TIDMTAST
RNS Number : 4318Q
Tasty PLC
12 September 2017
Tasty plc
("Tasty" or the "Group")
Interim Results (unaudited) for the 26 weeks ended 2 July
2017
Highlights:
-- Revenue up 11.8% to GBP24.4m on the comparative period (H1 2016 - GBP21.8m)
-- Successfully opened 4 new sites in the period and now operating sixty-five restaurants
Chairman's statement
Introduction
The Group is currently trading from sixty-five restaurants after
successfully opening 4 new sites in the 26 week period to 2 July
2017.
The Board believes that the sector as a whole has been suffering
due to a slowdown in consumer spending since the beginning of 2017
and this is set to continue into 2018. This is not unique to the
Group or any particular area but appears to be a nationwide problem
particularly evident in London and has impacted turnover and
profit.
Business review
As a result of the weak trading environment the Group is facing
pressure on sales and margins. The Group is taking decisive action
to improve its position;
Site disposals
A number of sites have been identified as underperforming and
turnaround measures have been implemented which are producing
encouraging results. We are currently in the process of disposing
of some sites and are marketing others which have not shown
significant signs of improvement.
Food offering
We have carried out a major review of our menus taking into
account customer feedback to ensure, the offering remains current
and in line with our customers' tastes and we are in the best
position to maintain and increase our market share. We have reduced
the number of dishes on the menu, along with improving the recipes
of over a third of the items.
Promotions and pricing
The Board has noted that the level of promotional activity in
the sector has increased significantly in 2017. The Group continues
to match the activity of the competition with regard to promotions
and is reviewing alternative strategies.
Cost base
The pace of the roll out has been scaled back in the current
climate and The Group will be reviewing its functions to ensure
cost savings.
Results
Sales increased by 11.8% on the corresponding period to
GBP24,375,000 (2016 - GBP21,794,000) with like for like sales
declining. Headline operating profit, before pre-opening costs,
non-trade items and interest, was GBP544,000 (2016 - GBP1,925,000)
and pre-tax profit before pre-opening costs and non-trade items
decreased to GBP210,000 (2016 - GBP1,615,000).
The Group has undertaken a comprehensive review of its estate
during the period and has recognised an impairment charge of
GBP9,492,000 in light of current trading conditions. After taking
into account all non-trade adjustments the Group has a stated loss
after tax for the period of GBP9,302,000 (2016 - loss
GBP2,637,000).
Cash flows and financing
During the period capital expenditure of GBP4,414,000 (2016 -
GBP5,044,000) was incurred. Four sites have been opened in the
period, with a further two sites due to open imminently and no
further sites planned for 2017. The Board has reviewed its property
pipeline and is currently not committed to opening any sites in
2018.
Overall, the net cash outflow for the period was GBP3,425,000
(2016 - inflow GBP334,000). As at 2 July 2017, the Group had net
borrowings of GBP5,421,000 (2016 - GBP7,445,000). The Group has an
available banking facility of GBP12,000,000 and it is the Board's
intention to reduce net debt by the year end.
Outlook
The Group recognises the challenging conditions ahead and is
taking action to strengthen its position. The Directors are
confident that the Group's restaurants remain appealing to
customers and the Group will continue its growth in the future.
K Lassman
Chairman
Tasty plc
12 September 2017
This announcement contains inside information.
Enquiries:
Tasty plc Tel: 020 7637 1166
Jonny Plant, Chief Executive
Cenkos Securities Tel: 020 7397 8900
Bobbie Hilliam
Consolidated statement of comprehensive income
for the 26 weeks ended 2 July 2017 (unaudited)
26 weeks 27 weeks 53 weeks
to to to
2 July 3 July 1 January
2017 2016 2017
GBP'000 GBP'000 GBP'000
Revenue 24,375 21,794 45,847
Cost of sales (23,482) (19,542) (40,570)
----------------------------------------- ---------------- ---------------- ------------
Gross profit 893 2,252 5,277
Administrative costs (349) (327) (485)
Operating profit excluding pre-opening
costs and non-trading items 544 1,925 4,792
----------------------------------------- ------------
Pre-opening costs (165) (197) (644)
Share based payments (50) (50) (100)
Exceptional Costs - rebranding - - (55)
Exceptional Costs - impairment
of lease premiums (172) (294) (294)
Exceptional Costs - impairment
of property, plant and equipment (9,320) (3,576) (3,576)
----------------------------------------- ---------------- ---------------- ------------
Operating (loss) / profit (9,163) (2,192) 125
Finance income (119) (113) 1
Finance expense (214)
Loss before tax (9,282) (2,305) (88)
Income tax (20) (332) (760)
Loss and total comprehensive
income period
attributable to equity shareholders (9,302) (2,637) (848)
----------------------------------------- ---------------- ---------------- ------------
loss per share
Basic (15.56p) (4.95p) (1.56p)
Consolidated statement of changes in equity
for the 26 weeks ended 2 July 2017 (unaudited)
Share Share Merger Retained Total
capital premium reserve deficit
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 01 January 2017 5,975 21,348 992 1,851 30,166
Issue of ordinary shares 5 28 - - 33
Total comprehensive income
for the period - - - (9,302) (9,302)
Share based payments - credit
to equity - - - 50 50
Balance at 02 July 2017 5,980 21,376 992 (7,401) 20,947
Balance at 27 December 2015 5,322 13,371 992 2,599 22,284
Issue of ordinary shares 14 32 - - 46
Total comprehensive income
for the period - - - (2,637) (2,637)
Share based payments - credit
to equity - - - 50 50
Balance at 3 July 2016 5,336 13,403 992 12 19,743
