Proactiveinvestors United Kingdom Real Good Food PLC https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Real Good Food PLC RSS feed en Wed, 26 Jun 2019 20:53:07 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20190530153213_14092934/ Thu, 30 May 2019 15:32:13 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20190530153213_14092934/ <![CDATA[RNS press release - Directorate Changes ]]> https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20190530073004_14092041/ Thu, 30 May 2019 07:30:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20190530073004_14092041/ <![CDATA[RNS press release - Response to Stock Exchange AIM Disciplinary Notice ]]> https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20190530073002_14092039/ Thu, 30 May 2019 07:30:02 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20190530073002_14092039/ <![CDATA[RNS press release - Directorate Change ]]> https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20190313132916_14001058/ Wed, 13 Mar 2019 13:29:16 +0000 https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20190313132916_14001058/ <![CDATA[News - Real Good Food reaches out-of-court settlement with former sugar supplier ]]> https://www.proactiveinvestors.co.uk/companies/news/216101/real-good-food-reaches-out-of-court-settlement-with-former-sugar-supplier-216101.html Real Good Food PLC (LON:RGD) shares rose on Friday afternoon after it reached an out-of-court settlement with one of its former sugar suppliers.

The food ingredients company said the settlement amount was “broadly in line” with the £355,000 provision it made in last year’s accounts.

READ: Real Good Food positive on outlook as restructuring begins to bear fruit

In a brief statement, Real Good Food added that the settlement “[brings] to a satisfactory close a dispute that has been outstanding for more than a year”.

Shares climbed 4% to 6.5p.

]]>
Fri, 08 Mar 2019 13:51:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/216101/real-good-food-reaches-out-of-court-settlement-with-former-sugar-supplier-216101.html
<![CDATA[RNS press release - Settlement Agreement ]]> https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20190308131730_13995977/ Fri, 08 Mar 2019 13:17:30 +0000 https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20190308131730_13995977/ <![CDATA[News - Real Good Food positive on outlook as restructuring begins to bear fruit ]]> https://www.proactiveinvestors.co.uk/companies/news/215818/real-good-food-positive-on-outlook-as-restructuring-begins-to-bear-fruit-215818.html Real Good Food PLC (LON:RGD) is an AIM-listed busines that supplies food products and ingredients to a number of market sectors including retail, manufacturing, wholesale, foodservice and export.

Its two core divisions include cake decorations and food ingredients. 

What it owns:

Under the banner of the cake decoration division is the Renashaw business, which makes marzipan, soft icings and sugarpaste.

Rainbow Dust Colours, also within the cake decoration unit, sells edible glitters, dusts, powders and food paints.

In the food ingredients arm is the Brighter Foods business, which makes healthy snack bars.

Inflection points: The company has sold four businesses over the past year as part of a restructuring to focus on more profitable areas of the business in its cake decoration and food ingredients divisions. The disposals include the Chantilly Patisserie frozen desserts firm, the Haydens bakery business, the Garretts dairy and bakery ingredients group and R&W Scott – a jam and preserve maker. In the half-year ended 30 September 2018, Real Good Food swung to underlying adjusted earnings of £900,000 from a loss of £400,000 a year ago on revenue of £30.4mln. Costs savings from the restructuring of the business boosted the results. Current trading remains in line with management expectations Net debt at the end of September 2018 was cut to £29.9mln from £35.8mln the same time a year earlier Real Good Food remains confident in the outlook for the business.

 

Blue Sky:

Real Good Food has seen its performance improve through actions taken to streamline the business over the past year.

“The company now has a solid platform from which to maximise earnings and look to optimise shareholder value," said Hugh Cawley, the chief executive officer of Real Good Food.

He added: “Overall, the board remains confident, but far from complacent, in the future prospects for the group and reiterates that the performance of, and prospects for, what is now a smaller and more focused group, have improved considerably." 

]]>
Tue, 05 Mar 2019 07:43:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/215818/real-good-food-positive-on-outlook-as-restructuring-begins-to-bear-fruit-215818.html
<![CDATA[RNS press release - Exercise of Options and Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20190219070005_13973509/ Tue, 19 Feb 2019 07:00:05 +0000 https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20190219070005_13973509/ <![CDATA[News - Real Good Food sells off Chantilly Patisserie business for £0.2mln ]]> https://www.proactiveinvestors.co.uk/companies/news/213785/real-good-food-sells-off-chantilly-patisserie-business-for-02mln-213785.html Real Good Food PLC (LON:RGD) has sold off its Chantilly Patisserie to the premium bakery’s management team for £200,000 in cash.

