Pre-Close Statement

16 Jan 2007 07:00

Real Good Food Company Plc (The)16 January 2007 Date: 16 January 2007 On behalf of: The Real Good Food Company plc ("the Company" or "RGFC) Embargoed until: 0700hrs The Real Good Food Company plc Pre-Close Statement • PBT approximately £9.3m for full year 2006 • Excellent results in Bakery Ingredients and Fish Divisions • Napier Brown Foods performs robustly in difficult market • Bakery suffers cost over-runs The Real Good Food Company plc (RGFC), the food manufacturing group, operatingin the ambient, chilled and frozen sectors of the market, is providing thefollowing trading update prior to entering its close period. Overall trading in our three largest Divisions has exceeded expectations.However, performance in our Bakery Division (Haydens) has fallen short ofexpected levels due to cost overruns associated with new customer and productintroductions, impacting upon the Group's full year out-turn. The EU sugar marketplace remains very competitive with structural surplusesoverhanging the market. In spite of this, Napier Brown Foods increased salessteadily throughout the year. Although margins have remained tight, progress hasbeen made on a number of fronts particularly in the retail sales sector and onbagged special sugars. The Finance and Administrative functions of Napier BrownFoods were successfully transferred to the Normanton site, in Yorkshire, duringthe summer, leaving the Division with a single integrated site for allactivities. Five Star Fish had another strong year with higher sales driven by both volumegains, up 7%, and increased raw material costs. Conversion costs have increasedas a result of raw material availability and size issues. There has been someincrease in overheads to manage this increased activity level but despite this,profit will again show a year on year improvement. In its first full year under RGFC ownership, Renshaw's performance was in linewith expectations with continuing sales up 2%. The management team is focussingon moving the business into sectors beyond Bakery Ingredients with some earlysuccesses. Plant efficiencies in the last quarter at both Liverpool and Carlukeare showing signs of moving towards our long term goals of best in classmanufacturing performance. In spite of higher sales, up 6%, profitability at the Bakery Divisiondeteriorated as a result of increased direct labour and overhead costs. A numberof new customers came on stream during the year and the costs of servicing thisactivity exceeded forecasts significantly. In light of the above factors, we now expect the normalised profit beforeexceptional items for the Group for 2006 to be approximately £9.3m. The Board is pleased with the significant progress made in our three largestDivisions, and the restructuring undertaken during 2006 leaves each operatingcompany better placed to capitalise upon the position in their respectivesectors. The Board now looks forward to the Group growing its profitabilitysteadily during 2007. Enquiries to: Pieter Totte / Lee CamfieldReal Good Food Company Tel: 020 7234 0570 Duncan McCormick / 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. It aims to grow both through acquisitions and organically. • It is listed on AIM (Symbol: RGD) • The Group currently comprises of four operation Divisions: o Sugar: incorporating Napier Brown Foods, the UK's largest independent, non-refining, distributor of sugar supplying a range of sugar and dry ingredients to the retail, foodservice and industrial sectors; o Fish: incorporating Five Star Fish a supplier of high quality, added-value, prepared frozen fish to the foodservice sector. o Baking Ingredients: incorporating Renshaw, a leading manufacturer of marzipans, ready to roll icings, baking chocolate and jam, supplying major cake manufacturers, high street bakers and retailers. o Bakery: incorporating Hayden's Bakeries and Seriously Scrumptious: produces chilled and ambient premium patisserie and dessert products to retail grocery customers. • Further information about the Group is available via its website: www.realgoodfoodplc.com This information is provided by RNS The company news service from the London Stock Exchange