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TAST Tasty Plc

1.15
0.00 (0.00%)
Last Updated: 08:00:00
Delayed by 15 minutes
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% 1.15 1.00 1.30 1.15 1.15 1.15 0.00 08:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Eating Places 44.03M -6.43M -0.0440 -0.26 1.68M

Tasty PLC Half-year Report (7382N)

27/09/2023 7:00am

UK Regulatory


Tasty (LSE:TAST)
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From May 2023 to May 2024

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TIDMTAST

RNS Number : 7382N

Tasty PLC

27 September 2023

27 September 2023

Tasty plc

("Tasty", the "Group" or the "Company")

Unaudited Interim Results for the 26 weeks ended 25 June 2023

Tasty (AIM: TAST), the owner and operator of restaurants in the casual dining sector, announces its interim results for the 26 week period ended 25 June 2023.

Key Points:

   --    Revenue of GBP21.7m (H1 2022: GBP21.5m); increase of 0.9% 
   --    Adjusted EBITDA(1) of GBP1.1m (H1 2022: GBP2.7m) 
   --    Impairment charge of GBP4.0m (H1 2022: GBP1.6m) 
   --    Loss after tax for the period of GBP6.2m (H1 2022: loss GBP2.7m) 
   --    Cash balance of GBP2.8m (H1 2022: GBP8.0m) 
   --    52 of 54 restaurants traded through the period 
   --    Like-for-like sales compared with 2022 up 1.4% 
   --    Staff retention improving despite challenges 

-- Cost of living crisis and interest rate increases expected to further impact revenue in H2 2023

-- Inflationary pressure on labour, food and utilities continues to adversely affect profitability

(1) Adjusted for depreciation, amortisation and share based payments.

Chairman's statement

Introduction

2023 traded ahead of 2022 for the corresponding period with like-for-like sales up 1.4% against the first half of 2022. The first quarter performed strongly, with like-for-like sales up 3.1% against the previous year which was impacted by Omicron, which unfortunately was not matched by the second quarter which disappointed with like for like sales down 0.3%. However, summer trading exceeded the Board's expectations.

Nonetheless, the casual dining market continues to face inflationary pressures on food, labour and utility costs. The cost-of-living crisis and interest rates are at their worst for many years, directly reducing the discretionary spend of our customers. We continue to navigate through challenging times and although this is expected to continue through H2 2023 we are continuing to adapt the business to mitigate the cost increases and reduced trading performance.

We have focused on optimising the current estate by selling or surrendering leases in the tail of the estate and seeking to turn around the underperforming sites. One under-performing restaurant was returned to the landlord after the period end in August 2023.

The Board was pleased to welcome Gordon Browne as Finance Director (currently a non-Board appointment) in May 2023. Gordon formerly held senior finance roles at Oakman Group plc, Chopstix Group and Park Chinois.

People

Labour costs have continued to increase; however, staff shortages have been alleviated to a certain extent as the hospitality sector has shrunk and our recruitment, training and people engagement has significantly improved. As a result, staff retention and labour shortages are not as challenging as previously experienced. However, with a competitive labour market, we continue to motivate and develop our teams and ensure that we are competitive through regular training, progression and pay reviews.

Inflationary costs

Despite food inflation continuing to rise we have improved our food margin by 1.5% compared to H2 2022 by constantly refreshing our offer and menu choice, whilst still delivering good value through close analysis of market trends and competitive pricing including, a set price two and three course lunch offer.

Environmental, social and governance

The wellbeing and safety of our employees and customers is at the centre of everything we do. We have also retained our focus on sustainability and the environmental impact of the business, and we remain an equal opportunity employer.

Results

Revenue increased by 0.9% to GBP21.7m (H1 2022: GBP21.5m). Q1 performed ahead of the Board's expectations, however, the second quarter slowed and was flat against 2022. Delivery sales continue to decline as expected, in line with the market as customer habits swing back to dine-in.

The adjusted EBITDA for the period was GBP1.1m (H1 2022: GBP2.7m).

