Real Good Food to move headquarters to counter rising costs

By James Ridler contact

- Last updated on GMT

Real Good Food is to move its head quarters to Liverpool
Real Good Food is to move its head quarters to Liverpool
Baking ingredients manufacturer Real Good Food (RGF) has revealed plans to move its head office from London to Liverpool in a bid to reduce costs, ahead of its annual general meeting (AGM).

The news followed a 10-week strategic review of the business by RGF’s new management team, appointed in the wake of a number of directors – including founder and executive chairman Pieter Totté – leaving the company.

RGF said: “It was recognised that group and head office costs have been too high and these are also subject to a comprehensive review, part of which will result in moving the head office from London to Wavertree, Liverpool. 

‘Significant additional costs’

“The company has also experienced significant additional costs from professional advisers as a result of needing to respond to its corporate governance and regulatory shortcomings.”

RGF reported a pre-tax loss of £6.4M in its full year results last month, compared with a profit of £12.8M last year.

The company also expected it would make a loss in its next full-year results, down from its earlier predicted earnings before interest, taxes and amortisation (EBITDA) of £6.5M.

RGF added: “Following a review of the company’s performance​ [for the first half of the year] in its latest monthly management accounts, the board has decided to take a more prudent view of its anticipated performance in the second half of the year.

‘The company will report a loss’

“As a result of this more prudent view, the board now expects a materially reduced level of EBITDA in the second half of this year and in the year to March 31 2018 as a whole.  The board now expects that the company will report a loss before tax.”

In August, the company’s share price dropped 42.5% in value to 20.7p, its lowest since May 2010.

RGF’s will hold its AGM at its Liverpool site on Thursday (October 26).

Meanwhile, last month, RGF launched a full review of its financial reporting and corporate governance, after it was revealed that former directors had received payments for consultancy services, ​not reported to the company. 

Real Good Food’s full year results – at a glance

For the year ending March 31 2017

  • Operating loss of £6.4M before tax
  • Sales of £108M
  • Earnings per share at a loss of 8.5p

Related topics: Business News, Bakery

Related news

Show more

comments

Post your comment

We will not publish your email address on the website

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.

Follow us

Featured Events

View more

Products

View more