RGF: Group announces additional funding

Liverpool / UK. (rgf) British Real Good Food Company PLC (RGF), the food manufacturing business specialising in Cake Decoration, announces that it has secured an additional GBP 2.5 million in funding to support its turnaround. This is further to the Trading Update issued on 30 September 2022 in which the Group indicated it was in advanced discussions to secure additional funding.

The new funding is being provided by Hilco Private Capital for a term of twelve months and supplements the existing GBP 6.3 million facility with Leumi ABL. As a consequence, no new Loan Notes will be issued. The funding ranks behind the existing Leumi ABL facility and ahead of the Loan Notes in security. The blended interest rate for third party funding is expected to be 12.1 percent, based on current market rates.

Executive Chairman Mike Holt: «We are delighted that new funding has been secured to support the radical reform of RGF which is intended to reduce costs, protect revenues and preserve the inherent value of the Group. With support from both customers and employees, we are making good progress on the required reforms and several major customers have already agreed to significant price re-sets. We are confident that the right actions are being put in place to return the business to sustainable profitability and being cash generative. I am particularly pleased that Leumi ABL continues to support the Group and that Hilco has provided the new funds required. I would also like to thank our suppliers for their forbearance over recent months pending this funding being secured.»

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