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Diversified food group’s shares slump on sharply downgraded expectations

Cake decoration-to-premium bakery products play Real Good Food (RGD:AIM needs to rebuild investor confidence after materially downgrading year to March 2017 and 2018 earnings estimates.

The warning comes hot on the heels of a £15.5m placing and a reassuring trading update in late June.

Management blamed accounting issues and softer first quarter trading conditions for the alert.

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