Real Good Food revenue falls short of market expectations

UK bakery, ingredient and sugar group Real Good Food reported annual revenue of £139.25m, lower than market forecasts of £251.5m as continuing profit before tax rose 148 per cent.

The group, which owns Napier Brown sugar and food ingredient businesses Garrett and Renshaw said it is confident of meeting company expectations for 2012 and remains on track to double the size of its business within three years.

Continuing pre-tax profit at the Liverpool-based group rose to £5.7m for the six months ended 31 December 2011, in line with estimates and up from £2.3m a year earlier. Revenue climbed to £139.25m compared with £109.37m a year before. The group is changing its accounting year-end to 31 March.

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Its key trading divisions Napier Brown, Garrett and Renshaw all increased their EBITDA performance year on year however its bakery operation Haydens was hit by increased commodity costs.

Overall executive chairman Pieter Tott said he was pleased with progress on all fronts.

"With trading starting positively in January, and divisional management achieving further progress in their improvement programmes, I am confident of meeting our expectations for 2012," he said.

"We have a clear growth plan. Our strategic focus is on creating solid sustainable profitability based on self-help initiatives including brand development, sales growth and risk management."

Net debt fell to £25.8m from £31.9m at June 2011.

CJ