BAKING products firm the Real Good Food Company (RGFC) today said it saw significant improvement in its financial position in 2011 and is seeing a positive start to the new year.

In a trading update issued to the stock exchange this morning, the Liverpool-headquartered firm said annual consolidated group profits before tax stood at £5.7m – in line with market expectations and up from £2.3m last year – thanks to “sales growth and a focus on added-value activities”.

Its Liverpool-based Renshaw division, which makes products used in baking such as caramels and icing, saw strong growth driven by its new range of Renshaw-branded products.

RGFC said: “Retailers, with supporting media coverage, are maintaining a focus on cake decorating and home baking which is bringing new consumers into the category and leading to greater prominence in store and new listings for Renshaw products.”

RGFC has spun out R&W Scott, previously part of Renshaw, as a separate division to focus on jams and chocolates. Both R&W Scott and baking division Haydens were hit by rising commodity costs, though were able to recoup costs through increased pricing later in the year.

Haydens, based in Wiltshire, which makes desserts and patisserie products, saw a strong Christmas.

RGFC’s sugar division, Napier Brown, is planning to promote the revitalised Whitworths brand in 2012 to drive growth.

And Gloucestershire-based Garrett Ingredients, which sells dairy ingredients and sugar to food manufacturers, has recruited new suppliers in the British Isles and Eastern Europe “to help it manage risk within the volatile dairy markets”.

The group’s founder and executive chairman, Pieter Totté, said: “We are now seeing major benefits coming through from  our dual-track programme of adjusting to the structural change affecting our biggest business, sugar, and implementing strategic initiatives across all our other  businesses.

“We are focused on creating solid sustainable profitability based on brand development, growth and risk management.

“I am extremely pleased that the progress we have made is reflected in a significant improvement in our financial performance during 2011. With trading starting positively in January, and divisional management achieving further progress in their improvement programmes, I am confident in meeting our expectations for 2012.”