RGF: Results for the first half 2018 ended 30 September

Liverpool / UK. (rgf) British Real Good Food Company PLC (RGF) the diversified food business, announces its half year results for the six months ended 30 September 2018.

Financial highlights

• Revenue from continuing operations of GBP 30.4 million (2017: GBP 31.9 million)
• Underlying adjusted Ebitda(*) from continuing operations, profit of GBP 0.9 million (2017: loss of GBP 0.4 million)
• Loss before tax of GBP 9.1m (2017: loss of GBP 3.4 million) includes GBP 6.3m goodwill impairment charge
• Underlying financial performance benefited from cost savings despite weaker trading in Food Ingredients
• Haydens Bakery Ltd sold for GBP 12m in September, enabling bank term loan to be fully repaid and putting cash back into the business
• Net debt at 30 September 2018 of GBP 29.9 million (2017: GBP 35.8 million), being predominantly shareholder loans offset by GBP 10.5 million of net cash on the balance sheet (2017: GBP 0.7 million)

Operational highlights

• Corporate governance:
  • Two new independent non-executive directors appointed to the Board
  • New procedures and controls in place and delivering benefits
• Business:
  • Continuing Group now focused on profitable core of Cake Decoration and Food Ingredients
  • Further disposal of historically loss-making, non-core subsidiary announced this week
  • Central costs now materially reduced
  • Financing actions provided clarity and stability whilst enabling investment in growth

Current trading

• Trading remains in line with our modest expectations for the year
• Focus on profit improvement and growth, whilst managing net debt

(*) Adjusted Ebitda represents earnings before depreciation, amortisation, impairments, significant items, finance costs and tax.

Chief Executive’s commentary

Hugh Cawley, Chief Executive said: «The first half saw significant, progressive corporate activity, including further restructuring of the Group to focus on our two core divisions, Cake Decorations and Food Ingredients. At the same time, the underlying performance of these continuing operations improved, reflecting the cost savings made.

«The performance of these continuing operations remains in line with our modest expectations for the year. Overall, the Board remains confident, but far from complacent, in the future prospects for the Group and reiterates that the performance of, and prospects for, what is now a smaller and more focused group, have improved considerably.»