1st Feb 2016 08:18
LONDON (Alliance News) - Real Good Food PLC on Monday warned profit for its full financial year will not meet current market expectations due to investments it has made throughout the period.
The ingredients and baking products company said it has "invested heavily in people, product and brand" across the business during the year ending March 31, meaning earnings before interest, tax, depreciation and amortisation will remain flat year-on-year as margins are hit from both this and other one-off events.
As a result, it does not expect to meet current market expectations for full-year profit.
"The board is confident however that the negative impact on margins is short term and that the group is well-positioned for future growth following its investment programme," Real Good Food said in a statement.
Shares in Real Good Food were trading down 21% at 35.00 pence early Monday following the announcement, one of the worst performers in the AIM All-Share.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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