Strong performance for Real Good Food

Revenues at The Real Good Food Company have increased by almost £9.6m to £137.8m in its latest half-year financial results.

Announced this morning, the firm revealed that, in the six months to 30 September, ebitda fell slightly by £69,000 to £3.023m, compared to the same period in 2011 (£3.092m), and profit before tax declined by £200,000 to £1.173m.

Renshaw, the company’s bakery ingredients manufacturer, saw strong volumes and sales, while ebitda was down as a result of fixed costs increasing and an investment in research and development for the brand.

The Real Good Food Company’s sugar business Napier Brown experienced an 11% year-on-year increase in sales revenue and a rise in volumes, which were mainly within the industrial sector.

Pieter Totté, executive chairman at The Real Good Food Company, said: "We enter the critical Christmas trading period with all businesses in a strong position to maximise commercial opportunities. At the same time, we are continuing to develop our medium-term growth plans, and I am confident the group will deliver results for the year as a whole in line with market expectations."

Other financial highlights included the R&W Scott bakery ingredients and jam business, which returned to profitability during the first half of the year and is on track to deliver a positive ebitda performance in the full-year results.

Haydens Bakery, which produces ambient, chilled and frozen patisserie and dessert products, also improved ebitda compared to the same six-month period last year.

The company reduced its net debt during the period by £1.7m to £32.1m, despite 9.4% increase in working capital to £45.5m.

The Real Good Food Company said a major evaluation had been undertaken for the Renshaw brand, with plans to expand globally and the delivery of an online sales channel, which goes live in the new year.

For its Napier Brown business the firm mentioned that it would be completing the acquisition of a site for a new sugar terminal in east Yorkshire, with plans for it to be operational during 2013.