The main reasons for the reduction in EBITDA are due to Covid related support falling away in terms of VAT reductions, rent and rate concessions as well as utility price increases.

Operating loss before highlighted items was GBP1.0m (H1 2022: profit GBP0.4m).

We have reviewed the impairment provision across the right-of-use-assets and fixed assets and have made a net provision of GBP4.0m allowing for a number of poorly performing sites (H1 2022: GBP1.6m).

After taking into account of all non-trade adjustments, the Group reports a loss after tax for the period of GBP6.2m (H1 2022: loss GBP2.7m).

Cash flows and financing

Cash outflow from operations was GBP1.5m (H1 2022: inflow GBP0.9m). Our bank loan of GBP1.25m was fully repaid in H1 2022 and the Company remains debt free.

Overall, the net cash outflow for the period was GBP4.2m (H1 2022: outflow GBP3m). As at 25 June 2023, the Group had net cash of GBP2.8m (H1 2022: net cash of GBP8.0m).

Going concern

The Directors have a reasonable expectation that the Group has sufficient resources to continue in 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 coming 12 months and taking into account possible changes in its trading performance. The going concern basis of accounting has, therefore, been adopted in preparing this interim financial report.

Outlook

In these uncertain times we continue to remain cautious in our approach. Retention of staff and cost control is a key priority, and the Board remains cautiously confident of managing current challenges.

Finally, and most importantly, we would like to thank all our people, shareholders, suppliers and other stakeholders for their continued support throughout these difficult times.

Change of Name of Nominated Adviser and Broker

The Company also announces that its nominated adviser and broker has changed its name to Cavendish Securities plc (formerly Cenkos Securities plc) following completion of its own corporate merger.

K Lassman

Chairman

Tasty plc

26 September 2023

Enquiries:

   Tasty plc                                                               Tel: 020 7637 1166 

Jonny Plant, Chief Executive

   Cavendish Securities                                               Tel: 020 7220 0500 

Katy Birkin/George Lawson

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 25 June 2023 (unaudited)

 
 
                                          26 weeks     26 weeks      52 weeks 
                                                to           to         Ended 
                                           25 June      26 June   25 December 
                                              2023         2022          2022 
                                           GBP'000      GBP'000       GBP'000 
 
 
 Revenue                                    21,724       21,522        44,027 
 
 Cost of sales                            (21,843)     (20,375)      (44,123) 
-------------------------------------  -----------  -----------  ------------ 
 
 Gross (loss)/profit                         (119)        1,147          (96) 
 
 Other income                                  159          213           414 
 
 Total operating expenses                  (5,184)      (2,778)       (4,370) 
 
 Operating (loss)/profit before 
  highlighted items                        (1,018)          445       (1,687) 
 Highlighted items                         (4,126)      (1,863)       (2,365) 
-------------------------------------  -----------  -----------  ------------ 
 
 Operating loss                            (5,144)      (1,418)       (4,052) 
 Finance income                                 62            3            41 
 Finance expense                           (1,157)      (1,249)       (2,421) 
 
 Loss before tax                           (6,239)      (2,664)       (6,432) 
 
 
 Loss and total comprehensive 
  income for period and attributable 
  to owners of the parent                  (6,239)      (2,664)       (6,432) 
-------------------------------------  -----------  -----------  ------------ 
 Loss per share attributable 
  to the ordinary equity owners 
  of the parent 
 Basic                                     (4.26p)      (1.89p)       (4.40p) 
 Diluted                                   (3.82p)      (1.66p)       (4.03p) 
 

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 
                                   25 June    25 June     26 June    26 June 
                                      2023       2023        2022       2022 
                                   GBP'000    GBP'000     GBP'000    GBP'000 
 
 EBITDA before highlighted 
  items                              1,133    (1,510)       2,733        101 
 Depreciation of PP&E 
  and amortisation                   (875)      (908)       (958)      (980) 
 Depreciation of right-of-use 
  assets (IFRS16)                  (1,276)          -     (1,330)          - 
------------------------------  ----------  ---------  ----------  --------- 
 
