Real Good Food: Trading Update for FY 2012

Liverpool / UK. (rgf) British Real Good Food Company PLC is a diversified food group, which owns Napier Brown (Europe´s biggest non-refining sugar distributor) as well as Renshaw and R+W Scott (bakery ingredients), Garrett Ingredients (dairy ingredients) and Haydens Bakery (patisserie and desserts).

As announced in its 31 January update, the Group is commenting further on its trading position for the twelve months ending 31 March 2013. Following the difficult October to December quarter (Q3), the months of January to March 2013 (Q4) have been encouraging. In Q4, year-on-year, the group has seen a large positive swing in Ebitda, due to a stronger sugar trading quarter, combined with the turnarounds achieved at Haydens and R+W Scott, as well as improved trading in Renshaw.

Ebitda: The Group is forecasting an Ebitda in the region of 10,5 million GBP for the twelve months to 31 March 2013, which would represent a significant increase of approximately 24 percent over the corresponding twelve months to 31 March 2012 of 8,5 million GBP.

Net Debt: The Net Debt position at the end of March is expected to be in the region of 27 million GBP (17,8 million GBP of which is current), which would represent a significant reduction on the last reported figure for 30 September 2012 of 32,1 million GBP and a material improvement, i.e. reduction, in the Ebitda to Net Debt ratio from 3,3 for the twelve months to 31 March 2012 to 2,6 for the twelve months to 31 March 2013, based on the above figures. 17,8 million GBP of the Net Debt is current, primarily Invoice discounting and Stock financing, with the balance of 9,2 million GBP being repayable over the following five years.

Quarter 4: The Group´s current trading levels are healthy, driven by improvements across the five business units and turnover in the quarter is expected to be around 65 million GBP, compared to 56 million GBP in Q4 2012. Ebitda in Q4 is expected to be 3,9 million GBP, compared to Ebitda for Q4 2012 of 0,1 million GBP, with all businesses making a contribution to this improvement.

Funding: As previously reported we are now operating with our new five year term financing arrangement with PNC Financial Services UK Limited. extending the successful partnership we have enjoyed since 2008. The terms are improved, with overall facilities increased by 25 percent to 50 million GBP, increasing headroom accordingly and providing the capacity we need to support our growth plans. We are also pleased to confirm that Lloyds TSB is providing all our day to day clearing and ancillary facilities. In a difficult market the board is extremely pleased the confidence this demonstrates in our business.

Statement: Pieter Totté, Executive Chairman, states: «As I commented in January, the changes we have made in the Group have produced positive results and these are now beginning to show through, as demonstrated by our Q4 results. In line with the rest of the food sector, I believe that 2013 will be a challenging year, but I am confident that we are in a strong position to achieve our goals for this year and remain on course to achieve my longer term vision for the Group».