Pre-Close Statement

Real Good Food Company Plc (The)
07 December 2004

Date:                  7th December 2004

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

Embargoed until:       0700hrs





The Real Good Food Company PLC

Pre-Close Statement



The Real Good Food Company PLC, manufacturers and suppliers of chilled and
ambient products to food retailers, expects to announce its preliminary results
for the 16 months  ended 31st December 2004 in March 2005.  Prior to entering
its close period, the Company is pleased to provide the following update on
trading which confirms that the substantial strategic and financial progress
announced by the Group at the time of its interim results on 31st August 2004
has continued.



People



Significant emphasis has been placed on developing and broadening the management
team in both operational and financial positions across the Group, utilising
internal, proven expertise across the Group where possible.  The creation of a
robust yet flexible management structure is viewed as a key factor in
underpinning the Group's revenue and profit growth going forward.  The Board is
therefore pleased to announce the following appointments:



Dennis Scott, who was instrumental in the restructuring and revitalisation of
Hayden Bakeries, has with immediate effect been appointed Managing Director of
Seriously Scrumptious.  His remit is to build this unit rapidly and develop its
core competencies with a selective range of customers. John Gibson, RGFC's Chief
Executive, will be responsible for day to day management activities at Hayden,
until an appointment is made.



In addition, Ian Hubbard has been appointed Group Finance Controller with
specific responsibilities for managing the finances of Hayden Bakeries, Cool
Fresh and Seriously Scrumptious.  Ian brings a wealth of experience in financial
control and was formerly Financial Controller at Dyson.



Operations



Hayden's

The investment in people and processes that has been made since acquisition has
transformed this business which has now been consistently profitable since the
spring of 2004.  The increased utilisation of capacity through increased sales,
which are running at record levels and some 19% higher than the same trading
period last year, has been a key factor in achieving improved profitability.
Careful planning by the Group and the implementation of a production planning
system earlier in the year has facilitated this substantial increase in sales.
The Group is also targeting further efficiencies and new manufacturing equipment
including a laminator, pie line, croissant moulder and crumble line have
recently been installed.  Targets set for 2005 are to increase sales again and
drive net margin to the high single digits.  Product development remains a key
focus area for the business and the management team is extremely pleased to
report that Waitrose have won an award for their Bistro Apple Tart, developed
and supplied by Hayden's, at this year's prestigious Q awards. The Board is
delighted with the progress made at Hayden's.  There is still some way to go to
achieve material cost target improvements but we expect to achieve these in
2005.



Coolfresh

This business has been refocused and restructured.  Distribution costs have been
reduced significantly following the successful exit from our arrangements to
supply Caffe Nero and overhead costs at the Rayleigh site have been cut.  A new
supply agreement with Nisa has started and should generate increased volumes in
2005.   Having stablised the business, the team is now focused on driving
margins and building the division's position as a major participant in the food
service sector.  A number of opportunities exist for Coolfresh to act as a
consolidator in the sector, a key to reducing the excess capacity in this
market, and the Group hopes that it will be able to make a further announcement
in this respect in the near future.



Seriously Scrumptious

Since acquisition, a number of fundamental changes have been made including the
closure of the old site and the commission of a new factory in Glastonbury which
is now British Retail Consortium (and Waitrose) accredited.  Dennis Scott, the
division's new Managing Director, will continue the restructuring of the
business and will focus on developing high quality, individual portion products
such as cookies and traybakes, and patisserie ranges which generate higher
margins.  Sales of celebration and wedding cakes, which currently account for
less than 15% of the company's revenues, have been disappointing and margins
have not met expectations.  The company's sales strategy is being refined with a
greater emphasis being placed on the food service sector and the targeting of a
narrower but more focussed range of customers.



Five Star Fish

This company, which was acquired on 13th May 2004, has made a stellar debut as
part of the Group and has performed in line with expectations, despite
increasing raw material costs.  Increased sales, which are running 17% higher
than the same period last year and operating efficiencies have offset the impact
of higher input costs and this trend is expected to continue over the remainder
of 2004 and the early part of 2005.  The Board expects unit margins to increase
when raw material costs ease next year.  In the medium term, this excellent
sales volume growth, achieved by widening the customer base, is likely to
continue.  In the longer term, the opportunity to develop the business into
other sectors, beyond food service, is under review and certain opportunities
have been identified.  All in all, a very pleasing start to our ownership of
Five Star Fish.



In summary, we are very pleased with the performance of all the businesses
during a period of restructuring and revitalisation within the Group.  The
synergies that can be achieved for companies as part of the Group are becoming
more evident and the strength of management and its ability to share its
expertise with other group division's are paying dividends.  We are confident
that robust foundations are now in place in all the businesses which will enable
us to drive growth both organically and through further acquisition to achieve
the full potential of the significant opportunities we see in our market.  We
are confident about the Group's ability to broadly meet market expectations in
the current year and 2005.



Enquiries to:



Pieter Totte                                  Tel:  [phone]
Chairman
Real Good Food Group



Emma Kane/James White                         Tel:  [phone]
Redleaf Communications



Notes to Editors:



•      Publication quality photographs are available from Redleaf Communications

•      The Real Good Food Company plc is a food group servicing high end
       niche markets.  It aims to grow both through acquisitions and organically.  
       It acquires underperforming businesses lacking critical mass, product 
       focus and wide ranging retail relationships, and profitable businesses 
       lacking access to markets.

•      History and key events:

Date        Event                       Key Information
Feb 2003    Company Inception           Investment holding company
Jun 2003    Initial fund raising        £1.66m raised
Jul 2003    First set of acquisitions   Hayden's Bakeries, Seriously Scrumptious and Coolfresh acquired
Aug 2003    Integration of businesses   All operations and logistics hived up into RGFC. New factory for Seriously
                                        Scrumptious
Sep 2003    AIM listing                 Company listed on AIM
Jan 04      Placing                     £9.4m raised through placing of 7,407,407 ordinary shares at 135p per
                                        share. Proceeds to provide cash element of future acquisition
May 04      Acquisition                 Five Star Fish acquired.  Initial consideration was £16.6m - satisfied by
                                        issue of 695,410 ordinary shares, cash of £13.7m and assumption of £1.9m
                                        borrowings
Sep 04      Placing                     £1m raised through placing of 740,741 ordinary shares at 135p per share.
                                        Proceeds are to provide cash element of future acquisition






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