Real Good Food sells off patisserie arm

Real Good Food sold its RGF Patisserie subsidiary to Chantilly Patisserie as part of £200,000 deal on Friday.

The cake decorator and ingredients maker will receive an initial upfront consideration of £100,000 in cash for RGF Patisserie, with the remaining £50,000 to be received on the first two anniversaries of the sale.

Real Good Food, which anticipates a £60,000 profit on the disposal of the business, said it would utilise cash proceeds from the sale of its loss-making subsidiary for capital purposes.

The AIM-listed firm highlighted that, following the disposal of RGF Patisserie, and those of Haydens, Garretts and R&W Scott, it was now "free to focus its full attention and resources on growing its two profitable, continuing businesses".

"Having transformed the group's financial position as a result of these disposals and other financing activities, the financial resources are now available to fund this growth."

As of 1200 GMT, RGF shares had slid 5% to 5.70p.