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Real Good Food sells off Chantilly Patisserie business for £0.2mln

The sale to Chantilly’s management team means Real Good Food is now free to focus on its two profitable remaining divisions – cake decoration and ingredients

cheesecake
Chantilly Patisserie sells premium frozen desserts to pubs and restaurants up and down the UK

Real Good Food PLC (LON:RGD) has sold off its Chantilly Patisserie to the premium bakery’s management team for £200,000 in cash.

The sale means Real Good Food is now free to focus on its two profitable businesses – cake decoration (Renshaw and Rainbow Dust) and ingredients (Brighter Foods).

READ: RGF gets out of a jam with sale of R&W Scott

Last year, Chantilly, which supplies frozen desserts to pubs and restaurants up and down the UK, generated revenue of £2.4mln and made an underlying loss of £0.25mln.

“Following this disposal (and those of Haydens, Garretts and R&W Scott), RGF is now free to focus its full attention and resources on growing its two profitable, continuing businesses which together now comprise the majority of the group – Cake Decoration (Renshaw and Rainbow Dust) and Ingredients (Brighter Foods),” said

“Having transformed the Group's financial position as a result of these disposals and other financing activities, the financial resources are now available to fund this growth.”

Target weight reached

AIM-quoted RGF has been in slimming mode of late, offloading its loss-making divisions as it looks to stabilise after a tough couple of years which saw it post a string of profit warnings and overhaul its management.

Within the last year, the company has sold off its sugar supply business Garrett Ingredients, jam maker R&W Scott and Haydens, which makes premium pies and tarts.

In total, those sales, including that of Chantilly, have brought in around £18mln.

Quick facts: Real Good Food PLC

Price: 5.325 GBX

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