Intent to Appoint Administrators &Share Suspension
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"), AND IS DISCLOSED IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF MAR.
Real Good Food plc
("RGD", "the Company" or "the Group")
Intention to Appoint Administrators and Suspension of Trading in Shares
Real Good Food plc, (AIM: RGD), the food manufacturing business specialising in cake decoration, provides the following update on trading and its review of strategic and financing options.
As announced on 17 November 2023 the Board had carefully reviewed its management accounts and working capital position, as well as the expected sales in November and December. It was noted that performance had been constrained by supply issues and cash constraints which are continuing and that sales in November and December were expected to be lower than previously forecast.
This led the Board to conclude that it is in the best interests of all stakeholders to explore strategic options for its remaining business JF Renshaw. The Board of JF Renshaw consequently resolved to appoint Interpath Advisory as its adviser to assist with the review of all strategic options, given a challenging environment for the Company and the related cash flow constraints, which included the sale of the shares or the business and assets of JF Renshaw as well as sourcing external funding.
Discussions with respect to a sale of JF Renshaw are continuing, however the Board has concluded that the likelihood of a solvent sale of the business and assets of JF Renshaw is very limited within a constrained timeframe. Given the impact of the current operating environment on the Group, the Group's limited working capital position and the consequential uncertainty regarding the Group's financial position, the Board and the JF Renshaw Board have each concluded that it is required to take the necessary steps to preserve value for creditors. The Board and the JF Renshaw Board have each therefore filed a Notice of Intention to appoint Administrators this afternoon, with a view to appointing Richard Harrison and Will Wright of Interpath Advisory, as joint administrators of the Group ("Joint Administrators"), within ten business days.
Should Administrators be appointed, the outcome to creditors of the Group is currently uncertain. Given the circumstances, the capital structure of the Company and options open to it, the Board believes that there will be no return to shareholders whether via a solvent sale of JF Renshaw or any procedure in an Administration.
Shareholders are advised that there can be no certainty of the outcome of the strategic options review. The Board reserves the right to alter any aspect of the process or to terminate it at any time.
A further announcement will be made with an update as soon as practicable or once further steps are taken to appoint the Joint Administrators
Suspension of Trading on AIM
In light of the uncertainty regarding the Group's financial position, the Board also announces that it has requested a suspension of trading in the Company's ordinary shares on AIM with effect from 07.30 a.m. tomorrow(the "Suspension").
Real Good Food plc
Mike Holt, Executive Chair
Tel: 0151 541 3790
Cavendish Capital Markets Ltd (Nomad and Broker)
Carl Holmes / Abigail Kelly (Corporate Finance)
Tel: 020 7220 0500