Real Good Food (RGF) has announced it expects statutory pre-tax profits of approximately £13.9m for the year ended 31 March 2016.
In a pre-close trading update, the company said it anticipated ebitda for the year to be in line with current expectations.
It added that the sale of sugar-arm Napier Brown for a total consideration of £44.4m would help boost exceptional profits by £9.4m, and slash net debt from £30.1m to £5m.
In February, RGF warned that its profits would not meet market expectations and that continuing business ebitda was likely to remain flat for the year. The company blamed this on investing in restructuring and strategy programmes.
RGF said: “The company is pleased to confirm that it expects to report ebitda for the full year in line with current consensus expectations.
“As previously indicated, Real Good Food will be reporting an exceptional profit for the period, including £9.4m as a result of the sale of Napier Brown for total consideration of £44.4m. This exceptional profit means that the board expects statutory profit before tax for the year to be approximately £13.9m.”
The company said it will announce its final results for the year in late July.
In February, RGF acquired frozen desserts supplier Chantilly for £1.75m.
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