Real Good Food to move headquarters to counter rising costs

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.