TIDMTAST
RNS Number : 3694N
Tasty PLC
24 September 2019
24 September 2019
Tasty plc
("Tasty" or the "Group")
Unaudited Interim Results for the 26 weeks ended 30 June
2019
Financial Highlights:
-- Placing and open offer in May 2019 raising GBP3.2m
-- Revenue GBP21.1m (2018 - GBP23.0m)
-- Adjusted EBITDA of GBP0.1m (2018 - GBP0.8m)
-- Loss after tax for the period of GBP0.8m (2018 - loss of GBP10.7m)
-- Loan at 30 June 2019 of GBP1.9m (1 July 2018 - GBP7.0m)
-- Net cash as at 30 June 2019 of GBP0.5m (1 July 2018 - net debt GBP4.1m)
Chairman's statement
Introduction
Tasty trades from 57 restaurants; 51 Wildwood and 6 dim t
restaurants. The Wildwood restaurants offer a wide selection of
"Pizza, Pasta, Grill" and are predominantly located outside of
London. Dim t, our pan Asian restaurant, offers a range of dishes
including dim sum, noodles, soups and a recently launched range of
ramen dishes.
In May 2019, we successfully raised GBP3.2m through an
institutional placing and open offer to existing shareholders and
have reduced bank debt to GBP1.9m as at 30 June 2019 (1 July 2018:
GBP7.0m).
The casual dining market continues to face headwinds and the
uncertainty of Brexit means that 2019 remains a challenging year.
The Group's sales performance has been weak despite benefiting from
weaker comparatives following last year's extreme weather
conditions and the World Cup. However, despite sales being down,
our adjusted EBITDA performance for the first six months is in-line
with expectations due to tighter cost control. Over the last 18
months we have made significant changes to the structure of the
Group including finance and operational team enhancement. The
changes to the operational structure combined with the Group's
increased focus on the financial reporting and cost management, has
mitigated the impact of the difficult market conditions.
Business review
We continue to make progress and have undertaken various
initiatives to improve the food and drink offering, customer
engagement and the development of our employees. However, along
with other restaurants and retailers, we are exposed to the well
documented high street challenges. Our focus is on optimising the
current estate and turning around underperforming sites.
Food and drink offering
We remain focused on offering choice to our customers. We
continue to offer seasonal specials and are constantly looking at
ways of making the menu more exciting and offering additional
options. We have trialled the "Beyond Meat" plant-based vegan
burger as part of our specials menu and this will migrate onto our
main menu later this year.
Customer engagement
We are working hard on improving our customer experience through
profiling our consumers and analysing their feedback. We have also
recruited in order to focus on service standards and upselling and
we are rolling out workshops across the estate to ensure all
restaurants are offering consistent service which is appealing to
our customers.
People Development
We believe great people are the core to our business and we are
committed to providing an engaging, open and honest environment for
our teams. The investment in our training infrastructure has
allowed us to promote a greater number of key positions from
within. We continue to introduce comprehensive career pathways at
every level to support our employees' development, enhance job
satisfaction and increase staff retention.
Optimise the estate
We have generally found landlords to be co-operative and
supportive and our collaborative approach has been well received.
We have been successful in achieving rent reductions and lease
concessions.
We have disposed of three trading sites in the first six months
of the year. In addition, we have sub-let two sites that were not
trading; one in the first six months and one post the period end.
The Group continues to review the estate and further disposals will
be made if appropriate.
The Board firmly believes the Group's focus should remain on the
existing estate and no openings are planned for the remainder of
2019.
Christmas Focus
We published our Christmas menus online at the end of August
before most other High Street chains and have already started
taking bookings. We have established a dedicated team to handle
reservations, all enquiries and marketing initiatives and are well
prepared to maximise revenue over the festive period.
Results
Sales were down 8% on the corresponding period to GBP21.1m (2018
- GBP23.0m) and adjusted EBITDA was GBP0.1m (2018 - GBP0.8m).
Operating loss before highlighted items was GBP0.6m (2018 - loss
GBP0.1m).
