Real Good Food Company Plc (The)
12 July 2006
12 July 2006
The Real Good Food Company Plc ('the Company' or 'RGFC')
Trading Update
The Real Good Food Company Plc (AIM: RGD), the food manufacturing group in
ambient, chilled and frozen products, is today providing the following trading
update prior to entering its close period for the six months to 30 June 2006.
At the time of our Annual General Meeting on 24 May 2006, we indicated that
volumes in Napier Brown Foods, Sugar division, were approaching 2005 levels. We
are pleased to report that this trend has continued, and sales in June 2006
exceeded those for the same month last year. The outlook for the remainder of
the year is in line with our expectations; volumes are returning to historic
levels and margins are in line with our forecasts. Increased sales have come
from new wins in the retail and delivered wholesale sectors.
The Fish division, Five Star, a leading supplier of added value battered /
breaded frozen fish to the foodservice sector, has had an encouraging first half
of the year with volumes and selling prices ahead of plan and some 14% above
last year. Some of this has been due to raw material inflation but volumes are
9% up. Our view remains that Five Star Fish will achieve another record year
both in terms of revenue and profit growth.
The new team at Renshaw, the Bakery Ingredients division, has made a significant
impact. Business lost in 2005 has been regained and factory efficiencies are
improving. Sales for the first half are broadly in line with 2005, after
adjusting for the closure of our nuts activity, and margins are slightly ahead
of last year on a like for like basis. Plans are in place to handle the
expected second half up-lift in volumes.
In the Bakery division, Hayden's Bakeries, sales volumes are 5% ahead of last
year. Additional volumes have been secured from Marks & Spencer and new lines
with two new retail customers have been introduced in the first six months of
the year. Progress to date has been slower than we expected in improving the
cost base, but following investment we expect improvements in the second half.
The Group now enters its important summer and Christmas trading periods with
settled, devolved management teams focused upon delivering profit growth in the
second half. The Board remains confident of achieving full year expectations
and looks forward to providing a more detailed update to shareholders when it
announces its interim results in late September.
Enquiries to:
Pieter Totte / Lee Camfield
Real Good Food Company Plc Tel: 020 7234 0570
Duncan McCormick / Samantha Robbins
Redleaf Communications Tel: 020 7955 1410
Guy Peters / Clive Black
Shore Capital Tel: 020 7408 4090
Notes to Editors:
• The Real Good Company Plc is a food Group. 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 business focus or access to markets
• It is listed on AIM (Symbol: RGD)
• The Group currently comprises of:
- 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;
- Hayden's Bakeries: produces chilled and ambient premium patisserie
and dessert products to retail grocery customers and Seriously Scrumptious
supplies a similar range frozen to foodservice customers;
- Renshaw: a leading manufacturer of marzipans, ready to roll icings,
baking chocolate and jam, supplying major cake manufacturers, high street
bakers and retailers;
- Five Star Fish: a supplier of high quality, added-value, prepared
frozen fish to the foodservice sector.
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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