Half-year loss for Real Good Food
SUGAR and catering ingredients firm Real Good Food has blamed an ongoing dispute with British Sugar over pricing for a £5.2m half-year loss.
In February it reported British Sugar, accusing it of abusing its dominant position in the market.
However, Real Good has now taken its complaint to the European competition authorities after the Competition and Markets Authority (CMA) declined to pursue the case.
In the six months to September pre-tax profits fell from £13,000 last time on revenues of £128.6m, down 1%. The company said earnings before interest, tax, depreciation and amortisation (EBITDA) were down to a loss of £2.9m from a profit of £2.2m last time.
As well as ingredients businesses Napier Brown and Garrett, Real Good also has the ingredients firm Renshaw, jam and bakery ingredients specialist R&W Scott and patisserie maker Haydens Bakery.
The company said: “The dispute with British Sugar adversely impacted the results of Napier Brown and Garrett Ingredients in second half of financial year to March 2014 and in the six month period under review. In each of these six month periods underlying EBITDA in sugar has been a loss of £3m. However since the start of the new sugar contract year in October, Napier Brown has returned to profitability.”
