TIDMTAST

RNS Number : 6846U

Tasty PLC

30 March 2023

30 March 2023

Tasty plc

("Tasty" or the "Company")

Final results for the 52 weeks ended 25 December 2022

Tasty (AIM: TAST), the owner and operator of restaurants in the casual dining sector, announces its annual results for the 52 week period ended 25 December 2022.

Key Highlights

                 --    Revenue GBP44.0m (2021: GBP34.9m); an increase of 26% year-on-year 
                 --    Adjusted EBITDA(1) (post IFRS 16) of GBP2.6m (2021: GBP8.0m) 
   --    Loss after tax for the period of GBP6.4m (post IFRS 16) (2021: GBP1.2m profit) 

-- Group repaid and cancelled its unutilised Barclays Bank facility of GBP1.1m and is now debt free

   --    Cash at bank of GBP7.0m as at 25 December 2022 (2021: GBP11.0m) 
   --    Currently trading from 52 of 54 restaurants 

-- Inflationary pressure on labour, food and utilities has impacted the business considerably but now beginning to stabilise

   --    Staff shortages remained a challenge in 2022 but are returning to more normal levels 
   --    Despite staffing and inflationary challenges, like-for-like sales compared with pre Covid-19 

levels were encouraging

([1]) Adjusted for depreciation, amortisation and highlighted items including share-based payments and impairments. Adjusted EBITDA 2021 figure includes GBP1.9m of exceptional Government grant income

The report and accounts for the 52 week period ended 25 December 2022 will be available on the Company's website at https://dimt.co.uk/investor-relations/ shortly.

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.

For further information, please contact:

 
  Tasty plc                                   Tel: 020 7637 1166 
  Jonny Plant, Chief Executive 
  Cenkos Securities plc (Nominated adviser 
   and broker) 
  Katy Birkin/George Lawson                   Tel: 020 7397 8900 
 

Chairman's statement

I am pleased to be reporting on the Group's annual results for the 52 weeks period ended 25 December 2022 and the comparative 52 weeks period ended 26 December 2021.

The Group comprises 54 restaurants: six dim t and 48 Wildwood restaurants.

It was hard to predict the challenges that we faced in 2022 would immediately follow what had already been extraordinarily difficult years during the pandemic. The Group delivered strong sales growth, despite the severe impediments of transportation strikes, the World Cup, and bad weather all coinciding with the most important trading period of the year. We have estimated the adverse sales impact of all these factors to be in excess of GBP0.65m. As reported in our Interim Results, the energy crisis and unprecedented inflationary costs suppressed the results further, significantly increasing our running costs.

We reopened two Wildwood restaurants which were closed during the pandemic, and we are now trading from 52 restaurants out of a total estate of 54. We also converted Wildwood Loughton into a dim t in November 2022 with results which have exceeded expectations. Dim t has proved to be a robust brand over the last few years due to both a rise in popularity for Asian food and also an increased demand for takeaway and delivery of this cuisine. Given the initial solid performance of this converted unit we are currently considering other opportunities to rebrand within our estate. We have started a process to sell the two restaurants that remain closed, and we will also consider the sale or surrender of other underperforming sites.

Delivery and takeaway have remained strong throughout the year but there has been a marginal shift towards dine-in. The sales performance for the start of 2023 has been better than initially expected, but it is still challenging. We believe that this is partially due to customers drawing upon personal savings built up during the pandemic and a resilience to conservative menu price increases however, whether this resilience continues, remains to be seen in the coming months. The Board expects the Group's profitability to continue to be impacted by both energy costs, which remain significantly higher than pre-pandemic levels, and also increasing food costs. The Group's expansion plan of opening additional sites will be reviewed once inflation and the economy have stabilised.

The Group repaid and cancelled its outstanding Barclays Bank facility of GBP1.1m as it was unutilised, and it was considered prudent given the increasing interest rate charges. Based on the Bank of England base rate at the time of cancellation, there will be an annualised interest saving of approximately GBP57,000. The Group still has a GBP250,000 overdraft facility.

As with previous challenges, the Group is confident it has a structure that can navigate the current macroeconomic headwinds.

Dividend

The Board does not propose to recommend a dividend (2021: GBPnil).

Future Trading

Performance to date is ahead of management expectations although, at this stage, it is difficult to predict the full extent of the cost of living crisis and input cost inflation and shortages. When the current energy cap reduces at the end of March 2023, with advice from our newly appointed energy brokers, we are adopting a revised strategy to reduce our energy costs. We expect our customers to continue to enjoy eating out and relish the social occasion at Wildwood and dim t but we will continue to focus on managing our cost base and increasing efficiencies within the business. We are living in very unpredictable times, both politically and economically, and these no doubt will continue to be factors in the performance of the Group for the coming year.

Keith Lassman

Chairman

29 March 2023

Strategic report for the 52 weeks ended 25 December 2022

Business Review

Tasty operates two concepts in the casual dining market: Wildwood and dim t.

Wildwood

Aimed at a broad market, our 'Pizza, Pasta, Grill' restaurant remains the Group's main focus. Our sites are primarily based on the high street. However, our estate comprises a number of leisure, retail and tourist locations that have historically traded well, highlighting the broad appeal of the offering. Located nationally, mainly outside of London, Wildwood is currently open for business from 46 of the 48 Wildwood branded restaurants.

dim t

Our pan-Asian restaurant now trades from six sites, serving a wide range of dishes, including dim sum, noodles, soup and curry. This includes dim t Loughton, which was converted from a Wildwood and re-opened in November 2022. The brand has fared particularly well over the last few years due to a rise in its popularity and increased demand for takeaway. Given the success of Loughton we believe there are some opportunities to grow this brand within our existing estate.

Introduction

Recent years have been characterised by continuing uncertainty, and it has been difficult to accurately predict the extent or duration of disruptions. Against this turmoil, we have been reassured by the enduring demand for eating out and our focus remains on offering a great dining experience with significant time spent improving food quality and customer experience. Other than December 2022, when sales were impacted negatively by the World Cup and transportation strikes, overall sales performance of the re-opened estate has been ahead of 2019, which has been used as a fair comparison as both 2020 and 2021 were impacted by the pandemic.

We are conscious that demand may be favourable due to the savings built up over the pandemic and the real impact of the cost-of-living crisis may still materialise, however year-to-date performance in 2023 has been slightly better than expected. There has been a discernible shift from the early weekday trade to the weekend and we have avoided aggressive discounting and promotions, maintaining a competitive advantage through pricing and a value proposition.

We previously reported that the pandemic negatively impacted our city centre sites due to fewer commuters, tourists and theatregoers. The London sites are now performing better with the return of tourists and the theatre shows, and there has also been an uplift in lunch trade as people slowly increase the frequency that they attend the office.

Energy costs

In 2022, our energy costs rose substantially in line with many in the hospitality industry and often resulted in four times more cost than the 2019 equivalent. When the current energy cap reduces at the end of March 2023 with advice from our newly appointed energy brokers, we are adopting a revised hedging strategy to reduce our energy costs. While we hope that pressures on energy costs have peaked, we expect prices to remain higher than pre-pandemic levels and estimate this to be at least double that of historical costs. We are working on unit level energy efficiency improvements and selective Monday closures to reduce costs.

Offering

We are constantly reviewing our menu and increasing the choice of options, including lunch and light options. With our newly appointed Head of Food and our central kitchen production we have significantly improved our food quality and consistency which is borne out by customer survey reports. With approximately three menu changes a year, we can adapt products to suit availability and changing tastes and we always review ways to offer vegan and gluten-free options. To ensure we are accessible to a broader consumer group, we have maintained a very low entry price point for both pizza and pasta for Wildwood and noodles for dim t - dishes which continue to be very popular with our customers.

People

We are pleased to report that as at 25 December 2022, we employed just under 1,100 people across the business, an increase of 100 from the previous year and a sign that the labour shortage seems to have stabilised. However, competition is still considerable for good-quality candidates, and we remain committed to ensuring the Group is a competitive, attractive and supportive environment in which to work.

Whilst we welcome the removal of the temporary increase of National Insurance of 1.25% introduced in November 2022, the increases in April 2023 of the National Living Wage and general inflationary wage pressures will inevitably result in higher labour costs, which will be impossible to absorb completely. We continue to be committed to improving labour efficiency through a focus on the trading day-parts, forecasting and scheduling.

A new recruitment system has been rolled out across the Group which will improve candidate selection and retention. We have undertaken a comprehensive review of our employee training and engagement which will both produce a better customer experience and also improve employee satisfaction and development. The full implementation of this project is expected to be completed in early Q2 2023.

We have strengthened our management structure and senior teams across all areas with particular investment in food, marketing and the learning and development team.

Suppliers

With the energy crisis impacting the whole economy we have seen inflationary increases across the board from food costs through to third party service providers. Thankfully, supply has been more consistent, although there have been some unplanned disruptions which have affected our major supply lines. However, Covid-19 taught us how to be agile and resourceful and we have suffered very little outages during the difficult periods.

Property

The Group has successfully regeared one lease and will continue to review current lease terms and also consider disposing of poorer performing sites. There are a few leases with termination provisions effective this year, which will allow us to either renegotiate terms or surrender the lease. The Group will consider expansion once the economy and energy market stabilise. Unfortunately, we expect some businesses will struggle to survive with their current estate, and there will be many opportunities to acquire good sites. There are some rolling restaurant refresh programmes which are ongoing but expansion and major refurbishments will not be considered until the second half of the year.

Board Changes

As previously announced, Mayuri Vachhani will be stepping down from her position as Chief Finance Officer and leave the Group on 31 March 2023, to pursue other opportunities. The Board would once again like to thank Mayuri for her hard work and the contribution she has made to the business over the last five years.

Wendy Dixon was appointed as an independent Non-executive Director in June 2022. She also holds the role of Chief Growth Officer for M&C Saatchi Group, and we are delighted to have her on our Board. In addition, Harald Samúelsson, who joined the Board in May 2021, is permanently relocating to Spain from 1 April 2023 and will revert to his previous position as an independent non-executive Director. Harald Samúelsson has over 20 years of experience in the UK restaurant industry.

Current trading and outlook for the coming year

Performance to date is ahead of management expectations, although at this stage, it is difficult to predict the full extent of the cost of living crisis and input cost inflation and shortages given the level of uncertainty that still exists in the industry and economy in general. We expect our customers to continue to show their loyalty towards our brands and we believe that our new marketing initiatives and websites will help grow a wider customer base.

Financial review

Highlighted Items

The Group recognises a number of charges in the financial statements which arise under accounting rules and have no cash impact. These charges include share-based payments and impairments to fixed assets. The above items are included under 'highlighted items' in the statement of comprehensive income and further detailed in Note 5. These items, due to their nature, will fluctuate significantly year-on-year and are, therefore, highlighted to give more detail on the Group's trading performance.

Full year results and key performance indicators

The Directors continue to use a number of performance metrics to manage the business but, as with most businesses, the focus on the income statement at the top level is on each of sales, EBITDA before highlighted items, and operating profit before highlighted items compared to the previous year. All key performance indicators that adjust for highlighted items do not constitute statutory or GAAP measures.

