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.