Real Good improves across the board

The advice here a month ago to hold on at Real Good Food despite the collapse in its share price has been vindicated (as was the subsequent buying by directors in the mid 40s). The shares have picked up strongly on the back of an encouraging trading statement. The improvement at the sugar business, Napier Brown, has continued while the much troubled bakery ingredients business, Renshaw, appears to be recovering under new management. The statement says ‘plans are in hand to handle the expected second half up-lift in volumes’.

Much now hangs on the extent of the pick-up in the second half. Napier Brown has won new business in both the retail and delivered wholesale sectors, and the bakery ingredients side has won back customers lost last year. The first-half figures may not amount to much, but it will be worth looking through them to the likely full-year outturn. If you bought on last December’s recommendation at 80p, continue to hold at the current 54.5p.