RGF: announces six months results ended 30 September 2022

Liverpool / UK. (rgf) British Real Good Food Company PLC (RGF), the diversified food business, announces its half year results for the six months ended 30 September 2022.

Financial highlights

• Revenue decreased by 20.1 percent to GBP 15.9 million (2021: GBP 19.9 million) due to macroeconomic headwinds.
• EBTIDA loss of GBP 2.0 million (2021: Ebitda of GBP 0.7m).
• Loss before tax for was GBP 3.8m [2021: loss of GBP 1.2 million (continuing operations)].
• Additional GBP 2.5m revolving credit facility secured in November 2022 to support the Group’s radical reform programme.

Operational highlights

• Reduced volumes and the lag effect of passing cost increases through to customers reduced gross margins to 34 percent (2021: 43 percent).
• Ongoing availability of key ingredients has also negatively impacted performance, albeit this has eased in recent weeks.
• A radical reform programme has been launched to return the business to profitability.
• Evidence based rebranding of Renshaw fondant to «Just roll with it» launched in September to make products more inclusive.

Current trading and outlook

• Market conditions are expected to remain challenging in the near-term.
• The reform programme is well underway and is expected to deliver sustainable Ebitda of between GBP 2 million and GBP 4 million for the year to 31 March 2024.  Further details will be announced in early 2023.

Executive Chairman Mike Holt: «Market conditions have been very challenging over the last twelve months, and show no sign of easing in the near-term, due to a perfect storm of rising costs and lower revenues. The Group is not just hunkering down, it has put into effect a radical programme of reform to return it to profitability and to ensure that profits will be sustainable. New funding has been secured to provide the headroom to make these transformational changes. The Board is confident that the right actions are being taken and that they will deliver positive returns. The simple truth, a crisis was needed to enable the required changes to be possible.»