Real Good Food Share Discussion Threads

[buywell3] 08/8/2017 06:44

Nothing short of terrible this


For immediate release: 1st August 2017


Company Update

The Company announces that during the audit process of its full year accounts for the year ended 31 March 2017, two substantial anticipated claims regarding its sugar purchase arrangements have not yet materialised with the effect that it will not meet its previously forecasted profit figures.

In addition, the Board has concluded that certain development costs, which had previously been capitalised in FY 2017, should more appropriately have been expensed. The Board expects the total of these adjustments and further accrued expenses will have the effect of reducing the anticipated EBITDA to approximately GBP2.0 million for FY 2017. This number is still subject to final audit.

Following the recent injection of expansion capital announced on 29 June 2017, the Board has undertaken a full re-forecasting exercise for the year ending 31 March 2018. The investment projects funded by the expansion capital are now proceeding to plan and being well received by customers.

As the injection of expansion capital was agreed about three months later than anticipated this has resulted in some delay in the implementation of these projects, particularly at Renshaw. This, combined with slightly softer trading conditions in Q1, has adversely affected the Board's expectations for the financial year ending 31 March 2018 with the result that EBITDA is now anticipated to be approximately GBP2.3 million lower than previously expected. However, the anticipated benefits of these projects remain robust and are expected to be fully realised in the financial year ending 31 March 2019.

The Board further announces that it has realised that certain payments made to certain Directors for consultancy services have not been separately disclosed in the related party transaction notes to its previously published audited Annual Report & Accounts for FY 2014, FY 2015 and FY 2016. These are believed to amount to GBP250,000 to Pieter Totté and GBP25,000 to Peter Salter in FY 2014, GBP358,000 and GBP20,000 respectively in FY 2015 and GBP1.21 million to Pieter Totté in FY 2016.

These costs were fully accounted for in the relevant accounting periods so have no impact on the reported profit before tax for these three years.

The Company now expects to announce Final Results for the year ended 31 March 2017 at the end of August 2017.

-Ends-

[typo56] 08/8/2017 06:36

There might be a trading bounce there, or there might not, but I dread to think what skeletons will be found. New board is certain to kitchen sink. What's the cash position like?

[buywell3] 08/8/2017 06:31

And catch a falling knife

This is a very bad chart

Not seen its bottom yet IMO

[bigbigdave] 08/8/2017 06:07

Totte resigned, might be time to buy.

[fillipe] 07/8/2017 10:34

Some buy interest here at RGD today - maybe coming off the bottom.

f

[pugugly] 04/8/2017 16:32

Just come to have a look in view of recent fall and what on the surface could be an interesting proposition with an EV to sales ratio of 1 - 2.4 approx. HOWEVER ratio of market cap to debt some 1 - 1.75 (in other words debt is some 175% higher than market cap) - Ballparking recent loans suggests interest payments going forward could be significant.

Can any who follow more closely able to comment in greater detail.

Share graph suggests that if this can be turned round significant upside potential but some £1 per share in goodwill (source Refs_

[briangeeee] 01/8/2017 16:21

Just looking back at some lengthy correspondence with Peter Salter in early 2013, which made me smile. PS commented:

"Your comments are also disrespectful to the Board and distrustful of our ability to manage the group to the point where again it would seem surprising that you wish to continue holding your shares."

The comments I made appear to have greatly underestimated the degree to which they have mismanaged the group. This is a shocking and disgraceful situation.

[barnetpeter] 01/8/2017 15:40

My opinion FROM shareholders- shareholders really shouldn't tolerate this sort of situation. I would consider the positions of the CEO and FD untenable, after this catalogue of incorrect accounting.

[typo56] 01/8/2017 15:25

Who would persue a case for fraud though? Seen it happen too often and I'm afraid directors just keep getting away with it. Yet this sort of behaviour tarnishes the reputation of AIM and Britain as a place to invest. So well run British businesses suffer because they find it more difficult to raise funds. And Britain suffers as a result.

