UK bakery and ingredients group Real Good Food is forging ahead in its new financial year boosted by a strong order book, buoyant trading and is set to start dividend payments, CEO Pieter Totté will confirm today (12 September).
Totté, who will give a trading update at Real Good Food’s annual general meeting in London, will say: “Order intake is strong, particularly in our Premium Bakery business which is showing double digit percentage, like for like, revenue growth when compared with the corresponding period last year.”
Go deeper with GlobalData
“Overall we are satisfied with our trading performance during the first four months of our new financial year and the board remains confident in meeting market expectations for the full year across all the group’s KPIs,” Totté will say. “Our Cake Decorating business also has good order visibility meaning we look forward to the key autumn and Christmas season with confidence.”
In addition, Totté will confirm the group’s board has decided to start the payment of dividends. “Following the court approval of the capital reduction, the next stage is for Real Good Food is to file company accounts with Companies House, after which it will be in a position to announce and pay a dividend.” The process is expected to be completed by the end of December 2016 and it is expected that Real Good Food’s directors will declare an interim dividend soon after.
“The directors intend to pay a final dividend following the announcement of the group’s 2017 results, subject to the approval of shareholders at the 2017 AGM,” Totté will say. “The level of the dividends declared will take into consideration the group’s requirements for continued investment capital.”
“The group now has a strong balance sheet and is cash generative and although our primary objective is to invest our cash to drive growth in our operations, the board feels that it is important to start to pursue a progressive dividend policy alongside this,” Totté will say.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataAccording to the CEO, Real Good Food’s objective remains “to utilise our significant cash resources to build scale and strategic positions in each of our three pillar markets through organic growth, targeted investment and bolt-on acquisitions as appropriate”.
Real Good Food is continuing to “invest in our people, technology, brand and marketing; as well as in our manufacturing facilities, including new machinery, and better processes”, Totté is set to say. “We are conscious of the impact of the living wage and are already undertaking a plan to make the most efficient use of our labour force across all our operations. It is critical that we continue to adapt, to innovate and to lead within our chosen markets.”
Meanwhile, following “much commentary about the impact on UK businesses following the Brexit referendum result”, Totté will say Real Good Food “has not seen any material negative impact” on any of its operations as a result of the June referendum decision.
Totté said last month that Real Good Food had seen “satisfactory” trading in the first three months of its financial year. His comments came as the group reported its financial results for the year to the end of March. Real Good Food posted a net profit of GBP12.9m (US$17m), compared to a loss of GBP3.4m a year earlier, thanks to proceeds from the sale of its Napier Brown sugar business to France-based sugar refiner Tereos last year.
