Real Good Food (LON:RGD) has issued a bullish trading update following the sale of its wholesale sugar arm Napier Brown.
Now focused on cake decoration (Renshaw, Rainbow Dust Colours), food ingredients (Garrett Ingredients and R&W Scott) and premium bakery ingredients (Haydens), sales in the year to March were £104mln and underlying profits £5.3mln.
Renshaw and Haydens, in particular, traded well, RGD said, helped by the boom in home baking and artisan bakeries.
RGD sold Napier Brown for £34mln, which has transformed the balance sheet, with a cash position of £13.7mln on completion.
Pieter Totté, chairman, said: "Now that the disposal of Napier Brown has been completed, we can focus on developing our other businesses, all of which present growth opportunities.
"The performance of our cake decorating businesses continues to be encouraging, while Haydens is also trading strongly as it broadens its customer base.
"Our strong cash position will enable us to pursue capital investment plans to support our growth strategies, and we will also consider complementary acquisitions where appropriate."