Real Good Food Company plc, the manufacturer of ambient, chilled and frozen products, has reported year-end results for 2005 significantly boosted by its GBP67.7m (US$118.34m) reverse acquisition of Napier Brown Foods in September 2005.
Turnover reached GBP116.4m for 2005, up 228% from GBP35.5m in 2004, while normalised trading profit rose from GBP0.4m to GBP7.1m.
The company added that its fish division, Five Star Fish, exceeded the earn-out targets set at the time of its acquisition in May 2004, while Hayden’s, its bakery operation, recorded continued growth during 2005 with record sales levels achieved over the pre-Christmas period.
A new management team had been put in place in its baking ingredients division, the company said, with new operational processes also introduced. Despite reduced sales at its sugar division as a result of a customer margin review, Real Food said profitability was maintained.
“Strong progress on a number of fronts has been achieved in building a robust platform for future growth including strengthening and deepening the management teams across all the operating divisions, in particular the Renshaw business, and creating a new plc board,” said Real Good Food Company’s non-executive chairman Pieter Totte. “We are now in the best shape to take the group forward. We have achieved an important scale in each of our divisions and we are also beginning to yield the benefits of cross-divisional initiatives in terms of cost reduction, purchasing economies and sales opportunities.
“Our focus for the coming financial year will be to concentrate on developing our assets to their maximum potential and to exploit all commercial opportunities whilst continuing to identify small bolt-on targets to supplement and develop the activities of our operating companies. We are happy with the start to the current financial year, albeit with a slow start for the sugar division reflecting market volatility and a late Easter. We look forward to the coming year with enthusiasm.”
The company also reported on trading so far in the current fiscal year. The Bakery division had made a promising start to the year, it said, with sales up 3%. Like-for-like sales from its bakery ingredients division were also marginally ahead, in spite of some customer Christmas stock overhang.
Five Star Fish has performed “exceptionally well”, with sales during the first nine weeks up by 15% year-on-year. However, Real Good Food warned that the sugar market remained very competitive.