Shares in Real Good Food jump following successful Napier Brown divestment

1st Jun 2015 11:56

Real Good Food expects a positive performance at its Renshaw and Haydens brands to help full-year earnings following a profit warning last month.The bakery products manufacturer and supplier said net sales would come in at £104m, while earnings before interest, taxes, depreciation, and amortisation was likely to be around £5.3m. The company issued a profit warning last month on the back of falling sugar prices.Real Good Food sold Napier Brown for £34m which resulted in a positive cash position at completion of £13.7m.Meanwhile, its remaining debt results from a deferred payment of £2.6m for the Rainbow Dust Colours acquisition and loan notes of £2.8m.It also acquired the Lancashire-based cake decorating products business for £4m at the beginning of the year.Looking ahead, the group said its new financial year has started well and remains optimistic with the rest of the year's performance.Chairman Pieter Totté said: "Now that the disposal of Napier Brown has been completed, we can focus on developing our other businesses, all of which present growth opportunities."The performance of our cake decorating businesses continues to be encouraging, while Haydens is also trading strongly as it broadens its customer base," he added.Following the news, the company's shares jumped 12.64% to 49p at 12:12.