UK: Real Good Food Co. profit down

By Katy Askew | 13 November 2012

H1 profit dips to GBP1.02m
Sales gain
On track to meet FY expectations

Real Good Food Co earnings dip

UK bakery and ingredients firm The Real Good Food Co. has booked a drop in half-year profits, despite rising revenues.

The sugar-to-dessert company said profit for the six months to end September dipped to GBP1m (US$161.9m), down from GBP1.2m in the comparable period of last year.

Revenue increased to GBP137.8m, up from GBP128.2m in the period.

Commenting on the result, Real Good Food said the company has lowered its debt levels and increased its brand investment.

"We enter the critical Christmas trading period with all businesses in a strong position to maximise commercial opportunities. At the same time we continue to develop our medium term growth plans, and I am confident the group will deliver results for the year as a whole in line with market expectations," Pieter Totté, executive chairman, said.

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Real Good Food Company Plc (The)

13 November 2012

The Real Good Food Company plc (AIM: RGD)

Interim Results for the six months to 30 September 2012

The Real Good Food Company plc ("the group" or "RGFC") is a diversified food group, which owns Napier Brown (Europe's biggest non-refining sugar distributor) as well as Renshaw and R&W Scott (bakery ingredients), Garrett Ingredients (dairy ingredients) and Haydens Bakery (patisserie and desserts).

HIGHLIGHTS

	Six months to 30 September 2012	Six months to 30 September 2011
	£'000s	£'000s

Revenue	137,806	128,215

EBITDA	3,023	3,092
Continuing profit before taxation and significant items	1,173	1,373

Earnings per share
Basic: adjusted	1.5p	1.9p
Diluted: adjusted	1.4p	1.7p

Working capital (Fixed Assets/Stock/Trade Debtors Trade Creditors and Tax)	45,479	41,687

Net borrowings (Including Cash)	32,075	33,741

NB: These are the first interim results produced after the change in year end and as such the period to September 2011 has never been publicly reported.

Group continues to focus on brand development and driving sales growth

Divisional Highlights

o Key trading divisions of Napier Brown, Garrett and Renshaw all in line with this year's EBITDA expectations

o Significantly improved performance at R&W Scott - EBITDA up £0.8m over last year

o Improved performance at Haydens expected to accelerate in the second half

EBITDA little changed at £3.0m (2011: £3.1m) after increased investment in new branding initiatives of £0.5m at Napier Brown and Renshaw to support growth plans

Working Capital at £45.5m up 9.4% on last year, but well within planned levels and the normal seasonal pattern. Increase year-on-year primarily driven by higher stocks in Renshaw and Napier Brown, which will be worked off over the remainder of the year

· Net debt reduced by £1.7m to £32.1m, despite increase in working capital

Original source: Real Good Food Co

Sectors: Bakery, Chilled foods, Commodities & ingredients, Condiments, dressings & sauces, Financials

Companies: Real Good Food Co.