The table below shows key performance indicators both before and after IFRS 16:

 
                                     Post IFRS       Pre IFRS      Post IFRS 
                                            16             16             16 
                                      52 weeks       52 weeks       52 weeks 
                                         ended          ended          ended 
                                   25 December    25 December    26 December 
                                          2022           2022           2021 
                                       GBP'000        GBP'000        GBP'000 
 
  Non-financial 
  Sites at year end                         54             54             54 
  Open sites                                52             52             50 
 
  Sales                                 44,027         44,027         34,909 
  EBITDA before highlighted 
   items                                 2,621        (2,633)          7,991 
  Depreciation of PP&E 
   and amortisation                    (1,667)        (1,726)        (1,300) 
  Depreciation of right-of-use 
   assets (IFRS 16)                    (2,641)              -        (2,579) 
-------------------------------  -------------  -------------  ------------- 
 
  Operating (loss)/profit 
   before highlighted 
   items                               (1,687)        (4,359)          4,112 
-------------------------------  -------------  -------------  ------------- 
 

Sales were up 26% on the corresponding period which was impacted by restricted trading to GBP44.0m (2021: GBP34.9m) and EBITDA was GBP2.6m (2021: GBP8.0m). The EBITDA loss before highlighted items and IFRS 16 adjustments was GBP2.6m (2021: GBP3.9m profit).

Operating loss before highlighted items (see Note 5) was GBP1.7m (pre-IFRS 16 equivalent: GBP4.4m loss, 2021: GBP4.1m profit).

The impact of the implementation of IFRS 16 "Leases" from 2020 has resulted in both depreciation on Right-of-use ("ROU") assets for leases and also the interest charge on lease liabilities being greater than the charge for rent that would have been reported pre-IFRS 16; the net impact on the reported loss for 2022 is GBP0.3m (2021: GBP0.9m). We have reviewed the impairment provision across the ROU assets and fixed assets and have made a net provision of GBP2.3m (2021: GBP0.6m).

After considering all of the non-trade adjustments, the Group reports a loss after tax for the period of GBP6.4m (2021: GBP1.2m profit after tax). Net cash inflow for the period before financing was GBP2.8m (2021: GBP7.3m inflow) and is driven by a net cash inflow from operating activities of GBP4.4m (2021: GBP7.8m).

As at 25 December 2022, the Group had an outstanding bank loan of GBPnil (2021: GBP1.25m) after repaying the Barclays Bank facility in full in June 2022. Cash at bank at the end of the period was GBP7.0m (2021: GBP11.0m). Net cash after outstanding bank loan at the balance sheet date was GBP7.0m (2021 - net cash GBP9.8m). Capital investment increased to GBP1.6m (2021: GBP0.5m).

Principal risks and uncertainties

The Directors have the primary responsibility for identifying the principal risks the business faces and for developing appropriate policies to manage those risks.

 
  Risks and uncertainties           Mitigation 
  Covid-19                          While the impact of Covid-19 does 
   New strain of Covid-19            not appear to be impacting day to 
   impacting staff, restaurants      day business we continue to be vigilant 
   and supply.                       and will follow guidelines where relevant. 
                                     Management became adept at managing 
                                     cost and revenue through lockdowns 
                                     and restrictions and are flexible 
                                     at localised closures due to Covid-19 
                                     outbreaks and/or shortages of staff. 
                                     Outbreak protocols have been established 
                                     for staff, restaurants, and suppliers 
                                     and will be implemented where necessary. 
                                  -------------------------------------------------- 
  Cashflow and liquidity            Cash preservation has been a key focus 
   The impact of cost-of-living      over the last few years. The Group 
   crisis and other trading          monitors cash balances and prepares 
   conditions on cashflow            regular forecasts which are reviewed 
   and liquidity                     by the Board. These forecasts include 
                                     our best estimates and judgements 
                                     based on currently available information 
                                     and the current environment. In addition, 
                                     management will apply sensitivities 
                                     to assess the impact of actual results 
                                     or events impacting on future cash 
                                     flows. 
                                     The bank facility of GBP1.25m secured 
                                     to strengthen the Group's balance 
                                     sheet and provide additional working 
                                     capital, was drawn down in full in 
                                     January 2021 but remained unutilised 
                                     and was repaid in full in June 2022. 
                                     The Group also has an unutilised GBP250,000 
                                     overdraft facility. 
                                  -------------------------------------------------- 
  Utilities and Cost of             The biggest challenge faced by the 
   Living Crisis                     Group, and many other businesses, 
                                     is the increase in utility prices. 
                                     We have endeavoured to reduce usage 
                                     by focusing on consumption and efficiency; 
                                     however, this does not offset the 
                                     increases over the last 12 months. 
                                     We will work with our energy broker 
                                     to fix contracts as appropriate and 
                                     have recently agreed new gas and electricity 
                                     contracts. 
                                     The impact of this and the cost-of-living 
                                     crisis will impact the economy and 
                                     while we have reviewed our menu prices 
                                     to counteract the impact of some inflationary 
                                     pressures, we have maintained our 
                                     entry level of pizza and pasta at 
                                     Wildwood and noodles at dim t. 
                                  -------------------------------------------------- 
  Market Conditions and             Brexit has impacted food and drink 
   "Brexit"                          primarily in the form of cost inflation 
   Economic uncertainty and          and shortages of certain products. 
   impact of the UK leaving          We work closely with our suppliers 
   the European Union ("Brexit")     on assured supply and regularly re-tender 
   could reduce customer             prices. To minimise the impact of 
   confidence / spending.            food cost increases we consider menu 
                                     engineering and review recipes. 
                                  -------------------------------------------------- 
  Competition                       To mitigate this risk, we continue 
   The casual dining market          to invest in and renew our offering 
   faces new competition             whilst maintaining accessibility, 
   on a regular basis.               staying committed to quality and the 
                                     overall customer experience. 
                                     We constantly review marketing initiatives 
                                     to ensure that we remain relevant 
                                     to our consumers and ahead of the 
                                     competition. We review performance 
                                     and success whilst exploring new opportunities. 
                                  -------------------------------------------------- 
  People                            We have continued to focus on selection, 
   Loss of key staff and             induction, training and retention 
   inability to hire the             of our employees. The Group has made 
   right people in a competitive     significant improvements in its selection 
   labour market.                    process, onboarding training programmes 
                                     and career development. New HR and 
                                     recruitment systems have been established 
                                     and proposed to provide consistent 
                                     and swift support to all colleagues. 
                                     We have also strengthened our teams. 
                                     The Group offers competitive remuneration 
                                     and is reviewing its overall benefits 
                                     package. 
                                  -------------------------------------------------- 
  Food standards and safety         The Group engages in regular internal 
   Failing to meet safety            and external compliance audits to 
   standards                         ensure all sites are complying with 
                                     regulations. Job-specific training 
                                     that covers relevant regulations is 
                                     provided to all staff on induction 
                                     and whenever else necessary. Online 
                                     reporting systems are utilised on 
                                     a daily basis to gather relevant information 
                                     on compliance. 
                                     The Group regularly reviews the latest 
                                     Government guidelines and best practice 
                                     regarding allergens. The Group's activities 
                                     are subject to a wide range of laws 
                                     and regulations, and we seek to comply 
                                     with legislation and best practice 
                                     at all times. 
                                  -------------------------------------------------- 
  Supply Chain                      The Group monitors suppliers closely. 
   A major failure of a key          In the event of a failure by a key 
   supplier or distributor           supplier we have contingency plans 
   could cause significant           in place to minimise disruption and 
   business interruption.            where possible, we maintain buffer 
                                     stock of high-risk products. 
                                  -------------------------------------------------- 
 

On behalf of the Board.

Daniel Jonathan Plant

Chief Executive Officer

29 March 2023

Report of the directors for the 52 weeks ended 25 December 2022

The Directors present their report together with the audited financial statements for the 52 week period ended 25 December 2022 (comparative period 52 weeks to 26 December 2021).

Throughout the year, in performance of its duties, and in compliance with Section 172 of the Companies Act, the Board has had regard to the interests of the Group's key stakeholders (such as employees and customers) and taken account of the potential impact on these stakeholders of the decisions it has made. In order to comply with Section 172, the Board is required to include a statement setting out the way in which Directors have discharged these duties during the year. Details of how the Board had regard to the following S172 Matters are as follows:

 
  S172 Matters                             Specific examples 
 1. The likely consequences of 
  any decision in the long term                  *    Our corporate governance framework as described in 
                                                      the 2022 annual report 
 
 
                                                 *    Communications with our shareholders through our 
                                                      website, circulars, AGM and post results investor 
                                                      meetings 
                                         ------------------------------------------------------------------ 
 2. The interests of the Group's 
  employees                                      *    Employee engagement through newsletters, 
                                                      communication tools, surveys and career development 
                                                      opportunities including apprenticeship 
 
 
                                                 *    Established whistleblowing and safeguarding 
                                                      procedures 
                                         ------------------------------------------------------------------ 
 3. The need to foster the Group's 
  business relationships with                          *    Building long-term relationships with suppliers 
  suppliers, customers and others 
 
                                                       *    Encouraging and responding to customer feedback 
                                                            through websites, social media and our feedback 
                                                            system 
                                         ------------------------------------------------------------------ 
 4. The impact of the Group's 
  operations on the community                          *    Local community involvement with the NHS 
  and the environment 
 
                                                       *    Working with the local community 
 
 
                                                       *    Recycling where possible 
                                         ------------------------------------------------------------------ 
 5. The desirability of the Group 
  maintaining a reputation for               *    Regular staff training and communication 
  high standards of business conduct 
 
                                             *    Restaurant visits and audit processes 
                                         ------------------------------------------------------------------ 
      6. The need to act fairly between 
       members of the Group                      *    Maintaining an open dialogue with our shareholders 
 
 
                                                 *    Stakeholder engagement 
                                         ------------------------------------------------------------------ 
 

Results and dividends

The consolidated statement of comprehensive income is set out below and shows the loss for the period.

The Directors do not recommend the payment of a dividend (2021 - GBPnil).

Post balance sheet events

Post balance sheet events are set out in Note 31.

Future developments

The outlook and future developments are set out in the Chairman's statement and the Strategic Report.

Principal activities

The Group's principal activity is the operation of restaurants.

