Real Good Food has cut over 100 jobs as it implemented plans to "radically reform" the group as it battled a "perfect storm" of rising costs and lower revenues.
The Liverpool-headquartered company reduced its headcount by 45% from 318 to 201 in the year to March 31, 2023, and has since lowered it further to 186. Over the year, its revenue also decreased from £40.4m to £32.4m.
According to new figures filed with the London Stock Exchange, Real Good Food's pre-tax losses were cut from £18.9m to £9m during the year. Its total net debt increased from £25.5m to £31.2m.
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Chairman Mike Holt said: "Market conditions remain challenging; we are however starting to see volumes in some segments beginning to slowly rebuild and we are gradually trading our way into a better place as the busier autumn season kicks in.
"The radical reform programme we have implemented over the last year has been transformational and, with new management now in place, the group is well positioned to make further gains, particularly in manufacturing efficiencies, sales, and customer focus. We have recently agreed a loan extension with Hilco which provides a more secure platform to continue our journey to sustainable and satisfactory profitability."
On its outlook, Mr Holt added: "The successful implementation of our transformation plan has positioned the group to deliver between £3m and £4m in EBITDA annually beyond FY24.
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"Market conditions remain challenging. We are however starting to see volumes in some segments slowly rebuild.
"Over the last few months, our trading performance has been affected by our tight cash position, but we are gradually trading our way into a better place as the seasonally busier autumn season kicks in. After five months of trading, demand is higher than last year and despite sales being broadly the same due to cash constraints, EBITDA is better.
"The radical reforms we have made over the last eight to nine months have been transformational and, with new management now in place, the group is well positioned to make further gains, particularly in manufacturing efficiencies, sales, and customer focus.
"Finally, I would like to thank our employees who have worked hard to overcome various challenges, to ensure that products and customer service continued (and continue) to be delivered and embraced the necessary changes for a sustainable future."