The sale means Real Good Food is now free to focus on its two profitable businesses – cake decoration (Renshaw and Rainbow Dust) and ingredients (Brighter Foods).

READ: RGF gets out of a jam with sale of R&W Scott

Last year, Chantilly, which supplies frozen desserts to pubs and restaurants up and down the UK, generated revenue of £2.4mln and made an underlying loss of £0.25mln.

“Following this disposal (and those of Haydens, Garretts and R&W Scott), RGF is now free to focus its full attention and resources on growing its two profitable, continuing businesses which together now comprise the majority of the group – Cake Decoration (Renshaw and Rainbow Dust) and Ingredients (Brighter Foods),” said

“Having transformed the Group's financial position as a result of these disposals and other financing activities, the financial resources are now available to fund this growth.”

Target weight reached

AIM-quoted RGF has been in slimming mode of late, offloading its loss-making divisions as it looks to stabilise after a tough couple of years which saw it post a string of profit warnings and overhaul its management.

Within the last year, the company has sold off its sugar supply business Garrett Ingredients, jam maker R&W Scott and Haydens, which makes premium pies and tarts.

In total, those sales, including that of Chantilly, have brought in around £18mln.

]]>
Fri, 01 Feb 2019 07:33:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/213785/real-good-food-sells-off-chantilly-patisserie-business-for-02mln-213785.html
<![CDATA[RNS press release - Disposal ]]> https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20190201070002_13954484/ Fri, 01 Feb 2019 07:00:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20190201070002_13954484/ <![CDATA[News - Real Good Food gets out of jam with sale of R&W Scott ]]> https://www.proactiveinvestors.co.uk/companies/news/211542/real-good-food-gets-out-of-jam-with-sale-of-rw-scott-211542.html Real Good Food PLC (LON:RGD) has sold R&W Scott Limited to the jam and preserves maker’s management team for £3.95mln.

Real Good Food, which also released its half-year report today, will receive £1.5mln in cash upfront and is scheduled to receive a further £500,000 before the end of September of next year; R&W Scott will also take on £2.45mln of third-party debt.

READ Real Good Food serves up 20% revenue growth as restructuring bears fruit

The business contributed £10.36mln of revenue to Real Good Food’s top-line in the year to the end of March 2017 and made a loss of £3.3mln.

The business had net assets of £1.89mln but Real Good Food said it expects to record a paper loss of around £3.0mln on the disposal and will write down parent company reserves in the current financial year by around £5mln.

Previously cash-strapped Real Good Food has made three disposals this year, raising £7.2mln in cash (with another £500,000 to come) and offloading £7.2mln of third-party debt.

"This disposal, alongside those of Haydens and Garretts, marks a significant milestone in the turnaround and performance improvement programme of Real Good Food. We are now able to focus on the core continuing businesses, Brighter Foods and Cake Decoration, with no bank term loan and a fully funded growth plan,” said Hugh Cawley, the chief executive officer of Real Good Food.

"Overall, through the actions of the last twelve months, the performance of, and prospects for, what is now a smaller and more focused group, have improved considerably. The company now has a solid platform from which to maximise earnings and look to optimise shareholder value," he added.

In the six months to the end of September, Real Good Food’s revenue from continuing operations eased slightly to £30.4mln from £31.4mln the year before.

Underlying earnings (EBITDA) were positive at £900,000, compared to a loss the previous year of £400,000.

A goodwill impairment charge of £6.3mln was largely responsible for a loss before tax of £9.1mln, compared to a loss in the corresponding period of 2017 of £3.4mln.

Net debt at the end of the reporting period had been reduced to £29.9mln from £35.8mln at the end of September 2017.

Current trading remains in line with management’s expectations.

"The first half saw significant, progressive corporate activity, including a further restructuring of the Group to focus on our two core divisions, Cake Decorations and Food Ingredients. At the same time, the underlying performance of these continuing operations improved, reflecting the cost savings made,” Cawley said.

"The performance of these continuing operations remains in line with our modest expectations for the year. Overall, the board remains confident, but far from complacent, in the future prospects for the group and reiterates that the performance of, and prospects for, what is now a smaller and more focused group, have improved considerably," he added.