Directors

The Directors of the Group during the period were as follows:

Executive

Daniel Jonathan Plant

Mayuri Vachhani *

Harald Samúelsson

Non-Executive

Keith Lassman

Wendy Dixon (appointed 22 June 2022)

*Mayuri Vachhani is stepping down from the Board and leaving the Company on 31 March 2023

Directors' interest in shares

 
                                As at 25 December      As at 26 December 
                                             2022                   2021 
                                Ordinary        %      Ordinary 
                               shares of              shares of 
   Director                    0.1p each              0.1p each        % 
 
   Daniel Jonathan Plant      12,317,448     8.4%     7,091,902     5.0% 
   Samuel Kaye (resigned 
    14 May 2021)              20,882,197    14.3%    20,882,197    14.8% 
   Keith Lassman               1,421,983     1.0%     1,421,983     1.0% 
   Mayuri Vachhani                     -        -             -        - 
   Harald Samúelsson              -        -             -        - 
   Wendy Dixon                         -        -             -        - 
 

Share options

 
 
                                       Exercise         Grant      Vesting 
    Director               Number         price          date       period    Expiry date 
 
    Mayuri Vachhani       750,000       GBP0.03    17/10/2019      3 years     17/10/2029 
 

B ordinary shares

 
 
                                             Exercise                    Vesting 
    Director                     Number         price          Date       period    Expiry date 
 
    Daniel Jonathan 
     Plant 
 
                                                                           1,2 4     15/1/2026 
    'B' shares issued        15,676,640       GBP0.00     15/1/2021        years 
 
    Conversion to 
     ordinary shares        (5,225,546)       GBP0.00    27/06/2022 
 
                                                                           1,2 4      15/1/2026 
    'B' shares balance       10,451,094       GBP0.00                      years 
 

In January 2021, Daniel Jonathan Plant was awarded 15,676,640 'B' shares in Tasty plc which can be converted to ordinary 'A' shares subject to achievement of hurdle rates relating to the Company's share price. Following achievement of the first hurdle on 27 June 2022, 5,225,546 'B' shares converted to ordinary shares.

Employees

Applications from disabled persons are given full consideration providing the disability does not seriously affect the performance of their duties. Such persons, once employed, are given appropriate training and equal opportunities.

The Group takes a positive view toward employee communication and has established systems for ensuring employees are informed of developments and that they are consulted regularly.

Environment

Our recycling has dropped to an average of 35% (2021: 45%) due to producing less glass waste at points which made up the majority of our recycling weight previously. This was in part due to the bottle shortage and the period where we used canned drinks (weighing a lot less) and partly by moving more branches to draft beer. Our refuse provider has confirmed that none of our waste goes to landfill.

As part of our ongoing energy efficiency programme there has been a focus on energy saving. This includes a rigorous check list for branches which have been and may be required to close during the pandemic.

Our waste oil is collected and converted into bio diesel and biogas to ensure that none is wasted. A percentage of this is added to regular petrol and diesel reducing the carbon from burning 100% petrol or diesel. In the last 12 months we had 76 tonnes of used cooking oil collected and turned into bio diesel/gas, which saved 176 tonnes of carbon being released into the atmosphere. This equates to an average of 150 family cars worth of CO(2) being removed from the atmosphere on a monthly basis.

The Group continues to work with its delivery partners in converting all our delivery packaging to biodegradable and recyclable materials. We have stopped using plastic straws, committed to a policy recommended by the Humane League and are currently looking at ways to reduce our carbon footprint.

The Group presents its greenhouse gases ("GHG") emissions and energy use data under Streamlined Energy and Carbon Reporting ("SECR") for the 52-week period ended 25 December 2022:

 
                                       tCO2e               tCO2e 
                              52 weeks ended      52 weeks ended 
                          ------------------  ------------------ 
                            25 December 2022    26 December 2021 
                          ------------------  ------------------ 
 
  Scope 1 - Natural 
   Gas                                   987               1,061 
                          ------------------  ------------------ 
  Scope 2 - Electricity                1,461               1,431 
                          ------------------  ------------------ 
  Scope 3 - Grey Fleet 
   Mileage                               165                  83 
                          ------------------  ------------------ 
 
  Total                                2,613               2,575 
                          ------------------  ------------------ 
 

An energy intensity ratio of 0.134 (2021: 0.142) has been measured using the metric of tonnes CO(2) e per m(2) floor area ("tCO(2) e").

The Group's total energy consumption for the 52-week period ended 25 December 2022 was 13,638,208 kWh (2021:12,872,041 kWh) the increase reflecting a greater number of our sites trading in 2022, with no Covid-19 related restrictions.

Donations

The Group made no charitable or political donations in the period (2021: none).

Financial Instruments

Details of the use of financial instruments and the principal risks faced by the Group are contained in Note 27 to the financial statements.

Going concern

At the time of approving the financial statements, 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 and taking into account possible changes in trading performance.

The Group monitors cash balances and prepares regular forecasts, which are reviewed by the Board. These forecasts include our best estimates and judgements based on currently available information and the current environment. Judgement is particularly required as to the impact on trade of cost-of-living crisis and inflation.

Given the ability of the Group to manage costs, cash position and the unutilised overdraft, the Directors believe that it remains appropriate to prepare the financial statements on a going concern basis. The going concern basis of accounting has, therefore, been adopted in preparing the financial statements.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved confirm that:

-- so far as he/she is aware there is no relevant audit information of which the Company's auditor is unaware and

-- that he/she has taken all the steps that he/she ought to have taken as a director to make himself/herself aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Auditors

Haysmacintyre LLP were appointed as the auditors and have expressed their willingness to continue in office and a resolution to re-appoint them will be proposed at the annual general meeting.

On behalf of the Board.

Daniel Jonathan Plant

Chief Executive Officer

29 March 2023

Statement of directors' responsibilities

The Directors are responsible for preparing the strategic report, the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the Group and Company financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of the profit or loss of the Group for that period. The Directors are also required to prepare financial statements in accordance with the AIM Rules for Companies issued by the London Stock Exchange.

In preparing these financial statements, the Directors are required to:

   --    select suitable accounting policies and then apply them consistently; 
   --    make judgements and accounting estimates that are reasonable and prudent; 

-- state whether they have been prepared in accordance with IFRSs as adopted by the United Kingdom, subject to any material departures disclosed and explained in the financial statements; and

-- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Group's transactions and disclose with reasonable accuracy at any time the financial position of the Group and enable them to ensure that the financial statements comply with the requirements of the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Website publication

The Directors are responsible for ensuring the annual report and the financial statements are made available on a website. Financial statements are published on the Company's website (www.dimt.co.uk) in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the Company's website is the responsibility of the Directors. The Directors' responsibility also extends to the ongoing integrity of the financial statements contained therein.

Consolidated statement of comprehensive income

for the 52 weeks ended 25 December 2022

 
                                                                                              Restated 
                                                                  52 weeks                    52 weeks 
                                                                  ended 25                    ended 26 
                                                                  December                    December 
                                                         Note         2022                        2021 
                                                                   GBP'000                     GBP'000 
 
                                Revenue                    3        44,027                      34,909 
 
                                Cost of sales                     (44,123)                    (33,567) 
                             ------------------------  ------  -----------  -------------------------- 
 
                                Gross (loss)/ profit                  (96)                       1,342 
 
                                Other income               3           414                       4,208 
 
                                Operating expenses                 (4,370)                     (1,902) 
 
                               Operating (loss)/ 
                                profit before 
                                highlighted items                  (1,687)                       4,112 
                                Highlighted items          5       (2,365)                      (464) 
                             ------------------------  ------  -----------  -------------------------- 
 
                                Operating (loss)/ 
                                 profit                    4       (4,052)                       3,648 
 
                                Finance income             6            41                           - 
                                Finance expense            6       (2,421)                     (2,497) 
 
 
                                (Loss)/ profit before 
                                 income 
                                 tax                               (6,432)                       1,151 
 
                                Income tax                 9             -                          - 
                             ------------------------  ------  -----------  -------------------------- 
 
                               (Loss)/ profit and 
                                total comprehensive 
                                (loss)/ income for 
                                the period                         (6,432)                       1,151 
                             ------------------------  ------  -----------  -------------------------- 
 
   Earnings per share for 
   (loss)/ 
   profit attributable to 
   the ordinary 
   equity holders of the 
   company 
   Basic earnings per share      10                               (4.40p)      0.82p 
   Diluted earnings per 
    share                        10                               (4.03p)      0.72p 
 
 

The notes below form part of these financial statements.

Consolidated statement of changes in equity

for the 52 weeks ended 25 December 2022

 
                                        Share       Share      Merger           Retained            Total 
                                      capital     premium     reserve           earnings 
                                      GBP'000     GBP'000     GBP'000            GBP'000          GBP'000 
 
   Balance at 27 December 2020 
    (as previously stated)              6,061      24,251         992           (30,708)              596 
 
   Prior year adjustment (See 
    Note 13)                                -           -           -              2,456            2,456 
 
   Balance at 27 December 2020 
    (restated)                          6,061      24,251         992           (28,252)            3,052 
 
   Cost of placing of ordinary 
    shares                                  -           3           -                  -                3 
   Total comprehensive loss for 
    the period (as restated - 
    See Note 13)                            -           -           -              1,151            1,151 
 
   Transactions with owners in 
    their capacity as owners: 
   Share based payments                     -           -           -                120              120 
 
 
   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) 
 
   Transactions with owners in 
    their capacity as owners: 
   Share based payments                     -           -           -                 58               58 
 
 
     Balance at 25 December 2022        6,061      24,254         992           (33,355)          (2,048) 
 --------------------------------  ----------  ----------  ----------  -----------------  --------------- 
 

The notes below form part of these financial statements.

Company statement of changes in equity

for the 52 weeks ended 25 December 2022

 
                                    Share capital    Share premium             Retained      Total 
                                                                                 profit 
                                          GBP'000          GBP'000              GBP'000    GBP'000 
 
    Balance at 27 December 2020             6,061           24,251             (23,120)      7,192 
 
   Cost of placing of ordinary 
    shares                                      -                3                    -          3 
   Total comprehensive loss for 
    the period                                  -                -                (145)      (145) 
   Transactions with owners in 
    their capacity as owners: 
   Share based payments                         -                -                  120        120 
 
 
    Balance at 26 December 2021             6,061           24,254             (23,145)      7,170 
 
   Issue of ordinary shares                     -                -                    -          - 
   Total comprehensive loss for 
    the period                                  -                -                (674)      (674) 
   Transactions with owners in 
    their capacity as owners: 
   Share based payments                         -                -                   58         58 
 
 
    Balance at 25 December 2022             6,061           24,254             (23,761)      6,554 
 -------------------------------  ---------------  ---------------  -------------------  --------- 
 

The notes below form part of these financial statements.

Consolidated balance sheet

At 25 December 2022

 
                                                                    Restated 
                                                 25 December     26 December 
                                                        2022            2021 
                                       Note          GBP'000         GBP'000 
   Non-current assets 
   Intangible assets                     12               25              28 
   Property, plant and equipment         13           17,694          18,026 
   Right-of-use assets                   13           32,513          36,005 
   Other non-current assets              17               65             105 
                                                      50,297          54,164 
 ----------------------------------  ------  ---------------  -------------- 
   Current assets 
   Inventories                           16            2,191           2,103 
   Trade and other receivables           17            1,633           1,355 
   Cash and cash equivalents                           7,002          11,005 
                                                      10,826          14,463 
 ----------------------------------  ------  ---------------  -------------- 
 
   Total assets                                       61,123          68,627 
 ----------------------------------  ------  ---------------  -------------- 
 
   Current liabilities 
   Trade and other payables              18         (12,393)        (10,493) 
   Lease liabilities                     14          (1,953)         (2,024) 
   Borrowings                            21                -           (313) 
                                                    (14,346)        (12,830) 
 ----------------------------------  ------  ---------------  -------------- 
   Non-current liabilities 
   Provisions                            19            (339)           (297) 
   Lease liabilities                     14         (48,358)        (50,157) 
   Long-term borrowings                  21                -           (937) 
   Other Payables                        18            (128)            (80) 
                                                    (48,825)        (51,471) 
 ----------------------------------  ------  ---------------  -------------- 
 
   Total liabilities                                (63,171)        (64,301) 
 ----------------------------------  ------  ---------------  -------------- 
 
   Total net (liabilities)/ assets                   (2,048)           4,326 
 ----------------------------------  ------  ---------------  -------------- 
 
   Equity 
   Share capital                         22            6,061           6,061 
   Share premium                         23           24,254          24,254 
   Merger reserve                        23              992             992 
   Retained deficit                      23         (33,355)        (26,981) 
 ----------------------------------  ------ 
   Total equity                                      (2,048)           4,326 
 ----------------------------------  ------  ---------------  -------------- 
 
 

The financial statements were approved by the Board of Directors of the Company and authorised for issue on 29 March 2023 and signed on their behalf by Daniel Jonathan Plant.