Balance at 27 December 2015 5,322 13,371 992 2,599 22,284
Issue of ordinary shares 653 7,977 - - 8,630
Total comprehensive income
for the period - - - (848) (848)
Share based payments - credit
to equity - - - 100 100
Balance at 01 January 2017 5,975 21,348 992 1,851 30,166
Consolidated balance sheet
At 2 July 2017 (unaudited)
2 July 3 July 01 January
2017 2016 2017
GBP'000 GBP'000 GBP'000
Non-current assets
Intangible assets 444 469 473
Property, plant and equipment 27,844 28,944 34,200
Pre-paid operating lease
charges 1,833 1,614 1,861
Other non-current assets 278 198 279
30,399 31,225 36,813
------------------------------- --------- --------- -----------
Current assets
Inventories 2,442 1,980 2,465
Trade and other receivables 4,195 3,270 4,390
Pre-paid operating lease
charges 114 168 124
Cash and cash equivalents 1,579 2,555 5,004
8,330 7,973 11,983
------------------------------- --------- --------- -----------
Total assets 38,729 39,198 48,796
-------------------------------- --------- --------- -----------
Current liabilities
Trade and other payables (8,191) (7,364) (9,163)
Corporation tax liabilities (407) - (407)
(8,598) (7,364) (9,570)
------------------------------- --------- --------- -----------
Non-current liabilities
Provisions (30) (45) (35)
Lease incentives (1,168) (832) (1,059)
Deferred tax liability (986) (1,214) (966)
Long-term borrowings (7,000) (10,000) (7,000)
(9,184) (12,091) (9,060)
------------------------------- --------- --------- -----------
Total liabilities (17,782) (19,455) (18,630)
-------------------------------- --------- --------- -----------
Total net assets 20,947 19,743 30,166
-------------------------------- --------- --------- -----------
Equity
Share capital 5,980 5,336 5,975
Share premium 21,376 13,403 21,348
Merger reserve 992 992 992
Retained (deficit) / profit (7,401) 12 1,851
-------------------------------- --------- -----------
Total equity 20,947 19,743 30,166
-------------------------------- --------- --------- -----------
Consolidated cash flow statement
for the 26 weeks ended 2 July 2017 (unaudited)
26 weeks 27 weeks
to to 53 weeks
2 July 3 July 1 January
2017 2016 2017
GBP'000 GBP'000 GBP'000
Operating activities
Cash generated from operations 1,075 1,195 5,368
Corporation tax paid - - (600)
Net cash inflow from operating activities 1,075 1,195 4,768
--------------------------------------------- --------- --------- ----------
Investing activities
Purchase of property, plant and equipment (4,414) (5,044) (11,652)
Interest received - - 1
Net cash flows used in investing
activities (4,414) (5,044) (11,651)
--------------------------------------------- --------- --------- ----------
Financing activities
Net proceeds from issues of ordinary
shares 33 46 8,630
Bank loan receipt - 4,250 6,250
Bank loan repayment - - (5,000)
Interest paid (119) (113) (214)
Net cash flows generated / (used)
in financing activities (86) 4,183 9,555
--------------------------------------------- --------- --------- ----------
Net decrease in cash and cash equivalents (3,425) 334 2,783
Cash and cash equivalents at beginning
of the period 5,004 2,221 2,221
Cash and cash equivalents as at 3
July 2016 1,579 2,555 5,004
--------------------------------------------- --------- --------- ----------
Notes to the condensed financial statements
for the 26 weeks ended 2 July 2017 (unaudited)
1 General information
Tasty plc ("Tasty") is a public limited company incorporated in
the United Kingdom under the Companies Act (registration number
5826464). 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 Alternative Investment
Market of the London Stock Exchange ("AIM"). Copies of this Interim
Report or 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 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 ended 2 July
2017 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 1 January 2017
does not constitute the full statutory accounts for that period.
The Annual Report and Financial Statements for 2016 have been filed
with the Registrar of Companies. The Independent Auditors' Report
on the Annual Report and Financial Statements for 2016 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 20%
(2016 - 20%).
4 Earnings per share
26 weeks 27 weeks
to to 53 weeks
2 July 3 July 1 January
2017 2016 2017
Pence Pence Pence
Loss per ordinary share (15.56) (4.95) (1.56)
Diluted Loss per ordinary
share (15.56) (4.95) (1.56)
The basic earnings per share figures are calculated by dividing
the net 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.
Earnings per share have been calculated using the numbers shown
below:
26 weeks 27 weeks
to to 53 weeks
2 July 3 July 1 January
2017 2016 2017
number number number
'000 '000 '000
Weighted average ordinary
shares (basic) 59,763 53,243 54,314
Weighted average ordinary
shares (diluted) 59,763 53,243 54,314
26 weeks 27 weeks
to to 53 weeks
2 July 3 July 1 January
2017 2016 2017
GBP'000 GBP'000 GBP'000
Loss for the financial period (9,302) (2,637) (848)
--------------------------------- --------- --------- ----------
5 Reconciliation of profit before tax to net cash inflow from operating activities
26 weeks 27 weeks
to to 53 weeks
2 July 3 July 1 January
2017 2016 2017
GBP'000 GBP'000 GBP'000
Loss before tax (9,282) (2,305) (88)
Finance income - - (1)
Finance expense 119 113 214
Write-off of rent premium 172 294
Share based payment charge 50 50 100
Depreciation 1,345 1,020 6,034
Impairment 9,320 3,576 -
Amortisation of intangible
assets 1 1 2
Onerous lease provision movement (5) - (10)
Increase in inventories 23 (168) (653)
Increase in trade and other
receivables 196 (791) (1,330)
Increase in trade and other
payables (864) (595) 1,100
1,075 1,195 5,368
---------------------------------- --------- --------- ----------
This information is provided by RNS
The company news service from the London Stock Exchange
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IR VFLFFDKFZBBV
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