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| 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 | 0.00% | 1.20 | 1.00 | 1.40 | 1.20 | 1.20 | 1.20 | 0.00 | 08:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Eating Places | 44.03M | -6.43M | -0.0440 | -0.27 | 1.76M |
From May 2022 to May 2024
TIDMTAST
RNS Number : 8399Z
Tasty PLC
19 September 2022
19 September 2022
Tasty plc
("Tasty", the "Group" or the "Company")
Unaudited Interim Results for the 26 weeks ended 26 June 2022
Key Points:
-- Revenue of GBP21.5m (H1 2021: GBP11.6m); increase of 85% -- Adjusted EBITDA(1) of GBP2.7m (H1 2021: GBP0.8m) -- Impairment charge of GBP1.6m (H1 2021: GBPnil) -- Loss after tax for the period of GBP2.7m (H1 2021: loss GBP2.7m) -- Outstanding loan of GBP1.1m repaid in full in June 2022 (H1 2021: GBP1.25m)
-- Net cash after allowing for deferred creditors of GBP7.0m (H1 2021: net cash after allowing for repayment of bank loan and deferred creditors of GBP4.2m)
-- 51 of 54 restaurants traded through the period -- Staff shortage challenges remain -- Cost of living pressures beginning to impact on revenue in H2 2022 -- Inflationary pressure on labour, food and utilities has impacted the business considerably
-- Despite staffing and inflationary challenges like-for-like sales compared with pre Covid-19 position was encouraging
(1) Adjusted for depreciation, amortisation and share based payments.
Chairman's statement
Introduction
Following the difficult period of the pandemic, we started 2022 expecting the year to be less challenging. Sales performance compared to 2019 was strong but has been marred by labour shortages and inflationary pressures impacting the hospitality industry. These cost pressures became more acute towards the end of the first half of 2022.
Like many of our competitors and the economy in general, we are facing severe headwinds. Inflationary pressures on food, labour and utility costs and the cost-of-living crisis will inevitably impact the performance of the Company for at least the remainder of the year.
Having navigated our way successfully through the difficult periods in the recent past, we are in a good position to manage these challenges once again; through a tight focus on cost controls and ensuring that we are delivering an excellent experience for our customers.
We have agreed heads of terms for a new Wildwood site in Oxfordshire. Our dim t brand has experienced a resurgence, and we are converting the former underperforming Wildwood in Loughton to a dim t, which is due to open in the Autumn. Whilst there is a strong pipeline of sites identified, due to current uncertainties, we have slowed our previously announced expansion plans and will cautiously approach any new openings as we brace ourselves for an even more challenging economic environment, which is beginning to adversely impact our profitability in the second half of 2022.
We continue to build solid teams and have invested at a central level to overcome these challenges, streamline processes and enhance our offering.
In June 2022, we repaid the amount outstanding under our Barclays Bank facility of GBP1.1m and subsequently cancelled the facility. Based on the base rate at the time, there will be an annualised interest saving of approximately GBP57,000. The Board made the decision that repaying the loan was the best course of action given the Company's healthy cash balance and the base rates rise.
People
In a tight labour market, we are pleased to say that the number of people we employ is back to over 1,000 following the requisite redundancies during the pandemic. However, with a competitive labour market, we continue to work hard to engage our teams and ensure that we are competitive through continuously reviewing training, progression and pay.
In June 2022, Harald Samúelsson, stepped up to become an Executive Director with responsibility for food and operational support and, at the same time, Wendy Dixon was appointed as an independent Non-Executive Director.
Wendy has spent two decades working with global brands, in a variety of leadership roles in multiple markets. More recently she was appointed as M&C Saatchi Group's first Chief Growth Officer in 2019 with responsibility for leading internal collaboration, building the brand of the company externally and bringing together both capabilities and talent for new and existing clients to grow.
To focus and improve our food offering a new Head of Food joined the Company in May 2022 with the initial focus being the development of our Christmas menu.
