AGM Statement and Trading Update

RNS Number : 4717J

Real Good Food PLC

12 September 2016

 

Strictly embargoed until: 07.00: 12 September 2016

Real Good Food plc

("the Group" or "Real Good Food")

AGM Statement and Trading Update

Real Good Food plc (AIM: RGD) will today hold its Annual General Meeting at 10.30 a.m. at Haberdashers' Hall, 18 West Smithfield, London EC1A 9HQ.

At the meeting Pieter Totté, Executive Chairman, will make the following statement:

"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.

"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.

"Our Cake Decorating business also has good order visibility meaning we look forward to the key autumn and Christmas season with confidence.

"Our 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.  In pursuit of this we have continued to invest in our people, technology, brand and marketing; as well as in our manufacturing facilities, including new machinery, and better processes.  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.

"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.

"In this regard, I am pleased to announce that the Board has decided to commence the payment of dividends. Following the court approval of the capital reduction, the next stage is for Real Good Food plc to file company accounts with Companies House, after which it will be in a position to announce and pay a dividend.  This process is expected to be completed by the end of December 2016 and hence it is currently anticipated that the Directors will declare an interim dividend shortly thereafter.  Thereafter 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. The level of the dividends declared will take into consideration the Group's requirements for continued investment capital.

"Finally there has been much commentary about the impact on UK businesses following the Brexit referendum result.  I am pleased to announce that we have not seen any material negative impact on any of our operations as a result of the vote."

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About Real Good Food plc

Real Good Food plc is a diversified food business serving a number of market sectors including retail, manufacturing, wholesale, foodservice and export. The Group focuses on three main markets: Cake Decoration (Renshaw, Rainbow Dust Colours), Food Ingredients (Garrett Ingredients and R&W Scott) and Premium Bakery (Haydens and Chantilly Patisserie).

ENQUIRIES:

Real Good Food plc	Tel: [phone]
Pieter Totté, Executive Chairman
David Newman, Finance Director
Andrew Brown, Marketing Director
finnCap Limited (Nomad and Joint Broker)	Tel: [phone]
Matt Goode / Grant Bergman (Corporate Finance) Tim Redfern (Corporate Broking)
Daniel Stewart and Company Plc (Joint Broker)	Tel: [phone]
David Lawman Jonathon Webb
Belvedere Communications (PR)	Tel: [phone]
John West
Kim van Beeck

 

END

 

 

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