News blog

Real Good Food Company

  • BY: Andrew Hore |
  • POSTED: 03/06/2010 |

Real Good Food Company is on course for a much better year in 2010. 

EBITDA is ahead of budget for the first four months of 2010. In 2009, Real Good Food reported an increase in pre-exceptional profit from £887,000 to £2.15m. Revenues fell slightly from £218.7m to £215.6m. 

Ingredients supplier Renshaw and sugar supplier Napier Brown were at one point last year merged into one business but that move has been reversed and they are run separately.

Renshaw has been the star of the business in recent times and this has not changed. Operating profit rose from £1.82m to £2.49m in 2009 and Renshaw remains busy even though this is normally a relatively quiet part of the year. Export sales are growing.

The Napier Brown sugar business has been hit by the fall in the price of sugar due to changes in the EU sugar regime. Profits have been declining. The sugar price should be near to its low and the next sugar contract is in October 2010. The sugar price is expected to rise by 10% over the next two years.

Napier Brown is developing its Whitworth’s brand by adding specialist sugar products. Retail sales are growing with William Morrison a significant customer.

Evan bakery products maker Hayden’s, which has been the main problem in the group, appears to be on its way to returning to profit. Demand is strong from Waitrose and Marks and Spencer and it has added a 30,000 square feet facility across the road from the existing one in Devizes.

Winning business has not been a problem for Hayden’s but making sure that it is profitable has been. An IT system is being installed and additional manufacturing plant is being acquired

The share price has risen by 517% to 27.75p a share over the past year and that values Real Good Food at £18m. The share price rise reflects the recovery in profits and reduction in debt. Management believes that it can implement its three year growth strategy within its existing facilities and is not keen to issue shares at the current share price.

© 2021 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Browse by issue
All issues
Popular tags
All tags

betbrokers, financial, gold, health, leisure, media, mobile, resources, services, technology

AIM Micro feeds

Keep up to date with articles published at AIMMicro.com. Subscribe to AIM Micro RSS Feeds