AGM Statement

24 May 2006 07:01

Real Good Food Company Plc (The)24 May 2006 Date: 24 May 2006 On behalf of: Real Good Food Company plc ("the Group" or "RGFC") Embargoed to: 0700hrs Real Good Food Company plc AGM Statement At the Group's Annual General Meeting to be held later today, the Board of TheReal Good Food Company Plc will provide the following Trading Update. Trading Update At the time of the announcement of our Preliminary results on 23rd March 2006,we indicated that results in Napier Brown Foods, our Sugar Division, wererunning behind expectations due to the volatile nature of the sugar market.Volumes have been below both last year and forecast levels for a number ofreasons, not least of which is competitive price pressure. Since the end ofMarch we have seen an improvement in volumes, which are now approaching 2005levels, but a deterioration in margin. We have taken steps to respond to thecompetitive nature of the market but this has come at a cost in margin terms. In pursuing our strategic objectives, we have maintained share in premiumsectors and, following capital expenditure, would expect to see volume growthfrom added value products. Shortfalls in volume have been restricted to thebulk industrial sector, where margins have become particularly thin. Thereasons for the competitive marketplace have been widely reported and stempredominantly from the decision to delay the implementation of the new SugarRegime. Elsewhere in our business, trading remains in line with our expectations. Salesrevenues in Five Star Fish are 15% ahead of last year and we remain confidentthat the business will achieve another record year in what is still a flatfoodservice market. The new management team in Renshaw, our Baking Ingredients division, areconfident of meeting the challenges of re-invigorating the business. A widerange of new customer wins have been achieved and there are more to come.Progress is being made in restructuring the Liverpool factory and improvingoperational efficiency generally. In Bakery, comprising Hayden's Bakeries and Seriously Scrumptious, sales are 4%up on last year with increased sales to Marks & Spencer and a new retailcustomer coming on stream. Further wins are expected in the summer fromexisting and new customers in both the retail and foodservice sectors. Whilst the impact of the competitive market in sugar on the anticipatedprofitability of Napier Brown Foods is very disappointing and will lead to asignificant reduction in group profitability against our previous estimates, ourother businesses are on track to achieve results in line with expectations. Enquiries to: Pieter Totte / Lee CamfieldReal Good Food Company Tel: 020 7234 0570 Emma Kane / Samantha RobbinsRedleaf Communications Tel: 020 7955 1410 Guy Peters / Clive BlackShore Capital Tel: 020 7408 4090 Notes to Editors: ! The Real Good Company plc is a food group servicing high endniche markets. It aims to grow both through acquisitions and organically. Itacquires underperforming businesses lacking critical mass, product focus andwide ranging retail relationships, and profitable businesses lacking businessfocus or access to markets. It is listed on AIM (Symbol: RGD). This information is provided by RNS The company news service from the London Stock Exchange