Real Good Food Company says its trading continues to deteriorate.
The sugar division has been hit by lower industrial demand and the retail market is very competitive.
The Renshaw bakery ingredients division is in line with expectations because people are doing more home baking. Haydens Bakeries has developed new products, which are losing money, and retail sales are falling.
The shares fell 0.25p to 1.75p each, which values Real Good Food at £1.14m.
Real Good Food expects to make a £500,000 profit in 2008, against £3.45m last year. The first half pre-exceptional loss was £223,000. Net debt was £31.4m at the end of June 2008. The banking facilities were refinanced in July.
The company is cutting costs and relocating its London head office to its Liverpool site.
The outlook for 2009 is uncertain but industrial sugar margins are recovering.
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