The Real Good Food Co., the UK bakery-to-ingredients group, said today (1 February) annual profits would not meet market expectations.
Recent investment, combined with unspecified “one-off events” within its business, meant underlying EBITDA for the 12 months to 31 March would be flat year-on-year, leading to a final profit that would fall below City estimates.
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“The board is confident however that the negative impact on margins is short-term and that the Group is well positioned for future growth following its investment programme,” Real Good Food said.
The company said its annual pre-tax profits and earnings per share would be “significantly improved” compared to the previous 12 months thanks to the proceeds from the sale of its Napier Brown sugar business to France-based refiner Tereos last year.
The deal has also led Real Good Food to reduce its debt, which it insisted leaves it “in a strong position to execute its dual investment and acquisition strategy, which is already well underway, leading to future growth and increased financial strength”.
Shares in Real Good Food were down 16.82% at 37.01p at 08:01 GMT this morning,
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