(Sharecast News) - Real Good Food said it was trading in line with its own modest expectations on Friday as the food ingredients and cake decoration company reported a £27m annual loss.
For the year to the end of March, Real Good Food's pre-tax loss widened to £27.1m from £9.1m a year earlier as the company took an £18.7m impairment charge on its cake decoration division. Revenue from continuing businesses fell 3.4% to £63.8m.
The AIM-traded company, whose brands include Renshaw and Brighter Foods, has been selling businesses and cutting costs to reduce its debt after a series of profit warnings and the departure of founder Pieter Totté in 2017. It raised funds from shareholders last year to strengthen its finances amid concerns for its survival.
After selling patisserie, jams and other businesses during the year, Real Good Food is left with cake decoration and food ingredients businesses.
Chief executive Hugh Cawley said: "After a very difficult period in the group's history and a great deal of corporate activity, Real Good Food plc now comprises two divisions, with clearly articulated objectives and defined strategies to accomplish those objectives ...In the new financial year to date, current trading from the two remaining, robust and profitable businesses is in line with our modest expectations for the year."
The company's shares fell 5.4% to 6.35p at 0744 BST.
5 Jan 2024 08:56
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