Liverpool / UK. (rgf) British Real Good Food Company PLC (RGF) announces that it has completed the sale of RGF Patisserie Limited, trading as Chantilly Patisserie, to its management team (MBO). The Group will receive a total of GBP 0.2 million in consideration, to be paid in cash, with GBP 0.1 million paid on completion and a further GBP 0.05 million on each of the first two anniversaries of the sale. The cash proceeds will be utilised for working capital purposes within the Group.
Chantilly has been producing frozen desserts from its premises in Paignton, Devon for 20 years, and was carved out from Haydens Bakery Limited prior to Haydens’ disposal to Bakkavor Group PLC back in September 2018.
In the Group’s financial year ended 31 March 2018, Chantilly contributed GBP 2.40 million of revenue, and incurred a loss before non-recurring items and tax of GBP 0.25 million, and a pre-tax loss of GBP 0.32 million, At the date of the carve out, the net assets of RGF Patisserie amounted to GBP 0.09 million. The Group expects to incur an accounting profit on disposal of approximately GBP 0.06 million and a write-down of parent company reserves at 31 March 2019 of approximately GBP 0.06 million.
Following this disposal (and those of Haydens, Garretts and R+W Scott), RGF is now free to focus its full attention and resources on growing its two profitable, continuing businesses which together now comprise the majority of the Group, Cake Decoration (Renshaw and Rainbow Dust) and Ingredients (Brighter Foods). Having transformed the Group’s financial position as a result of these disposals and other financing activities, the financial resources are now available to fund this growth.
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