Real Good Food returns to profit

20th Sep 2011 07:41

Aim listed sugar distributor The Real Good Food Company swung back into a pre-tax profit after making progress across all of its businesses. Pre-tax profit was £1.15m for the six months ended 30 June 2011 compared to a loss of £1.11m the same time a year earlier. Total sales were up by 21% to £109.8m. EBITDA increased to £2.7m from £0.6m in 2010. "Substantial progress was achieved by all four business units," the group said in a company statement. Chairman Pieter Totté said he was pleased with the progress made in the first half of the year. "Particularly as we have had to contend with increased commodity costs and challenges in the sourcing of sugar supplies. Despite this we have achieved growth in all of our businesses, a substantial uplift in EBITDA, while continuing to invest for further growth." Real Good Food, which recently launched its branded Renshaw product range, said the initial reaction to the Renshaw product launches has been extremely positive, and it is now preparing to launch a new range of speciality sugars under the Whitworths brand.Totté added, "Our management teams have worked hard to ensure that increased commodity costs are passed on to customers and, whilst this will continue to be reflected in working capital, looking forward we are expecting net debt to reduce by the end of the year as we generate cash in our key trading period." "After a three year period in which our trading performance has been over-shadowed by the impact of EU sugar reforms, we are now more in control of our own destiny. We have the people and the products to make considerable further progress and I therefore look to the group's future with growing confidence."Net borrowings increased to £31.9m from £28.3m.---CJ