Shares in UK sugar and bakery company The Real Good Food Co. fell this morning despite it recording a “strong” trading update.
Shares in Real Good Food were trading at GBP34.5 a share at 09:47 GMT – down 0.7% – despite the company saying that it recorded strong trading in the key pre-Christmas period and stating that it suffered “no loss of sales at all” as a result of the severe weather in December.
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The company said that global sugar prices have reached “record highs” in recent weeks, a situation which “should transform the dynamics” of its sugar distribution business Napier Brown following a “transitional year that has seen a conclusion of the EU sugar regime changes”.
It added that its bakery ingredients business Renshaw recorded its “best ever performance” in 2010, with growing exports and the increased popularity of home baking.
Planned development of the new Haydens Bakery distribution centre is “well advanced” and the business had a “good” pre-Christmas trading period.
Additionally it said that it has had “considerable success” in controlling costs and working capital over the past year and ended the year with bank borrowings having been reduced to “just under GBP20m, significantly lower than current market forecasts”.
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By GlobalDataThe company said that profits are “in line with market forecasts” and will be released during the week beginning 28 March.
