Real Good Food Company Plc (The)
11 June 2007
Date: 11 June 2007
On behalf of: The Real Good Food Company plc ('the Company' or 'RGFC)
Embargoed until: 0700hrs
The Real Good Food Company plc
Disposal
The Company announces today the disposal ('Disposal') of the assets and goodwill
of its Fish Division, Five Star Fish, its added value frozen fish business based
in Grimsby in Lincolnshire, to the privately owned British Seafood Ltd for an
initial consideration of £35 million payable in cash at completion, of which
£0.75 million will be held in Escrow for a period of nine months. Completion of
the Disposal is expected to take place on 12 June 2007.
Five Star Fish is a leading supplier of added-value, prepared frozen fish to the
foodservice sector. Real Good Food acquired Five Star Fish in May 2004 from
private ownership. Since then the business has grown sales from £19m to in
excess of £30m today. Profits have also increased significantly during this
period. The Division has gross assets of £17.6 million, whilst its turnover for
the year to 31 December 2006 was £29.1 million, which equated to approximately
11.6% of group turnover. Operating profits of approximately £4 million, equating
to 29.9% of group operating profit.
The Company intends to use the net proceeds from the Disposal, which after tax
will be approximately £27 million, to lower the level of group debt.
Commenting on the transaction Pieter Totte, Chairman of Real Good Food, said:
'I would like to thank Danny Burton and the team at Five Star Fish for their
contribution to the development of The Real Good Food Company over the past
three years. They will be able, by joining forces with British Seafood, to move
more rapidly towards their visions for the business. Their period under RGFC
ownership has been mutually beneficial and I believe they will provide British
Seafood with an ideal platform for its development into the added value seafood
marketplace in the UK and Ireland.'
Commenting on partnering British Seafood, Danny Burton, Managing Director of
Five Star Fish, said:
'British Seafood is the ideal partner for Five Star Fish to be working with in
the future. We know the team at British Seafood well and have worked with them
for a number of years. Opportunities for the further development of Five Star
Fish will be increased by this deal'.
Mark Holyoake, Chief Executive of British Seafood, said:
'I would like to welcome Danny and the team at Five Star Fish to the British
Seafood group of companies. I have admired this business for a number of years
and feel that under our ownership the business can move to another level. It has
a very exciting future with us.'
-ends-
Enquiries to:
Pieter Totte (Chairman) Tel: 020 7234 0570
Lee Camfield (Group Finance Director) Tel: 020 7335 2623
The Real Good Food Company
Guy Peters Tel: 020 7408 4090
Shore Capital
Samantha Robbins/Duncan McCormick Tel: 020 7822 0200
Redleaf Communications Ltd
(PR Adviser to the Company)
Notes to Editors:
• Real Good Food Company Plc is a food Group. It aims to grow both
through acquisitions and organically.
• It is listed on AIM (Symbol: RGD)
• The Group currently comprises of three operation Divisions:
o Sugar: incorporating Napier Brown Foods, the UK's largest independent,
non-refining, distributor of sugar supplying a range of sugar and dry
ingredients to the retail, foodservice and industrial sectors;
o Baking Ingredients: incorporating Renshaw, a leading manufacturer of
marzipans, ready to roll icings, baking chocolate and jam, supplying
major cake manufacturers, high street bakers and retailers;
o Bakery: incorporating Hayden's Bakeries and Seriously Scrumptious:
produces chilled and ambient premium patisserie and dessert products to
retail grocery customers.
• Further information about the Group is available via its website:
www.realgoodfoodplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
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