Real Good Food Co swings to FY pretax loss

Real Good Food Company swung to a FY pretax loss of £1.5m, from a profit of £6.1m a year earlier. Revenue was £272.6m, from £265.8m. Chairman Pieter Totté said it would be easy to focus on the impact on our results caused by "what we believe to be anti-competitive behaviour by British Sugar," but the company had have previously disclosed the background to this matter.

"The reduction in Group EBITDA to £3.3 million hides significant progress in a number of operating divisions. In particular, the Renshaw result was very encouraging, while at Haydens it is clear that the new business model is beginning to deliver," he said.

"We remain in close dialogue with the Competition and Markets Authority ("CMA") and are hopeful that the regulator will take the necessary steps to ensure that competition law is enforced.

"However, as we indicated in our recent updates, the current sugar contract year does not end until 30th September, coinciding with our half year so despite continued strong trading at Renshaw and Haydens, our first half performance will still be materially affected.

"Beyond that, negotiations for the new sugar contract year are progressing and we are working on a number of strategic sourcing initiatives on the back of our investment in the Stallingborough Sugar Hub which will bring long term benefits."

Highlights:

· Results overshadowed by impact of sugar supply dispute with British Sugar ("BS")



· Despite the BS dispute, Napier Brown has secured significant retail and wholesale contracts, driving Whitworths brand growth



· Stallingborough Sugar Hub now operational, boosting Napier Brown's capability to handle imported sugar from all sources



· Focus on establishing commercially led autonomous divisions gaining momentum



· Renshaw Sales and EBITDA up 4.7% and 10.4% respectively



· Haydens Sales up 7.6% and improved operational performance increased EBITDA by £0.6 million



· Real Good Food Europe established in Brussels, offering better access to opportunities across the EU, initially to Renshaw and R&W Scott




At 8:02am: (LON:RGD) Real Good Food Company The PLC share price was +0.5p at 31.25p



Story provided by StockMarketWire.com

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