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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Real Good Food - Shares are due for a bounce

October 2005

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • RGD
  • Price:
  • 128p
Following Real Good Food’s acquisition of sugar merchant Napier Brown Foods, we spoke to chairman Pieter Totte about the rationale for the deal which has transformed the scale of the business. Real Good Food’s annualised pretax profit is now expected to increase from £3.2m to £16.3m, although earnings will be pegged back because of the 385% increase in the issued number of shares to 68.3m. The latter also swells its market value to £87m. Totte notes that the central part of Real Good Food’s strategy has been to establish greater scale in the food industry as a whole and across the three food sub-sectors of retail, food service and industry. Napier Brown effectively provides all of this by streng ...

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Related Articles

Real Good Food - Dropping coverage (December 2005)
Real Good Food - Acquires Napier Brown Foods (September 2005)
Real Good Food (July 2005)
Real Good Food - Shares posied for rise after results (May 2005)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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