Real Good Food restructuring pays off
Focus on cake decoration and food ingredients divisions after disposals
Management confident in future prospects for the firm
What Real Good Food does:
Its two core divisions include cake decorations and food ingredients.
What it owns:
Under the banner of the cake decoration division is the Renashaw business, which makes marzipan, soft icings and sugarpaste.
Rainbow Dust Colours, also within the cake decoration unit, sells edible glitters, dusts, powders and food paints.
In the food ingredients arm is the Brighter Foods business, which makes healthy snack bars.
- The company has sold four businesses over the past year as part of a restructuring to focus on more profitable areas of the business in its cake decoration and food ingredients divisions. The disposals include the Chantilly Patisserie frozen desserts firm, the Haydens bakery business, the Garretts dairy and bakery ingredients group and R&W Scott – a jam and preserve maker.
- In the half-year ended 30 September 2018, Real Good Food swung to underlying adjusted earnings of £900,000 from a loss of £400,000 a year ago on revenue of £30.4mln. Costs savings from the restructuring of the business boosted the results.
- Current trading remains in line with management expectations
- Net debt at the end of September 2018 was cut to £29.9mln from £35.8mln the same time a year earlier
- Real Good Food remains confident in the outlook for the business.
Real Good Food has seen its performance improve through actions taken to streamline the business over the past year.
“The company now has a solid platform from which to maximise earnings and look to optimise shareholder value," said Hugh Cawley, the chief executive officer of Real Good Food.
He added: “Overall, the board remains confident, but far from complacent, in the future prospects for the group and reiterates that the performance of, and prospects for, what is now a smaller and more focused group, have improved considerably."