]]>
Thu, 20 Dec 2018 07:24:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/211542/real-good-food-gets-out-of-jam-with-sale-of-rw-scott-211542.html
<![CDATA[RNS press release - Disposal ]]> https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20181220070008_13910630/ Thu, 20 Dec 2018 07:00:08 +0000 https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20181220070008_13910630/ <![CDATA[RNS press release - Half-year Report ]]> https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20181220070005_13910581/ Thu, 20 Dec 2018 07:00:05 +0000 https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20181220070005_13910581/ <![CDATA[RNS press release - Result of AGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20181030153412_13848189/ Tue, 30 Oct 2018 15:34:12 +0000 https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20181030153412_13848189/ <![CDATA[RNS press release - Posting of Annual Report and Notice of AGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180928133904_13809309/ Fri, 28 Sep 2018 13:39:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180928133904_13809309/ <![CDATA[News - Real Good Food serves up 20% revenue growth as restructuring bears fruit ]]> https://www.proactiveinvestors.co.uk/companies/news/205984/real-good-food-serves-up-20-revenue-growth-as-restructuring-bears-fruit-205984.html Bakery products firm Real Good Food PLC (LON:RGD) dished up a 20% rise in revenue for the year, supported by the acquisition of healthy snack bar maker Brighter Foods.

In the year to March 31, revenue increased to £107.7mln from £129.8mln a year ago.

READ: Real Good Food sells Haydens Bakery business to Bakkavor for £12mln

Last year, the company bought an 84.3% stake in Welsh firm Brighter Foods, which added £16.1mln to total revenue. RGD said the deal to buy Brighter Foods has provided it with “a robust and stable platform” in the growing health food and wellness market.

The loss before tax widened to £25.2mln from £6.2mln last year, reflecting the recognition of asset values and higher overhead costs related to an “intense period of ambitious investment”.

New management team carries out restructuring​

However, a new management team is in place and has taken some £2.8mln out of annualised central costs.

The new management team includes Hugh Cawley, who was appointed chief executive in January after Christopher Thomas stood down from the role to become a non-executive deputy chairman.

It also includes Pat Ridgwell as interim non-executive chairman following the resignation of executive chairman Pieter Tott, as well as Harveen Rai as finance director, succeeding Dave Newman.

A positive start to new year​

"Last year was one which we will look back on with little pride or satisfaction,” Cawley said.

“However, since the start of 2018, we have begun to take many of the remedial actions to turn around performance, continuing these steps beyond the financial year end.

"Moreover, we can now see the benefits of these actions in terms of having eliminated term bank debt, much reduced costs and a greater focus on our continuing businesses, all of which provide cause for optimism for the future.”

Since the end of the period, the company has agreed to sell non-core businesses Garrett Ingredients and Haydens Bakery as part of a restructuring plan to focus on more profitable areas.

READ: Real Good Food sells Garrett as restructuring continues

The company said it is now properly financed for the long-term after agreeing investor loans and equity placings of £27mln for the year and securing a further £9.7mln after the year end.

RGD added that current trading is in line with expectations.

Proud to join the Board of UK company Real Good Food PLC as a Non-Executive Director: https://t.co/ddhQRPhd0H. pic.twitter.com/BNaMoAwWD9

— Steve Dawson (@stevedldawson) September 24, 2018 ]]>
Fri, 28 Sep 2018 13:01:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/205984/real-good-food-serves-up-20-revenue-growth-as-restructuring-bears-fruit-205984.html
<![CDATA[RNS press release - Final Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180928115901_13809118/ Fri, 28 Sep 2018 11:59:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180928115901_13809118/ <![CDATA[RNS press release - Directorate Change ]]> https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180919070005_13795826/ Wed, 19 Sep 2018 07:00:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180919070005_13795826/ <![CDATA[News - Real Good Food sells Haydens Bakery business to Bakkavor for £12mln ]]> https://www.proactiveinvestors.co.uk/companies/news/204302/real-good-food-sells-haydens-bakery-business-to-bakkavor-for-12mln-204302.html Real Good Food PLC (LON:RGD) has sold its Haydens Bakery business to Icelandic food giant Bakkavor Group PLC (LONBAKK) for £12mln.

Haydens is one of Real Good Foods original divisions and bakes premium pies, tarts and crumbles, as well as pastries and doughnuts. The AIM-quoted firm has been selling off some of its assets recently as it looks to stabilise after a tough couple of years which saw it post a string of profit warnings and overhaul its management.

READ: Real Good Food confirms details of £1mln open offer

Last year, Haydens, excluding the Chantilly Patisserie business which is not part of the deal, generated £31.3mln in revenue and broke even at profit before tax.

Real Good Food will use the cash to pay down some of its debt, with the remainder being split between funding the group's working capital requirements and the potential repayment of external shareholder debt.

“This disposal marks an important next step in the restructuring and performance improvement of Real Good Food and is line with our turnaround plan for the group,” said chief executive Hugh Cawley.

“Given the sizeable areas of common interest, we believe that Haydens and its staff will prosper better in partnership with Bakkavor.”

