•  EBITDA up 24%
  •  Boosted by improvements at Haydens, R&W Scott
  • Sales gain 2.6%
RGFC earnings rise

RGFC earnings rise

Sugar-to-ingredients group The Real Good Food Co. has booked a jump in full-year earnings accompanied by a "modest" increase in revenue.

In a filing today (26 June), the company said total EBITDA rose 24% to GBP10.5m in the 12 months to 31 March.

Real Good Food attributed the gain to "significant" earnings improvements at its Haydens and R&W Scott divisions. "All trading divisions now have positive EBITDA following the improvements at Haydens and R&W Scott," the group emphasised.

Sales were up 2.6% to GBP265m in the period. Chairman Pieter Totte suggested the growth demonstrated the "robustness" of the RGFC business in the face of challenging economic conditions.

"We achieved a significant increase in earnings despite only recording a modest increase in overall revenue," Totte said. "While the outlook for the economy and consumers' disposable income is likely only to improve gradually, I am confident that we have a strong platform for long term, sustainable growth, based on sound plans."

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The Real Good Food Company plc (AIM:RGD)

 

Final Results for the 12 months ended 31 March 2013 

 

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

 

 

12 months

ended

31 March

2013

£'000s

12 months

ended

31 March

2012

£'000s

15 months

ended

31 March

2012

£'000s

 

 

 

 

Revenue

265,754

258,573

305,529

EBITDA

10,466

8,455

9,185

Profit before taxation1

6,765

4,925

4,910

EPS:

 

 

 

Basic (adjusted)

7.8p

5.4p

6.2p

Diluted (adjusted)

7.2p

4.9p

5.7p

Working Capital

(Fixed Assets/Stock/Trade Debtors & Trade Creditors)

42,555

38,750

 

 

38,750

Net Borrowings (Incl Cash)

24,952

28,655

28,655

Net Debt/EBITDA

2.4

3.3*

3.3*

1 before restructuring costs

 

§  Further improvement over last year's strong performance, driven by significant EBITDA increases  at Haydens and R&W Scott

 

§  EBITDA up 24% to £10.5m, compared to £8.5m in the 12 months ended 31 March 2012

 

§  All trading divisions now have positive EBITDA following the improvements at Haydens and R&W Scott

 

§  Significant improvement in EPS adjusted (fully diluted excluding significant items) at 7.2p this year,  up 50% on 4.9p for 12 months ended  31 March 2012

 

§  Significant improvement in debt serviceability with  Net Debt / EBITDA ratio down from 3.3x at 31 March 2012 to 2.4x currently

 

§  Net Borrowings of £25.0m at 31 March 2013, down £3.7m from £28.7m in March 2012

 

 

Pieter Totté, Executive Chairman, comments:

"I am delighted to be able to report on a year of steady progress by the group, when we achieved a significant increase in earnings despite only recording a modest increase in overall revenue. We continued to invest in the development of our five businesses, but were still able to reduce total borrowings and secured new financing facilities for future expansion.     

 

"While the outlook for the economy and consumers' disposable income is likely only to improve gradually, I am confident that we have a strong platform for long term, sustainable growth, based on sound plans. I would like to thank colleagues across all the businesses for all the hard work which lies behind these results."

 

Change of Accounting Reference Date

 

This year's Annual Report covering the 12 months ended 31 March 2013 will in all financial schedules and supporting notes be tabled alongside the 15 month period ended 31 March 2012 as required in statutory reporting. However, where appropriate and relevant, the 12 month period ended 31 March 2012* will be included and commented on in order to present like for like visibility and demonstrate the underlying performance year on year. All references to last year in this report refer to the 12 months trading to the 31 March 2012

 

 

*     This will be on a "proforma basis" as, whilst this period has been audited as part of the 15 month period ended 31 March 2012, it hasn't been audited as a 12 month period in its own right. The Board is confident that this will present a reliable comparison.

Original source: The Real Good Food Co