Disposal

RNS Number : 8727K

Real Good Food PLC

13 April 2018

 

13 April 2018

Real Good Food plc

(or "the Group")

Disposal

Real Good Food plc announces today that it has agreed terms for the sale of the business and certain assets of its non-core trading business, Garrett Ingredients Limited ("Garretts"), to Kent Foods Limited ("Kent") for a consideration of approximately £1.8m payable in cash, on a debt free/cash free basis, some £1m of which relates to goodwill, with the remainder adjusting principally to reflect the agreed stock valuation.  The funds raised will be used to reduce the Group's indebtedness. The sale is expected to complete on 20 April.

Garretts, which sources dairy, sugar and other specialist food ingredients and sells them to large, medium and small food manufacturers across the UK, has been part of Real Good Food plc since 2005. The Board believes that the business has more in common with Kent whose skills and aptitude are better suited to managing its contracts, given Real Good Food's resources are being increasingly focused on serving the end consumer.  In the Group's financial year ended 31 March 2017, Garretts contributed £21.3m of revenues and an operating loss of £0.9m. It had net assets of £1.9m as at 31 March 2017 and the Group expects to report a modest loss on the disposal.

Hugh Cawley, Chief Executive, said:

"We are pleased to have agreed the sale of this small, non-core business as part of our plan to improve the Group's performance."

-Ends-

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Enquiries:

Real Good Food plc Hugh Cawley, Chief Executive Harveen Rai, Finance Director	Tel: [phone]
finnCap Limited (Nomad and Joint Broker) Matt Goode (Corporate Finance) Carl Holmes	Tel: [phone]
MHP Communications (Financial PR)  Reg Hoare / Katie Hunt	Tel: [phone] [e-mail]
About Real Good Food 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 and Rainbow Dust Colours), Food Ingredients (Garrett Ingredients, R&W Scott and Brighter Foods) and Premium Bakery (Haydens and Chantilly Patisserie).

 

END

 

 

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