Real Good Food business outlook breakdown

Real Good Food
Renshaw is performing well
  (Photo:  )

Real Good Food posted full-year results including an operating loss of £741,000 for the year to 32 March 2015. 

Just after its financial year, it disposed of its sugar division Napier Brown, which has caused losses in the business.

Below, see the results and future plans for its remaining six businesses.

Renshaw

Sales revenue was up by nearly 9% on the previous year. The group said export sales were particularly strong, with growth across the three main territories of Europe (via Real Good Food Europe), the US and Australia. Operationally the business coped well with the increased volumes while EBITDA increased to £6.3m, more than £800,000 up on the previous year.

Growth is anticipated across all trade channels, particularly foodservice and export.

Rainbow Dust Colours

Since it was acquired in January, it contributed £760,000 of revenue with an EBITDA of £400,000. The business has a wide product range focused on the sugarcraft sector both in the UK and Europe.

Owners Gary and Carol Brown are remaining with the business and David Grieve has been appointed as managing director. There are plans to increase business in Europe and a number of new products are planned to follow the launch of the Paint It! range earlier this year.

Garrett Ingredients

The business was hit by deflation in both of its core commodity markets - dairy and sugar. Both volumes and revenue fell significantly and EBITDA fell accordingly.

The new management team is focusing on operating on a stand-alone basis independent of Napier Brown. Going forwards, it plans to work on a strategy to support its commodity trading operation.

R&W Scott

Sales volumes were marginally ahead of the previous year though revenue was slightly down reflecting deflation in chocolate coatings. EBITDA was just below break-even and below the previous year reflecting a planned increase in overheads as management was recruited to build a sustainable stand-alone business.

The development of the foodservice jam business has led to a new opportunity in pie fillings, sales of which began during the summer. On the retail side, listings have been achieved for a Scott's chocolate spread and a re-launch of the jam ranges, focusing on the 'no added sugar' proposition which has been well received.

Real Good Food Europe

Sales grew to £1.7m over the year, with the business just moving into a break-even EBITDA by the end of the year. The major product focus has been on the Renshaw ranges of coloured sugarpastes and marzipans, and the main geographic focus on the Benelux, France and Spain.

The business moved to slightly larger premises on the same industrial estate in June and is investing in local labelling to help fast-track the growth plans. Marketing investment will again focus on trade and consumer cake shows where the two brands, Renshaw and Rainbow Dust, will be presented together.

Haydens Bakery

Haydens posted sales growth of 4% on last year, which masks a major change in product mix after exiting a number of product categories and focusing on five. Sales in three of these sectors - Danish and viennoiserie, pies and crumbles and tarts - all showed increases of over 20% year-on-year. EBITDA, at £1.25m, was up by over £300,000 on the previous year.

A new “identity” for the business will be revealed in autumn this year.

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