Pre-Close Statement

Real Good Food Company Plc (The)
16 January 2007

Date:                    16 January 2007

On behalf of:            The Real Good Food Company plc ('the Company' or 'RGFC)

Embargoed until:         0700hrs





The Real Good Food Company plc

Pre-Close Statement





  • PBT approximately £9.3m for full year 2006
  • Excellent results in Bakery Ingredients and Fish Divisions
  • Napier Brown Foods performs robustly in difficult market
  • Bakery suffers cost over-runs





The Real Good Food Company plc (RGFC), the food manufacturing group, operating
in the ambient, chilled and frozen sectors of the market, is providing the
following trading update prior to entering its close period.



Overall trading in our three largest Divisions has exceeded expectations.
However, performance in our Bakery Division (Haydens) has fallen short of
expected levels due to cost overruns associated with new customer and product
introductions, impacting upon the Group's full year out-turn.



The EU sugar marketplace remains very competitive with structural surpluses
overhanging the market. In spite of this, Napier Brown Foods increased sales
steadily throughout the year. Although margins have remained tight, progress has
been made on a number of fronts particularly in the retail sales sector and on
bagged special sugars. The Finance and Administrative functions of Napier Brown
Foods were successfully transferred to the Normanton site, in Yorkshire, during
the summer, leaving the Division with a single integrated site for all
activities.



Five Star Fish had another strong year with higher sales driven by both volume
gains, up 7%, and increased raw material costs. Conversion costs have increased
as a result of raw material availability and size issues. There has been some
increase in overheads to manage this increased activity level but despite this,
profit will again show a year on year improvement.



In its first full year under RGFC ownership, Renshaw's performance was in line
with expectations with continuing sales up 2%. The management team is focussing
on moving the business into sectors beyond Bakery Ingredients with some early
successes. Plant efficiencies in the last quarter at both Liverpool and Carluke
are showing signs of moving towards our long term goals of best in class
manufacturing performance.



In spite of higher sales, up 6%, profitability at the Bakery Division
deteriorated as a result of increased direct labour and overhead costs. A number
of new customers came on stream during the year and the costs of servicing this
activity exceeded forecasts significantly.



In light of the above factors, we now expect the normalised profit before
exceptional items for the Group for 2006 to be approximately £9.3m.



The Board is pleased with the significant progress made in our three largest
Divisions, and the restructuring undertaken during 2006 leaves each operating
company better placed to capitalise upon the position in their respective
sectors. The Board now looks forward to the Group growing its profitability
steadily during 2007.





Enquiries to:



Pieter Totte / Lee Camfield
Real Good Food Company                                        Tel: [phone]



Duncan McCormick / Samantha Robbins
Redleaf Communications                                        Tel: [phone]



Guy Peters / Clive Black
Shore Capital                                                 Tel: [phone]





Notes to Editors:



•   The Real Good 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 four 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    Fish: incorporating Five Star Fish a supplier of high quality,
          added-value, prepared frozen fish to the foodservice sector.

     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