Real Good Food enjoys ‘positive swing’

REAL Good Food Co, the Liverpool-based manufacturer and supplier of sugar and other catering ingredients, has seen a “positive swing” in fourth quarter earnings.

The listed Liverpool-based company owns ingredients firms Napier Brown, Garrett, Renshaw, jam and bakery ingredients specialist R&W Scott and patisserie maker Haydens Bakery.

In a trading update covering the year to March the company said it had a difficult third quarter but earnings before interest, tax, depreciation and amortisation (EBITDA) had since improved due to stronger sugar trading quarter, combined with turnarounds at Haydens and R&W Scott and improved trading at Renshaw.

The group is forecasting a a 24% increase in EBITDA to £10.5m for the year. Fourth quarter EBITDA should come in at £3.9m, compared with £100,000 last year while turnover will be £65m, up from £56m.

Net debt at the end of March is expected to be £27m, down on £32.1m in September. In December the company lined up a £50m funding deal with PNC Financial Services UK.

Chairman Pieter Totté said: “As I commented in January, the changes we have made in the group have produced positive results and these are now beginning to show through, as demonstrated by our Q4 results. In line with the rest of the food sector, I believe that 2013 will be a challenging year, but I am confident that we are in a strong position to achieve our goals for this year and remain on course to achieve my longer term vision for the group.”

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