Real Good Food: Market conditions show no sign of easing

The company said these headwinds have increased costs, impacted the availability of key ingredients and services and reduced demand for its products this year. Although the ongoing availability of key ingredients has eased in recent weeks, it revealed. 

The result was that in its half year results for the six months ended 30 September 2022 the company revealed that revenue had decreased by 20.1% to £15.9m (2021: £19.9m). Loss before tax hit £3.8m (2021: loss of £1.2m (continuing operations)).

Challenging 

The company said that market conditions are expected to remain challenging in the near-term.

It has already launched a radical reform programme has been to return the business to profitability. 

"Market conditions have been very challenging over the last twelve months, and show no sign of easing in the near-term, due to a perfect storm of rising costs and lower revenues. The Group is not just hunkering down, it has put into effect a radical programme of reform to return it to profitability and to ensure that profits will be sustainable,”​ said executive chairman Mike Holt. 

Positive returns

“New funding has been secured to provide the headroom to make these transformational changes. The Board is confident that the right actions are being taken and that they will deliver positive returns. The simple truth, a crisis was needed to enable the required changes to be possible."​

On the back of its radical programme of reform, the group was able to secure additional funding of £2.5m​.  The new funding is being provided by Hilco Private Capital for a term of twelve months and supplements the £6.3 million facility with Leumi ABL. This new funding provides the headroom required to fund the changes being made and enables the Group to function normally.

The group has two businesses that make up the Cake Decoration division, Renshaw, and Rainbow Dust Colours.