Real Good Food PLC Trading Statement (4752D)
January 31 2018 - 5:30AM
UK Regulatory
TIDMRGD
RNS Number : 4752D
Real Good Food PLC
31 January 2018
Real Good Food plc
("Real Good Food", "the Company" or "the Group")
Trading Statement
Real Good Food Plc (AIM:RGD) today provides the following update
on trading.
Sales during the early part of the Christmas trading quarter
were largely satisfactory. Performance in the last few weeks of the
year however was materially below the Company's expectations,
largely owing to disappointing performance in UK grocery retail and
de-stocking in overseas markets.
In addition, the Board is currently undertaking a review of the
various balance sheets of the Group companies in order to ensure
that their accounting treatments are consistent across the Group
and accord with good practice.
As a result of this review and of a reforecast exercise within
all the operating businesses, allied to the poorer than expected
trading late in 2017 and early in 2018, the Company now expects the
outturn for the year to be an EBITDA loss of up to GBP3.5
million.
Looking more widely at the prospects for the Company, there are
clear signs that the considerable investment made throughout the
Group in the past eighteen months is beginning to yield benefits. A
turnaround plan has been formulated and is now in the process of
being implemented by the new management team to reverse the
negative performance trend and to begin to deliver the sort of
returns that investors should more reasonably expect over the
medium term.
In addition to this, the Company continues to improve its
corporate governance and internal reporting and accounting
processes and procedures. The Company has also appointed BDO LLP as
its new auditors.
The Company's major shareholders, who are represented on the
Board, remain fully committed and supportive of the turnaround plan
and its implementation. The major shareholders have again stated
their willingness, for instance, to bridge any short-term funding
needs should a solution for the identified funding requirement not
be in place as anticipated by the end of the first quarter. The
majority of the Group's debt already sits with the major
shareholders; save for the asset-backed funding, borrowings from
the Group's primary lender now comprise just GBP1.75m of amortising
term loan.
The Board believes that each of the Company's three divisions
hold good market positions and have valuable prospects and
individual worth.
-Ends-
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
ENQUIRIES:
Real Good Food plc
Hugh Cawley, Executive Director Tel: 020 38573900
Harveen Rai, Finance Director
Andrew Brown, Marketing Director
finnCap Ltd (Nomad and Broker)
Matt Goode Tel: 020 7220 0500
Carl Holmes
Belvedere Communications (PR)
John West Tel: 020 3567 0510
Kim van Beeck
About Real Good Food plc
Real Good Food plc is a diversified food business serving a
number of market sectors including retail, manufacturing,
wholesale, foodservice and export. The Group focuses on three main
markets: Cake Decoration (Renshaw, Rainbow Dust Colours), Food
Ingredients (Brighter Foods, Garrett Ingredients and R&W Scott)
and Premium Bakery (Haydens and Chantilly Patisserie).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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