14 February 2022

Real Good Food plc

("RGF" or "the Group")

Trading Update

Real Good Food Plc (AIM:RGD), the diversified food business, announces a trading update for its current financial year ending 31 March 2022 to date.

The Group entered its seasonally busier second half of the year in good shape and the Board had expected to report on further progress being made after a solid start to the year. Sales in December and January, however, have been much lower than anticipated due to severe shortages, and erratic deliveries, of certain ingredients and services, compounded by high absence rates because of the omicron variant, which affected our ability to fulfil customer orders. We believe that these issues are short term ones and will ameliorate in the coming months.

As reported in the half year results in December 2021, revenue and EBITDA in the first half were both well ahead of last year's first half performance, with revenue back to pre-covid levels (H1 FY20). Revenue for the second half of the year is expected to be at a similar level to the second half of last year, despite a pick-up in sales to the Wholesale sector. International sales, which had been expected to show double digit growth are going to be marginally below last year's numbers.  

Overall, with increased costs during the second half of the year, the Group is expected to make a small profit at EBITDA level broadly similar to underlying EBITDA reported in the prior year.  Cash at the half year was £2.7m, a modest cash inflow is expected to be reported for the second half of the year.

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

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