The UK-based company financial report for the six months to 30 June, released on Wednesday, indicates profits are starting to recover within these sectors, following the disposal of Five Star Fish last month. The company said sales of Napier Brown Foods, its sugar division, were ahead of the same period last year, due to wins in retail and industrial sectors. However, increases in distribution costs and the competitive market meant margins were down. Total revenue for the sugar division in 2006 was £180.1m. Within Renshaw's, Real Good Foods' baking ingredients sector, the company said sales were down due to the discontinued nut sales made in early 2006. However, it said the business makes almost all of its profits within the second half of the year, and so expects the shortfall experienced during this first six months to be covered. "The operations team at Renshaw has expended considerable effort in improving the operating efficiencies at the plant and as our volumes increase up to the busy Christmas trading period, the business is expected to benefit from these improvements," the company reported. Turnover was £33.2m for the division to the end of 2006. Within the bakery business, sales volumes were ahead of last year and profitability was marginally ahead of last year, it said. Its bakery sector incorporates Hayden's Bakery and Seriously Scrumptious pastries. It said a new sales and operations team that formed within this sector during May this year is working on fried laminated products, which will be released in August. This follows from their 2006 annual report where it said it was to focus upon new bakery sectors during 2007. Turnover of bakery was £17.2m for the end of 2006. Real Good Food completed the disposal of Five Star Fish on 12 June for £35m, in a bid to consolidate the company and reduce some of its debt. "The company intends to use the net proceeds from the disposal, which after tax will be approximately £27m, to lower the level of group debt," it announced in June. Total revenue for Real Good Food to 30 December 2006 was £250.8m.