Real Good Food Company plc, the food manufacturing of ambient, chilled and frozen products, anticipates 2005 full-year pre-tax profits in the region of GBP7m (US$12.49), the company said in a trading update released today (24 January). At the year-end, RGFC said it had a positive cash balance of over GBP6m, with debt some GBP11m within the group’s available facilities.
The company said that 2005 trading performance was marginally below expectations due to “a very competitive background in all our sectors”. Both Renshaw ingredients and Hayden’s Bakeries failed to meet performance targets, although both improved upon their previous year’s performance.
The bakery division was held back by delayed product launches and delays in new customers coming on stream. The company said that these issues have been addressed and it is now well placed to improve performance in 2006.
Renshaw ingredients has now fully integrated the Sefcol business and the caramel production lines transferred from the group’s former plant in Runcorn. The loss-making nut processing arm of Sefcol is due to close at the end of January. The extensive restructuring meant that profits were broadly in line with expectations, and the division is also better placed for 2006, the company said.
Five Star Fish and Napier Brown Foods continued to perform well in 2005, RGFC said. Napier Brown achieved record sales while Five Star Fish reported increases in gross margins thanks to factory efficiency and price increases in 2005.
The consolidation of centralised control of RGFC and Napier at head office has been completed at a higher than anticipated cost. The company believes that it is well places for 2006, stating: “We believe all business units are now well structured to be able to compete effectively in what is a competitive market and we are optimistic for a successful 2006.”