26th Sep 2019 12:48
(Alliance News) - Cake decorations and food ingredients provider Real Good Food PLC on Thursday said it is well positioned to make a progress in its current financial year despite challenges in one of its divisions.
The stock was untraded on Thursday in London, last closing at 6.75 pence a share.
Ahead of its annual general meeting, the company said trading in the new financial year - which started in April - within the Food Ingredients division has been "very positive", leveraging the recent investment in a new manufacturing line, which has almost doubled the capacity.
Meanwhile, trading within the Cake Decoration unit has been challenging, particularly in the US market.
"However, the board remains confident that the actions being taken to improve customer service levels, product quality and operational efficiencies should deliver sales and margin growth, in markets that are generally flat," said Bob-Executive Chair Mike Holt.
"The board believes that the group is well positioned to make further progress, improving operating profit significantly this year. The issues of recent years have largely been resolved," added Holt.
Real Good Food noted that shareholder debt remains high, but has now stabilised, and has been modestly reduced in recent months. The company said it will continue to seek to repay shareholder loans as soon as cash flow backed lending becomes available from commercial sources.
By Evelina Grecenko; [email protected]
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