While we remain cautious about trading conditions, we have
reviewed our onerous and impairment provision and do not believe it
is necessary to make an adjustment for the six months ended 30 June
2019. After taking into account all non-trade adjustments, the
Group has a stated loss after tax for the period of GBP0.8m (2018 -
loss of GBP10.7m)
Cash flows and financing
Cash outflow from operating activities was GBP0.5m (2018 -
GBP2.3m). During the period, capital expenditure of GBP0.2m (2018 -
GBP0.7m) was incurred. In addition, we raised net equity of GBP3.0m
(2018 - GBPnil). This was offset by bank and interest repayment of
GBP4.7m (2018 - GBP0.1m).
Overall, the net cash outflow for the period was GBP2.0m (2018 -
inflow GBP1.1m). As at 30 June 2019, the Group had net cash of
GBP0.5m (1 July 2018 - net debt of GBP4.1m).
Outlook
The market conditions for the UK restaurant sector remain
challenging. However, the Group is well positioned, with a
rationalised estate, new operational structure and a heightened
focus on cost controls. The refreshed Wildwood and dim t offerings
continue to be attractive to consumers, with encouraging trading in
the first few weeks of the second half. The Group is traditionally
weighted to the second half, with December being the most important
month of the year, which will significantly dictate the Group's
overall performance. However, the Board currently expects adjusted
EBITDA performance for the full year to remain in-line with
expectations.
K Lassman
Chairman
Tasty plc
24 September 2019
Enquiries:
Tasty plc Tel: 020 7637 1166
Jonny Plant, Chief Executive
Cenkos Securities Tel: 020 7397 8900
Stephen Keys/Katy Birkin/Cameron MacRitchie
Consolidated statement of comprehensive income
for the 26 weeks ended 30 June 2019 (unaudited)
26 weeks 26 weeks 52 weeks
to to ended
30 June 1 July 30 December
2019 2018 2018
GBP'000 GBP'000 GBP'000
Revenue 21,126 22,997 47,278
Cost of sales (21,097) (22,684) (46,370)
------------------------------------- --------- --------- ------------
Gross profit 29 313 908
Total operating expenses (714) (11,738) (12,473)
Operating loss before highlighted
items (641) (119) (367)
Highlighted items (44) (11,306) (11,198)
------------------------------------- --------- --------- ------------
Operating loss (685) (11,425) (11,565)
Finance income 4 - -
Finance expense (180) (125) (252)
Loss before tax (861) (11,550) (11,817)
Income tax 7 856 204
Loss and total comprehensive income
for period and attributable to
owners of the parent (854) (10,694) (11,613)
Loss per share attributable to
the ordinary
equity owners of the parent
Basic and diluted (1.17p) (17.88p) (19.42p)
The table below gives additional information to shareholders
on key performance indicators:
26 weeks 26 weeks 52 weeks
to to ended
30 June 1 July 30 December
2019 2018 2018
GBP'000 GBP'000 GBP'000
EBITDA 127 812 1,581
Depreciation, amortisation and
impairment (768) (931) (1,948)
Operating loss before highlighted
items (641) (119) (367)
Highlighted items - charged to
operating expenses
26 weeks 26 weeks 52 weeks
to to ended
30 June 1 July 30 December
2019 2018 2018
(Loss)/profit on disposal of property
plant and equipment (27) 1,942 2,132
Onerous lease provision - (1,688) (1,687)
Restructuring costs - (311) (457)
Impairment of lease premium - (890) (897)
Impairment of goodwill - - (115)
Impairment of property, plant and
equipment - (10,294) (10,063)
Share based payments (17) (65) (111)
--------------------------------------- ------------------ ----------- ------------------
Total highlighted items (44) (11,306) (11,198)
Consolidated statement of changes in equity
for the 26 weeks ended 30 June 2019 (unaudited)
Share Share Merger Retained Total
Capital Premium reserve deficit equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 30 December
2018 5,980 21,376 992 (17,792) 10,556
Issue of ordinary shares 81 2,869 - - 2,950
Total comprehensive
income for the period - - - (854) (854)
Share based payments
- credit to equity - - - 17 17
Balance at 30 June
2019 6,061 24,245 992 (18,629) 12,669
Balance at 31 December
2017 5,980 21,376 992 (6,290) 22,058
Issue of ordinary shares - - - - -
Total comprehensive
income for the period - - - (10,694) (10,694)
