Shares in Real Good Food (RGF) fell by nearly 2% – as the company announced revenue was down as it entered its new financial year.

Stock in the AIM-listed company closed at 50.03p yesterday, down -1.91% or 0.97p, despite the company saying it was confident about entering the important autumn and Christmas period. The group, which runs Renshaw and Haydens Bakery among others, told shareholders about its future plans at its annual general meeting.

Harman & Co, the City analysts, said however that the market had yet to “catch up” with changes to the business, which had “transformed” RGF’s prospects in the past 12 months.

In a note on the firm, Mike Foster at Hardman & Co predicted RGF would see its ebitda improve to £7.5m in 2015, off the back of an estimated revenue of £112m He also forecasted that 2017 would see strong profit growth of +40%.

He said: “This group strategy is dedicated to the pursuit of customer sectors which offer a target-rich environment in both premium pricing and growth.”