Real Good Food PLC Disposal (7544O)

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RNS Number : 7544O

Real Good Food PLC

01 February 2019

Real Good Food plc

("RGF" or "the Group")

Disposal

RGF free to focus on its two core businesses

Real Good Food plc today announces that it has completed the sale of RGF Patisserie Limited, trading as Chantilly Patisserie ("RGFP" or "Chantilly"), to its management team (the "MBO"). The Group will receive a total of GBP0.2 million in consideration, to be paid in cash, with GBP0.1m paid on completion and a further GBP0.05m on each of the first two anniversaries of the sale. The cash proceeds will be utilised for working capital purposes within the Group.

Chantilly has been producing frozen desserts from its premises in Paignton, Devon for 20 years, and was carved out from Haydens Bakery Limited ("Haydens") prior to Haydens' disposal to Bakkavor Group plc back in September 2018.

In the Group's financial year ended 31 March 2018, Chantilly contributed GBP2.40 million of revenue, and incurred a loss before non-recurring items and tax of GBP0.25 million, and a pre-tax loss of GBP0.32 million, At the date of the carve out, the net assets of RGF Patisserie amounted to GBP0.09 million. The Group expects to incur an accounting profit on disposal of approximately GBP0.06 million and a write-down of parent company reserves at 31 March 2019 of approximately GBP0.06 million.

Following this disposal (and those of Haydens, Garretts and R&W Scott), RGF is now free to focus its full attention and resources on growing its two profitable, continuing businesses which together now comprise the majority of the Group, Cake Decoration (Renshaw and Rainbow Dust) and Ingredients (Brighter Foods). Having transformed the Group's financial position as a result of these disposals and other financing activities, the financial resources are now available to fund this growth.

Enquiries:

 
Real Good Food plc                                Tel: [phone] 
 Hugh Cawley, Chief Executive 
 Harveen Rai, Finance Director 
 
finnCap Limited (Nomad and Broker)                Tel: [phone] 
 Matt Goode / Carl Holmes / James Thompson 
 (Corporate Finance) 
 
MHP Communications (Financial PR)                 Tel: [phone] 
 Reg Hoare / Katie Hunt                            [e-mail] 
About Real Good Food 
 Real Good Food plc is a diversified food business serving a number 
 of market sectors including retail, manufacturing, foodservice 
 and export. The Company now focuses on two markets: Cake Decoration 
 (Renshaw and Rainbow Dust Colours) and Food Ingredients (Brighter 
 Foods). 
 

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

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February 01, 2019 02:00 ET (07:00 GMT)