Troubled Liverpool firm secures vital funding
Struggling Liverpool bakery and ingredients firm Real Good Food has been handed a lifeline by its investors.
The firm, which issued a profits warning in January, has informed the London Stock Exchange that it has secured a £4m loan.
When it issued its results in December the firm announced that “further substantial additional funding” would be needed for working capital and investment purposes.
The company, which owns the brands Renshaw and Haydens, has announced that its three major shareholders – Napier Brown Ingredients, Omnicane International Investors and Downing, had supplied a draw-down loan facility.
Omnicane and NB Ingredients have each provided up to £1.713m and Downing has provided £574,000.
Real Good Food said these funds will relieve pressure on cash availability over the coming months while longer-term funding arrangements are put in place.
Chief executive Hugh Cawley said: “Today’s additional funding is an important part of meeting our short-term requirements, and further funding will be required for working capital and investment purposes in order to implement the group’s business plan.
“The raising of these loan notes is part of the longer-term funding plan being pursued by the group.”
The board said it had considered alternative forms of funding but concluded these options were not available in the required timeframe and that the loans therefore provide the most appropriate and flexible option to meet the company’s short-term cash requirements.
In October the company issued a profit warning and announced it was moving its head office from London to Liverpool to cut costs.
Real Good Food plc serves a number of market sectors including retail, manufacturing, wholesale, foodservice and export.
The firm focuses on three main markets: Cake Decoration (Renshaw, Rainbow Dust Colours), Food Ingredients (Brighter Foods, Garrett Ingredients and R&W Scott) and Premium Bakery (Haydens and Chantilly Patisserie).