The notes below form part of these financial statements.

Company balance sheet

At 25 December 2022

Company number: 5826464

 
                                          25 December    26 December 
                                  Note           2022           2021 
                                              GBP'000        GBP'000 
 
   Non-current assets 
   Investments                    15            3,392          3,334 
   Other non-current assets       17            3,162          3,836 
 ---------------------------  -------- 
   Total net assets                             6,554          7,170 
 ---------------------------  --------  -------------  ------------- 
 
 
   Equity 
   Share capital                  22            6,061          6,061 
   Share premium                  23           24,254         24,254 
   Retained deficit               23         (23,761)       (23,145) 
 ---------------------------  -------- 
   Total equity                                 6,554          7,170 
 ---------------------------  --------  -------------  ------------- 
 
 
 

The Parent Company, Tasty plc, has taken advantage of the exemption in s408 of the Companies Act 2006 not to publish its own income statement. The Parent Company made a loss of GBP0.7m (2021 - loss of GBP0.14m) for the period.

The Parent Company has not recognised leases under IFRS 16 in its balance sheet as management have concluded that the substance of the leases is held by the subsidiary, Took Us A Long Time Ltd ("TUALT") and recognised within its Company accounts.

The financial statements were approved by the board of directors of the Company and authorised for issue on 29 March 2023 and signed on their behalf by Daniel Jonathan Plant.

The notes below form part of these financial statements.

Consolidated statement of cash flows

For the 52 weeks ended 25 December 2022

 
                                                      52 weeks     52 weeks 
                                             Note     ended 25     ended 26 
                                                      December     December 
                                                          2022         2021 
                                                       GBP'000      GBP'000 
 
   Operating activities 
   Cash generated from operations            29          4,444        7,826 
   Net cash inflow from operating 
    activities                                           4,444        7,826 
 --------------------------------------  --------  -----------  ----------- 
 
 
   Investing activities 
   Proceeds from sale of property, 
    plant and equipment                                      -            3 
   Purchase of property, plant 
    and equipment                            13        (1,645)        (544) 
   Interest received                                        41            - 
   Net cash inflow from investing 
    activities                                         (1,604)        (541) 
 --------------------------------------  --------  -----------  ----------- 
 
 
   Financing activities 
   Net proceeds from issues of 
    ordinary shares                                          -            3 
   Bank loan receipt                         30              -        1,250 
   Bank loan repayment                       30        (1,250)            - 
   Finance expense                           6         (2,421)      (2,497) 
   Principal paid on lease liabilities       30        (3,172)      (3,064) 
   Net cash used in from financing 
    activities                                         (6,843)      (4,308) 
 --------------------------------------  --------  -----------  ----------- 
 
 
   Net increase in cash and cash 
    equivalents                                        (4,003)        2,977 
 
   Cash and cash equivalents brought 
    forward                                             11,005        8,028 
 
 
   Cash and cash equivalents as 
    at the end of the period                             7,002       11,005 
 --------------------------------------  --------  -----------  ----------- 
 

The notes below form part of these financial statements.

Company statement of cash flows

For the 52 weeks ended 25 December 2022

 
                                                          52 weeks           52 weeks 
                                              Note        ended 25           ended 26 
                                                          December           December 
                                                              2022               2021 
                                                           GBP'000            GBP'000 
 
 
   Operating activities 
   Cash generated from operations                                        -          (3) 
   Net cash outflow from operating 
    activities                                                           -          (3) 
 ---------------------------------------------------    ------------------  ----------- 
 
 
   Financing activities 
   Net proceeds from issues of ordinary 
    shares                                                               -            3 
 ---------------------------------------------------    ------------------  ----------- 
   Net cash flows used in financing 
    activities                                                           -            3 
 ---------------------------------------------------    ------------------  ----------- 
 
 
   Net increase in cash and cash 
    equivalents                                                          -            - 
   Cash and cash equivalents brought 
    forward                                                              -            - 
 
   Cash and cash equivalents as at 
    the end of the period                                                -            - 
 ---------------------------------------------------    ------------------  ----------- 
 
 
 

The notes below form part of these financial statements.

Notes

forming part of the financial statements for the 52 weeks ended 25 December 2022

   1      Accounting policies 

Tasty plc ("Tasty") is a publicly listed company incorporated and domiciled in England and Wales. The Company's ordinary shares are quoted on AIM. Tasty's registered address is 32 Charlotte Street, London, WC1T 2NQ. The Group's principal activity is the operation of restaurants.

(a) Statement of compliance

These financial statements of the Group and Company have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations (collectively IFRS) issued by the International Accounting Standards Board (IASB) as adopted by the United Kingdom ("adopted IFRSs"). These financial statements have also been prepared in accordance with those parts of the Companies Act 2006 that are relevant to companies that prepare their financial statements in accordance with IFRS.

(b) Basis of preparation

The financial statements cover the 52-week period ended 25 December 2022, with a comparative period of the 52-week period ended 26 December 2021. The financial statements are presented in sterling, rounded to the nearest thousand and are prepared on the historical cost basis. The accounting policies of the Company are consistent with the policies adopted by the Group.

   (c)   Going concern 

As at 25 December 2022, the Group had net liabilities of GBP2.0m (2021: net assets of GBP4.3m). The Group meets its day-to-day working capital requirements through the generation of operating cashflow, equity raise and bank finance. The Group's principal sources of funding are:

   --      Issues of ordinary share capital in the Company on AIM. 

-- Bank debt when required - The Group repaid and cancelled the outstanding Barclays Bank facility of GBP1.1m as it was unutilised, and it was considered prudent given the increasing interest rate charges. Based on the base rate at the time, there will be an annualised interest saving of approximately GBP57,000 which would be considerably more at today's rate. However, the Group has a modest GBP250,000 overdraft facility.

The pandemic led to high uncertainty and disruption in the economy and hospitality industry; the energy and cost-of-living crisis followed this. Throughout this period costs were controlled carefully, and cash outflows reduced. Over the last 12 months we have seen inflationary increases directly due to utility increases and shortages caused by the war in Ukraine. These increases appear to have stabilised.

The Group monitors cash balances and prepares regular forecasts, which are reviewed by the Board. These forecasts include our best estimates and judgements based on currently available information and current environment. Judgement is particularly required as to the impact on trade of cost-of-living crisis and inflation.

Given the ability of the Group to manage costs, cash position and the availability of the unutilised overdraft the Directors believe that it remains appropriate to prepare the financial statements on a going concern basis.

(d) 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.

The Group's leases are held across Tasty plc or Took Us Long Time Ltd ("TUALT"). In determining where the assets and liabilities should be accounted for, we have reviewed which entity derives the benefit and rights to use the asset. In assessing this we have reviewed where the trade occurs, where staff are employed and where day to day activity is managed from. We have concluded that the substance of the lease is that it is held by TUALT and accordingly recognised the lease liabilities within the TUALT company financial statements.

The lease liabilities recognised in TUALT but in the name of Tasty plc totalled GBP41m at 25 December 2022 (GBP43m at 26 December 2021). Accordingly, this balance represents a contingent liability for the Company only.

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 December 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.

(e) Changes in accounting policies and disclosures

New standards, amendments to standards or interpretations adopted by the Group

Amendments to accounting standards applied in the 52 weeks ended 25 December 2022 were as follows:

   --     Definition of Material - amendments to IAS 1 and IAS 8; and 
   --     Revised Conceptual Framework for Financial Reporting; and 

The application of these did not have a material impact on the Group's accounting treatment and has therefore not resulted in any material changes.

New standards, amendments to standards or interpretations not yet adopted by the Group

The following new standards, amendments to standards or interpretations are mandatory for the first time for the financial years beginning on or after 1 January 2022. No standards have been early adopted by the Group.

-- Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 - Interest Rate Benchmark Reform Phase 2

   --     Amendment to IFRS 16 - Covid-19-Related Rent Concessions beyond 30 June 2021 
   --     Annual Improvements to IFRS Standards 2018-2020 Cycle 
   --     Amendment to IAS 37 - Onerous Contracts: Cost of Fulfilling a Contract 
   --     Amendment to IAS 1 - Classification of Liabilities as Current or Non-current 
   --     Amendments to IAS 1 and IFRS Practice Statement 2 - Disclosure of Accounting Policies 
   --     Amendments to IAS 8 - Definition of Accounting Estimates 

We are currently assessing the impact of these new accounting standards and amendments. The amendments are not expected to have any significant impact on the Group.

   (f)   Basis of consolidation 

The consolidated financial statements consolidate the results of the Company and its subsidiary, Took Us A Long Time Limited. The accounting period of the subsidiary is coterminous with that of the Company.

The accounting policies of the subsidiary are consistent with those of the Group. Inter-company transactions, balances and unrealised gains on transactions between group companies are eliminated.

(g) Revenue

The Group's revenue is derived from goods and services provided to the customers from dine-in, delivery and takeaway. Revenue is recognised at the point in time when control of the goods has transferred or service provided to the customer. Control passes to the customers at the point at which food and drinks are provided and the Group has a present right for payment.

(h) Other income

Included in Other income is rental income from operating leases. Rental income is recognised in the period to which it relates and rent free periods would be spread over the terms of the lease. The cost of these leases is included within the cost of sales.

The Group received Government grants in 2021 under the Coronavirus Job Retention Scheme ("CJRS") and "Retail and Hospitality Business Grants" schemes provided by the Government in response to Covid-19's impact on the business. In accordance with IAS 20, the Group recognised the salary expense and recognised the CJRS grant income in profit and loss as the Group became entitled to the grant. "Retail and Hospitality Business Grants" were recognised when there was reasonable assurance that the Group has met the conditions attaching to these grants.

   (i)   Retirement benefits: Defined contribution schemes 

Contributions to defined contribution pension schemes are charged to the consolidated income statement in the period to which they relate.

   (j)   Share based payments 

Certain employees (including Directors and senior executives) of the Group receive remuneration in the form of share-based payment transactions, whereby employees render services as consideration for equity instruments (e.g. options, shares etc).

The cost of this is measured by reference to the fair value at the date on which they are granted. The fair value is determined by using an appropriate pricing model (e.g. binomial or Monte Carlo model).