Share based payments
- credit to equity - - - 65 65
Balance at 1 July 2018 5,980 21,376 992 (16,919) 11,429
Balance at 31 December
2017 5,980 21,376 992 (6,290) 22,058
Issue of ordinary shares - - - - -
Total comprehensive
income for the period - - - (11,613) (11,613)
Share based payments
- credit to equity - - - 111 111
Balance at 30 December
2018 5,980 21,376 992 (17,792) 10,556
Consolidated balance sheet
At 30 June 2019 (unaudited)
26 weeks 26 weeks 52 weeks
to to ended
30 June 1 July 30 December
2019 2018 2018
GBP'000 GBP'000 GBP'000
Non-current assets
Intangible assets 351 469 352
Property, plant and equipment 16,008 17,289 16,554
Pre-paid operating lease
charges 520 467 507
Other non-current assets 242 278 283
Deferred Tax 7 604 -
Total non-current assets 17,128 19,107 17,696
-------------------------------- --------- --------- ------------
Current assets
Inventories 2,477 2,543 2,548
Trade and other receivables 5,128 5,006 3,538
Pre-paid operating lease
charges 34 143 87
Cash and cash equivalents 2,357 2,940 4,312
Total current assets 9,996 10,632 10,485
-------------------------------- --------- --------- ------------
Assets held for sale - - 505
-------------------------------- --------- --------- ------------
Total assets 27,124 29,739 28,686
-------------------------------- --------- --------- ------------
Current liabilities
Trade and other payables (7,985) (6,767) (7,100)
Borrowings (800) (2,332) (2,867)
Total liabilities (8,785) (9,099) (9,967)
-------------------------------- --------- --------- ------------
Non-current liabilities
Provisions (3,348) (3,348) (3,347)
Lease incentives (1,270) (1,195) (1,266)
Long-term borrowings (1,052) (4,668) (3,550)
Total non-current liabilities (5,670) (9,211) (8,163)
-------------------------------- --------- --------- ------------
Total liabilities (14,455) (18,310) (18,130)
-------------------------------- --------- --------- ------------
Total net assets 12,669 11,429 10,556
-------------------------------- --------- --------- ------------
Equity
Share capital 6,061 5,980 5,980
Share premium 24,245 21,376 21,376
Merger reserve 992 992 992
Retained deficit (18,629) (16,919) (17,792)
Total equity 12,669 11,429 10,556
-------------------------------- --------- --------- ------------
Consolidated cash flow statement
for the 26 weeks ended 30 June 2019 (unaudited)
26 weeks 26 weeks 52 weeks
to to ended
30 June 1 July 30 December
2019 2018 2018
GBP'000 GBP'000 GBP'000
Operating activities
Cash generated from operations (460) (2,259) 389
Corporation tax paid - - 26
Net cash inflow from operating activities (460) (2,259) 415
------------------------------------------- --------- --------- ------------
Investing activities
Proceeds from sale of property,
plant and equipment 523 4,150 4,150
Purchase of property, plant and
equipment (227) (670) (1,261)
Net cash flows used in investing
activities 296 3,481 2,889
------------------------------------------- --------- --------- ------------
Financing activities
Net proceeds from issues of ordinary
shares 2,950 - -
Bank loan repayment (4,565) - (583)
Interest paid (176) (125) (252)
Net cash flows used in financing
activities (1,791) (125) (835)
------------------------------------------- --------- --------- ------------
Net increase in cash and cash equivalents (1,955) 1,097 2,469
Cash and cash equivalents at beginning
of the period 4,312 1,843 1,843
Cash and cash equivalents as at
30 June 2019 2,357 2,940 4,312
------------------------------------------- --------- --------- ------------
Notes to the condensed financial statements
for the 26 weeks ended 30 June 2019 (unaudited)
1 General information
Tasty plc ("Tasty") is a public limited company incorporated in
the United Kingdom under the Companies Act (registration number
05826464). The Company is domiciled in the United Kingdom and its
registered address is 32 Charlotte Street, London, W1T 2NQ. The
Company's ordinary shares are traded on the AIM Market of the
London Stock Exchange ("AIM"). Copies of this Interim Report and
the Annual Report and Financial Statements may be obtained from the
above address or on the investor relation's section of the
Company's website at www.dimt.co.uk.
