Real Good Foods widens losses, optimistic after Napier Brown sale

7th Aug 2015 14:14

(ShareCast News) - Real Good Foods (RGF) declined after posting a wider loss before tax, but said it remains confident of the future.The pre-tax loss more than doubled to £3.5m from £1.5m the same time last year, while revenue declined 14.6% to £232.9m.The company said the year ended 31 March was a transformational one due to the sale of its Napier Brown sugar business.RGT said the closure resulted from the European Commission's decision to end production quotas and when it realised the competition authorities no longer felt able to give Napier Brown any protection as a non-refining independent player in the sugar market.Read more: Shares in Real Good Food jump following successful Napier Brown divestmentExcluding Napier Brown, the group saw its operating profit grow to £3.12m from £2.74m, driven by strong growth in sales and profits at its Renshaw and Haydens businesses.Executive chairman Pieter Totté said the group's results were hurt by the market issues in sugar.Looking ahead, Totté said: "Trading in the early months of the new financial year within our continuing businesses has begun well and with the funds from the sale of Napier Brown being received in May we are now in a position to fast-track some of the investment opportunities."Overall, the business is in good shape and we look forward with great optimism."Shore Capital said the results were broadly in line with its estimates driven by good performance in all its divisions."We believe RGF is now a transformed business with greater focus and a more added value proposition and with a good start to 2016, it suggests brighter times are ahead for group."Shares fell 1.06% to 51.45p at 13:37 on Friday.