Good morning folks,
The market has crawled higher this morning, giving frazzled investors a little bit of relief after a tricky week.
There is supposed to be a Weekend Effect, with stocks doing worse on Monday compared to Friday. Is it really true? I have no idea! As discussed in yesterday's report, investors are jittery at the moment, so perhaps we can have another big sell-off on Monday.
There are updates today from:
- Real Good Food (LON:RGD)
- Equals (LON:EQLS)
- Corero Network Security (LON:CNS)
- Quarto Inc (LON:QRT)
I'm likely to run out of content after discussing these shares. So if any of you are still here this afternoon, you can read my review of Once Upon a Time in Hollywood.
Real Good Food (LON:RGD)
- Share price: 6.5p (-10%)
- No. of shares: 100 million
- Market cap: £6.5 million
Real Good Food plc, (AIM: RGD) the diversified food business, today announces its final results for the year ended 31 March 2019.
This company has been causing headaches for investors for quite a while.
The long-term performance helps to tell the story:
Background
In May, it was fined and censured by the London Stock Exchange for "multiple and serious breaches of the AIM rules and a pattern of unacceptable conduct by the Board". The disciplinary notice can be downloadedhere (PDF file).
The Directors responsible for those breaches are gone, and we have a new Board.
It has completed four disposals, leaving it with two core divisions. So hopefully a much simpler story from now on:
- Cake Decoration (comprising Renshaw and Rainbow Dust)
- Ingredients (Brighter Foods)
Results
Today's results pertain to FY March 2019 - doesn't it seem quite late to publish them?
- Revenue at the continuing businesses falls by 3.4%
- Huge goodwill impairment (£18.7 million)
- The two divisions are said to be profitable, before impairment
Good improvement in Adjusted EBITDA is reported, but I doubt that this is a relevant metric for investor since depreciation will be a real and significant cost at the underlying businesses.
Indeed, the adjusted EBITDA comes out at £1.9 million for the year, but the depreciation charge is…
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