The executive chairman of Real Good Food has said a "crisis" has helped spark "a radical programme of reform to return it to profitability".
Mike Holt added that the listed group is "not just hunkering down" but that it had been hit by a "perfect storm of rising costs and lower revenues".
The comments come as the group posted a revenue of £15.8m for the six months to the end of September 2022, down from the £19.9m it reported for the same period in 2021. Its pre-tax losses also widened from £1.2m to £3.7m.
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For its latest full financial year, the 12 months to March 31, 2022, Real Good Food's revenue totalled £40.4m while it made pre-tax losses of £18.9m.
In November, the company secured £2.5m to aid its turnaround from a funding giant which recently backed Cath Kidston.
Mr Holt said: "Market conditions have been very challenging over the last 12 months, and show no sign of easing in the near-term, due to a perfect storm of rising costs and lower revenues.
"The group is not just hunkering down, it has put into effect a radical programme of reform to return it to profitability and to ensure that profits will be sustainable.
"New funding has been secured to provide the headroom to make these transformational changes.
"The board is confident that the right actions are being taken and that they will deliver positive returns.
"The simple truth, a crisis was needed to enable the required changes to be possible."
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