Real Good Food Cuts Losses in H1

The Real Good Food Company, a UK manufacturer of ambient, chilled and frozen products, has reduced its loss before tax to GBP350,000 in the six months ending June 30, 2006, an improvement on the GBP2.9 million losses recorded a year earlier.

Group sales during the period increased more than five-fold to GBP113.4 million, from the GBP21.4 million reported during the first half of 2005. The food group said the large increase was down to its acquisition of Napier Brown Foods (NBF).

Sales at NBF, now Real Good’s sugar division, reached GBP81.1million, with profits at GBP2.8 million. Normalized operating profit for the unit increased to GBP4.7 million compared to GBP800, 000 in the previous year.

Commenting on the results, Real Good chairman Pieter Totte said: “Following the acquisition of NBF last September, considerable effort has been put into managing our devolved business units in accordance with our company ethos of a decentralized accountable business reporting to a tightly controlled center.

“Much effort has been put into managing the issues arising from the delays in the introduction of the new European Union sugar regime. While this has affected profitability in this period, I believe the business remains well set to take advantage of the liberalization of sugar supplies in the European Union (EU),” he added.

The group’s Five Star Fish business reported a sales increase of 14%, with operating profits of GBP1.8 million. The bakery ingredients division recorded sales of GBP13.8 million and profits of GBP600,000, while sales in the bakery division were up 5% and profits were in line with last year.