Real Good Food PLC Company Update (6676M)
August 01 2017 - 1:01AM
UK Regulatory
TIDMRGD
RNS Number : 6676M
Real Good Food PLC
01 August 2017
For immediate release: 1st August 2017
Real Good Food plc
("the Company" or "Real Good Food")
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-
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
ENQUIRIES:
Real Good Food plc
Pieter Totté, Executive Chairman Tel: 020 38573900
David Newman, Finance Director
Andrew Brown, Marketing Director
finnCap Ltd (Nomad and Broker)
Matt Goode Tel: 020 7220 0500
Carl Holmes
Daniel Stewart and Company Plc (Joint Broker)
David Lawman Tel: 020 7776 6550
Belvedere Communications (PR)
John West Tel: 020 3567 0510
Kim van Beck
About Real Good Food plc
Real Good Food plc is a diversified food business serving a
number of market sectors including retail, manufacturing,
wholesale, foodservice and export. The Group focuses on three main
markets: Cake Decoration (Renshaw, Rainbow Dust Colours), Food
Ingredients (Brighter Foods, Garrett Ingredients and R&W Scott)
and Premium Bakery (Haydens and Chantilly Patisserie).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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