Real Good Food PLC (LSE:RGD) (RGF) saw its share price almost double in morning trade following confirmation the cake decoration specialist would make an underlying profit this financial year.
Despite a sluggish start, the company's radical reform programme is yielding tangible benefits and is slated to enhance profitability in the upcoming months, investors were told ahead of the annual meeting.
For the first half ending 30 September 2023, revenues rose 2% to £16.1 million, driven by effective pricing strategies, even though volumes declined by approximately 10%.
October revenues are projected to be around £4.6 million, a 6% increase compared to the same month last year.
RGF also reported a much-reduced EBITDA loss of £0.7 million, and gross margins improved to 35.9%. For the year, it is predicting positive EBITDA of £1 million with an exit run rate of £3-£4 million.
At 9.21 am, the shares were changing hands for 2.3p, up 1.1p.