Real Good Food H1 revenues affected by falling sugar prices

18th Dec 2014 12:26

Real Good Food saw its profits turn into losses during the first half of the year due to a pricing dispute with British Sugar and a drop in sugar prices.The food business, which distributes sugar in the UK, reported a drop in revenues by 1% to £128.7m from £130.1m same time last year.Pre-tax profits of £13,000 last year turned into losses of £4.71m, which dragged earnings per share of 0.4p to losses per share of 6.8p.Its Napier Brown and Garret Ingredients divisions suffered from the pricing dispute and low sugar prices during the period, but the company said the business has return to profitability in the last months of the year.Cash and equivalents also decreased to £4.4m from £3.3m.However, chairman Pieter Totté said the group has been trading ahead of last year during October and November and expects an improved trading during the Christmas period and next year.Totté wrote: "We remain confident about the prospects for the Group and are working on a number of new corporate initiatives, with a focus on delivering value to shareholders."Shore Capital analysts said Real Good Food will "always going to see a challenged financial performance" next year."However, it is pleasing to see that the company is seeing an improved financial performance in the second half and as a whole," the broker continued.Shares were down 1.72% to 27p on Thursday at 12:28.