Bakery and sugar decoration specialist Real Good Food PLC (LON:RGD) has revised down its forecasts for underlying profits this year by £1mln following a review by its new finance director.
Previously the group predicted underlying profits [EBITDA] of approximately £2mln for the year to March, but now, and following audit adjustments for inter-company trading and consolidation, the outcome is expected to be about £1mln.
READ: Real Good Food secures overdraft facility to address short-term working capital deficiency
Harveen Rai took over as finance director and company secretary earlier this month following the departure of chief executive Pieter Totte and FD David Newman after a profit warning.
Real Good Food added in the statement that it will face a new banking covenant test on 30 September and discussions are underway with its bankers to vary certain conditions of its lending facility.
The company added that major shareholders, NB Ingredients, Omnicane International Investors and funds managed by Downing have confirmed that they will, if required, provide additional funds for working capital.
READ: Exec chairman and finance director depart as Real Good Food regroups after profit warning
Final results will be published on 29 September.