 Operating (loss)/profit 
  before highlighted 
  items                            (1,018)    (2,418)         445      (879) 
------------------------------  ----------  ---------  ----------  --------- 
 
 
 Analysis of highlighted items 
                                         26 weeks     26 weeks      52 weeks 
                                               to           to         ended 
                                          25 June      26 June   25 December 
                                             2023         2022          2022 
                                          GBP'000      GBP'000       GBP'000 
 Loss on disposal of property plant 
  and equipment                                 -            -         (154) 
 Exceptional cost - restructuring            (56)            -          (14) 
 
 Impairment of right-of-use assets        (2,584)      (1,258)       (2,153) 
 Impairment charge of property, 
  plant and equipment                     (1,376)        (304)         (180) 
 Share based payments                        (12)         (31)          (58) 
 Pre-opening costs                              -            -          (51) 
 (Loss)/gain on lease modifications          (98)        (270)           245 
------------------------------------  -----------  -----------  ------------ 
 Total highlighted items                  (4,126)      (1,863)       (2,365) 
 

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 25 June 2023 (unaudited)

 
                                    Share     Share    Merger    Retained       Total 
                                  Capital   Premium   Reserve     Deficit      Equity 
                                  GBP'000   GBP'000   GBP'000     GBP'000     GBP'000 
 
 Balance at 25 December 
  2022                              6,061    24,254       992    (33,355)     (2,048) 
 Total comprehensive income 
  for the period                        -         -         -     (6,239)     (6,239) 
 Share based payments - credit 
  to equity                             -         -         -          12          12 
 Balance at 25 June 2023            6,061    24,254       992    (39,582)     (8,275) 
 
 Balance at 26 December 
  2021 (restated)                   6,061    24,254       992    (26,981)       4,326 
 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    (29,614)       1,693 
 
 Balance at 26 December 
  2021 (restated)                   6,061    24,254       992    (26,981)       4,326 
 Total comprehensive income 
  for the period                        -         -         -     (6,432)     (6,432) 
 Share based payments - credit 
  to equity                             -         -         -          58          58 
 Balance at 25 December 
  2022                              6,061    24,254       992    (33,355)     (2,048) 
 

Consolidated balance sheet

At 25 June 2023 (unaudited)

 
 
                                      26 weeks     26 weeks      52 weeks 
                                            to           to         ended 
                                       25 June      26 June   25 December 
                                          2023         2022          2022 
                                       GBP'000      GBP'000       GBP'000 
 Non-current assets 
 Intangible assets                          32           28            25 
 Property, plant and 
  equipment                             15,255       17,282        17,332 
 Right-of-use- assets                   29,184       34,639        32,875 
 Other non-current assets                   65           65            65 
 Total non-current assets               44,536       52,014        50,297 
---------------------------------  -----------  -----------  ------------ 
 
 Current assets 
 Inventories                             2,013        1,994         2,191 
 Trade and other receivables             2,499        2,949         1,633 
 Cash and cash equivalents               2,777        8,010         7,002 
 Total current assets                    7,289       12,953        10,826 
---------------------------------  -----------  -----------  ------------ 
 
 Total assets                           51,825       64,967        61,123 
---------------------------------  -----------  -----------  ------------ 
 
 Current liabilities 
 Trade and other payables             (10,617)     (10,336)      (12,393) 
 Lease liabilities                     (1,993)      (2,202)       (1,953) 
 
 Total current liabilities            (12,610)     (12,538)      (14,346) 
---------------------------------  -----------  -----------  ------------ 
 
 Non-current liabilities 
 Provisions                              (342)        (335)         (339) 
 Lease liabilities                    (47,044)     (50,273)      (48,358) 
 Other payables                          (104)        (128)         (128) 
 Total non-current liabilities        (47,490)     (50,736)      (48,825) 
---------------------------------  -----------  -----------  ------------ 
 
