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.
Food Producers & Processors
8,348.86
16:59 05/11/24
FTSE AIM All-Share
736.29
16:50 05/11/24
Real Good Food
1.45p
17:30 19/12/23
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.