]]>
Thu, 06 Sep 2018 07:35:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/204302/real-good-food-sells-haydens-bakery-business-to-bakkavor-for-12mln-204302.html
<![CDATA[RNS press release - Disposal ]]> https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180906070005_13780613/ Thu, 06 Sep 2018 07:00:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180906070005_13780613/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180822115321_13764695/ Wed, 22 Aug 2018 11:53:21 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180822115321_13764695/ <![CDATA[RNS press release - Result of General Meeting ]]> https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180813135026_13753370/ Mon, 13 Aug 2018 13:50:26 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180813135026_13753370/ <![CDATA[RNS press release - Result of Open Offer ]]> https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180810070004_13750681/ Fri, 10 Aug 2018 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180810070004_13750681/ <![CDATA[RNS press release - Board Change ]]> https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180807144630_13746951/ Tue, 07 Aug 2018 14:46:30 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180807144630_13746951/ <![CDATA[RNS press release - Open Offer to raise up to £1 million ]]> https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180718082033_13722118/ Wed, 18 Jul 2018 08:20:33 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180718082033_13722118/ <![CDATA[News - Real Good Food confirms details of £1mln open offer for future working capital purposes ]]> https://www.proactiveinvestors.co.uk/companies/news/201018/real-good-food-confirms-details-of-1mln-open-offer-for-future-working-capital-purposes-201018.html Real Good Food PLC (LON:RGD) has confirmed details of an open offer to raise up to £1.0mln for future working capital purposes announced at the start of last month.

The AIM-listed food producer said it will issue up to 20,115,190 open offer shares at a price of 5p each. Real Good Food shares closed trading at 11p each on Tuesday.

READ: Real Good Food finalises terms on funding

The open offer comes after the firm agreed terms for at least £8.2mln in new financing arrangements with its three major shareholders back in May.

The group had already said those major shareholders - being Napier Brown Holdings, Omnicane and certain funds of Downing LLP - do not intend to take up their entitlement under the open offer.

Hugh Cawley, Real Good Food’s chief executive officer, commented: "We are pleased to launch the Open Offer today which allows all Qualifying Shareholders to participate in the refinancing of the Company.

“The new funding arrangements we have put in place over the prior months of which the Open Offer and Loan Note Replacement are part, ensure that the Company will operate with a much more robust and sustainable financial platform, providing the certainty from which the Board will be able to implement its plan to improve the Group's performance."

]]>
Wed, 18 Jul 2018 07:55:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/201018/real-good-food-confirms-details-of-1mln-open-offer-for-future-working-capital-purposes-201018.html
<![CDATA[RNS press release - Open Offer to raise up to £1 million ]]> https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180718070005_13721673/ Wed, 18 Jul 2018 07:00:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180718070005_13721673/ <![CDATA[RNS press release - Change of Registered Address ]]> https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180712120739_13715809/ Thu, 12 Jul 2018 12:07:39 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180712120739_13715809/ <![CDATA[RNS press release - Amendments to current funding arrangements ]]> https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180628165129_13698128/ Thu, 28 Jun 2018 16:51:29 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180628165129_13698128/ <![CDATA[News - Real Good Food to launch £1.0mln open offer for additional working capital at same price as recent financing ]]> https://www.proactiveinvestors.co.uk/companies/news/198382/real-good-food-to-launch-10mln-open-offer-for-additional-working-capital-at-same-price-as-recent-financing-198382.html Real Good Food PLC (LON:RGD) is set to launch an open offer to raise up to £1.0mln for additional working capital, a month after agreeing terms for at least £8.2mln in new financing arrangements with its three major shareholders.

The AIM-listed food producer said qualifying shareholders can subscribe for new ordinary shares at a price of 5p each, which equates to the strike price of the proposed replacement convertible loan notes under the previously announced financing arrangements.  

READ: Real Good Food finalises terms on funding

The group said its major shareholders - being Napier Brown Holdings, Omnicane and certain funds of Downing LLP - do not intend to take up their entitlement under the open offer.

The company added that it intends to include an excess application facility so that any ordinary shares not subscribed for by qualifying shareholders under the open offer will be available to other qualifying shareholders to subscribe for over and above their basic entitlements.

Real Good Food said the proceeds of the open offer will allow all qualifying shareholders to participate in the refinancing of the company whilst also providing the firm with additional working capital headroom.

Hugh Cawley, Real Good Food’s chief executive said: “Having recently completed our new financing arrangements with the Company's three major shareholders, the Board recognised the importance of enabling all shareholders to participate in the refinancing of the Company and is therefore intending to launch the Open Offer accordingly."

Non-execs sought

The group also said it is currently in the process of seeking to appoint two appropriately qualified and experienced candidates as independent non-executive directors.

