Released: 24/07/2009
http://pdf.reuters.com/Regnews/regnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20090724:RnsX2007W
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RNS Number : 2007W
Real Good Food Company Plc (The)
24 July 2009
The Real Good Food Company plc (AIM: RGD)
Trading Update
The Real Good Food Company plc ("Real Good Food" or "the Group"), is a supplier
of sugars and bakery ingredients and a manufacturer of bakery products. To
coincide with its Annual General Meeting, being held in Liverpool at 10.00 a.m.
today, the Group is making the following comments on trading during the six
months to 30 June 2009. Interim Results for this period will be published in
late September.
The first six months of the current financial year have seen some stability
returning to the markets in which the Group operates, after a long period in
which it has faced very challenging trading conditions. In particular, changes
to the EU sugar regime, and a reduction in the EU sugar production quota, have
helped move the sugar market into balance with some fluidity in pricing as the
industry wrestles with the challenges of enhancing margins in a falling market.
Merger of the sugar and bakery ingredients businesses to form Renshawnapier has
gone well and according to plan. A new operating Board has been established and
operational and commercial structures re-aligned with the revised business
model. Sugar volumes continue at the lower levels witnessed since last summer,
as continued economic pressure restricts sales. Conversely, export sales of
sugar pastes have seen a tremendous growth, with volumes up 40%.
Margins in the first half of the year at Renshawnapier have, not unexpectedly,
been below that of the prior year, although some improvements have been seen in
the second quarter. The benefits of the recent restructure are beginning to flow
in terms of overhead savings.
At Hayden's, the Group's Bakery Division, new sales to a food service customer,
combined with promotional volumes, have aided revenues, which are 12% up on the
prior year. Price increases have been secured in the second quarter and this has
had a positive effect on margins, while raw material controls are much improved
and this is also aiding some margin recovery.
Stephen Heslop, C.E.O., comments:
"The merger of the two principal pillars of the Group to form Renshawnapier has
gone well and according to plan. This new division is performing in line with
expectations, although behind the prior year, while Hayden's is performing in
line with expectations and up on the prior year. The Board is pleased with the
progress the Group has made in the first six months of 2009."
24 July 2009
ENQUIRIES:
The Real Good Food Company plc Tel: 0151 706 8200
Stephen Heslop, Chief Executive Officer
Mike McDonough, FinanceDirector
Shore Capital Tel: 020 7408 4090
Guy Peters
College Hill Tel: 020 7457 2020
Gareth David
This information is provided by RNS
The company news service from the London Stock Exchange
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