We can try AIM Regulation. We can try Action Fraud. More likley to get a result from Private Eye!

[r1singson] 01/8/2017 15:12

Is there a case for criminal fraud here? If so it really must be pursued. Sorry for holders here, it was a company that didn't look so bad a little while ago.On another note I think that finncap really are showing themselves to be inept brokers. I'm beginning to doubt anything connected with them unfortunately

[typo56] 01/8/2017 14:02

Omnicane possibly having thoughts too, although I do wonder quite how their interests are aligned.

[jotoha2] 01/8/2017 13:36

fillipe you keep buying and lining the pockets of the bent Chairman and anyone else involved in this scam , now what was the name of that other crook who plundered British home stores , oh yes greedy Green , best of luck to those who prefer a result at any price , your day will come for retribution.

[fillipe] 01/8/2017 13:19

For interest, L2 is showing the best bid/ask as 21.50p v 24p, with 23.45p having been paid, very recently....1413 hrs.

f

[fillipe] 01/8/2017 13:16

Well, I've taken a screen-shot for ref, but have no idea how to post it here.

f

[typo56] 01/8/2017 13:15

Anyone 'investing' in RGD should realise that Totté has a history of failing to deliver shareholder value. Think Hill Station, Aquabella....

Just how far are you allowed to push the boundaries on AIM before you end up in the clink? A long way it seems.

[boffster] 01/8/2017 12:45

Unprofitable crock headed by directors feathering their own nests. £1.21m to Totte in 2016? Scandalous. Better investments about IMO

[briangeeee] 01/8/2017 12:39

Don't understand or agree with the finnCap comments.

They withdrew their price coverage and price target today - that's generally about as negative as they can be, and commented:

"This is disappointing news coming so soon after the recent capital raising and revised profit guidance. We are withdrawing our forecasts and price target pending further clarification from management. FY17 results are now expected at the end of August."

[kemche] 01/8/2017 12:14

What a shocker! House broker says buy house stock. Who'd have thunk it?

Like Buffet, when looking for an investment, I always look for crooked management. And therefore I am a buyer!

[fillipe] 01/8/2017 12:13

There could be a bit of an uptick from the low, from the above broker reiteration.

f

[fillipe] 01/8/2017 12:09

Don't all shout at me at once, pls - but here's today's tp.finnCap
Corporate (CORP)

sp 22.25p

sp at last CORP 35.00p

Target Price at last CORP 55.00p

New tp 55.00p

Reiterates

Well, at least today's 'orrid news hasn't affected the broker tp, all fwiw.

f

[tiredoldbroker] 01/8/2017 11:55

Bear in mind, 2 years ago they sold the sugar business and on 29/4/2015 claimed it would "move the Continuing Group into a net cash position" from net debt @30/9/14 of £36.3m; and on 1/9/15 said "The deal has significantly altered the financial platform from which the Company can now operate. We have positive cash balances and are cash generative".

Then in the figures released 1/8/16 they said the "Disposal transformed the Group balance sheet reducing net debt from GBP30.1 million down to GBP5.1 million". I felt the difference between net cash/cash generative and £5.1m debt was too large. And then on 29/6/17 they said "Net Debt at the period end was £16.2 million" (@31/3/17 I assume). It just looks a bit off, regardless of their "expansion plans", and I assume that their creditor, Downing, is unhappy given the shares they subscribed for at 35p.

The revelation of the Chairman and a director taking "consultancy fees" on such a scale but not properly reported is just appalling and should come with more than one resignation, in my opinion. I would not touch this. Which is a shame, because the Renshaw business is old-established and would in other circumstances be right up my street.

[jotoha2] 01/8/2017 10:53

Clearly you belief in supporting the dodgy dealers , hope they look after your cash !

[barnetpeter] 01/8/2017 10:35

bought in today.....a bit oversold at 21p I thought. Going to invest the current mkt cap in development.

can understand fury on here as these undeclared fees....and those who paid 35p in the last placing. What exactly did the auditor do????

cheap if someone wants to buy the company.