Real Good Food has seen a continued improvement in its earnings before interest, taxes, depreciation, and amortization (EBITDA) performance, compared to 2010, since 1 July to date, the firm said.
Stock levels have been falling during the fourth quarter following easing of the problems in the sugar supply chain. Mean,while upward pressure on working capital is said to have eased, resulting in borrowings being reduced over the period.
The firm has launched its Renshaw brand, which has been met with a positive reaction from customers and consumers, while the new Whitworths brand has been developed and will be retailed in first quarter of next year.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The 2011/12 Sugar Contract season has gone well, the firm said, with over 90% now contracted.
However, modernisation of the Haydens Bakeries plant is running about six months behind schedule, but the firm was keen to emphasise that in November it took the first step in a major reorganisation of shift patterns and will be introducing improved production cycles in the first quarter of 2012, which it expects to have a major impact on performance.
Executive chairman Pieter Tott said: "Whilst we are still only midway through the key Christmas trading period, I am pleased with the progress we have made so far, both in terms of our financial performance this year against last year, and the good progress being made with all the strategic initiatives for each of our businesses."
"Earlier this year we announced that the group was changing its accounting reference date from 31 December to 31 March, in order to better align its reporting to the markets with the seasonality of our business. As the October to December quarter accounts for around 50% of our annual profitability it makes more sense to have this period behind us when preparing annual budgets and projections."
The share price rose 4.32% to 36.25p by 14:16.
NR
-
The top stocks in the FTSE 100After a year of strong returns for the UK’s flagship index, which FTSE 100 stocks have posted the best performance in 2024?
-
A junior ISA could turn your child’s pocket money into thousands of poundsPersuading your child to put their pocket money in a junior ISA might be difficult, but the pennies could quickly grow into pounds – and teach them a valuable lesson about money