The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance and/or service conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award (the vesting date). The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Group's best estimate of the number of equity instruments that will ultimately vest. The profit or loss charge or credit for a period represents the movement in cumulative expense recognised as at the beginning and end of that period.

No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition, which are treated as vesting irrespective of whether or not the market condition is satisfied, provided that all other performance and/or service conditions are satisfied. The dilutive effect of outstanding options is reflected as additional share dilution in the computation of earnings per share.

(k) Borrowing costs

Borrowing costs, principally interest charges, are recognised in the income statement in the period in which they are incurred. Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently carried at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the income statement over the period of the borrowings using the effective interest method.

Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. This is also applicable to fees for amendments to the loan facilities. In this case, the fee is deferred until the drawdown occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

   (l)   Externally acquired intangible assets 

Externally acquired intangible assets are initially recognised at cost and subsequently amortised on a straight-line basis over their useful economic lives. The amortisation expense is included within the cost of sales line in the consolidated income statement.

The significant intangibles recognised by the Group and their useful economic lives are as follows:

 
    Intangible asset    Useful economic life 
    Trademarks          10 years 
 

(m) Property, plant and equipment

Items of property, plant and equipment are stated at cost less accumulated depreciation (see below) and impairment losses.

Depreciation is provided to write off the cost or valuation, less estimated residual values, of all fixed assets, evenly over their expected useful lives and it is calculated at the following rates:

 
    Leasehold improvements    over the period of the lease 
    Fixtures, fittings and    10% per annum straight line 
     equipment 
    Computers                 20% per annum straight line 
    Electric Vehicle          20% per annum straight line 
    Right-of-use assets       over the period of the lease 
 

Property, plant and equipment are reviewed for impairment in accordance with IAS 36 Impairment of Assets, when there are indications that the carrying value may not be recoverable. Impairment charges are recognised in the statement of comprehensive income. See note 2(d) for further details.

(n) Non-current assets held for sale

Non-current assets are classified as held for sale when the Board plans to sell the assets and no significant changes to this plan are expected. The assets must be available for immediate sale, an active programme to find a buyer must be underway and be expected to be concluded within 12 months with the asset being marketed at a reasonable price in relation to the fair value of the asset. There are currently no assets held for sale as at 25 December 2022.

Non-current assets classified as held for sale are measured at the lower of their carrying amount immediately prior to being classified as held for sale and fair value less costs of disposal. Following their classification as held for sale, non-current assets are not depreciated.

   (o)   Provisions 

The Group has recognised provision for dilapidations for a number of sites, where the need to carry out the work has been identified but a full survey and commission has not been undertaken and therefore management has applied their judgment in determining the provision.

(p) Loans and receivables

The Group's loans and receivables comprise trade and other receivables and cash and cash equivalents in the balance sheet. The Company's loans and receivables comprise only inter-Company receivables. Cash and cash equivalents include cash in hand and deposits held with banks. They are initially recognised at fair value plus transaction costs that are directly attributable to their acquisition or issue and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment.

Impairment provisions for trade receivables are recognised based on the simplified approach within IFRS 9 using a provision matrix in the determination of the lifetime expected credit losses. During this process the probability of the non-payment of the trade receivables is assessed. This probability is then multiplied by the amount of the expected loss arising from default to determine the lifetime expected credit loss for the trade receivables. For trade receivables, which are reported net, such provisions are recorded in a separate provision account with the loss being recognised in the consolidated statement of comprehensive income. On confirmation that the trade receivable will not be collectable, the gross carrying value of the asset is written off against the associated provision.

Impairment provisions for receivables from the company's subsidiary recognised based on a forward-looking expected credit loss model which uses the forecast results of the subsidiary as a key input. The methodology used to determine the amount of the provision is based on whether there has been a significant increase in credit risk since initial recognition of the financial asset. For those where the credit risk has not increased significantly since initial recognition of the financial asset, twelve month expected credit losses along with gross interest income are recognised. For those for which credit risk has increased significantly, lifetime expected credit losses along with the gross interest income are recognised. For those that are determined to be credit impaired, lifetime expected credit losses along with interest income on a net basis are recognised.

(q) Apprenticeship funding and levy

The payments made under the levy represent a prepayment for training services expected to be received and is recognised as an asset until the receipt of the service. When the training service is received, an appropriate expense is recognised. The apprenticeship grant income is deferred until apprentices receive training under the rule of the scheme and we are satisfied that we have fully complied with the scheme. We have applied an element of judgement until a full inspection is carried out.

   (r)   Financial liabilities 

Financial liabilities include trade payables, and other short-term monetary liabilities, which are initially recognised at fair value and subsequently carried at amortised cost.

Bank borrowings were initially recognised at fair value and subsequently measured at amortised cost using the effective interest method. Interest expense includes initial transaction costs and any premium payable on redemption as well as any interest payable while the liability is outstanding.

   (s)   Inventories 

Raw materials and consumables

Inventories are stated at the lower of cost and net realisable value. Cost comprises costs of purchase and other costs incurred in bringing the inventories to their present location and condition. Net realisable value is based on estimated selling price less costs incurred up to the point of sale.

Crockery and utensils (Smallwares)

Smallware inventories are held at cost which is determined by reference to the quantity in issue to each restaurant. Smallware inventory relates to small value items which have short life spans relating to kitchen and bar equipment. These items are recorded under inventory as they are utilised in providing food and beverage to customers.

   (t)   Taxation 

Tax on the profit and loss for the year comprises current and deferred tax. Tax is recognised in the profit and loss except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity. Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.

Deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability in the balance sheet differs from its tax base, except for differences arising on:

   --    The initial recognition of goodwill 

-- The initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction affects neither accounting or taxable profit.

Recognition of deferred tax assets is restricted to those instances where it is probable that taxable profit will be available against which the difference can be utilised.

Deferred tax is provided using the balance sheet liability method, providing for all temporary differences between the carrying amounts of assets and liabilities recorded for reporting purposes and the amounts used for tax purposes.

The amount of the asset or liability is determined using tax rates that have been enacted or substantively enacted by the reporting date and are expected to apply when the deferred tax liabilities or assets are settled or recovered. Deferred tax balances are not discounted.

(u) Goodwill

Goodwill represents the difference between the fair value of consideration paid and the carrying value of the assets and liabilities acquired. Goodwill arose on acquisition of a group of leases.

Goodwill is stated as originally calculated less any accumulated provision for impairment. Goodwill is allocated to individual CGUs, where each CGU is a restaurant, and is subject to an impairment review at each reporting date.

(v) Investments

Investments in subsidiaries are included in the Company's Statement of Financial Position at cost less provision for impairment.

(w) Share capital

The Company's ordinary shares are classified as equity instruments.

(x) Operating profit

Operating profit is stated after all expenses, but before financial income or expenses. Highlighted items are items of income or expense which because of their nature and the events giving rise to them, are not directly related to the delivery of the Group's restaurant service to its patrons and merit separate presentation to allow shareholders to understand better the elements of financial performance in the year, so as to facilitate comparison with prior periods and to assess better trends in financial performance.

(y) Earnings per share

Basic earnings per share values are calculated by dividing net profit/(loss) for the year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year.

   2      Critical accounting estimates and judgements 

The preparation of the Group's financial statements requires management to make certain estimates, judgements and assumptions that affect the reported amount of assets and liabilities, and the disclosure of contingent liabilities at the statement of financial position date and amounts reported for revenues and expenses during the year.

However, uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the assets or liability affected in the future. Estimates and judgements are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may differ from these estimates and assumptions. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial period are discussed below.

(a) Share based payments (Note 26)

The Group operates equity share-based remuneration schemes for employees. Employee services received and the corresponding increase in equity are measured by reference to the fair value of the equity instruments at the date of grant, excluding the impact of any non-market vesting conditions. The fair value of share options is estimated by using valuation models, such as binomial or the Monte Carlo model on the date of grant based on certain assumptions. Those judgements, estimates and assumptions are described in Note 26 and include, among others, the dividend growth rate, expected volatility, expected life of the options (for options with market conditions) and number of options expected to vest.

(b) Accruals (Note 18)

In order to provide for all valid liabilities which exist at the balance sheet date, the Group is required to accrue for certain costs or expenses which have not been invoiced and therefore the amount of which cannot be known with certainty. Such accruals are based on management's best estimate and past experience. Delayed billing in some significant expense categories such as utility costs can lead to sizeable levels of accruals. The total value of accruals as at the balance sheet date is set out in note 18.

   (c)   Impairment reviews (Note 13) 

In performing an impairment review in accordance with IAS 36 it has been necessary to make estimates and judgements regarding the future performance and cash flows generated by individual trading units which cannot be known with certainty. The Group views each restaurant as a separate cash generating unit ("CGU"). Where the circumstances surrounding a particular trading unit have changed then forecasting future performance becomes extremely judgemental and for these reasons the actual impairment required in the future may differ from the charge made in the financial statements. When assessing a CGU recoverable amount, the value in use calculation uses a discounted cash flow model which is sensitive to the discount rate and the growth rate used after taking into account potential sale value. The fair values were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs. The cashflow projections are influenced by factors which are inherently uncertain to forecast such as footfall and inflation and non-controllable costs such as rates and license costs.

All assets (ROU, fixed assets and goodwill) are reviewed for impairment in accordance with IAS 36 Impairment of Assets, when there are indications that the carrying value may not be recoverable. Impairment charges are recognised in the statement of comprehensive income.

All assets are subject to impairment tests whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Where the recoverable amount is higher than the carrying amount of the CGU, no further assessment is required. Where the carrying value of an asset or a 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. In the absence of any information about the fair value of a CGU, the recoverable amount is deemed to be its value in use. Value in use is calculated using cash flows 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. The discount rate is based on the Group's weighted average cost of capital ("WACC") and an allowance for risk which is used across all CGUs due to their similar characteristics.

The cost-of-living crisis has resulted in increased uncertainty in the performance across CGUs over the short-term future and the cashflow over the next 12 months may not always be indicative of the future cashflows. Historically a combination of past performance and future trading forecast is often used as a guide in estimating future cashflow, or comparison with similar sites. In assessing the current impairment provision there has been a greater reliance on longer term future forecasts as short-term forecasts are impacted by the "cost of living crisis" and inflation. The cashflow of each CGU has been determined based on management's judgement of performance, impact of the utility costs and expected recovery in future years and therefore each CGU's cashflow has been selected based on an individual criterion. Management's judgement has been applied in selecting this criterion due to the uncertainty arising from amongst other conditions, cost of living increases and utility cost pressures and therefore a 0.75% growth rate (2021 - 0.5%) has been applied. Included within the cashflow is management's estimate of the capital expenditure required to maintain performance of the sites in the future years. The carrying amount of Fixed Assets and ROU assets and the sensitivity of the carrying amounts to the assumptions and estimates are outlined in Note 13.

(d) Goodwill impairment reviews (Note 12)

The Group determines whether goodwill is impaired on an annual basis and this requires an estimation of the value in use of the cash-generating units to which the goodwill is allocated. This involves estimation of future cash flows and choosing a suitable discount rate. Full details are supplied in note 12, together with an analysis of the key assumptions.

