FDBusiness.com

Real Good Food, the diversified UK food business, has provided an update on its earlier, surprise profits warning. The company announced on 1 August 2017 that it anticipated EBITDA for the year ended 31 March 2017 would be lower than market expectations at approximately £2.0 million, subject to final audit.

Since the announcement of 1 August, a review has been undertaken, under the guidance of the company’s new Finance Director, which is now expected to lead to additional audit adjustments relating to inter-company trading and consolidation. As a result of these additional adjustments, the board of directors now expects EBITDA for the year ended 31 March 2017 to be in the region of £1.0 million.

Real Good Foods’ banking facility is subject to customary terms, conditions and covenants which are tested quarterly, with the next date at which the company’s banking covenants will be tested being 30 September 2017. The board is in discussions with its bankers to vary certain conditions of this facility to reflect the company’s recent and anticipated trading.

In addition, the Bboard is pleased to announce that its major shareholders, NB Ingredients Ltd, Omnicane International Investors Ltd, and certain funds managed by Downing LLP have confirmed that they will, if required, provide additional funds to support the company’s working capital requirements.

Real Good Food now expects to announce its Final Results for the year ended 31 March 2017 on 29 September 2017.