Real Good Food announces an exceptional profit

 
British company Real Good Food has recently announced an exceptional profit for the year ended March 31, including GBP 9.4 million as a result of the sale of Napier Brown for total consideration of GBP 44.4 million.

The company is pleased to confirm that it expects to report EBITDA (earnings before interest, tax, depreciation and amortisation)  for the full year in line with current consensus expectations. 

This exceptional profit means that the Board expects statutory profit before tax for the year to be approximately GBP 13.9 million.
The sale of sugar producer Napier Brown resulted in a substantial improvement in the Group’s net debt position, and the Group expects to report net debt as at March 31 of GBP 5.0 million, compared to GBP 30.1 million as at March, 31, 2015. 

The company will announce its final results for the year ended March 31, in late July 2016.

Real Good Food announced in April that it had sealed a deal with French group Tereos for the disposal of Napier Brown. Real Good Food chairman Pieter Totté said: “I am proud of what we have achieved in building the Napier Brown business and expanding its customer base and developing its supply chain. However, the changes taking place within the European sugar market mean that the future of this business is best served by it becoming part of an international production group. We believe Tereos is the best choice for both customers and employees. This transaction will allow us to focus all our resources on the continued growth of our remaining businesses.”

Real Good Food plc is a diversified food business serving a number of market sectors including retail, manufacturing, wholesale, foodservice and export. The company focuses on three main markets: cake decoration (Renshaw and Rainbow Dust Colours), food ingredients (Garrett Ingredients and R&W Scott) and premium bakery (Haydens).