Inflationary costs
To reduce the impact of food and labour challenges, our menu is constantly being reviewed. We are working with existing and new suppliers to minimise disruption and continue to re-tender. The well documented utility pressures are unprecedented, and the hospitality industry is particularly badly affected. The Government unveiled an energy support plan on 8 September 2022 to support businesses for six months, but the details have yet to be announced. In the meantime, we are looking at ways of minimising our energy usage and improving efficiencies.
Environmental, social and governance
The wellbeing and safety of our employees and customers is at the centre of all that we do. We have also retained our focus on sustainability and the environmental impact of the business, and we are an equal opportunities employer.
Property negotiations
The Group has been successful in achieving rent reductions and lease concessions across most of the estate for the period impacted by Covid-19 with the final few agreements completed during H1 2022. We are continuing to review all our leases with a view to disposing or re-gearing low performing sites.
Results
Revenue increased by 85% to GBP21.5m (H1 2021: GBP11.6m). In the period under review, we have benefited from unrestricted dine-in sales and also grown our takeaway and delivery business. However, we have seen a slowdown in the second half due to our focus on dine-in and changing consumer habits. Revenue for the comparative period in 2021 was severely impacted by the lockdown restrictions.
The adjusted EBITDA for the period was GBP2.7m (H1 2021: GBP0.8m).
Operating profit before highlighted items was GBP0.4m (H1 2021: loss GBP1.4m).
We have reviewed the impairment provision across the right-of-use-assets and fixed assets and have made a net provision of GBP1.6m (H1 2021: GBPnil).
After taking into account all non-trade adjustments, the Group has a stated loss after tax for the period of GBP2.7m (H1 2021: loss GBP2.7m).
Cash flows and financing
Cash inflow from operations was GBP0.9m (H1 2021: GBP2.4m). Repayment of the bank loan amounted to GBP1.25m during the period (H1 2021: drawn down of GBP1.25m).
Overall, the net cash outflow for the period was GBP3m (H1 2021: inflow GBP1.8m). As at 26 June 2022, the Group had net cash after the bank loan of GBP8.0m (H1 2021: net cash of GBP8.6m). After allowing for deferred payments due to creditors, net cash was GBP7.0m (H1 2021: net cash of GBP4.2m).
Going concern
The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. In reaching this conclusion the Directors have considered the financial position of the Group, together with its forecasts for the next 12 months from the date of approval of these interim accounts and taking into account possible changes in trading performance. The going concern basis of accounting has, therefore, been adopted in preparing the interim financial report.
Outlook
Utility cost management and pressure on revenue as living costs continue to rise will be our biggest challenges over the coming months, although we await details of the Government's support package. We will endeavour to mitigate all pressures carefully by continuing to focus on savings and customer experience. Despite these uncertainties the Board remains confident of managing current challenges and the Group will cautiously consider future expansion opportunities for growth .
Finally thank you once again to all our people, shareholders, suppliers and other stakeholders who continue to support us.
K Lassman
Chairman
Tasty plc
19 September 2022
Enquiries:
Tasty plc Tel: 020 7637 1166
Jonny Plant, Chief Executive
Cenkos Securities Tel: 020 7397 8900
Katy Birkin / Mark Connelly
Certain of the information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK version of the EU Market Abuse Regulation (596/2014). Upon publication of this announcement via a regulatory information service, this information is considered to be in the public domain.