(e) Intercompany provision (Note 17)

In carrying out a review of intercompany loan in accordance with IFRS 9 it has been necessary to make estimates and judgements regarding the repayment of the loan by its subsidiary to the Company. A sensitivity analysis has been performed on the repayment of loan value.

   (f)   Crockery and utensils (Smallwares) inventory 

The cost of replenishing smallwares is expensed directly through the income statement. Smallwares is recognised at historic cost and tested for impairment on an annual basis.

(g) Lease liabilities (Note 1(d))

The calculation of lease liabilities requires the Group to determine an incremental borrowing rate ("IBR") to discount future minimum lease payments. The IBR is the rate of interest that the Group would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR rate of 4.6% therefore reflects what the Group 'would have to pay', which requires estimation when no observable rates are available or when they need to be adjusted to reflect the terms and conditions of the lease. As at 25 December 2022, a sensitivity analysis has been conducted on the lease liabilities which shows that increasing the IBR rate by 1% will decrease the lease liability by GBP3.0m and decrease the right-of-use asset pre-impairment by GBP2.6m.

(h) Provision

A dilapidation provision is made for a number of sites, where the need to carry out the work has been identified but a full survey and commission has not been undertaken and therefore management has applied their judgment in determining the provision. In arriving at the dilapidation provision for these sites management have reviewed the leases and have used their judgement and experience gained from years of working in hospitality and property industry.

The apprenticeship grant income is deferred until apprentices receive training under the rule of the scheme and we are satisfied that we have fully complied with the scheme. We have applied an element of judgement until a full inspection is carried out.

   (i)   Lease recognition 

The Group's leases are held across Tasty plc or Took Us Long Time Ltd ("TUALT"). In determining where the assets and liabilities should be accounted for, we have reviewed which entity derives the benefit and rights to use the asset. In assessing this we have reviewed where the trade occurs, where staff are employed and where day to day activity is managed from. We have adjudged that the substance of the lease is that it is held by TUALT and accordingly recognised the lease liabilities within the TUALT company accounts.

   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:

 
                                              52 weeks 
                                              ended 25    52 weeks ended 
                                              December       26 December 
                                                  2022              2021 
                                               GBP'000           GBP'000 
 
  Sale of goods and services: dine-in           39,004            26,319 
  Sale of goods and services: delivery 
   and takeaway                                  5,023             8,590 
                                                44,027            34,909 
  ---------------------------------------  -----------  ---------------- 
 

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

 
                                                 52 weeks     52 weeks 
                                                 ended 25     ended 26 
                                                 December     December 
                                                     2022         2021 
                                                  GBP'000      GBP'000 
 
  Sub-let site rental income                          362          295 
  Coronavirus Job Retention Scheme (CJRS) 
   and Business Grants                                  -        3,913 
  Other                                                52            - 
                                                      414        4,208 
  ------------------------------------------  -----------  ----------- 
 

In the period to 26 December 2021, the Group received Government grants in relation to the Coronavirus Job Retention Scheme ("CJRS") and Covid-19 Business Grants, provided by the Government in response to Covid-19's impact on the business. These were recognised in accordance with IAS 20 (Accounting for Government Grants and Disclosure of Government Assistance) when the group was entitled to, or there was reasonable assurance that the Group has met the conditions attaching to these grants.

No such grants were available in the 52 weeks ended 25 December 2022.

   4      Operating loss 
 
                                                                             Restated 
                                                                             52 weeks 
                                                                52 weeks     ended 26 
                                                       ended 25 December     December 
                                                                    2022         2021 
   This has been arrived at after 
    charging                                                     GBP'000      GBP'000 
 
   Staff costs                                                    19,240       15,257 
   Share based payments                                               58          120 
   Pre-opening costs                                                  51            - 
   Amortisation of intangible assets                                   3            3 
   Depreciation of right-of-use 
    assets (IFRS16)                                                2,641        2,579 
   Depreciation property, plant 
    and equipment                                                  1,664        1,297 
   Dilapidations provision charge                                     42            - 
   Dilapidations provision utilisation                                 -         (38) 
   Restructure and consultancy                                        14            7 
   Impairment/ (Impairment reversal) 
    of property, plant and equipment                                 180      (2,346) 
   Impairment of right-of-use assets                               2,153        2,943 
   Loss/(profit) on disposal of 
    property, plant and equipment                                    154          (3) 
   Auditor remuneration: 
   Audit fee - Parent Company                                         11           10 
            - Group financial statements                              46           45 
                       - Subsidiary undertaking                       11           10 
   Audit related assurance services                                    -            3 
   Taxation advisory services                                          -            2 
   Other advisory services                                             5            - 
 
   5      Highlighted items - charged to operating expenses 
 
                                                                 Restated 
                                                    52 weeks     52 weeks 
                                                       ended     ended 26 
                                                 25 December     December 
                                                        2022         2021 
                                                     GBP'000      GBP'000 
   (Loss)/profit on disposal of property, 
    plant and equipment                                (154)            3 
   Restructure and consultancy                          (14)          (7) 
   (Impairment)/Release of impairment 
    of property, plant and equipment                   (180)        2,346 
   Impairment of right-of-use assets                 (2,153)      (2,943) 
   Share based payments                                 (58)        (120) 
   Pre-opening costs                                    (51)            - 
   Gain on lease modifications                           245          257 
                                                     (2,365)        (464) 
   -----------------------------------------  --------------  ----------- 
 

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.

   6      Finance income and expense 
 
                                    52 weeks     52 weeks 
                                    ended 25     ended 26 
                                    December     December 
                                        2022         2021 
                                     GBP'000      GBP'000 
 
   Interest receivable                    41            - 
 ----------------------------    -----------  ----------- 
   Finance income                         41            - 
 ----------------------------    -----------  ----------- 
 
   Interest payable                       30           59 
   Finance expense (IFRS 16)           2,391        2,438 
   Finance expense                     2,421        2,497 
 ------------------------------  -----------  ----------- 
 
   7      Employees 
 
                                             52 weeks     52 weeks 
                                             ended 25     ended 26 
                                             December     December 
                                                 2022         2021 
   Staff costs (including Directors) 
    consist of:                               GBP'000      GBP'000 
 
   Wages and salaries                          17,464       13,933 
   Social security costs                        1,489        1,101 
   Other pension costs                            287          223 
   Equity settled share-based payment 
    expense                                        58          120 
 
                                               19,298       15,377 
   -------------------------------------  -----------  ----------- 
 

The average number of persons, including Directors, employed by the Group during the period was 1,020 of which 998 were restaurant staff and 22 were head-office (2021: 821 of which 805 were restaurant staff and 16 were head-office staff).

No staff are employed by the Company (2021: no staff).

Of the total staff costs GBP17.8m was classified as cost of sales (2021: GBP14.3m) and GBP1.5m as operating expenses (2021: GBP1.1m). Redundancy costs of GBP0.014m (2021: GBP0.007m) have been included as a cost of Restructure and Consultancy in Note 4.

   8      Directors and key management personnel remuneration 

Key management personnel identified as the Directors are those persons having authority and responsibility for planning, directing and controlling the activities of the Group, and represent the Directors of the Group. The remuneration of the Directors for the period ended 25 December 2022 is as follows:

 
                                                           Share                               Social 
                                                           based                             security       2022 
                              Emoluments      Bonus     payments    Pensions    Benefits        costs      Total 
                                 GBP'000    GBP'000      GBP'000     GBP'000     GBP'000      GBP'000    GBP'000 
 
 
   J Plant                           150          -           48           -           -           19        217 
   K Lassman                          40          -            -           -           -            4         44 
   M Vachhani                        150          -            3           6           2           19        180 
   Harald Samúelsson             80          -            -           2           -            9         91 
   Wendy Dixon 
    (appointed 
    22 June 2022)                     18          -            -           -           -            1         19 
                                                                                          -----------  --------- 
    Total                            438          -           51           8           2           52        551 
 -------------------------  ------------  ---------  -----------  ----------  ----------  -----------  --------- 
 
 
                                                           Share                               Social 
                                                           based                             security       2021 
                              Emoluments      Bonus     payments    Pensions    Benefits        costs      Total 
                                 GBP'000    GBP'000      GBP'000     GBP'000     GBP'000      GBP'000    GBP'000 
 
 
   J Plant                           135          -          101           -           -           17        253 
   S Kaye (resigned 
    14 May 2021)                      12          -            -           -           -            1         13 
   A Kaye (resigned 
    15 September 
    2020)                              -          -            -           -           -            -          - 
   K Lassman                          36          -            -           -           -            4         40 
   M Vachhani                        135          -            4           5           2           17        163 
   Harald Samúelsson 
    (appointed 
    19 May 2021)                      33          -            -           1           -            3         37 
                                                                                          -----------  --------- 
    Total                            351          -          105           6           2           42        506 
 -------------------------  ------------  ---------  -----------  ----------  ----------  -----------  --------- 
 

Company

The Company paid no director emoluments during the year (2021 - none).

   9      Income tax expense 
 
                                                  52 weeks                52 weeks 
                                                  ended 25                ended 26 
                                                  December                December 
                                                      2022                    2021 
                                                   GBP'000                 GBP'000 
    UK Corporation tax 
    Adjustment in respect to previous                                            - 
     years                                               - 
    Total current tax                                    -                      - 
  ---------------------------------------      -----------    -------------------- 
 
    Deferred tax 
    Origination and reversal of temporary                                        - 
     differences                                         - 
    Total deferred tax                                   -                       - 
  ---------------------------------------      -----------    -------------------- 
    Total income tax credit                              -                       - 
  ---------------------------------------      -----------    -------------------- 
 

The tax charge for the period is lower than the standard rate of (2021 - lower than) corporation tax in the UK. The differences are explained below:

 
                                                                      Restated 
                                            52 weeks                  52 weeks 
                                            ended 25                  ended 26 
                                            December                  December 
                                                2022                      2021 
                                             GBP'000                   GBP'000 
 
   (Loss)/profit before tax                  (6,432)                     1,151 
 --------------------------------------  -----------  ------------------------ 
 
   Tax on (loss)/profit at the 
    ordinary rate of corporation 
   tax in UK of 19% (2021 - 19%)             (1,222)                       219 
 
   Effects of 
   Fixed assets differences                      335                         - 
   Expenses not deductible for 
    tax                                          102                        22 
   Remeasurement of deferred tax 
    for changes in tax rates                       -                   (1,055) 
   Movement in deferred tax not 
    recognised                                   791                       820 
   Adjustment in respect of previous                                         - 
    years                                          - 
   Other movements                               (6)                       (6) 
   Total tax charge                                -                         - 
 --------------------------------------  -----------  ------------------------ 
 

Factors affecting future tax charges

In March 2021 it was announced the UK corporation tax rate would increase to 25% in April 2023. This plan was substantively enacted in May 2021 and the disclosed but unrecognised deferred tax disclosed in Note 20 is calculated at the future tax rate of 25%.

