Real Good Food shares tumble as profits slide

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The owner of Carluke-based jam maker R&W Scott saw its shares fall heavily in early trading as it unveiled a 27 per cent plunge in first-half profits.

Aim-quoted Real Good Food (RGF), which also owns sugar distributor Napier Brown and dairy ingredients business Garrett, said investments in its brands and the establishment of a sales office in Brussels contributed to the drop in earnings.

Executive chairman Pieter Totte also said Napier Brown faces a “significant challenge” in the coming months following a “dramatic drop” in EU sugar market prices.

For the six months to the end of September, RGF posted an underlying pre-tax profit of £2.2 million, down from £3m a year earlier, on revenues 5.6 per cent lower at £130.1m.

Shares in the group were down about 14 per cent at 59p in early trading, and house broker Shore Capital trimmed its full-year profit forecasts by 13 per cent to £6.3m.