Consolidated statement of comprehensive income
for the 26 weeks ended 26 June 2022 (unaudited)
Hot Features
Premium
Restated
26 weeks 26 weeks 52 weeks
to to Ended
26 June 27 June 26 December
2022 2021 2021
GBP'000 GBP'000 GBP'000
Revenue 21,522 11,629 34,909
Cost of sales (20,375) (14,526) (33,567)
--------------------------------------- ----------- ----------- ------------
Gross profit/(loss) 1,147 (2,897) 1,342
Other income 213 2,050 4,208
Total operating expenses (2,778) (628) 555
Operating profit/(loss) before
highlighted items 445 (1,410) 4,112
Highlighted items (1,863) (65) 1,993
--------------------------------------- ----------- ----------- ------------
Operating (loss)/profit (1,418) (1,475) 6,105 Finance income 3 - - Finance expense (1,249) (1,263) (2,497) (Loss)/profit before tax (2,664) (2,738) 3,608 Income tax - - - --------------------------------------- ----------- ----------- ------------ (Loss)/profit and total comprehensive income for period and attributable to owners of the parent (2,664) (2,738) 3,608 --------------------------------------- ----------- ----------- ------------ (Loss)/profit per share attributable to the ordinary equity owners of the parent Basic (1.89p) (1.94p) 2.56p Diluted (1.66p) (1.85p) 2.27p
The table below gives additional information to shareholders on key performance indicators:
Post IFRS Pre IFRS Post IFRS Pre IFRS
16 16 16 16
26 weeks 26 weeks 26 weeks 26 weeks
to to to to
26 June 26 June 27 June 27 June
2022 2022 2021 2021
GBP'000 GBP'000 GBP'000 GBP'000
EBITDA before highlighted
items 2,733 101 824 (1,207)
Depreciation of PP&E
and amortisation (958) (980) (663) (689)
Depreciation of right-of-use
assets (IFRS16) (1,330) - (1,571) -
------------------------------ ---------- --------- ---------- ---------
Operating profit/(loss)
before highlighted
items 445 (879) (1,410) (1,896)
------------------------------ ---------- --------- ---------- ---------
Analysis of highlighted items Restated
26 weeks 26 weeks 52 weeks
to to ended
26 June 27 June 26 December
2022 2021 2021
GBP'000 GBP'000 GBP'000
Profit on disposal of property
plant and equipment - - 3
Restructuring costs - - (7)
Impairment of right-of-use assets (1,258) - (1,347)
Impairment (charge)/release of
property, plant and equipment (304) - 3,207
Share based payments (31) (65) (120)
(Loss)/gain on lease modifications (270) - 257
------------------------------------ ----------- ----------- ------------
Total highlighted items (1,863) (65) 1,993
The above items have been highlighted to give more detail on items that are included in the Consolidated statement of comprehensive income and which when adjusted shows a profit or loss that reflects the ongoing trade of the business.
Consolidated statement of changes in equity
for the 26 weeks ended 26 June 2022 (unaudited)
Share Share Merger Retained Total
Capital Premium Reserve Deficit Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 26 December
2021 (restated) 6,061 24,254 992 (26,980) 4,327
Total comprehensive income
for the period - - - (2,664) (2,664)
Share based payments - credit
to equity - - - 31 31
Balance at 26 June 2022 6,061 24,254 992 (29,613) 1,694
Balance at 27 December
2020 6,061 24,251 992 (30,708) 596
Issue of ordinary shares - 3 - - 3
Total comprehensive income
for the period - - - (2,738) (2,738)
Share based payments - credit
to equity - - - 65 65
Balance at 27 June 2021 6,061 24,254 992 (33,381) (2,074)
Balance at 27 December
2020 6,061 24,251 992 (30,708) 596
Issue of ordinary shares - 3 - - 3
Total comprehensive income
for the period - - - 3,608 3,608
Share based payments - credit
to equity - - - 120 120
Balance at 26 December
2021 (restated) 6,061 24,254 992 (26,980) 4,327
In January 2021, Daniel Jonathan ("Jonny") Plant was awarded 15,676,640 'B' shares in Tasty plc which can be converted to 'A' shares subject to achievement of certain hurdle rates. These 'B' shares were issued at nominal value of 0.00001 pence. The first hurdle was achieved, and 5,225,546 B Ordinary Shares were converted into 5,225,546 new Ordinary Shares on 27 June 2022.