It added that it will make further announcements when suitable candidates have been identified and have agreed to join the board in due course.

Reflecting the deeply discounted equity raise, Real Good Food dropped 31.6% lower to 6.5p in late afternoon trading.

]]>
Wed, 06 Jun 2018 14:34:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/198382/real-good-food-to-launch-10mln-open-offer-for-additional-working-capital-at-same-price-as-recent-financing-198382.html
<![CDATA[RNS press release - Intention to launch an Open Offer ]]> https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180606140603_13669572/ Wed, 06 Jun 2018 14:06:03 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180606140603_13669572/ <![CDATA[News - Real Good Food finalises terms on funding ]]> https://www.proactiveinvestors.co.uk/companies/news/197188/real-good-food-finalises-terms-on-funding-197188.html Real Good Food PLC (LON:RGD) has now finalised the terms of the previously announced funding arrangements with its three major shareholders.

Omnicane Limited and Napier Brown have each provided £3.3mln in return for secured loan notes while certain funds managed by Downing LLP have agreed to provide at least £1.6mln, with a possible additional £500,000 on the table.

READ: Real Good Food agrees terms for at least £8.2mln in new financing with its three major shareholders​

The financing arrangements will fund the £4.5mln deferred consideration due to the vendors of Brighter Foods, and also provide up to £4.2mln (depending on whether the further £500,000 is received from funds managed by Downing LLP) to fund the company's foreseeable working capital needs, including for the build-up of inventory in the run-up to Christmas.

The conversion price of the loan notes issued to Omnicane, Napier Brown and Downing is expected to be 5p; Real Good Foods shares currently trade at 14p.

The coupon on the loan notes is 12% a year, payable when the loan notes are repaid or capitalised, it said in a statement.

The company said the terms are reflective of the severe financial challenges the company has faced over the last 12 months; without the funding there was a realistic chance that the company would cease to be a going concern.

Reflecting the fact that the terms were unchanged from the statement issued on May 4, the shares were unchanged.

]]>
Thu, 17 May 2018 11:16:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/197188/real-good-food-finalises-terms-on-funding-197188.html
<![CDATA[RNS press release - New funding arrangements agreed ]]> https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180517103042_13645139/ Thu, 17 May 2018 10:30:42 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180517103042_13645139/ <![CDATA[News - Real Good Food agrees terms for at least £8.2mln in new financing with its three major shareholders ]]> https://www.proactiveinvestors.co.uk/companies/news/196447/real-good-food-agrees-terms-for-at-least-82mln-in-new-financing-with-its-three-major-shareholders-196447.html Real Good Food PLC (LON:RGD) has agreed terms for at least £8.2mln in new financing arrangements with the company's three major shareholders to provide additional working capital.

The firm said the funding – with Napier Brown Ingredients Limited, Omnicane International Investors Limited, and certain funds managed by Downing LLP - follows the AIM-listed food producer’s announcement on March 27 that it had identified the need for further substantial additional funding.

READ: Real Good Food sells 'non-core' Garrett Ingredients to Kent Foods for £1.8mln

In addition, the company is due to pay the final tranche of consideration due to the vendors of Brighter Foods of approximately £4.5mln later this month.

The firm said the new financing arrangements will not only fund that deferred consideration, but also provide a maximum of £4.2mln to fund the company's foreseeable working capital needs, including for the build-up of inventory in advance of the Group's third quarter in October to December, which is typically its busiest.

Real Good Food said the funding is to be provided by means of secured loan notes, with an annual coupon of 12% from the three major shareholders.

The group added that it is intended that the shareholder loans will be replaced by convertible loan notes (CLNs) in due course, with the replacement CLNs is expected to be 5p, significantly lower than the company's current share price.

In late afternoon trading on Friday, Real Good Food shares were trading at 14.5p, unchanged on Thursday’s close. 

The firm said the terms are reflective of the severe financial challenges the company has faced over the last twelve months.

Real Good Food added: “Without this funding the Directors believe that there is a significant risk that the Company would fail to be able to trade.

“However, the new management team have begun to address these historic issues and the Board believes that a turnaround of the business is now underway and this additional financing will allow the Company to meet its obligations and trade without working capital constraint.”

]]>
Fri, 04 May 2018 15:58:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/196447/real-good-food-agrees-terms-for-at-least-82mln-in-new-financing-with-its-three-major-shareholders-196447.html
<![CDATA[RNS press release - Terms agreed for new funding ]]> https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180504154337_13631169/ Fri, 04 May 2018 15:43:37 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180504154337_13631169/ <![CDATA[RNS press release - Disposal completes ]]> https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180423102949_13614421/ Mon, 23 Apr 2018 10:29:49 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180423102949_13614421/ <![CDATA[News - Real Good Food sells Garrett as restructuring continues ]]> https://www.proactiveinvestors.co.uk/companies/news/195161/real-good-food-sells-garrett-as-restructuring-continues-195161.html Cake, decoration and bakery products group Real Good Foods PLC (LON:RGD) is in slimming mode as it seeks to stabilise after a tough 18 months of trading.

