Real Good Food losses widen

22nd Sep 2010 07:16

Shares of Real Good Food sank 19% after it said first half losses widened and sales fell 11% on the back of lower sugar prices.The sugars, ingredients and bakery firm said pre-tax losses widened to £1.3m for the six months ended 30 June 2010 compared to a loss of £1.2m the same time a year before. Revenue fell to £90.7m from £101.7m previously.EBITDA for the period fell to £580,000 from £591,000 the year before."We have achieved significant sales growth at our bakery ingredients and bakery businesses and while sugar has had a more difficult run with lower prices following the end of the EU regime, the summer saw this being reversed to our benefit," explained chairman Pieter Totté.The company said it expects improved trading results for the second half and going forward. "The tighter, and wider, supply conditions and improved pricing in the sugar business along with the significant growth already achieved in both Renshaw and Haydens gives me confidence in anticipating improved trading results for the second half and in the coming years," Totté added.