Consolidated balance sheet
At 26 June 2022 (unaudited)
Restated
26 weeks 26 weeks 52 weeks
to to ended
26 June 27 June 26 December
2022 2021 2021
GBP'000 GBP'000 GBP'000
Non-current assets
Intangible assets 28 30 28
Property, plant and equipment 17,282 15,098 18,026
Right-of-use- assets 34,639 38,337 36,006
Other non-current assets 65 129 105
Total non-current assets 52,014 53,594 54,165
--------------------------------- ----------- ----------- ------------
Current assets
Inventories 1,995 1,834 2,103
Trade and other receivables 2,949 1,397 1,355
Cash and cash equivalents 8,010 9,884 11,005
Total current assets 12,954 13,115 14,463
--------------------------------- ----------- ----------- ------------
Total assets 64,968 66,709 68,628
--------------------------------- ----------- ----------- ------------
Current liabilities
Trade and other payables (10,336) (12,210) (10,493)
Lease liabilities (2,202) (3,620) (2,024)
Borrowings - (104) (313)
Total current liabilities (12,538) (15,934) (12,830)
--------------------------------- ----------- ----------- ------------
Non-current liabilities
Provisions (335) (335) (297)
Lease liabilities (50,273) (51,288) (50,157)
Long-term borrowings - (1,146) (937)
Other payables (128) (80) (80)
Total non-current liabilities (50,736) (52,849) (51,471)
--------------------------------- ----------- ----------- ------------
Total liabilities (63,274) (68,783) (64,301)
--------------------------------- ----------- ----------- ------------
Total net assets/(liabilities) 1,694 (2,074) 4,327
--------------------------------- ----------- ----------- ------------
Equity
Share capital 6,061 6,061 6,061
Share premium 24,254 24,254 24,254
Merger reserve 992 992 992
Retained deficit (29,613) (33,381) (26,980)
Total equity 1,694 (2,074) 4,327
--------------------------------- ----------- ----------- ------------
Consolidated cash flow statement
for the 26 weeks ended 26 June 2022 (unaudited)
26 26 52
weeks weeks weeks ended
to to
26 June 27 June 26 December
2022 2021 2021
GBP'000 GBP'000 GBP'000
Operating activities
Cash generated from operations 945 2,365 7,826
-------- -------- -------------
Net cash inflow from operating
activities 945 2,365 7,826
----------------------------------- -------- -------- -------------
Investing activities
Proceeds from sale of property,
plant and equipment - - 3
Purchase of property, plant
and equipment (516) (192) (544)
Interest received 3 - -
-------- -------- -------------
Net cash flows used in investing
activities (513) (192) (541)
----------------------------------- -------- -------- -------------
Financing activities
Net proceeds from issue
of ordinary shares - 3 3
Bank loan receipts - 1,250 1,250
Bank loan repayment (1,250) - -
Finance expense (30) (26) (59)
Finance expense (IFRS 16) (1,219) (1,237) (2,438)
Principal paid on lease
liabilities (928) (307) (3,064)
-------- -------- -------------
Net cash flows used in financing
activities (3,427) (317) (4,308)
----------------------------------- -------- -------- -------------
Net increase in cash and
cash equivalents (2,995) 1,856 2,977
Cash and cash equivalents at
beginning of the period 11,005 8,028 8,028
-------- -------- -------------
Cash and cash equivalents as
at 26 June 2022 8,010 9,884 11,005
----------------------------------- -------- -------- -------------
Notes to the condensed financial statements
for the 26 weeks ended 26 June 2022 (unaudited)
1 General information
Tasty plc 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 relations section of the Company's website at www.dimt.co.uk .
2 Basis of accounting
The condensed set of financial statements included in this interim financial report has been prepared in accordance with IAS 34 'Interim Financial Reporting', as adopted by the United Kingdom and accounting policies consistent with International Financial Reporting Standards (IFRS) and International Financial Reporting Interpretations Committee (IFRIC) interpretations as endorsed by the United Kingdom. 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 26 June 2022 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 Financial Reporting Council.
The financial information for the period ended 26 December 2021 does not constitute the full statutory accounts for that period. The Annual Report and Financial Statements for 2021 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statements for 2021 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.
Use of judgements and estimates
In preparing these interim financial statements management has made judgements and estimates that affect the application of accounting policies and measurement of assets and liabilities, income and expense provisions. Actual results may differ from these estimates.
Going concern
The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. In reaching this conclusion the Directors have considered the financial position of the Group, together with its forecasts for the next 12 months from the date of approval of these interim accounts and taking into account possible changes in trading performance. The Group monitors cash balances and impact of inflation closely to ensure there is sufficient liquidity. Accordingly, t he Directors believe that it remains appropriate to prepare the financial statements on a going concern basis.
