Pre-close trading update

RNS Number : 4131A

Real Good Food Company Plc (The)

01 February 2011

 



The Real Good Food Company plc (AIM: RGD) 

Pre-close trading update

The Real Good Food Company plc ("the Group"), owns the largest independent non-refining distributor of sugar in Europe (Napier Brown), supplies bakery ingredients (Renshaw) and manufactures patisserie and desserts (Haydens Bakery)

As anticipated in the last update, on 30 November, trading during the key pre-Christmas period was strong, and the Group suffered no loss of sales at all as a result of the exceptionally severe weather experienced during December.

Sugar prices world-wide have soared to record highs in recent weeks, a situation which should transform the dynamics of Napier Brown following a transitional year that has seen a conclusion of the EU sugar regime changes.

Renshaw produced its best ever performance in 2010, with growing exports and the increased popularity of home baking being the key drivers of strong sales growth.

Planned expansion of the Haydens Bakery business into a new distribution centre is well advanced, and the business had a good pre-Christmas trading period, during which it received accolades from customers for its ability to maintain product deliveries, despite weather-related logistical challenges.   

The Group has achieved considerable success over the past year in controlling costs and working capital, and ended the year with bank borrowings having been reduced to just under £20m, significantly lower than current market forecasts.   

Overall profits for the year to 31 December 2010, which are to be announced in the week beginning 28 March 2011, will be in line with current market forecasts.

Pieter Totté, Executive Chairman, comments:

"I am very pleased at the significant progress we have made over the past 12 months and the efforts made by our management team to realise the Group's full potential. We have three exciting businesses, each with prospects for continued further progress in the current year, and a significantly reduced level of bank borrowings. I look forward to reporting further on our progress over the coming months." 

1 February 2011

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

 

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