Real Good Food Sells Ingredient Producer Garretts

Real Good Food announced the sale of the business and certain assets of its non-core trading business Garrett Ingredients Limited (“Garretts”) to Kent Foods Limited (“Kent”) for approximately GBP1.8m.

The funds raised will go towards repaying the group’s debts. The sale is expected to complete on April 20.

Garretts, which sources dairy, sugar and other specialist food ingredients and sells them to large, medium and small food manufacturers across the UK, has been part of Real Good Food plc since 2005.

The board believes that the business has more in common with Kent whose skills and aptitude are better suited to managing its contracts, given Real Good Food’s resources are being increasingly focused on serving the end consumer. In the group’s financial year ended March 31, 2017, Garretts contributed GBP21.3m of revenues and an operating loss of GBP0.9m. It had net assets of GBP1.9m as at March 31, 2017 and the group expects to report a modest loss on the disposal.

Hugh Cawley, chief executive, said: “We are pleased to have agreed the sale of this small, non-core business as part of our plan to improve the group’s performance.”