IFRS 16 'Leases'
Group's accounting policies for leases are as follows:
Lessee accounting
IFRS 16 distinguishes between leases and service contracts on the basis of whether the use of an identified asset is controlled by the customer. Control is considered to exist if the customer has:
-- The right to obtain substantially all of the economic benefits from the use of an identified asset; and
-- The right to direct the use of that asset in exchange for consideration.
The Group first adopted IFRS 16 for its period starting 30 December 2019 using the modified retrospective approach on transition, recognising leases at the carried forward value had they been treated as such from inception, without restatement of comparative figures. On adoption of IFRS 16, the Group recognised right-of-use assets and lease liabilities in relation to the restaurant sites it leases for its business.
All leases are accounted for by recognising a right-of-use asset and a lease liability except for:
-- Leases of low value assets, and -- Leases with a duration of 12 months or less.
Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments made. Right-of-use assets are amortised on a straight-line basis over the remaining term of the lease.
Lessor accounting
Under IFRS 16, a lessor continues to classify leases as either finance leases or operating leases and account for those two types of leases differently.
Based on an analysis of the Group's operating leases as at 26 June 2022 on the basis of the facts and circumstances that exist at that date, the Directors of the Group have assessed that the impact of this change has not had any impact on the amounts recognised in the Group's consolidated financial statements.
Short-term leases and leases of low-value assets
The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low value assets. The Group recognises these payments as an expense on a straight-line basis over the lease term. Currently the Group has no low value assets or short-term leases.
Covid-19 related rent concessions
IFRS 16 defines a lease modification as a change in the scope of a lease, or the consideration for a lease, that was not part of the original terms and conditions of the lease. The Group has considered the Covid-19 related rent concessions and applied the lease modifications accounting treatment, rather than the practical expedient.
Impairments
All assets (ROU and fixed assets) are reviewed for impairment in accordance with IAS 36 Impairment of Assets, when there are indications that the carrying value may not be recoverable.
Assets are subject to impairment tests whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Where the carrying value of an asset or a cash generating unit (CGU) exceeds its recoverable amount, i.e. the higher of value in use and fair value less costs to dispose of the asset, the asset is written down accordingly. The Group views each restaurant as a separate CGU. Value in use is calculated using cash flows excluding outflows from financing costs over the remaining life of the lease for the CGU discounted at 8% (2021: 6%), being the rate considered to reflect the risks associated with the CGUs. A growth rate of 2% has been applied (2021: 0.5%).
An impairment review was undertaken across the ROU assets and fixed assets which resulted in a net impairment charge of GBP1.6m (2021: GBPnil). Where an impairment reversal is recognised, the carrying amount of the asset will be increased to its recoverable amount with the increase being recognised in the income statement. This increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years.
The assumptions will be reviewed at year-end to ensure that the cashflow expectations are in line with the latest outlook.
Other income
In accordance with IAS 20 (Accounting for Government Grants and Disclosure of Government Assistance) guidelines, the Group has recognised the salary expense as normal and recognised the grant income in profit and loss as the Group becomes entitled to the grant.
Other income includes Government Coronavirus Job Retention Scheme ("CJRS") of GBPnil (2021: GBP1.9m), sub-let property income of GBP0.2m (2021: GBP0.1m) and Government Grants of GBPnil (2021: GBP1.8m).
3 Income tax
The income tax charge has been calculated by reference to the estimated effective corporation tax and deferred tax rates of 19% (2021: 19%).
Tax charge GBPnil (2021: GBPnil).
