Real Good Food (RGD)

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23-Oct-2017 – 26p – £20.4m

Trading Statement – H1 Revenue up 13% (LFL), 20% including newly acquired Brighter Foods. Margins have been hit though (cost of butter mentioned again) and from a forecast EBITDA of £6.5m the group now expects to make a loss. Actually, they had already revised down to £2m at the beginning of August and to £1m at the end of August. Anyway, they say it comes in 3’s so here’s your 3rd profit warning! And, this is worrying “Should it be, in light of the Board’s revised expectations, that the current banking covenants come under pressure, the support from the Major Shareholders would extend to ensuring the facilities are maintained”.

The PER here is 5, I think even that’s generous!

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