Real Good Food has reported a statutory profit before tax of £12.9m for the year ending 31 March 2016.
The company’s successful disposal of sugar arm Napier Brown generated a profit of £9.1m and the disposal transformed the group’s balance sheet, reducing net debt from £30.1m down to £5.1m.
Revenue from continuing operations reached £100.4m, down from £104.6m in 2014/15 with ebitda at £5m. Profit before tax for continuing businesses was £4.8M compared to £1.6m in the same 2014/15 period.
During the year the group restructured into three pillar markets – Cake Decoration, Food Ingredients and Premium Bakery - with standalone business strategies for each. Meanwhile, it said its acquisition strategy was progressing to plan with the purchase of Rainbow Dust Colours in January 2015, ISO2 Nutrition in December 2015 and Chantilly Patisserie in February of this year successfully completed.
In addition, the company launched the Renshaw Academy to further monetise the Renshaw brand and cement its position as an industry leader in the global cake decorating market.
It also opened a new Development Centre in Liverpool, providing a base for the group’s support functions.
Real Good Food executive chairman Pieter Totté said: “The hugely successful disposal of Napier Brown transformed our balance sheet and has enabled us to begin a strategy of investing in our core markets. We have spent the time since reviewing our strategy, clarifying our focus and restructuring the business accordingly. We now operate in a pillars market and our objective will be to build scale and strategic positions in each of these through organic growth, targeted investment and bolt-on acquisitions as appropriate.”
He added: “The food industry faces challenging times with diversifying sales channels, increasing legislative burdens, the growth in the minimum wage and ever-demanding consumers. The response to these trends requires being alert to all these factors and having the resources to invest and adapt. I am confident we are in a good position to build three increasingly strong businesses in our three pillar markets.”
Real Good Food finalised the disposal of Napier Brown in August last year.