Roebuck reports revenue increase as it works on new strategy

27th Sep 2024 12:56

(Sharecast News) - Roebuck Food Group reported first-half revenue of £5.97m on Friday - a significant increase from £1.66m in the same period last year.

The AIM-traded firm said that despite the growth, it recorded an operating loss of £0.32m from continuing operations for the six months ended 30 June, slightly narrower than the £0.33m loss reported in the first half of 2023.

Basic and diluted losses per share were 0.65p, compared to 0.67p in the prior year.

During the period, Roebuck undertook a strategic review and outlined a new vision centred on implementing climate mitigation technologies across the agricultural supply chain.

As part of the strategy, it divested two subsidiaries - Town View Foods and Cantwellscourt Farm - which were deemed misaligned with its future direction.

The sale of Town View Foods resulted in a significant goodwill write-off of £2.3m, with net debt at the end of June standing at £0.1m.

Roebuck said its recently acquired plant-based business, Moorhead & McGavin, purchased in December 2023, saw a 22% increase in sales for the first half of 2024.

Roebuck said it had been investing in the business, and anticipated improved profitability compared to 2023 levels.

Foro Food Solutions, the group's Cork-based sourcing business, comprises two divisions - a legacy food service and manufacturing segment, which was profitable and growing, and a newer retail segment that was still establishing itself.

The board said the legacy division was benefiting from synergies with Moorhead & McGavin, with management expecting continued growth in the area.

Roebuck said its divestments were expected to streamline operations and reduce overheads, leaving it with a simplified structure and minimal net debt.

The board said it was optimistic about future growth opportunities and was focussed on leveraging its expertise to expand the business.

However, no dividend payment was recommended for the period.

Reporting by Josh White for Sharecast.com.