2 Basis of accounting
The condensed financial statements have been prepared using
accounting policies consistent with International Financial
Reporting Standards (IFRS) and International Financial Reporting
Interpretations Committee (IFRIC) interpretations as endorsed by
the European Union. The same accounting policies, presentation and
methods of computation have been followed in the preparation of
these results as were applied in the Company's latest annual
audited financial statements.
The financial information for the 26 weeks ended 30 June 2019
has not been subject to an audit nor a review in accordance with
International Standard on Review Engagements 2410, Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity, issued by the Auditing Practices Board.
The financial information for the period ended 30 December 2018
does not constitute the full statutory accounts for that period.
The Annual Report and Financial Statements for 2018 have been filed
with the Registrar of Companies. The Independent Auditors' Report
on the Annual Report and Financial Statements for 2018 was
unqualified, did not draw attention to any matters by way of
emphasis, and did not contain a statement under 498(2) or 498(3) of
the Companies Act 2006.
The condensed financial statements are presented in sterling and
all values are rounded to the nearest thousand pounds
(GBP'000).
Except when otherwise indicated, the consolidated accounts
incorporate the financial statements of Tasty plc and its
subsidiary, Took Us A Long Time Limited, made up to the relevant
period end.
3 Income tax
The income tax charge has been calculated by reference to the
estimated effective corporation tax and deferred tax rates of 19%
(2018 - 19%).
4 Loss per share
26 weeks 26 weeks
to to 52 weeks
30 June 1 July 30 December
2019 2018 2018
Pence Pence Pence
Loss per ordinary share (1.17) (17.88) (19.42)
The basic and diluted loss per share figures are calculated by
dividing the net loss for the period attributable to shareholders
by the weighted average number of ordinary shares in issue during
the period. The diluted earnings per share figure allows for the
dilutive effect of the conversion into ordinary shares of the
weighted average number of options outstanding during the period.
Options are only taken into account when their effect is to reduce
basic earnings per share.
Loss per share is calculated using the numbers shown below:
26 weeks 26 weeks
to to 52 weeks
30 June 1 July 30 December
2019 2018 2018
number number number
'000 '000 '000
Weighted average ordinary
shares (basic) 72,732 59,795 59,795
26 weeks 26 weeks
to to 52 weeks
30 June 1 July 30 December
2019 2018 2018
GBP'000 GBP'000 GBP'000
Loss for the financial period (854) (10,694) (11,613)
--------------------------------- --------- --------- ------------
5 Reconciliation of profit before tax to net cash inflow from operating activities
26 weeks 26 weeks 52 weeks
to to ended
30 June 1 July 30 December
2019 2018 2018
GBP'000 GBP'000 GBP'000
Loss before tax (861) (11,550) (11,817)
Finance income (4) - -
Finance expense 180 125 252
Share based payment charge 17 65 111
Depreciation and impairment 768 12,115 13,016
Profit from sale of property plant
and equipment 27 (1,942) (2,132)
Amortisation of intangible assets 1 1 3
Onerous lease provision movement - 1,687 1,687
(Increase) / decrease in inventories 72 112 107
(Increase) / decrease in trade
and other receivables (1,549) (199) 1,231
Increase / (decrease) in trade
and other payables 889 (2,673) (2,069)
Net cash inflow from operating
activities (460) (2,259) 389
-------------------------------------- --------- --------- ------------
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END
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