Poor Performance by Real Good Food
Real Good Food, the diversified UK food business, has reported a fall in EBITDA from £5.0 million to £1.2 million leading to an operating loss of £5.8 million for the year ending 31 March 2017. Revenue increased by 8% to £108.2 million. The company has initiated a review of its financial processes and procedures and corporate governance, and has implemented significant board changes.
Chris Thomas, executive director at Real Good Food, comments: “Real Good Food has recently experienced a period of substantial management change at the executive leadership and board level as well as challenging trading conditions. These management changes have principally been instigated following the recognition that the financial performance of the business during the reported period was substantially below the level that might reasonably have been anticipated. Poor corporate governance and controls were also identified and are being addressed.”
He adds: “The board remains confident in the future prospects for the company. With new leadership, a commitment to improve the group’s financial controls and corporate governance, the board believes the business is now well positioned to capitalise on the investment being made to improve profitability and cashflow over the coming years for the benefit of all shareholders.”
Real Good Food has taken a strategic decision to invest in increasing capacity at its main Cake Decoration and Premium Bakery sites
