Real Good Food PLC Disposal (7544O)
01 February 2019 - 6:00PM
UK Regulatory
TIDMRGD
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: 0151 541 3790
Hugh Cawley, Chief Executive
Harveen Rai, Finance Director
finnCap Limited (Nomad and Broker) Tel: 020 7220 0500
Matt Goode / Carl Holmes / James Thompson
(Corporate Finance)
MHP Communications (Financial PR) Tel: 020 3128 8193
Reg Hoare / Katie Hunt rgf@mhpc.com
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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