Struggling Real Good Food to switch HQ to Liverpool to cut losses
Troubled baking ingredients business Real Good Food is to move its head office from London to Liverpool as it bids to reduce its costs and losses.
The move has been announced ahead of the company’s annual meeting, which takes place at the listed company’s food development centre at Watertree Technology Park on Thursday (October 26).
It follows news at the start of the month that the company had nosedived into a pre-tax loss of £6.4m from a profit of £13m.
Now, after predicting an EBITDA plus of £6.5m for the year to March 31, 2018, the company is expecting to report another pre-tax loss.
The company has been struggling amid management upheaval which began in August. This included the departure of founder Pieter Totté and director Peter Salter who have since behind heavily criticised by the company for taking behind-closed-doors consultancy payments out of the company.
The forensic investigation into the activities of the directors have also cost the company dearly.
A statement said: “It is recognised that group and head office costs have been too high and these are also subject to a comprehensive review, part of which will result in moving the head office from London to Wavertree, Liverpool.
“The company has also experienced significant additional costs from professional advisers as a result of needing to respond to its corporate governance and regulatory shortcomings.”
It went on: “The board had previously expected the company would produce EBITDA of approximately £6.5m in the year to March 31, 2018.
“Following a review of the company’s performance in H1 from its latest monthly management accounts, the board has decided to take a more prudent view of its anticipated performance in the second half of the year.
“As a result of this more prudent view the board now expects a materially reduced level of EBITDA in H2 and also therefore in the year to March 31, 2018 as a whole.
“The board now expects that the company will report a loss before tax for the year.”
