Based in Liverpool, food ingredients and cake decoration business Real Good Food’s recovery is gathering pace with a surge in revenues and significantly reduced losses. Tony McDonough reports
Liverpool food ingredients and cake decoration business Real Good Food (RGF) reported continued recovery from the impacts of the pandemic with revenues up and losses reduced.
In its results for the half year to September 30, 2021, RGF said revenues increased by 29.9% to £19.9m. Pre-tax losses were down to £1.2m against £4.7m in the same period last year. EBITDA (alternative measure of profitability) was back in the black at £700,000.
Toxteth-based RGF operates two businesses. Renshaw offers cake ingredients such as sugar paste, marzipan and icings while Rainbow Dust Colours sells edible cake decorations and exports all over the world. A third business, Brighter Foods which made snack bars, was sold to Hut Group in May for £43m.
The business is listed on the stock exchange’s Alternative Investment Market although it said in September that it is considering delisting in a move that would save it around £150,000 a year in costs.
Net debt was significantly reduced following the disposal of Brighter Foods to £24.9m at September 30 against £45.1m at the same point in 2020. And £8.5m payment was also made in May 2021 to eliminate the pension deficit, at that time.
RGF said innovation is continuing to drive revenue growth with 39 new products launched in the first six months of the financial year, producing revenues of £400,000. The business has committed to capital spending of £700,000 in the second half of the year.
Mike Holt, executive chairman of RGF, said: “We have made a good start to the year and the group is in good shape for the seasonally busier second half of the year.
“Our turnaround activities are gaining traction, enabling Renshaw to regain its reputation as a product innovator and first choice provider of quality products, both branded and private label. Overall, prospects for the remainder of the year are good.”