   10   Earnings per share 
 
 
                                                                       Restated 
                                                   25 December      26 December 
                                                          2022             2021 
                                                         Pence            Pence 
 
   Basic (loss)/ profit per ordinary 
    share                                              (4.40p)             0.82 
   Diluted (loss)/ profit per ordinary 
    share                                              (4.03p)             0.72 
 
 
                                                          2022             2021 
                                                        Number      Number '000 
                                                          '000 
   (Loss)/ profit 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 
 
   Adjustments for calculation of diluted 
    earnings per share: 
   Ordinary B shares                                    10,451           14,815 
   Options                                               2,975            3,265 
 
   Weighted average number of ordinary 
    shares and potential ordinary shares 
    used as the denominator in calculating 
    diluted earnings per share                         159,741          159,170 
 
 
                                                          2022             2021 
                                                       GBP'000          GBP'000 
 
   (Loss)/ profit for the financial 
    period                                             (6,432)            1,151 
 

The weighted average number of ordinary shares outstanding is increased by the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares.

   11   Dividend 

No final dividend has been proposed by the Directors (2021 - GBPnil).

   12   Intangibles 
 
 
                                      Trademarks      Total 
                                         GBP'000    GBP'000 
 
   At 27 December 2020                        26         26 
 
   Additions                                   5          5 
   Amortisation of trademarks                (3)        (3) 
 
 
   At 26 December 2021                        28         28 
 
   Additions                                   -          - 
   Amortisation of trademarks                (3)        (3) 
 
   At 25 December 2022                        25         25 
 -------------------------------  --------------  --------- 
 
   13   Property, plant and equipment and right-of-use assets 
 
                                           Furniture 
                                        and fixtures 
                                            computer 
                          Leasehold        equipment            Total     Right-of-use 
                       improvements        & vehicle     fixed assets           assets                     Total 
                            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 
    modifications                 -                -                -            (830)                     (830) 
   At 26 December 
    2021                     37,321           10,291           47,612           53,567                   101,179 
 -----------------  ---------------  ---------------  ---------------  ---------------  ------------------------ 
 
   Additions                    709              936            1,645                -                     1,645 
   Lease 
    modifications                 -                -                -            1,301                      1301 
   Disposals                  (181)            (334)            (515)             (50)                     (565) 
   At 25 December 
    2022                     37,849           10,893           48,742           54,818                   103,560 
 -----------------  ---------------  ---------------  ---------------  ---------------  ------------------------ 
 
   Depreciation 
   At 27 December 
    2020 (as 
    previously 
    stated)                  23,834            7,662           31,496           13,635                    45,131 
   Prior year 
    adjustment 
    (see below)               (729)            (132)            (861)          (1,595)                   (2,456) 
 
   At 27 December 
    2020 (as 
    restated)                23,105            7,530           30,635           12,040                    42,675 
 -----------------  ---------------  ---------------  ---------------  ---------------  ------------------------ 
   Provided for 
    the 
    period                      743              554            1,297            3,142                     4,439 
   Impairment / 
    (reversal 
    of impairment)              157              100              257            (257)                         - 
   Prior year 
    adjustment 
    (see below)             (1,948)            (655)          (2,603)            2,637                        34 
 
   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 
   Impairment                   232             (52)              180            2,153                     2,333 
   Disposals                   (75)            (307)            (382)             (51)                     (433) 
 
     At 25 
     December 
     2022                    23,195            7,853           31,048           22,305                    53,353 
 -----------------  ---------------  ---------------  ---------------  ---------------  ------------------------ 
 
   Net book value 
   At 25 December 
    2022                     14,654            3,040           17,694           32,513                    50,207 
 -----------------  ---------------  ---------------  ---------------  ---------------  ------------------------ 
 
   At 26 December 
    2021 (as 
    restated)                15,264            2,762           18,026           36,005                    54,031 
 -----------------  ---------------  ---------------  ---------------  ---------------  ------------------------ 
 

During the 52 weeks ended 25 December 2022, the Group recognised an impairment charge of GBP2.3m (2021: restated impairment charge of GBP0.6m) due to impairment of ROU assets GBP2.1m (2021: GBP2.9m) and impairment of fixed assets GBP0.2m (2021: release of GBP2.3m). The impairment movement is due to the reassessment by each individual CGU following a change in performance and/or change in assets. The impairment calculation is sensitive to changes in the assumptions and estimates used in the underlying forecasts of future performance and cash flows.

A 1% decrease in the discount rate would reduce the net impairment charge by GBP1.2m, an increase of 1% would increase the impairment charge by GBP1.2m and a 1% increase in the growth rate would reduce the impairment charge by GBP1.1m.

The total carrying value of the CGUs that have been impaired in the period is GBP15.6m (2021: GBP15.4m). These have been impaired to their value in use of GBP8.9m (2021: GBP9.2m). The total carrying value of the CGUs that have been released in the period is GBP16.4m (2021: GBP11.3m).

The key judgements and estimates in the inputs in calculating the impairments are outlined in note 2(c).

Company

The Company holds no property, plant and equipment.

Prior year adjustment

During the preparation of the interim accounts, management identified a calculation error within the impairment workings for the prior year, whereby the depreciation that would have been charged had there been no impairment was not being correctly considered as per IAS 36. At this stage GBP1.9m was adjusted against 2021 reserves. However, on further review of the complex adjustment it was identified that the adjustment needed to be recognised in both 2020 and 2021. This resulted in an impairment release of GBP2.46m in 2020 and an impairment charge of GBP0.6m in 2021. The cumulative impact of this was GBP1.9m in line with the adjustment identified in the interim.

In addition, a related prior year adjustment arising from the same issue has been recognised in 2021, whereby 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.

 
  Restated balance sheet at 27      At 27 December 
   December 2020                              2020 
                                     (as restated) 
                                                                                  At 27 December 
                                                                                            2020 
                                                            Adjustment            (as previously 
                                                                                         stated) 
                                           GBP'000             GBP'000                   GBP'000 
  Non-current assets 
  Intangible assets                             26                   -                        26 
  Property, plant and equipment             16,433                 861                    15,572 
  Right-of-use assets                       41,406               1,595                    39,811 
  Other non-current assets                     129                   -                       129 
--------------------------------  ----------------  ---  -------------  ----  ------------------ 
                                            57,994               2,456                    55,538 
  Current assets 
  Inventories                                1,822                   -                     1,822 
  Trade and other receivables                1,363                   -                     1,363 
  Cash and cash equivalents                  8,028                   -                     8,028 
--------------------------------  ----------------  ---  -------------  ----  ------------------ 
                                            11,213                   -                    11,213 
--------------------------------  ----------------  ---  -------------  ----  ------------------ 
 
  Total assets                              69,207               2,456                    66,751 
--------------------------------  ----------------  ---  -------------  ----  ------------------ 
 
  Current liabilities 
  Trade and other payables                (10,617)                   -                  (10,617) 
  Lease liabilities                        (2,904)                   -                   (2,904) 
--------------------------------  ----------------  ---  -------------  ----  ------------------ 
                                          (13,521)                   -                  (13,521) 
--------------------------------  ----------------  ---  -------------  ----  ------------------ 
  Non-current liabilities 
  Provisions                                 (335)                   -                     (335) 
  Lease liabilities                       (52,219)                   -                  (52,219) 
  Other Payables                              (80)                   -                      (80) 
--------------------------------  ----------------  ---  -------------  ----  ------------------ 
                                          (52,634)                   -                  (52,634) 
--------------------------------  ----------------  ---  -------------  ----  ------------------ 
 
  Total liabilities                       (66,155)                   -                  (66,155) 
--------------------------------  ----------------  ---  -------------  ----  ------------------ 
 
  Total net assets                           3,052               2,456                       596 
================================  ================  ===  =============  ====  ================== 
 
  Equity 
  Share capital                              6,061                   -                     6,061 
  Share premium                             24,251                   -                    24,251 
  Merger reserve                               992                   -                       992 
  Retained deficit                        (28,252)               2,456                  (30,708) 
--------------------------------  ----------------  ---  -------------  ----  ------------------ 
  Total equity                               3,052               2,456                       596 
================================  ================  ===  =============  ====  ================== 
 

Impact on Income Statement for the 52 weeks ended 26 December 2021

 
                                             52 weeks                                       52 weeks 
                                             Ended 26                                       Ended 26 
                                             December           Adjustment                  December 
                                        (as restated)                                 (as previously 
                                                                                             stated) 
                                                 2021                 2021                      2021 
                                              GBP'000              GBP'000                   GBP'000 
  Cost of sales - Depreciation 
   release                                   (33,567)                  563                  (34,130) 
  Operating expenses - Impairment 
   charge                                     (1,902)                (597)                   (1,305) 
  Highlighted items (included 
   within Operating expenses)                   (464)                (597)                       133 
-----------------------------------  ----------------  ---  --------------  ----  ------------------ 
  Profit and total comprehensive 
   income for the period                        1,151                 (34)                     1,185 
===================================  ================  ===  ==============  ====  ================== 
 
  Earnings per share for profit 
   attributable to the ordinary 
   equity holders of the company 
  Basic earnings per share                      0.82p              (0.02p)                     0.84p 
  Diluted earnings per share                    0.72p              (0.02p)                     0.74p 
 
 
  Impact on the Balance Sheet as at 26 December 2021 
                                       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                          36,005              (1,042)                    37,047 
 
  Equity 
  Retained deficit                           (26,981)                2,422                  (29,403) 
-----------------------------------  ----------------  ---  --------------  ----  ------------------ 
  Total equity                                  4,326                2,422                     1,904 
===================================  ================  ===  ==============  ====  ================== 
 
   14   Leases 
 
                               25 December        26 December 
                                      2022               2021 
                                   GBP'000            GBP'000 
   Current 
   Lease liabilities                 1,953              2,024 
 --------------------------  -------------      ------------- 
                                     1,953              2,024 
   ------------------------  -------------      ------------- 
 
   Non-current 
   Lease liabilities                48,358             50,157 
 --------------------------  -------------      ------------- 
                                    48,358             50,157 
   ------------------------  -------------      ------------- 
 
                                    50,311             52,181 
   ------------------------  -------------      ------------- 
 
 
   Due within one year               1,953              2,024 
   Due two to five years            11,386             12,371 
   Due over five years              36,972             37,786 
 --------------------------  -------------      ------------- 
                                    50,311             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 5.9% (2021: 4.6%). The lease liabilities as at 25 December 2022 were GBP50.3m (2021: GBP52.1m).

The right-of-use assets all relate to property leases. The right-of-use assets as at 25 December 2022 were GBP32.5m (2021: GBP36.0m). During the period ended 25 December 2022 the Group made a provision for impairment of the right-of-use assets against a number of sites totalling GBP2.2m (2021: restated impairment of GBP2.9m).

   15   Investments 
 
 
                                            GBP'000 
   Company 
   At 27 December 2020                        3,214 
   Share based payment in respect 
    of subsidiary                               120 
 
   At 26 December 2021                        3,334 
 -------------------------------------  ----------- 
 
   Share based payment in respect 
    of subsidiary                                58 
 
   At 25 December 2022                        3,392 
 -------------------------------------  ----------- 
 

The Company's investments are wholly related to a 100% ordinary shareholding in Took Us a Long Time Limited (2021: 100% holding), a company registered in England and Wales with registered offices at 32 Charlotte Street, London W1T 2NQ. Took Us a Long Time Limited is primarily engaged with the operation of restaurants.

