Real Good Food has transformed its prospects through corporate action over the past nine months. The market has yet to catch up with this. Importantly, the mix of business is biased to higher margin and growth markets. For example, Renshaw (72% Group operating profits) reported H1 10.8% operating margins up from 9.3% through a focus on sales mix. We therefore see good margin expansion for FY16E and strong prospects thereafter. Trading in the seasonally important Q3 has seen “strong sales trends… at Haydens Bakery and Cake Decorating Businesses.”