Latest to be trimmed is Garrett Ingredients. It has been sold to Kent Foods for £1.8mln.

Real Good Food still owns a number of standalone businesses. Renshaw and Rainbow Dust Colours in cake decoration; R&W Scott in food ingredients and the premium bakery arm (Haydens).

However, Garrett had “more in common with Kent whose skills and aptitude are better suited to managing its contracts, given Real Good Food's resources are being increasingly focused on serving the end consumer”.

The proceeds from the sale will be used to pay down debt.

The group's major shareholders have staunchly supported the business while the AIM-listed group sorts out its financial position and trading.

In March, a term sheet was signed by the group’s three major shareholders - Napier Brown Ingredients, Omnicane International and funds managed by Downing LLP -  that provided a £4mln at a coupon of 10% per year.

The company said the funds relieve pressure on cash availability over the coming months, while it continues to work on the longer-term arrangements.

Garrett better suited elsewhere

Hugh Cawley, chief executive, said Garret was a small, non-core business and its sale was as part of a plan to improve the group's performance.

The company expects to make a “modest loss” on the disposal.

Garrett generated an operating loss of £0.9mln on revenues of £21.3mln in 2017.

Last month, Real Good Food told investors that it was continuing to explore the details of a proposed financing, which would include an issue of new equity.

At 14.65p, the company is valued at £11.5mln.

]]>
Tue, 17 Apr 2018 10:26:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/195161/real-good-food-sells-garrett-as-restructuring-continues-195161.html
<![CDATA[News - Real Good Food sells 'non-core' Garrett Ingredients to Kent Foods for £1.8mln ]]> https://www.proactiveinvestors.co.uk/companies/news/194944/real-good-food-sells-non-core-garrett-ingredients-to-kent-foods-for-18mln-194944.html Real Good Food PLC (LON:RGD) has agreed to sell Garrett Ingredients Limited to food ingredients company Kent Foods Limited for £1.8mln.

Shares dropped 6.2% to 15p in morning trading.

The disposal of the dairy and bakery ingredients supplier is part of Real Good Food’s efforts to turnaround the company following a series of profit warnings.

The group said it believes Garrett has “more in common with Kent whose skills and aptitude are better suited to managing its contracts, given Real Good Food's resources are being increasingly focused on serving the end consumer”.

Real Good Food will use the proceeds from the sale to pay down debt.

"We are pleased to have agreed the sale of this small, non-core business as part of our plan to improve the group's performance,” said chief executive Hugh Cawley.

READ: Real Good Food shareholders provide working capital via loan facility

The company expects to make a “modest loss” on the disposal.

Garrett generated an operating loss of £0.9mln on revenues of £21.3mln in 2017.

Last month Real Good Food told investors that it was continuing to explore the details of a proposed financing, which would include an issue of new equity.

READ: Real Good Food suffers poor Christmas but maintains benefits of investment are starting to show

In a January trading update, it said it expected to make an underlying loss in the year to the end of March of as much as £3.5mln following worse-than-expected trading in late 2017 and early 2018 due to a poor performance in UK grocery retail and destocking in overseas markets.

]]>
Fri, 13 Apr 2018 11:26:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/194944/real-good-food-sells-non-core-garrett-ingredients-to-kent-foods-for-18mln-194944.html
<![CDATA[RNS press release - Disposal ]]> https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180413104702_13603899/ Fri, 13 Apr 2018 10:47:02 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180413104702_13603899/ <![CDATA[News - Real Good Food shareholders provide working capital via loan facility ]]> https://www.proactiveinvestors.co.uk/companies/news/193864/real-good-food-shareholders-provide-working-capital-via-loan-facility-193864.html Real Good Food PLC (LON:RGF) told investors that it continues to explore the details of a proposed financing, which would include an issue of new equity.

In the meantime, a term sheet has been signed by the group’s three major shareholders - Napier Brown Ingredients, Omnicane International and funds managed by Downing LLP - which will now provide working capital to the company via a loan note facility.

READ: Real Good Food suffers poor Christmas but maintains benefits of investment are starting to show

The loan facility is for £4mln, it carries 10% per year. The company said the funds relieve pressure on cash availability over the coming months, while it continues to work on the longer term arrangements.

