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Real Good Food confident and planning dividend

The firm now has a number of standalone businesses, including Renshaw and Rainbow Dust Colours in cake decoration

cakes and other treats
"The group now has a strong balance sheet and is cash generative and although our primary objective is to invest our cash to drive growth in our operations," it said

It's full steam ahead at Real Good Food PLC (LON:RGD), as it told investors it was satisfied with trading in the first four months and that it plans to kick start dividend payments.

The group is confident it will meet market expectations for the full year and that orders were strong, particularly in the premium bakery arm, which is showing double digit percentage, like for like, revenue growth compared to last year.

There has been a big explosion of interest in all things baking and sugar related in the last few years - not least due to television programmes like 'The Great British Bake-Off'.

Real Good sold its sugar division Napier Brown in May 2015, generating a profit of £9.1mln, transforming the balance sheet as well as streamlining what it does.

It now has a number of standalone businesses. Renshaw and Rainbow Dust Colours in cake decoration; Garrett and R&W Scott in food ingredients and the premium bakery arm (Haydens).

"The group now has a strong balance sheet and is cash generative and although our primary objective is to invest our cash to drive growth in our operations," it said, ahead of its AGM later today.

The firm intends to pay a final dividend following the firm's 2017 results.

"Our objective remains to utilise our significant cash resources to build scale and strategic positions in each of our three pillar markets through organic growth, targeted investment and bolt-on acquisitions as appropriate," it said, adding that the brexit vote had not caused any material negative impact.

Separately, the group said that research house Hardman & Co had issued a note about the stock, saying  "2017 success will follow on from 2015 success".

Shares gained 4.41% on the day to stand at 35.5p each.

Quick facts: Real Good Food PLC

Price: 5.325 GBX

LSE:RGD
Market: LSE
Market Cap: £5.3 m
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