4 Earnings per share
26 weeks 26 weeks Restated
to to 52 weeks
ended
26 June 27 June 26 December
2022 2021 2021
Pence Pence Pence
Basic (loss)/profit
per ordinary share (1.89p) (1.94p) 2.56p
Diluted (loss)/profit
per ordinary share (1.66p) (1.85p) 2.27p
26 June 27 June 26 December
2022 2021 2021
Number Number Number
'000 '000 '000
Profit/(loss) per share
has been calculated
using the numbers shown
below:
Weighted average number
of ordinary shares
used as the denominator
in calculating basic
earnings per share 141,090 141,090 141,090
Adjustments for calculation
of diluted earnings
per share:
Ordinary B shares 15,677 6,977 14,815
Options 3,265 - 3,265
Weighted average number
of ordinary shares
and potential ordinary
shares used as the
denominator in calculating
diluted earnings per
share 160,032 148,067 159,170
Restated
26 June 27 June 26 December
2022 2021 2021
GBP'000 GBP'000 GBP'000
(Loss)/profit for the
financial period (2,664) (2,738) 3,608
The basic and diluted (loss)/profit per share figures are calculated by dividing the net (loss)/profit 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.
5 Reconciliation of result before tax to net cash generated from operating activities
26 weeks 26 weeks Restated
to to 52 weeks
ended
26 June 27 June 26 December
2022 2021 2021
GBP'000 GBP'000 GBP'000
(Loss)/profit before tax (2,664) (2,738) 3,608
Finance income (3) - -
Finance expense 30 26 59
Finance expense (IFRS 16) 1,219 1,237 2,438
Share based payment charge 31 65 120
Depreciation of right-of-use
assets (IFRS 16) 1,330 1,545 2,579
Depreciation of property, plant
and equipment 956 687 1,297
Amortisation of intangible assets 2 2 3
Impairment charge/(release)
of property, plant and equipment 304 - (3,207)
Impairment of Right-of-use assets 1,258 - 1,347
Profit from sale of property,
plant and equipment - - (3)
Dilapidations provision charge 38 - -
Dilapidations provision utilisation - - (38)
(Increase)/decrease in inventories 108 (12) (282)
(Increase)/decrease in trade
and other receivables (1,553) (34) 32
Increase/(decrease) in trade
and other payables (111) 1,587 (127)
Net cash inflow from operating
activities 945 2,365 7,826
------------------------------------- --------- --------- ------------
6 Property, plant and equipment and right-of-use assets
Leasehold Furniture Total ROU assets Total
improvements fixtures fixed
and computer assets
equipment
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 27 December
2020 37,176 9,892 47,068 53,446 100,514
Additions 145 399 544 951 1,495
Lease modification - - - (830) (830)
At 26 December
2021 37,321 10,291 47,612 53,567 101,179
----------------------- -------------- -------------- -------- ----------- --------
Additions 249 267 516 - 516
Lease modification - - - 1,221 1,221
At 26 June
2022 37,570 10,558 48,128 54,788 102,916
----------------------- -------------- -------------- -------- ----------- --------
Depreciation
At 27 December
2020 23,834 7,662 31,496 13,635 45,131
Provided for
the period 743 554 1,297 3,142 4,439
Impairments 157 100 257 (257) -
At 26 December
2021 (as previously
stated) 24,734 8,316 33,050 16,520 49,570
----------------------- -------------- -------------- -------- ----------- --------
Prior year adjustment (2,677) (787) (3,464) 1,041 (2,423)
At 26 December
2021 (as restated) 22,057 7,529 29,586 17,561 47,147
----------------------- -------------- -------------- -------- ----------- --------
Provided for
the period 587 369 956 1,330 2,286
Impairments 295 9 304 1,258 1,562
At 26 June
2022 22,939 7,907 30,846 20,149 50,995
----------------------- -------------- -------------- -------- ----------- --------
Net book value
At 26 June
2022 14,631 2,651 17,282 34,639 51,921
----------------------- -------------- -------------- -------- ----------- --------
At 26 December
2021 (as restated) 15,264 2,762 18,026 36,006 54,032
----------------------- -------------- -------------- -------- ----------- --------
Prior year adjustment
The prior year adjustment relates to the treatment of depreciation on impaired assets and reversal of impairment.
The depreciation charge on ROU assets should have been reduced for the impairment to allow depreciation to run to the end of the life of the lease. In addition, when reversing an impairment that depreciation should be recognised if the amount at which the asset would have been carried (net of depreciation) had there been no impairment or the lower or the irrecoverable amount.
