The announcement signals a return to growth for the bakery and ingredients firm, after it reported a loss of £4.7M for the same period last year.
Sales increased to £46.65M compared with £45.56M last year. RGFC has also reduced its net debt from £36.3M to £3M.
RGFC was beginning to reap the benefits of recent investment, its chairman Peter Totté claimed.
‘Benefits of investment’
“Importantly, we are now seeing the benefits of the operational strategy and investment programme that we have been implementing over the last couple of years across our individual business units, which are now managed on a stand-alone basis,” he said.
“This coincides with a significant reduction in group net debt and improved working capital, resulting in a business which is much transformed and well positioned for further future growth.”
The firm would use its “strong balance sheet” to invest in its cake decoration, food ingredients and premium bakery businesses in a bid to drive operating profit and explore other acquisitions, Totté revealed.
Confident for year ahead
“We are now well into the important third quarter, which includes the Christmas trading period and I am pleased to report positive sales trends so far at both our cake decorating businesses and at Haydens,” he added.
“With this context, the board is confident that the outcome for the full year will be in line with current market expectations and we look forward with confidence.”
RGFC’s businesses are: bakery ingredients firm Renshaw; cake decoration manufacturer Rainbow Dust Colours; Garrett Ingredients; source and coating producer R&W Scott; dessert manufacturer Haydens Bakery and Real Good Food Europe. See how well each business performed below.
RGFC’s businesses six-month performance
- Renshaw: Volumes slightly down on previous year due to ending third-party contract
- Rainbow Dust Colours: Growth in sales and operating profit. 500 new accounts registered
- Garrett Ingredients: Revenues down 30% on previous year and operating profit down 15%
- R&W Scott: Sales volumes down on previous year, but operating profit and gross margin up
- Haydens Bakery: Sales and operating profit was broadly flat compared with last year
- Real Good Food Europe: Operating profit improved compared with last year