 Total liabilities                    (60,100)     (63,274)      (63,171) 
---------------------------------  -----------  -----------  ------------ 
 
 Total net (liabilities)/assets        (8,275)        1,693       (2,048) 
---------------------------------  -----------  -----------  ------------ 
 
 Equity 
 Share capital                           6,061        6,061         6,061 
 Share premium                          24,254       24,254        24,254 
 Merger reserve                            992          992           992 
 Retained deficit                     (39,582)     (29,614)      (33,355) 
 Total equity                          (8,275)        1,693       (2,048) 
---------------------------------  -----------  -----------  ------------ 
 

Consolidated cash flow statement

for the 26 weeks ended 25 June 2023 (unaudited)

 
                                       26          26             52 
                                 weeks to    weeks to    weeks ended 
                                  25 June     26 June    25 December 
                                     2023        2022           2022 
                                  GBP'000     GBP'000        GBP'000 
 
 Operating activities 
 Cash generated 
  from operations                 (1,506)         945          4,444 
                               ----------  ----------  ------------- 
 Net cash inflow from 
  operating activities            (1,506)         945          4,444 
-----------------------------  ----------  ----------  ------------- 
 
 Investing activities 
 Purchase of property, 
  plant and equipment               (181)       (516)        (1,645) 
 Interest received                     62           3             41 
                               ----------  ----------  ------------- 
 Net cash flows used 
  in investing activities           (119)       (513)        (1,604) 
-----------------------------  ----------  ----------  ------------- 
 
 Financing activities 
 Bank loan repayment                    -     (1,250)        (1,250) 
 Finance expense                  (1,157)     (1,249)        (2,421) 
 Principal paid 
  on lease liabilities            (1,443)       (928)        (3,172) 
                               ----------  ----------  ------------- 
 Net cash flows 
  used in financing 
  activities                      (2,600)     (3,427)        (6,843) 
-----------------------------  ----------  ----------  ------------- 
 
 Net increase in 
  cash and cash equivalents       (4,225)     (2,995)        (4,003) 
 Cash and cash equivalents 
  at beginning of 
  the period                        7,002      11,005         11,005 
                               ----------  ----------  ------------- 
 Cash and cash equivalents 
  as at 25 June 2023                2,777       8,010          7,002 
-----------------------------  ----------  ----------  ------------- 
 

Notes to the condensed financial statements

for the 26 weeks ended 25 June 2023 (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 25 June 2023 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 25 December 2022 does not constitute the full statutory accounts for that period. The Annual Report and Financial Statements for 2022 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statements for 2022 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 the impact of inflation closely to ensure there is sufficient liquidity. Accordingly, the 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. 

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 25 June 2023 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.

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 9% (2022: 8%), being the rate considered to reflect the risks associated with the CGUs. A growth rate of 1.0% has been applied (2022: 2%).

An impairment review was undertaken across the ROU assets and fixed assets which resulted in a net impairment charge of GBP4.0m (2022: GBP1.6m). 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.

   3    Revenue, other income and segmental analysis 

The Group's activities, comprehensive income, assets and liabilities are wholly attributable to one operating segment (operating restaurants) and arises solely in the one geographical segment (United Kingdom) that the Group is located and operates in. All the Group's revenue is recognised at a point in time being when control of the goods has transferred to the customer.

An analysis of the Group's total revenue is as follows:

 
                                         26 weeks   26 weeks    52 weeks 
                                               to         to    ended 25 
                                          25 June    26 June    December 
                                             2023       2022        2022 
                                          GBP'000    GBP'000     GBP'000 
 
 Sale of goods and services: dine-in       19,401     18,862      39,004 
 Sale of goods and services: delivery 
  and takeaway                              2,323      2,660       5,023 
--------------------------------------  ---------  ---------  ---------- 
                                           21,724     21,522      44,027 
--------------------------------------  ---------  ---------  ---------- 
 

An analysis of the Group's other income is as follows:

 
                               26 weeks   26 weeks    52 weeks 
                                     to         to    ended 25 
                                25 June    26 June    December 
                                   2023       2022        2022 
                                GBP'000    GBP'000     GBP'000 
 
 Sub-let site rental income         132        181         362 
 Other                               27         32          52 
----------------------------  ---------  ---------  ---------- 
                                    159        213         414 
----------------------------  ---------  ---------  ---------- 
 
 
   4      Income tax 

The income tax charge has been calculated by reference to the estimated effective corporation tax and deferred tax rates of 19% (2022: 19%).