52 weeks 52 weeks
Ended Ended 26
26 December Adjustment December
(as restated) (as previously
stated)
2021 2021 2021
GBP'000 GBP'000 GBP'000
Cost of sales (33,567) 563 (34,130)
Operating expenses 555 1,860 (1,305)
Highlighted items (included
within Operating expenses) 1,993 1,860 133
Profit and total comprehensive
income for the period 3,608 2,423 1,185
--------------------------------- ---------------- ------------- --- ------------------
At 26
December
2021
(as restated)
At 26 December
2021
Adjustment (as previously
stated)
2021 2021 2021
GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and equipment 18,026 3,464 14,562
Right-of-use assets 36,006 (1,041) 37,047
Equity
Retained deficit (26,980) 2,423 (29,403)
--------------------------------- ---------------- ------------- --- ------------------
Total equity 4,327 2,423 1,904
--------------------------------- ---------------- ------------- --- ------------------
7 Leases
26 26 52
weeks weeks weeks ended
to to
26 June 27 June 26 December
2022 2021 2021
GBP'000 GBP'000 GBP'000
Current
Lease liabilities 2,202 3,620 2,024
Non-current
Lease liabilities 50,273 51,288 50,157
Total 52,475 54,908 52,181
------------------------ -------- -------- -------------
Due within one year 2,202 3,620 2,024
Due two to five years 12,792 15,362 12,371
Due over five years 37,481 35,926 37,786
------------------------ -------- -------- -------------
Total 52,475 54,908 52,181
------------------------ -------- -------- -------------
Lease liabilities are measured at the present value of the remaining lease payments, discounted using the Group's incremental borrowing rate of 4.5% and the Bank of England (BoE) base rate at the time of any lease modification or a new lease. The average rate used for modification in 2022 was 5.1% (2021: 4.6%).
The lease liabilities as at 26 June 2022 were GBP52.5m (2021: GBP54.9m).
The right-of-use assets all relate to property leases. The right-of-use assets as at 26 June 2022 were GBP34.6m (2021: GBP38.3m). During the period ended 26 June 2022 the Group made a provision for impairment of the right-of-use assets against a number of sites totalling GBP1.3m (2021: GBPnil).
Included in profit and loss for the period is GBP1.3m depreciation of right-of-use assets and GBP1.2m financial expenses on lease liabilities.
8 Borrowings
26 weeks 26 weeks 52 weeks
to to ended
26 June 27 June 26 December
2022 2021 2021
GBP'000 GBP'000 GBP'000
Current
Secured bank borrowings - 104 313
------------------------- ----------- --------- ------------
Non-current
Secured bank borrowings - 1,146 937
------------------------- ----------- --------- ------------
Total - 1,250 1,250
------------------------- ----------- --------- ------------
The GBP1.25m loan was a four-year term loan which had a capital repayment holiday of 12 months and carried interest at a rate of 4.5% per annum over the Bank of England Base Rate. The outstanding loan of GBP1.25m was repaid in full during the period.
9 Reconciliation of financing activity
Lease liabilities Lease liabilities Bank Loan Bank Loan Total
Due within Due after Due within Due after
1 year 1 year 1 year 1 year
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Net debt as at 30
December 2019 1,647 55,761 800 852 59,060
Cashflow (1,735) - (800) (852) (3,387)
Addition/(decrease)
to lease liability 2,992 (3,542) - - (550)
--------------------- ------------------ ------------------ ----------- ---------- --------
Net debt as at 27
December 2020 2,904 52,219 - - 55,123
Cashflow (3,064) - 313 937 (1,814)
Addition/(decrease)
to lease liability 2,184 (2,062) - - 122
--------------------- ------------------ ------------------ ----------- ---------- --------
Net debt as at 26
December 2021 2,024 50,157 313 937 53,431
Cashflow (927) - (313) (937) (2,177)
Addition/(decrease)
to lease liability 1,105 116 - - 1,221
--------------------- ------------------ ------------------ ----------- ---------- --------
Net debt as at 26
June 2022 2,202 50,273 - - 52,475
--------------------- ------------------ ------------------ ----------- ---------- --------
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END
IR EDLFFLKLZBBL
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September 19, 2022 02:01 ET (06:01 GMT)
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