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THG deal can’t stop Real Good Food’s losses

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Liverpool’s Real Good Food has reported an £18.9m loss for the year to March 31, despite a £36.4m deal to sell Brighter Foods to Manchester ecommerce giant The Hut Group (THG).

The 2022 losses come on the back of a £6.1m in the previous year, although Real Good Food’s revenue increased from £37.2m to £40.4m over the same period. The company has already warned warned that jobs are at risk of being cut as as it seeks to cut overheads.

In a statement to the London Stock Exchange, Real Good Food said “unprecedented increases in the cost of raw materials and energy in recent months continue unabated and pose significant challenges”.

It added that the current financial year is “expected to be a very challenging and loss-making” but that it is being “strengthened to be more resilient and ready to benefit from a more favourable trading environment”.

Executive chairman Mike Holt said: “The group made a good start to the year and expected to build on this during the seasonally busier second half of the year. Market conditions changed during Q3 and have remained extremely challenging as noted in our trading updates in April and earlier today. To mitigate this, we are putting into effect a more radical programme of reform to reduce costs, protect revenues and preserve the inherent value of the group. This involves the refinancing of the group and discussions are underway with potential lenders.”

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