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RGF: Posts Pre-close Trading Update

Liverpool / UK. (rgf) British Real Good Food Company PLC, is a diversified food business, serving a number of market sectors including retail, manufacturing, wholesale, foodservice and export. The Company focuses on three main markets: cake decoration (Renshaw, Rainbow Dust Colours), food ingredients (Garrett Ingredients and R+W Scott) and premium bakery (Haydens).

Following completion of the sale of its sugar subsidiary, Napier Brown, Real Good Food is commenting on its overall financial position and the performance of its continuing businesses, prior to the release of its final results in late July.

For the continuing businesses in the financial year ending 31 March 2015, Net Sales are expected to be approximately 104 million GBP and Ebitda in the order of 5.3 million GBP, with continued strong performances at Renshaw and Haydens. Net Debt at the year end, prior to the disposal of Napier Brown, was 30.1 million GBP.

The disposal of Napier Brown generated a consideration of 34 million GBP, plus estimated working capital at completion of seven million GBP, resulting in a positive cash position at completion of 13.7 million GBP. The Group’s remaining debt comprises a deferred payment of 2.6 million GBP for the Rainbow Dust Colours acquisition and loan notes of 2.8 million GBP, while the Company retains a debt facility of 3.75 million GBP with Lloyds Bank.

Trading of the continuing businesses has continued in a positive fashion in the early weeks of the new financial year and the Board is optimistic about the prospects for the full year.

Chairman Pieter Totté: «Now that the disposal of Napier Brown has been completed, we can focus on developing our other businesses, all of which present growth opportunities. The performance of our cake decorating businesses continues to be encouraging, while Haydens is also trading strongly as it broadens its customer base. Our strong cash position will enable us to pursue capital investment plans to support our growth strategies, and we will also consider complementary acquisitions where appropriate».