Cake decoration and food ingredients business Real Good Food has reported losses of over £26m for the year ending 31 March 2018, compared with £9m loss in the previous year.
Losses were compounded by an £18.7m impairment charge, revenue from continuing businesses decreased by 3.4% from £63.8m to £61.6m.
The two continuing divisions, cake decoration and food ingredients are “profitable” (before impairment charges) and “cash generative”, total divisional adjusted EBITDA of £5.8m before central costs.
CEO Hugh Cawley said: “After a very difficult period in the Group’s history and a great deal of corporate activity, Real Good Food plc now comprises two divisions, with clearly articulated objectives and defined strategies to accomplish those objectives.
“In the new financial year to date, current trading from the two remaining, robust and profitable businesses is in line with our modest expectations for the year. The Group remains focused on continuing to improve its results and on reducing net debt, as well as continuing to support the business’s strategy and thereby to increase shareholder value and returns.”
The company has also said current trading is in line with the Board’s modest expectations, and remains focused on continuing to improve its results, and reduce net debt.