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Real Good Food PLC

Real Good Food to pay back loyal shareholders as it secures new £9mln credit facility

Real Good Food’s three main investors lent the company £8.2mln last year, without which, there was a “significant risk” that it could go under

Real Good Food PLC - Real Good Food to pay back loyal shareholders as it secures new £9mln credit facility

Real Good Food PLC (LON:RGD) has secured almost £9mln in financing to help it pay back shareholders who stepped in to bail it out last year.

The bakery ingredients business has undergone a major restructuring over the past 18 months after an investigation discovered it had misled investors in 2017 about its performance.

That lead to a string of profit warnings and the overhaul of the management team, including founder and chairman Pieter Totté.

READ: Real Good Food losses increase but new slimmer structure 'is profitable'

Real Good Food’s three main investors lent the company £8.2mln last year, without which, there was a “significant risk” that it could go under.

The AIM company has now secured an £8.9mln credit facility with lender Leumi which will allow it to pay back just over half of the money it borrowed from Napier Brown, Omnicane International and Downing.

“We are delighted with the support we have received from Leumi in the form of the facilities, as we seek to normalise our facilities with a better balance of bank funding and shareholder support,” said chief executive Hugh Cawley.

“The bank's support underpins the work the board has undertaken in streamlining the business units of RGF in order to drive the group towards consolidated profitability.

“I would also like to thank our major shareholders for the financing they have provided over the past few years to ensure the financial survival of the group as we have worked to turn RGF around.”

Shares were up 6% to 6.75p in early deals on Friday.

Quick facts: Real Good Food PLC

Price: £0.07

Market: LSE
Market Cap: £6.85 m
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