Food manufacturing group the Real Good Food Company (RGFC) has reported strong sales in its bakery ingredients division, up 13%. RGFC indicated it would seek to again increase prices in response to its own rising costs.

Sales in its bakery division - made up of Wiltshire-based Hayden’s Bakeries and Seriously Scrumptious - were down 4%, primarily down to poor perfor-mance on two key lines, which are being redeveloped.

The firm described the current trading environment as "very challenging". Chairman Pieter Totte said: "The first half has been characterised by lower sugar prices on the one hand and higher prices in our bakery and bakery ingredients businesses on the other.

"The management team is responding to these difficult conditions by striving for greater operational efficiencies, product innovation and a strong focus on customer service."