This figure was lowered yesterday (August 29) following a review by RGF’s new financial director Harveen Rai, who was hired after this month’s earlier profit warning.
Profit before tax and other items is expected to be the lowest for the company since 2014, which was valued at £3.3M for the year ending March 31.
The company also added that major shareholders Omnicare International Investors, NB Ingredients and funds managed by investment business Downing would, if required, provide additional funds for working capital.
Plans to expand
RGF also announced it had raised £15.5M as part of plans to expand two of their subsidiary companies, Renshaw in Liverpool and Haydens in Devizes.
The money – raised with the help of law firm Joelsons – will help the two companies meet increased demand for their products, said RGF. Renshaw is to receive £7M of the funds, while Haydens is to receive £8M.
RGF expected to announce its final results for the year ending March 31 2017 at the end of September.
The company announced on August 1 its earnings before interest, tax, depreciating and amortisation (EBITDA) would be lower than market expectations at about £2M, subject to a final audit. On June 29, the manufacturer announced expectations of £5M EBITDA for the year.
Share price dropped 42.5% in value, to 20.7p, earlier this month (August 1) – its lowest value since May 2010.
Founder and executive chairman Pieter Totté resigned from RGF a week after the company issued the first profit warning, signalling a number of changes to its board of directors.
Harveen Rai took over as finance director and company secretary from David Newman, while non-executive director Pat Ridgwell took over as interim chairman until a permanent chairman can be appointed.
The company appointed Hugh Cawley as a non-executive director, with immediate effect. He will also take on the role of head of RGF’s audit committee.
Meanwhile, convenience food manufacturer Greencore has tried to reassure the market, after its share price plummeted by more than 7.5% in one week, and 41% over the past year. Greencore said it knew of no business developments that could be responsible for the falling share price.