Tax charge GBPnil (2022: GBPnil).

   5    Earnings per share 
 
                                    26 weeks    26 weeks        52 weeks 
                                          to          to           ended 
                                     25 June     26 June     25 December 
                                        2023        2022            2022 
                                       Pence       Pence           Pence 
 
 Basic loss per ordinary 
  share                              (4.26p)     (1.89p)         (4.40p) 
 Diluted loss per ordinary 
  share                              (3.82p)     (1.66p)         (4.03p) 
 
                                     25 June     26 June     25 December 
                                        2023        2022            2022 
                                      Number      Number          Number 
                                        '000        '000            '000 
 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                 146,315     141,090         146,315 
 
 Adjustments for calculation 
 of diluted earnings 
 per share: 
 
 Ordinary B shares                    10,451      15,677          10,451 
 Options                               6,400       3,265           2,975 
 
 Weighted average number 
 of ordinary shares 
 and potential ordinary 
 shares used as the 
 denominator in calculating 
 diluted earnings per 
 share                               163,166     160,032         159,741 
 
 
                                     25 June     26 June     25 December 
                                        2023        2022            2022 
                                     GBP'000     GBP'000         GBP'000 
 Loss for the financial 
  period                             (6,239)     (2,664)         (6,432) 
 

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.

   6    Reconciliation of result before tax to net cash generated from operating activities 
 
                                       26 weeks   26 weeks      52 weeks 
                                             to         to         ended 
                                        25 June    26 June   25 December 
                                           2023       2022          2022 
                                        GBP'000    GBP'000       GBP'000 
 
 Loss before tax                        (6,239)    (2,664)       (6,432) 
 Finance income                            (62)        (3)          (41) 
 Finance expense                              -         30            30 
 Finance expense (IFRS 16)                1,157      1,219         2,391 
 Share based payment charge                  12         31            58 
 Depreciation of right-of-use 
  assets (IFRS 16)                        1,276      1,330         2,641 
 Depreciation of property, plant 
  and equipment                             874        956         1,664 
 Amortisation of intangible 
  assets                                      2          2             3 
 Impairment charge of property, 
  plant and equipment                     1,376        304           542 
 Impairment of Right-of-use 
  assets                                  2,584      1,258         1,791 
 Profit from sale of property, 
  plant and equipment                         -          -           154 
 Dilapidations provision charge               3         38            42 
 Other non cash                               -          -          (21) 
 Decrease/(Increase) in inventories         177        108          (88) 
 (Increase) in trade and other 
  receivables                             (866)    (1,553)         (238) 
 Increase/(decrease) in trade 
  and other payables                    (1,800)      (111)         1,948 
 Net cash (outflow)/inflow 
  from operating activities             (1,506)        945         4,444 
------------------------------------  ---------  ---------  ------------ 
 
   7    Property, plant and equipment and right-of-use assets 
 
                                    Leasehold       Furniture           Total           ROU assets     Total 
                                 improvements        fixtures    fixed assets 
                                                 and computer 
                                                    equipment 
                                      GBP'000         GBP'000         GBP'000              GBP'000   GBP'000 
 Cost 
 At 26 December 
  2021                                 37,321          10,291          47,612               53,567   101,179 
 
 Additions                                709             936           1,645                    -     1,645 
 Lease modification                         -               -               -                1,301     1,301 
 Disposals                              (181)           (334)           (515)                 (50)     (565) 
 At 25 December 
  2022                                 37,849          10,893          48,742               54,818   103,560 
-----------------------------  --------------  --------------  --------------  -------------------  -------- 
 
