RGF: Trading Update for the first four months

Liverpool / UK. (rgf) British Real Good Food Company PLC announced an AGM Statement and Trading Update for the first four months 2016/2017 (01. April to 31. Juli 2016). In this week, at the Annual General Meeting in London, Executive Chairman Pieter Totté made the following statement:

«Overall we are satisfied with our trading performance during the first four months of our new financial year and the Board remains confident in meeting market expectations for the full year across all the Group’s KPIs.

«Order intake is strong, particularly in our Premium Bakery business which is showing double digit percentage, like for like, revenue growth when compared with the corresponding period last year.

«Our Cake Decorating business also has good order visibility meaning we look forward to the key autumn and Christmas season with confidence.

«Our objective remains to utilise our significant cash resources to build scale and strategic positions in each of our three pillar markets through organic growth, targeted investment and bolt-on acquisitions as appropriate. In pursuit of this we have continued to invest in our people, technology, brand and marketing; as well as in our manufacturing facilities, including new machinery, and better processes. We are conscious of the impact of the living wage and are already undertaking a plan to make the most efficient use of our labour force across all our operations. It is critical that we continue to adapt, to innovate and to lead within our chosen markets.

«The Group now has a strong balance sheet and is cash generative and although our primary objective is to invest our cash to drive growth in our operations, the Board feels that it is important to start to pursue a progressive dividend policy alongside this.

«In this regard, I am pleased to announce that the Board has decided to commence the payment of dividends. Following the court approval of the capital reduction, the next stage is for Real Good Food PLC to file company accounts with Companies House, after which it will be in a position to announce and pay a dividend. This process is expected to be completed by the end of December 2016 and hence it is currently anticipated that the Directors will declare an interim dividend shortly thereafter. Thereafter the Directors intend to pay a final dividend following the announcement of the Group’s 2017 results, subject to the approval of shareholders at the 2017 AGM. The level of the dividends declared will take into consideration the Group’s requirements for continued investment capital.

«Finally there has been much commentary about the impact on UK businesses following the Brexit referendum result. I am pleased to announce that we have not seen any material negative impact on any of our operations as a result of the vote».