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Real Good Food serves up 20% revenue growth as restructuring bears fruit

New chief executive Hugh Cawley said the company is seeing the benefits of its restructuring
Real Good food
Current trading is in line with expectations

Bakery products firm Real Good Food PLC (LON:RGD) dished up a 20% rise in revenue for the year, supported by the acquisition of healthy snack bar maker Brighter Foods.

In the year to March 31, revenue increased to £107.7mln from £129.8mln a year ago.

READ: Real Good Food sells Haydens Bakery business to Bakkavor for £12mln

Last year, the company bought an 84.3% stake in Welsh firm Brighter Foods, which added £16.1mln to total revenue. RGD said the deal to buy Brighter Foods has provided it with “a robust and stable platform” in the growing health food and wellness market.

The loss before tax widened to £25.2mln from £6.2mln last year, reflecting the recognition of asset values and higher overhead costs related to an “intense period of ambitious investment”.

New management team carries out restructuring​

However, a new management team is in place and has taken some £2.8mln out of annualised central costs.

The new management team includes Hugh Cawley, who was appointed chief executive in January after Christopher Thomas stood down from the role to become a non-executive deputy chairman.

It also includes Pat Ridgwell as interim non-executive chairman following the resignation of executive chairman Pieter Tott, as well as Harveen Rai as finance director, succeeding Dave Newman.

A positive start to new year​

"Last year was one which we will look back on with little pride or satisfaction,” Cawley said.

“However, since the start of 2018, we have begun to take many of the remedial actions to turn around performance, continuing these steps beyond the financial year end.

"Moreover, we can now see the benefits of these actions in terms of having eliminated term bank debt, much reduced costs and a greater focus on our continuing businesses, all of which provide cause for optimism for the future.”

Since the end of the period, the company has agreed to sell non-core businesses Garrett Ingredients and Haydens Bakery as part of a restructuring plan to focus on more profitable areas.

READ: Real Good Food sells Garrett as restructuring continues

The company said it is now properly financed for the long-term after agreeing investor loans and equity placings of £27mln for the year and securing a further £9.7mln after the year end.

RGD added that current trading is in line with expectations.

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Real Good Food PLC Timeline

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