AGM Statement

RNS Number : 9647M

Real Good Food Company Plc (The)

03 June 2010

 



The Real Good Food Company plc (AIM: RGD) 

AGM Statement

The Real Good Food Company plc ("the Group"), owns the largest independent non-refining distributor of sugar in Europe (Napier Brown) and is a supplier of bakery ingredients and a manufacturer of sweet bakery products for a range of major retail customers. At today's Annual General Meeting, Pieter Totté, Chairman, will make the following comments:

"The Group has made a very good start to its financial year, and has achieved the goals set by the Board on working capital and profitability. Results for the first four months of the current year are above expectations, driven by a particularly strong performance at Renshaws, the baking ingredients business, and continued progress at Hayden's, our bakery products business.

"Our Napier sugar business is in a transitional year, following the EU sugar regime changes, but is starting to build momentum ahead of the new contract season in October. The market is expecting price increases and, in terms of supply, there have been some shortages of sugar globally. Within the EU the market is tight, albeit just in balance. Negotiations for the new season are well under-way and I am optimistic that we will start to see growth in both volumes and profitability.

"At Renshaws, the growth in volumes and profitability has been well in excess of our expectations. This is a seasonal business and the first half is normally the lowest trading period of the year. Growth is being driven by strong export sales to the US, together with increasing sales in the UK to the home baking and sugar craft sector. New product launches are on schedule and are expected to contribute to a sustainable growth of this business.

"Hayden's has continued its strong sales growth and the newly-completed management team is delivering on our expectations for the turn-around of this business. The challenge now is to deliver a modernisation plan for this business, as it expands into 55,000 sq. ft of additional space next month, but the strength of its relationships with key customers means we look forward to a good performance in the seasonally stronger second half of the year. 

"I am pleased with the continued progress we have made during the first four months of our current financial year. In addition, working capital remains in line with expectations, and we maintain excellent relations with our bankers, KBC. Overall, I remain confident that we can build on the progress achieved to date and look forward confidently to a strong second half performance."  

3 June 2010

ENQUIRIES:

The Real Good Food Company plc	Tel: [phone]
Pieter Totté, Chairman
Mike McDonough, Group Finance Director
Shore Capital	Tel: [phone]
Stephane Auton
College Hill	Tel: [phone]
Gareth David

 

END

 

 

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