Share Name Share Symbol Market Type Share ISIN Share Description
Tasty Plc LSE:TAST London Ordinary Share GB00B17MN067 ORD 0.1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 2.85 2.70 3.00 2.85 2.85 2.85 2,675 08:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Travel & Leisure 47.3 -11.8 -19.4 - 4

Tasty PLC Half-year Report

24/09/2019 7:00am

UK Regulatory (RNS & others)


Tasty (LSE:TAST)
Historical Stock Chart

2 Months : From Sep 2019 to Nov 2019

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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 
--------------------------------------  ---------  ---------  ------------ 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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