"Today's additional funding is an important part of meeting our short-term requirements, and further funding will be required for working capital and investment purposes in order to implement the group's business plan,” said Hugh Cawley, Real Good food chief executive.

“The raising of these loan notes is part of the longer term funding plan being pursued by the group."    

]]>
Tue, 27 Mar 2018 09:54:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/193864/real-good-food-shareholders-provide-working-capital-via-loan-facility-193864.html
<![CDATA[RNS press release - Funding Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180327092536_13582696/ Tue, 27 Mar 2018 09:25:36 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180327092536_13582696/ <![CDATA[News - Real Good Food suffers poor Christmas but maintains benefits of investment are starting to show ]]> https://www.proactiveinvestors.co.uk/companies/news/190911/real-good-food-suffers-poor-christmas-but-maintains-benefits-of-investment-are-starting-to-show-190911.html Christmas was not a happy period for Real Good Food PLC (LON:RGD), the bakery products group.

Sales during the early part of the Christmas trading quarter were “largely satisfactory”, the group revealed, but then the last few weeks of the year saw sales fall materially below expectations, largely owing to disappointing performance in the UK grocery market and de-stocking in overseas markets.

READ Real Good Food recovery plan derailed by rising butter costs

The group said it expects to make an underlying loss in the year to the end of March of as much as £3.5mln; prior to profit warnings last year, the company had been expecting to make a profit of £6.5mln.

Looking on the bright side, the company said the considerable investment made throughout the group in the past 18 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.

After August's embarrassing accountancy glitches under the previous management, the company has been focused on improving its corporate governance and its internal reporting and accounting processes and procedures.

READ Real Good Food businesses 'fundamentally sound' says new management

The company's major shareholders, who are represented on the board, remain fully committed and supportive of the turnaround plan and its implementation, Real Good Food said.

“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 £1.75m of amortising term loan,” the trading statement said.

After an exceedingly tough 12 months, the shares trade some 42% below the level they were at a year ago and shed another 16% to 19p on Wednesday.

]]>
Wed, 31 Jan 2018 11:35:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/190911/real-good-food-suffers-poor-christmas-but-maintains-benefits-of-investment-are-starting-to-show-190911.html
<![CDATA[RNS press release - Trading Statement ]]> https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180131103050_13516203/ Wed, 31 Jan 2018 10:30:50 +0000 https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20180131103050_13516203/ <![CDATA[News - Real Good Food secures new lending arrangements from three main shareholders ]]> https://www.proactiveinvestors.co.uk/companies/news/189264/real-good-food-secures-new-lending-arrangements-from-three-main-shareholders-189264.html Real Good Food PLC (LON:RGD) revealed on Friday that a series of new lending arrangements have been put in place by the group's three main shareholders to secure the business.

The company said its three major shareholders have agreed to provide additional funds to support its working capital needs of £3.0mln in loan notes, which will relieve pressure on cash availability over the coming months whilst it seeks out longer term funding arrangements.

Real Good Food shares closed 2.3% higher on Friday at 22p each.

READ: Real Good Food hurt by rising raw material costs

The funding news came with the AIM listed firm’s interim results which showed a significantly widened loss due to increased costs arising from delays in major investment projects.

The food manufacturer and distributor reported a pre-tax loss of £6.7mln for the six months ended 30 September 2017, compared to a £900,000 loss for the same period a year earlier.

The group’s first half revenue was up 30% to £63.6mln, from £49.0mln in the previous year, but administrative costs for the period totalled £12.8mln, up from £10.2mln in 2016.

The company also incurred significant costs related to responding to corporate governance and regulatory shortcomings, acquisition costs for Brighter Foods, one time costs of capital projects, and the impairment of goodwill in the food ingredients division.

Real Good Food’s interim chairman, Pat Ridgwell commented: “This has been an extremely difficult period for the company. The acquisition of Brighter Foods and investments in new capacity and greater efficiency at both Renshaw and Haydens were pursued in advance of suitable financing arrangements being completed leading to cash shortages and delays in the implementation of these projects.”

He added: “Serious failings in corporate governance under the previous regime also became apparent as announced in September 2017, have required significant resources and costs to rectify and resulted in a number of key board changes in order to strengthen the efficacy of the board and improve the company's internal processes". 

]]>
Fri, 22 Dec 2017 13:15:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/189264/real-good-food-secures-new-lending-arrangements-from-three-main-shareholders-189264.html
<![CDATA[RNS press release - Interim results/further funding ]]> https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20171222130453_13476462/ Fri, 22 Dec 2017 13:04:53 +0000 https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20171222130453_13476462/ <![CDATA[RNS press release - Result of AGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20171026121357_13410320/ Thu, 26 Oct 2017 12:13:57 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20171026121357_13410320/ <![CDATA[News - Real Good Food hurt by rising raw material costs ]]> https://www.proactiveinvestors.co.uk/companies/news/185999/real-good-food-hurt-by-rising-raw-material-costs-185999.html Real Good Food PLC (LON:RGD) has warned that turning the business around will take longer than expected.

