Sugar dispute continues
The Real Good Food Company, owner of Napier Brown, Renshaw and R&W Scott, Garrett Ingredients and Haydens Bakery, has given an update on its dispute with British Sugar.
In its Trading Update on 22 February 2014 the company announced that the dispute would have a significant impact on its results for the 12 months ending 31 March 2014. On the basis that this remains unresolved, the Group expects EBITDA to be approximately £3.3m for this period. The Group expects Net Debt for the period to be approximately £31.5m, which is lower than our previous expectations and reflects an improvement in working capital control.
The impact of the British Sugar dispute was felt by the Napier Brown and Garrett Ingredients businesses and masks good progress across the rest of the Group where Renshaw and Haydens both recorded significant Y-O-Y EBITDA growth.
A complaint against British Sugar is with the Competition and Markets Authority (CMA). The Group will shortly be responding to their questions and requests for information. While confident of its complaint, the Group remains unable to be definite on a timetable for the resolution of the dispute with British Sugar.
