In the firm’s latest financial statement Totté said: “Now that the disposal of Napier Brown has been completed, we can focus on developing our other businesses, all of which present growth opportunities.
“The performance of our cake decorating businesses continues to be encouraging, while Haydens is also trading strongly as it broadens its customer base.”
The firm’s strong cash position will enable it to pursue capital investment plans to support growth, as the business targets complementary acquisitions, said Totté.
In a pre-close trading update published today (June 1), Real Good Food predicted net sales for its financial year ending March 31 would reach about £104M.
Earnings before interest, tax, depreciation and amortisation were expected to be about £5.3M, reflecting strong performances at its cake and bakery businesses Renshaw and Haydens.
Net debt at the year end, before the disposal of Napier Brown, was £30.1M.
“Trading of the continuing businesses has continued in a positive fashion in the early weeks of the new financial year and the Board is optimistic about the prospects for the full year,” according to the financial statement.
Acquisitions in focus
“Our strong cash position will enable us to pursue capital investment plans to support our growth strategies, and we will also consider complementary acquisitions where appropriate.”
Chairman Pieter Totté
The sale of Napier Brown generated £34M, plus estimated working capital at completion of £7M. That resulted in a positive cash position at completion of about £13.7M.
Remaining debt comprised a deferred payment of £2.6M for the Rainbow Dust Colours acquisition and loan notes of £2.8M. The firm retained a debt facility of £3.75 million with Lloyds Bank.
The diversified food business serves a number of sectors including: retail, manufacturing, wholesale, foodservice and export. Its three main markets are: cake decoration – targeted by its business units Renshaw and Rainbow Dust Colours – food ingredients – served by Garrett Ingredients and R&W Scott – and premium bakery catered for by Haydens.
Real Good Food will post its year end results in late July.
Real Good Food figures: at a glance
- Net sales for year ending March 31 predicted at about £104M.
- Earnings before interest, tax, depreciation and amortisation predicted at £5.3M
- Net debt at the year end, before the disposal of Napier Brown, was £30.1M.
- Napier Brown sale generated £34M, plus estimated working capital at completion of £7M.