UK bakery manufacturer The Real Good Food Co. said it remains "quietly confident" for the remainder of 2009 as it narrowed its losses for the first six months of the year.

For the period ended 30 June, the group made an operating loss of GBP0.89m (US$1.4m), an improvement from GBP1.16m in the previous year.
The sugars, ingredients and bakery company saw turnover drop to GBP101.7m from GBP1.4m in the comparable period of 2008. However, the group said it saw "improvements" in its bakery ingredients and bakery divisions, which both improved their operating performance year-on-year, driven by increased margins and lower overheads.

The bakery ingredients division experienced a 1.4% increase in sales, driving increased profitability in what is its "off season". The bakery division also had a "good" first half, with sales up 12% year-on-year.

This was offset by a 4.3% drop in sales at the company's sugar division to GBP78.1m versus GBP81.7m in the previous year.

Chairman Pieter Totte said: "The group continues to trade in line with its plan and with its commitments associated with its banking arrangements. We are currently benefiting from the consolidation of Renshaw Napier business with underlying overheads reducing with a full year impact flowing through 2010. The business is focussed on cash generation by further reducing working capital levels and focusing on EBITDA performance.
He added: "With further stability expected in the sugar market, improved profitability in both ingredients and bakery, we remain quietly confident regarding the remainder of the year as we move into our busiest seasonal period."