3rd Oct 2022 11:33
(Alliance News) - Real Good Food PLC on Monday reported a widened loss for the most recent financial year, despite a rise in revenue, ahead of a "challenging" new financial year.
Real Good Food is a Liverpool-based food manufacturing business, which specialises in cake decoration.
For the year that ended on March 31, it reported an 8.3% increase in revenue to GBP40.4 million from GBP37.3 million the year before.
"With the relaxation of Covid restrictions, sales in the Wholesale and Manufacturing sectors began to return to pre Covid levels", Real Good Food explains.
Its pretax loss, however, widened to GBP19.0 million from GBP6.1 million. It booked an impairment charge on goodwill of GBP16.1 million, compared to none the year before.
Looking ahead, the company warned about high sugar, glycerine and butter prices, adding that price increases are secured but they are likely to depress demand with "household incomes being under pressure from rising energy pricing and other costs".
Real Good Food said financial 2023 is expected to be a very challenging and loss-making year but the business is being strengthened to be more resilient and ready to benefit from a more favourable trading environment.
Shares were up 4.0% at 1.09 pence each on Monday morning in London.
By Xindi Wei; [email protected]
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