Real Good Food executive chairman Pieter Totté has issued a bullish statement on group trading in advance of the company’s annual general meeting today.
The chairman declared that the company was satisfied with its trading performance in the first four months of its new financial year and the board remained confident in meeting market expectations for the full year across all of 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 compared to the corresponding period last year,” said Totté.
“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. 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.”
Totté added that the company was “conscious of the impact of the living wage” and was already undertaking a plan to make the most efficient use of its labour force across all the company’s operations.
He added: “It is critical that we continue to adapt, innovate and lead within our chosen markets.”
The group, which claims it has a strong balance sheet and is cash generative, will now embark on a progressive dividend policy, alongside investing cash to drive growth in its operations. The company will start a process to pay dividends, which it expects will be complete by December 2016.
In August Real Good Food revealed several strategic plans for its business going forward.