Good sales growth recently has not translated into better profits, said the cake decoration and bakery group in a trading statement on Monday.

READ: Real Good Food businesses 'fundamentally sound' says new management

As a result, underlying profits [EBITDA] for the year to March will be well below the £6.5mln estimated previously and overall there will be a loss for the year.

The group's major shareholders have again promised to support the business even if the current trading issues put the AIM-listed group in danger of breaching its bank covenants.

Revenues over the first half of the current year were 13% higher on a like-for-like basis and by 20% including the Brighter Foods acquisition.

Higher raw material prices due to problems with supply and exchange rate movements offset this sales pick-up, while upgrades at two key facilities, Haydens and Renshaws, have caused further disruption.

Premium Bakery, including Haydens, has been especially affected while the group overall has incurred significant consultancy costs after the boardroom upheaval earlier this year.

READ: Real Good Food receives £4mln to cover Christmas build-up

Another round of cost cuts is being instigated while the head office is being switched from London to Liverpool.

A further update will be issued once the crucial Christmas trading period is complete.

All of its three divisions have good market positions and a clear plan of action is being worked on to take advantage of this, said the statement.

Third warning

"Today’s profit warning is a big blow, especially as it comes barely a month after the company stated that its planned capacity additions were very much on track,"  said Russ Mould, at AJ Bell.

“Real Good Food cited a long menu of woes when it came to explaining the warning, including currency movements, increased costs (notably butter), increased fees from corporate advisers as the company seeks to sort out its corporate governance woes (notably substantial consultancy fees paid to the previous management team), the disruption to output caused by capacity increases at its Haydens (cake decorations) and Renshaw (bakery) operations and also excessive overhead costs relating to its London headquarters."

“Those investors who are already stuck with the stock – or are wondering if there is some contrarian value to be had – will note that the company’s market capitalisation is barely £17mln and it generates over £100mln in sales.

“Although the firm’s debts must be taken into account as well, this suggests those sales may be going cheap providing Real Good Food can turn them into decent earnings.

Margins thin

“The company made £8mln at the operating level in 2013 but on sales of £265mln for a 3% margin – and matters have only got worse since then.

“This raises a big nagging doubt about the firm’s competitive position. The current squeeze on profits from rising commodity prices, especially butter, does raise the question of whether Real Good Food is strong enough to push through price increases of its own to compensate.”

Shares fell 12% to 23p.

-- adds share price, comment--

]]>
Mon, 23 Oct 2017 07:39:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/185999/real-good-food-hurt-by-rising-raw-material-costs-185999.html
<![CDATA[RNS press release - Trading Statement ]]> https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20171023070004_13404730/ Mon, 23 Oct 2017 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20171023070004_13404730/ <![CDATA[News - Real Good Food businesses 'fundamentally sound' says new management ]]> https://www.proactiveinvestors.co.uk/companies/news/184854/real-good-food-businesses-fundamentally-sound-says-new-management-184854.html Troubled cake and bakery products group Real Good Food PLC (LON:RGD ) remains confident it can trade out of the problems that have hit it hard in recent months.

Bank covenants with Lloyds Banking Group Plc have been renegotiated said Chris Thomas, Real Good’s executive director, while each of the businesses is ‘fundamentally sound’.

Sales growth has been strong-in the first 22 weeks of the this year he added, with like-for-like revenue up 10% year-on-year in both Cake Decoration and Premium Bakery and by 28% in Food Ingredients, though Thomas said it is recognised that these higher sales must be converted into operating profit and operating cash flow at the group level.

For the remainder of the 2017/2018 year, prior to the critical Christmas trading period, sales prospects continue to remain positive, he said, though the benefits of upgrades to manufacturing capacity at Haydens and Renshaws will now come through fully in 2019.

Revenue in the year to March rose by 8% to £108.2mln while there was a pre-tax loss of £6.46mln (£4.74mln profit). Net debt was £16.2mln at the end of the year.

Shares eased 3% to 23.2p.

]]>
Fri, 29 Sep 2017 15:56:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/184854/real-good-food-businesses-fundamentally-sound-says-new-management-184854.html
<![CDATA[RNS press release - Final Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20170929140501_13380868/ Fri, 29 Sep 2017 14:05:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1006/LSE20170929140501_13380868/