)

(1.6)

(Loss)/Profit Before Tax

(0.7)

(2.1)

(2.8)

(2.2)

(3.9)

(6.1)

(1.4)

(8.7)

(10.2)

 

*Continuing operations comprise JF Renshaw and Rainbow Dust Colours; excludes Brighter Foods Limited which was sold on 11 May 2021.

** Excludes goodwill impairment charges.

 

As previously reported, the Group performed strongly in H1 reporting revenue and EBITDA well ahead of prior year and back to pre-Covid levels (H1 FY20). However, revenues during Q3 (October - December 2021), the Group's seasonally busiest period, were disappointing and well below expectations due to severe shortages and erratic deliveries of key ingredients and services, compounded by high absence rates because of the Omicron variant; inevitably this affected the Group's ability to fulfil customer orders and the business continued to work closely with customers during this difficult period.

 

Trading in Q4 and in the first weeks of our new financial year continued to be impacted by these shortages and absences, whilst significant input cost increases have also dragged profitability down. RGF will continue to focus its efforts on products that are profitable and pass these unprecedented cost increases (in sugar, palm oil, energy, packaging and transport) through to its customers, but there is a lag effect of a few months. Overall, revenue in H2 was 7% lower than the prior year. Adjusted EBITDA for H2 was marginally positive (FY21: £0.8m).

 

Net debt as at 31 March 2022 was £25.3m (2021: £48.6m), a reduction of £23.3m during the year. The sale of Brighter Foods Limited on 11 May 2021, for cash proceeds to the Group of £35.6m, enabled £23.1m to be repaid to Loan Note Holders and £8.5m to be paid into the pension scheme to fully fund it on an ongoing basis. Cash from operations showed a net inflow of £0.3m. 

 

Outlook

Given the challenging environment in terms of both cost and demand pressures, the Board is focused on reducing complexity and waste, other cost saving projects and selective new product launches to make the business as competitive as possible. With a significant milestone due in 2023 relating to the repayment of borrowings, the Group is focused on improving performance to meet these obligations.

 

Mike Holt, Executive Chairman commented:

 

"The last few months have been very difficult due to a number of issues relating to costs, supply chain and unavoidable staff absences leading to our performance for the financial year just ended being worse than we had hoped. The unprecedented cost increases being experienced by all businesses are being passed through to our customers but there is a timing lag which is impacting profitability. The Group is determined to hunker down, control costs and protect revenues, and has the support of its Loan Holders and major shareholders to navigate this difficult time."

 

Enquiries:

 

Real Good Food plc

Mike Holt, Chairman

Maribeth Keeling, Group Finance Director

Tel: 0151 541 3790

 

 

finnCap Limited (Nomad and Broker)

Carl Holmes / James Thompson (Corporate Finance)

Tel: 020 7220 0500

 

 

MHP Communications (Financial PR) 

Reg Hoare

Tel: 020 3128 8793

rgf@mhpc.com

 

About Real Good Food

Real Good Food plc is a food manufacturing business serving several market sectors including retail (own label and private label), manufacturing and export. The Company has two businesses, Cake Decoration (Renshaw and Rainbow Dust Colours) and Food Ingredients (Brighter Foods), with leading brands in their chosen markets. http://www.realgoodfoodplc.com

 

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END
 
 
TSTUKRNRURUSAAR
Date   Source Headline
13th Jan 20217:00 amRNSTrading Update
6th Jan 202112:30 pmRNSArrangements for General Meeting
30th Dec 20202:30 pmRNSNotice of Half Year Results
18th Dec 20203:10 pmRNSFinal Results
16th Dec 20203:26 pmRNSNotice of General Meeting & Trading Update
2nd Dec 20207:00 amRNSDeed of Amendment and Notice of Results
21st Oct 20207:00 amRNSDirectorate Change
19th Oct 20207:00 amRNSAmendment to Shareholders' Agreement
24th Sep 20209:58 amRNSResult of AGM
23rd Sep 20207:00 amRNSAGM Trading Statement
9th Sep 20207:00 amRNSNotice of AGM
28th Jul 20205:30 pmRNSIncrease of Funding Arrangements
22nd Jul 20204:40 pmRNSSecond Price Monitoring Extn
22nd Jul 20204:35 pmRNSPrice Monitoring Extension
8th Apr 20207:00 amRNSYear End Trading and COVID-19 Update
9th Mar 20204:02 pmRNSDirectorate Change
29th Nov 20197:00 amRNSHalf year results
24th Oct 20197:00 amRNSDirectorate Change
10th Oct 20197:00 amRNSDirectorate Change
27th Sep 201911:53 amRNSResult of AGM
26th Sep 20197:00 amRNSAGM Statement
4th Sep 20194:06 pmRNSPosting of Annual Report and Notice of AGM
3rd Sep 20197:00 amRNSDirectorate Change
30th Aug 20191:49 pmRNSBoard Change
23rd Aug 20197:00 amRNSNew Funding Arrangements
16th Aug 20197:00 amRNSFinal Results
12th Aug 20197:00 amRNSExtension to Redemption Dates
15th Jul 20197:00 amRNSDirectorate Change
8th Jul 20191:19 pmRNSHolding(s) in Company
1st Jul 201910:46 amRNSExercise of Options and Total Voting Rights
30th May 20193:32 pmRNSHolding(s) in Company
30th May 20197:30 amRNSDirectorate Changes
30th May 20197:30 amRNSResponse to Stock Exchange AIM Disciplinary Notice
13th Mar 20191:29 pmRNSDirectorate Change
8th Mar 20191:17 pmRNSSettlement Agreement
19th Feb 20197:00 amRNSExercise of Options and Total Voting Rights
1st Feb 20197:00 amRNSDisposal
20th Dec 20187:00 amRNSDisposal
20th Dec 20187:00 amRNSHalf-year Report
30th Oct 20183:34 pmRNSResult of AGM
28th Sep 20181:39 pmRNSPosting of Annual Report and Notice of AGM
28th Sep 201811:59 amRNSFinal Results
19th Sep 20187:00 amRNSDirectorate Change
6th Sep 20187:00 amRNSDisposal
22nd Aug 201811:53 amRNSHolding(s) in Company
13th Aug 20181:50 pmRNSResult of General Meeting
10th Aug 20187:00 amRNSResult of Open Offer
7th Aug 20182:46 pmRNSBoard Change
18th Jul 20188:20 amRNSOpen Offer to raise up to £1 million
18th Jul 20187:00 amRNSOpen Offer to raise up to £1 million

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