Real good progress at Real Good Food

Lower prices had impacted overall turnover in the Napier Brown sugar business, but a tightening of the supply position was expected to lead to a recovery in pricing levels at the start of the new contract season in October. The sugar business is in a transitional year, following the EU sugar regime changes, and has experienced significant pressure on retail prices, where margins have been tight during this year. However, the tightening supply position is expected to push prices up during the second half of this year. Renshaws continued to see growth in volumes and profitability at levels well above management expectations, with sales overall up 14% year on year. Key features of this improvement have been strong export sales and the growing popularity of home baking and sugar craft in the UK. A range of new branded products is being launched during the second half of the year, traditionally the key sales period for this business. At Hayden's Bakeries, a newly-assembled management team was achieving a turn-around of this business, with overall sales up 20% in the half year and plans for expansion into additional premises and modernisation of the plant well under way. Chairman Pieter Totté (pictured) said: "I am delighted by the ways in which we are starting to realise the full potential of our three businesses. At Renshaws we are successfully exploiting the growing market at home and overseas for home baking, as well as building a branded business; at Hayden's we are building ever stronger relationships with our key customers, and at Napier Brown we are poised to benefit from a long-awaited turn-around in the sugar market, following the EU-led cuts in supply levels. We look forward to the seasonally-stronger second half with considerable confidence."