The Real Good Food Company today (12 July) issued an upbeat trading update ahead of its first-half results, which said the company is confident of meeting its full year targets, with June sales bolstering its sugar division.

In May the ambient, chilled and frozen food manufacturer warned that sluggish sales in its Napier Brown sugar division may affect its performance and dent group profits. However, the company reported, sales at Napier have picked up - with sales in June exceeding those reported for the previous year. "Volumes are returning to historic levels and margins are in line with our forecasts," the company said.

Five Star Fish, the company continued, has exceeded expectations with volumes and selling price increase by 14% year-on-year - volumes alone are 9% up.

The turnaround of Renshaw, the bakery ingredients division, has continued in line with plans - business lost in 2005 has been regained and factory efficiency is improving, Real Good said. Sales for the first half are broadly in line with 2005, after adjusting for the closure of the nuts activity, and margins are slightly ahead of last year on a like for like basis.  The company expects volumes to increase in the second half, and has plans in place to handle increased volume.

Sales volume at the Hayden's Bakeries business have grown 5% over last year's levels. Progress has been slower than expected in improving the cost base, but the company said it expects improvements in the second half.

"The Board remains confident of achieving full year expectations and looks forward to providing a more detailed update to shareholders when it announces its interim results in late September," the statement read.