Liverpool / UK. (rgf) British Real Good Food Company PLC owns the largest independent non-refining distributor of sugar in Europe (Napier Brown), supplies bakery ingredients (Renshaw) and manufactures patisserie and desserts (Haydens Bakery).
Earlier this year the company announced that the Group was changing its accounting reference date from 31 December to 31 March, in order to better align its reporting to the markets with the seasonality of its business. As the October to December quarter accounts for around 50 percent of its annual profitability it makes more sense to have this period behind it when preparing annual budgets and projections.
The company will be issuing a pre-close update covering the six months from July to December 2011 at the end of January but, in line with last year, make the following comments on trading from 01 July 2011 to date:
- The improved Ebitda performance, compared to 2010, has continued.
- Stock levels have been reducing during fourth quarter following easing of the problems in the Sugar supply chain.
- Upward pressure on working capital, as reported in the first half results and outside of normal seasonality, has eased and this has resulted in borrowings reducing over the period.
Business Development Update
- Renshaw brand has been launched, with positive reaction from customers and consumers.
- New Whitworths brand developed and will be on retailers´ shelves in first quarter next year.
- 2011/2012 Sugar Contract season has gone well, with over 90 percent now contracted.
- Garretts has successfully extended its range and taken two new distributor-ships.
- Modernisation of the Haydens Bakeries plant is progressing, although running some six months behind plan. In November the company took the first step in a major reorganisation of shift patterns and will be introducing improved production cycles in Q1/2012, which the company expects to have a major impact on performance.
Executive Chairman Pieter Totté: «Whilst we are still only midway through the key Christmas trading period, I am pleased with the progress we have made so far, both in terms of our financial performance this year against last year, and the good progress being made with all the strategic initiatives for each of our businesses».