Inactive Instrument

REAL GOOD FOOD

Equities

RGD

GB0033572867

Real Good Food shares fall on downbeat outlook and JF Renshaw review

November 17, 2023 at 05:36 am EST

(Alliance News) - Real Good Food PLC shares plummeted on Friday after it announced the disposal of Rainbow Dust Colours and said it is "exploring all possible options" to decide the fate of remaining business JF Renshaw Ltd.

The stock was down 15% at 1.40 pence on Friday morning in London.

The Liverpool, England-based food manufacturer confirmed that cash constraints and supply issues have hurt its performance. Due to these ongoing problems, Real Good Food expects sales in November and December to be "lower than previously forecast".

The company also said it has sold Rainbow Dust Colours to European Fermentation Products Ltd for a total cash consideration of GBP800,000.

Real Good Food said this would help JF Renshaw, its remaining business, to fund its working capital "during the busy period in the run-up to Christmas and to leverage its recently completed, and successful, programme of radical reform".

One condition of the disposal, Real Good Food added, is that it will use GBP220,000 of the proceeds to pay down a proportion of JF Renshaw's secured loan facility with Hilco Private Capital.

The sale included the Rainbow Dust Colours business and "certain assets" including inventory, domain names and trademarks.

Real Good Food said that thanks to the aforementioned negative outlook and ongoing "challenging environment", it has decided to "explore strategic options" for JF Renshaw.

As a result, JF Renshaw, which manufactures baking and cake decoration products, has appointed Interpath Advisory to assist with the strategic review. Real Good Food warned that possible strategic options may include selling JF Renshaw's shares or business and assets, in addition to sourcing "necessary external funding".

"We have made substantial progress over the last year," said Executive Chair Mike Holt. "The radical reform programme has delivered significant benefits and recent senior management changes have also made a real difference.

"The group, however, is struggling to meet demand through supply issues and cash constraints. The board together with JF Renshaw is exploring all possible options and is working closely with Interpath Advisory to determine the best way forward."

By Emma Curzon, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Latest news about REAL GOOD FOOD

Real Good Food shares cancelled as company sold to British Bakels	Jan. 05	AN
British Bakels Ltd acquired JF Renshaw Ltd. from Real Good Food plc	Dec. 03	CI
EARNINGS AND TRADING: Guinness VCT NAV falls; Dial Square loss widens	Nov. 28	AN
Real Good Food Signs Debt Refinancing Agreement With PMC Financial Services	Nov. 21	MT
Europe shines but NY down at end of positive week	Nov. 17	AN
AIM WINNERS & LOSERS: Parkmead revenue up; Jersey O&G buys vessel	Nov. 17	AN
Real Good Food shares fall on downbeat outlook and JF Renshaw review	Nov. 17	AN
Real Good Food Plans Strategic Review of JF Renshaw Unit; Stock Tumbles	Nov. 17	MT
Earnings Flash (RGF) THE REAL GOOD FOOD COMPANY Posts Q3 Revenue $55.6M	Nov. 10	MT
FTSE 100 Closes Tuesday Lower as Poor BP Figures Cast a Shadow Over Session	23-10-31	DJ
Stocks up despite Eurozone recession fear	23-10-31	AN
Real Good Food shares jump as "significant turnaround" expected	23-10-31	AN
AIM WINNERS & LOSERS: Real Good Food expects positive earnings	23-10-31	AN
Real Good Food Company Insider Bought Shares Worth $168,000, According to a Recent SEC Filing	23-10-12	MT
Real Good Food Prices $14.3 Million Stock Offering	23-10-12	MT
Sector Update: Consumer Stocks Mixed in Late Afternoon Trading	23-10-11	MT
Real Good Food Shares Drop After Launching Public Offering	23-10-11	MT
Sector Update: Consumer Stocks Lower Wednesday Afternoon	23-10-11	MT
Sector Update: Consumer Stocks Advance Pre-Bell Wednesday	23-10-11	MT
Sector Update: Consumer	23-10-11	MT
Fed Rate Outlook, Falling Bond Yields Lift Exchange-Traded Funds, Equity Futures Pre-Bell Wednesday	23-10-11	MT
Real Good Food Launches Share Sale in Public Offering; Shares Slump Premarket	23-10-11	MT
Real Good Food Launches Share Sale in Public Offering	23-10-10	MT
The FTSE 100 Closed Down Despite the Bank of England Leaving Rates Unchanged	23-09-21	DJ
City Pub revenue up; Real Good Food talks up self-up	23-09-21	AN

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Company Profile

Real Good Food PLC is a food manufacturing and distribution company. The Company's Cake Decoration division manufactures sells and supplies cake decoration products and ingredients for the baking sectors. The Company is engaged in the sourcing, manufacture, and distribution of food to the retail, manufacturing, wholesale, and export sectors. The Company's Cake Decoration division comprises, Renshaw in the United Kingdom, United States of America (USA) and Europe and Rainbow Dust Colours. The Renshaw manufacturers sugarpaste, marzipan, soft icings, mallows and caramels and sells across a range of sales channels, such as mainstream and specialist retail, wholesale, foodservice and food manufacturing, as well as export. Rainbow Dust Colours produces a range of edible glitters, dusts, powders and food paints, brushes and pens for the specialist sugarcraft sector. Renshaw Europe sells, markets and distributes both Renshaw and Rainbow Dust products across continental Europe.

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