Real Good Food: Final Results for FY 2015/2016

Liverpool / UK. (rgf) British Real Good Food Company PLC announces Final Results for the Year Ending 31 March 2016. Operating Highlights:

• Following the successful disposal of Napier Brown, which generated a profit of £9.1 million the Group made a statutory profit before tax of £12.9 million in the year
• Disposal transformed the Group balance sheet reducing net debt from £30.1 million down to £5.1 million
• Group restructured into three pillar markets with stand-alone business strategies for each
• Continuing investment strategy in core markets and across business assets to drive operating efficiency and future EBITDA growth
• Acquisition strategy progressing to plan: Rainbow Dust Colours (January 2015); ISO2 Nutrition (December 2015); Chantilly Patisserie (February 2016) successfully completed
• New Development Centre in Liverpool opened providing a base for our Group plc support functions (Technical, IT, HR, Operations) and a state-of-the-art Innovation Centre for new product development
• Launch of «Renshaw Academy» to further monetise the Renshaw brand and to cement our position as industry leader in the global cake decorating market
• Strong financial and operational platform in place for future growth in all three pillar markets: Cake Decoration, Food Ingredients and Premium Bakery

Financial Highlights in Million GBP	2015/2016			2014/2015
	Continuing	Discontinued	Total	Continuing	Discontinued	Total
Revenue	100.4	13.3	113.7	104.6	128.3	232.9
EBITDA	5.0	(0.0)	5.0	5.3	(3.4)	1.9
Finance Costs	(0.5)	(0.9)	(1.4)	(0.9)	(0.8)	(1.7)
Depreciation	(1.9)	(0.1)	(2.0)	(2.1)	(0.6)	(2.7)
Underlying Profit	2.6	(1.0)	1.6	2.3	(4.8)	(2.5)
Significant Items	2.4	9.1	11.5	(0.5)	(0.3)	(0.8)
Pension Finance	(0.2)	–	(0.2)	(0.2)	–	(0.2)
Profit Before Tax	4.8	8.1	12.9*	1.6	(5.1)	(3.5)

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Pieter Totté, Executive Chairman, commented: «The hugely successful disposal of Napier Brown transformed our balance sheet and has enabled us to begin a strategy of investing in our core markets. We have spent the time since reviewing our strategy, clarifying our focus and restructuring the business accordingly. We now operate in three pillar markets (Cake Decoration, Food Ingredients and Premium Bakery) and our objective will be to build scale and strategic positions in each of these through organic growth, targeted investment and bolt-on acquisitions as appropriate».

On the outlook for the current financial year, he added: «The food industry faces challenging times with diversifying sales channels, increasing legislative burdens, the growth in the minimum wage and ever-demanding consumers. The response to these trends require being alert to all these factors and having the resources to invest and adapt.  I am confident that with our clear strategy and strong balance sheet we are in a good position to build three increasingly strong businesses in our three pillar markets. Trading in the first three months of the new financial year has been satisfactory with recent order intake positive, and with the investments we are making, I am confident that we will deliver growth across all three divisions».