Real Good Food sees profit growth
REAL Good Food Company has announced a healthy increase in pre-tax profits to £4.4m for the 15 months to March 31, compared with a £1.9m profit in 2010.
The company also saw sales on an annualised basis increase by 22%. Sales for the 15 months to March 31 increased to £305.5m, compared with £200.1m for its 2010 calendar year.
The Liverpool-based company owns ingredients firms Napier Brown, Garrett, Renshaw, jam and bakery ingredients specialist R&W Scott and patisserie maker Haydens Bakery.
It said that earnings before interest, tax, depreciation and amortisation grew by 62% to £9.1m, reflecting “usual trading patterns” in the first quarter of the year. It also said that all of its individual business units had been run profitably during the period.
Net debt edged up to £28.7m (2010: £22.6m), which it blamed largely on the rising cost of sugar.
Executive chairman Pieter Totte said: “In 2011, we delivered on our commitment to return to growth in sales and profitability.
“We are now embarking on an exciting period designed to transform the scale of the Group over the next three years.
“This strategy is rooted in robust plans produced by each individual business and we have restructured the Group to support these.”
Last week, the company raised £2m to reduce its debt levels by selling shares to its strategic partner Omnicane. The Mauritian sugar cane company’s stake in Real Good Food has now grown to 20%.
