Christmas mince pies boost Real Good Food Co
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Bakery products manufacturer The Real Good Food Company said today (26 January) that it had made "considerable progress" under the guidance of a new senior management team. Bank borrowings had been reduced from £29.1 million to £21.3 million and sales performance had been improved in retail sugar, baking ingredients and the bakery division, Hayden's.
Following investments in new capacity and automation over the past three years, retail sales of sugar hit record levels in 2009, pushing factory utilisation to around 65%, on a 24/7 shift basis, for the year. This was helped by several new contracts, and growth in the home-baking market.
Hayden's, achieved significant growth in sales to all three of its major customers – Marks & Spencer, Waitrose and Costa Coffee. Mince pie sales for Christmas reached record levels with over 1.5 million pies produced for the festive period (64% up on 2008). The management team, led by managing director, Paul Smith, is now overseeing a major investment in the business to double its size over the next four years.
As a result of this strong progress at all its business units, the Group expects to report profits before taxation and exceptional items for the year ended 31 December 2009, which are around 25% above current market expectations.
Executive chairman Pieter Totté (pictured) said: "I am delighted by the progress we have made over the past year in developing new sales, expanding our product ranges and broadening our customer base. After a strong start to the current year, it gives me confidence that we are well placed to build on this progress."
