Real Good Food disposes of jams and preserves unit

Bakery and ingredients developer Real Good Food disposed of its jams and preserves wing R&W Scott for a total of £1.5m in cash on Thursday.

RGF received £1m upfront for R&W, with a further £0.5m deferred until 30 September. The Scottish outfit's new management team also assumed £2.45m worth of third-party debt.

The AIM-listed group said it would use the cash proceeds, along with the £8.6m already received from its disposal of Garetts and Haydens, for "working capital purposes".

Chief executive Hugh Cawley said: "This disposal, alongside those of Haydens and Garretts, marks a significant milestone in the turnaround and performance improvement programme of Real Good Food."

"Overall, through the actions of the last twelve months, the performance of, and prospects for, what is now a smaller and more focused group, have improved considerably."

As of 0900 GMT, RGF shares had slipped 4% to 6p.