Real Good Food sells frozen fish business

Real Good Food has really been through the blender since I tipped the shares here 18 months ago at 80p. Today, they are almost back up to where they started. Last week, the company sold off its frozen fish business, Five Star Fish (FSF), for what looks to be a very full price. The company bought FSF for £16.6 million three years ago and has now traded it on for £35 million – though that translates into £27 million net. The cash will be used to pay down debt, which was £56.6 million at the last count.

The deal helps put RGF back on an even keel though it will not help earnings in the short term. FSF made operating profits of £4 million last year and was said to have got off to a good start to the current year. If you’re still in RGF, stick with it.