Real Good Food plc
("RGF" or "the Group")
RGF free to focus on its two core businesses
Real Good Food plc today announces that it has completed the sale of RGF Patisserie Limited, trading as Chantilly Patisserie ("RGFP" or "Chantilly"), to its management team (the "MBO"). The Group will receive a total of £0.2 million in consideration, to be paid in cash, with £0.1m paid on completion and a further £0.05m on each of the first two anniversaries of the sale. The cash proceeds will be utilised for working capital purposes within the Group.
Chantilly has been producing frozen desserts from its premises in Paignton, Devon for 20 years, and was carved out from Haydens Bakery Limited ("Haydens") prior to Haydens' disposal to Bakkavor Group plc back in September 2018.
In the Group's financial year ended 31 March 2018, Chantilly contributed £2.40 million of revenue, and incurred a loss before non-recurring items and tax of £0.25 million, and a pre-tax loss of £0.32 million, At the date of the carve out, the net assets of RGF Patisserie amounted to £0.09 million. The Group expects to incur an accounting profit on disposal of approximately £0.06 million and a write-down of parent company reserves at 31 March 2019 of approximately £0.06 million.
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). 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.
Real Good Food plc
Hugh Cawley, Chief Executive
Harveen Rai, Finance Director
Tel: 0151 541 3790
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finnCap Limited (Nomad and Broker)
Matt Goode / Carl Holmes / James Thompson (Corporate Finance)
Tel: 020 7220 0500
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MHP Communications (Financial PR)
Reg Hoare / Katie Hunt
Tel: 020 3128 8193
About Real Good Food
Real Good Food plc is a diversified food business serving a number of market sectors including retail, manufacturing, foodservice and export. The Company now focuses on two markets: Cake Decoration (Renshaw and Rainbow Dust Colours) and Food Ingredients (Brighter Foods).
The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
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