 Additions                                 46             127             173                    -       173 
 Lease modification                         -               -               -                  169       169 
 At 25 June 
  2023                                 37,895          11,020          48,915               54,987   103,902 
-----------------------------  --------------  --------------  --------------  -------------------  -------- 
 
 Depreciation 
 At 26 December 
  2021 (as restated)                   22,057           7,529          29,586               17,562    47,148 
 Provided for 
  the period                              981             683           1,664                2,641     4,305 
 Impairments                              232            (52)             180                2,153     2,333 
 Disposals                               (75)           (307)           (382)                 (51)     (433) 
 At 25 December 
  2022 (as previously 
  stated)                              23,195           7,853          31,048               22,305    53,353 
-----------------------------  --------------  --------------  --------------  -------------------  -------- 
 
 Impairment reclassification              267              95             362                (362)         - 
 
 At 25 December 
  2022 (as restated)                   23,462           7,948          31,410               21,943    53,353 
-----------------------------  --------------  --------------  --------------  -------------------  -------- 
 
 Provided for 
  the period                              507             367             874                1,276     2,150 
 Impairments                            1,187             189           1,376                2,584     3,960 
 At 25 June 
  2023                                 25,156           8,504          33,660               25,803    59,463 
-----------------------------  --------------  --------------  --------------  -------------------  -------- 
 
 Net book value 
 At 25 June 
  2023                                 12,739           2,516          15,255               29,184    44,439 
-----------------------------  --------------  --------------  --------------  -------------------  -------- 
 
 At 25 December 
  2022 (as restated)                   14,387           2,945          17,332               32,875    50,207 
-----------------------------  --------------  --------------  --------------  -------------------  -------- 
 
   8    Leases 
 
                                26        26             52 
                             weeks     weeks    weeks ended 
                                to        to 
                           25 June   26 June    25 December 
                              2023      2022           2022 
                           GBP'000   GBP'000        GBP'000 
 Current 
 Lease liabilities           1,993     2,202          1,953 
 
 Non-current 
 Lease liabilities          47,044    50,273         48,358 
 
 Total                      49,037    52,475         50,311 
------------------------  --------  --------  ------------- 
 
 
 Due within one year         1,993     2,202          1,953 
 Due two to five years       9,586    12,792         11,386 
 Due over five years        37,458    37,481         36,972 
------------------------  --------  --------  ------------- 
 Total                      49,037    52,475         50,311 
------------------------  --------  --------  ------------- 
 

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 2023 was 8.0% (2022: 5.1%).

The lease liabilities as at 25 June 2023 were GBP49.0m (2022: GBP52.5m).

The right-of-use assets all relate to property leases. The right-of-use assets as at 25 June 2023 were GBP29.2m (2022: GBP34.6m). During the period ended 25 June 2023 the Group made a provision for impairment of the right-of-use assets against a number of sites totalling GBP2.6m (2022: GBP1.3m).

Included in profit and loss for the period is GBP1.2m depreciation of right-of-use assets and GBP1.2m financial expenses on lease liabilities.

   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 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                         (3,172)                   -        (313)       (937)   (4,422) 
  Addition/(decrease) 
   to lease liability                3,101             (1,799)            -           -     1,302 
 ---------------------  ------------------  ------------------  -----------  ----------  -------- 
  Net debt as at 25 
   December 2022                     1,953              48,358            -           -    50,311 
  Cashflow                         (1,443)                   -            -           -   (1,443) 
  Addition/(decrease) 
   to lease liability                1,483             (1,314)            -           -       169 
 ---------------------  ------------------  ------------------  -----------  ----------  -------- 
  Net debt as at 25 
   June 2023                         1,993              47,044            -           -    49,037 
 ---------------------  ------------------  ------------------  -----------  ----------  -------- 
 

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September 27, 2023 02:00 ET (06:00 GMT)

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