   16   Inventories 
 
                                       25 December         26 December 
                                              2022                2021 
                                           GBP'000             GBP'000 
 
   Raw materials and consumables               922                 855 
   Smallware inventories                     1,269               1,248 
 
                                             2,191               2,103 
   --------------------------------  -------------  ---  ------------- 
 
 

In the Directors' opinion there is no material difference between the replacement cost of inventories and the amounts stated above. Raw material and consumable inventory purchased and recognised as an expense in the period was GBP12.0m (2021: GBP8.6m).

   17   Trade and other receivables 
 
                                             25 December    26 December 
                                                    2022           2021 
                                                 GBP'000        GBP'000 
 
   Trade receivables                                 121            211 
   Prepayments and other receivables               1,577          1,249 
 
   Total trade and other receivables               1,698          1,460 
 ----------------------------------------  -------------  ------------- 
 
   Less non-current portion (Deposits)              (65)          (105) 
 
                                                   1,633          1,355 
   --------------------------------------  -------------  ------------- 
 
 
   Company 
   Amounts due from subsidiary                     3,162          3,836 
 
   Total trade and other receivables               3,162          3,836 
 ----------------------------------------  -------------  ------------- 
 
    Classified as non-current                      3,162          3,836 
 ----------------------------------------  -------------  ------------- 
 

There has been an increase in the credit risk of this loan since it was advanced due to the deterioration in the market and the resulting impact on the performance of the trading company. The Company has previously made loans to the trading subsidiary of GBP28.2m (2021: GBP28.2m).

The Directors of the Company consider this loan to be classed as Stage 2 under the General Approach set out in IFRS 9. The Company has made provisions of GBP25.0m (2021: GBP24.4m) which represents the lifetime expected credit losses. In assessing the lifetime expected credit losses consideration has been given to a number of factors including internal forecasts of EBITDA, cashflow and the consolidated net asset value of the Group at the balance sheet date.

   18   Trade and other payables 
 
                                             25 December         26 December 
                                                    2022                2021 
                                                 GBP'000             GBP'000 
 
   Trade payables                                  5,142               3,952 
   Taxations and social security                   1,638               1,506 
   Accruals and deferred income                    3,499               3,314 
   Other payables                                  2,242               1,801 
 
    Total trade and other payables                12,521              10,573 
 ----------------------------------------  -------------  ---  ------------- 
 
   Less non-current portion (Deposits)             (128)                (80) 
 ----------------------------------------  -------------  ---  ------------- 
 
                                                  12,393              10,493 
   --------------------------------------  -------------  ---  ------------- 
 
 

Included within trade payables are GBPnil (2021: GBP0.01m) due to related parties (note 28).

   19   Provisions 
 
                                             25 December    26 December 
                                                    2022           2021 
                                                 GBP'000        GBP'000 
 
   At 26 December 2021                               297            335 
   Dilapidations provision utilisation 
    in the period                                      -           (38) 
   Dilapidations provision charge                     42              - 
    in the period 
 
    At 25 December 2022                              339            297 
 ----------------------------------------  -------------  ------------- 
 

The Group has historically recognised a provision of GBP0.3m for dilapidations for a number of sites, where the need to carry out restoration work has been identified but a full survey and commission has not been undertaken and therefore management has applied their judgment in determining the provision.

   20   Deferred tax 
 
                                           25 December          26 December 
                                                  2022                 2021 
                                               GBP'000              GBP'000 
 
    At the beginning of the period                   -                    - 
    Profit and loss credit/(charge)                  -                    - 
  --------------------------------- 
                                                     -                    - 
  ---------------------------------      -------------  ----  ------------- 
 
 
    Accelerated capital allowances                   -                    - 
    Tax losses carried forward                       -                    - 
    At the end of the period                         -                    - 
  ---------------------------------      -------------  ----  ------------- 
 
 

Due to the uncertainty of future profits, a deferred tax asset of GBP5.3m (2021: GBP4.6m) is not recognised in these financial statements.

   21   Borrowings 
 
                                              25 December          26 December 
                                                     2022                 2021 
                                                  GBP'000              GBP'000 
   Current 
   Secured bank borrowings                                      -            313 
 ----------------------------------------    --------------------  ------------- 
                       -                                                   313 
    --------------------                                         ------------- 
 
   Non-current 
   Secured bank borrowings                                      -            937 
 ----------------------------------------    --------------------  ------------- 
                       -                                                   937 
    --------------------                                         ------------- 
 
 
    Total                                                       -          1,250 
 ----------------------------------------    --------------------  ------------- 
 
 
   Maturity of secured bank borrowings 
   Due within one year                                          -            369 
   Due In more than one year but less 
    than two years                                              -            455 
   Due In more than two years but 
    less than five years                                        -            542 
 ----------------------------------------    --------------------  ------------- 
                       -                                                 1,366 
    --------------------                                         ------------- 
 
   Future interest payments                                     -          (116) 
 
    Total                                                       -          1,250 
 ----------------------------------------    --------------------  ------------- 
 
 

The bank loan was repaid in June 2022. While held it attracted interest at a margin of 4.5% over the Bank of England base rate. The borrowing was secured by legal charges over assets of the group.

   22   Share capital 
 
 
                                          Number          Number         Number    GBP'000 
                                        Ordinary        Ordinary 
                                               A               B       Deferred 
  Called up and fully paid: 
 
  Ordinary shares at 0.1 
   pence                              59,795,496               -              -         60 
  Deferred shares at 9.9 
   pence (as a result of 
   sub-division                                -               -     59,795,496      5,920 
 
  Ordinary shares issued 
   at 0.1 pence                       81,294,262               -              -         81 
  Ordinary B shares at 0.00001 
   pence                                       -      15,676,640              -          0 
 
  At 26 December 2021                141,089,758      15,676,640     59,795,496      6,061 
 
  Ordinary B shares at 0.00001 
   pence converted to ordinary 
   A shares                            5,225,546     (5,225,546)              -          0 
 
   At 25 December 2022               146,315,304      10,451,094     59,795,496      6,061 
---------------------------------  -------------  --------------  -------------  --------- 
 

Share Capital Reorganisation

In January 2021 Daniel Jonathan Plant was awarded 15,676,640 'B' shares in Tasty plc, which can be converted to 'A' shares subject to achievement of hurdle rates. Following achievement of the first hurdle on 27 June 2022, 5,225,546 'B' shares converted to ordinary shares.

   23   Reserves 

Share capital comprises of the nominal value of the issued shares.

Share premium reserve is the amount subscribed in excess of the nominal value of shares net of issue costs.

Cumulative gains and losses recognised in the income statement are shown in the Retained deficit reserves, together with other items taken direct to equity.

The merger reserve arose in 2006 on the creation of the Group.

   24   Leases 

Operating leases where the Group is the lessor

The total future values of minimum operating lease receipts are shown below. The receipts are from sub-tenants on contractual sub-leases.

 
                                            25 December    26 December 
                                                   2022           2021 
                                                GBP'000        GBP'000 
 
   Within one year: receipts                        290            290 
 ---------------------------------------  -------------  ------------- 
   Within two to five years: receipts             1,158          1,158 
 ---------------------------------------  -------------  ------------- 
   Over five years: receipts                      1,555          1,845 
                                                  3,003          3,293 
   -------------------------------------  -------------  ------------- 
 
   25   Pensions 

The Group made contributions of GBP8,000 (2021: GBP6,000) to the personal pension plan of the Directors. During the year the Group made contributions to employee pensions of GBP0.3m (2021: GBP0.2m). As at 25 December 2022, contributions of GBP120,000 due in respect of the current reporting period had not been paid over to the schemes (2021: GBP99,000).

   26   Share based payments 
 
                                               Weighted 
                                       average exercise 
                                                  price               Number 
                                                (pence)                 '000 
 
   At 27 December 2020                              4.1                3,780 
 
   Lapsed                                           4.4                (515) 
   Cancelled                                          -                    - 
   Issued                                           0.0               15,677 
 ------------------------  ----------------------------  ------------------- 
 
   At 26 December 2021                              0.7               18,942 
   Exercised                                        0.0              (5,225) 
   Lapsed                                           4.4                (290) 
   Cancelled                                          -                    - 
   Issued                                             -                    - 
 
   At 25 December 2022                              0.9               13,427 
 ------------------------  ----------------------------  ------------------- 
 

The exercise price of options outstanding at the end of the period ranged between 0p and 4p (2021: 0p and 4p) and their weighted average remaining contractual life was 3.1 years (2021: 3.9 years).

Of the total number of options outstanding at the end of period 2.97 million have vested and are exercisable at the end of the period (2021: none)

The market price of the Company's ordinary shares as at 25 December 2022 was 3.8p and the range during the financial year was from 3.3p to 6.3p (as at 26 December 2021 was 4.9p and the range during the financial year was from 2.9p to 7.9p).

No option was exercised or granted in 2022 (2021: GBPnil). Shares of 5.2m 'B' shares converted to 'A' ordinary shares (2021 GBPnil) and no further 'B' shares granted (2021: 15.7m).

On 29 July 2019 options of 3.5m were granted at a grant price of 4.4p reflecting the opening share price. The options vest over three years and expire in 10 years and no other conditions are attached. A charge of GBP60,000 was recognised over the three years based on a volatility of 63.5% and risk rate of 0.5% using the Binomial method. The volatility is weighted on a four year basis and the risk free rate is based on risk free rate on the mid point between the vesting date and expiry.

On 17 October 2019 options of 1m were granted at a grant price of 3.3p reflecting the opening share price. The options vest over three years and expire in 10 years and no other conditions are attached. A charge of GBP12,000 was recognised over the three years based on a volatility of 61.6% and risk rate of 0.5% using the Binomial method. The volatility is weighted on a four year basis and the risk free rate is based on risk free rate on the mid point between the vesting date and expiry.

In January 2021 Daniel Jonathan Plant was awarded 15.7m '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. Following achievement of the first hurdle on 27 June 2022, 5,225,546 'B' shares converted to 'A' ordinary shares.

A charge of GBP181,000 will be recognised over the four years based on a volatility of 85% and risk rate of -0.05% using the Monte Carlo method. The volatility is weighted on a four year basis and the risk free rate is based on yield on a 4-year zero coupon government security at the grant date.

The 13.4m share outstanding as at 25 December 2022 comprise of the options issued in July 2019, October 2019 and January 2021. There are no other outstanding options.

   27   Financial instruments 

In common with all other businesses, the Group is exposed to risks that arise from its use of financial instruments. This note describes the Group's objectives, policies and processes for managing those risks and the methods used to measure them. Further quantitative information in respect of these risks is presented throughout these financial statements.

The Group is exposed through its operations to the following financial risks:

   --    Credit risk 
   --    Interest rate risk 
   --    Liquidity risk 

The Group does not have any material exposure to currency risk or other market price risk.

There have been no substantive changes in the Group's exposure to financial instrument risks, its objectives, policies and processes for managing those risks or the methods used to measure them from previous periods unless otherwise stated in this note.

Principal financial instruments

The principal financial instruments used by the Group, from which financial instrument risk arises, are as follows:

   --    loans and borrowings 
   --    trade receivables 
   --    cash and cash equivalents 
   --    trade and other payables 

The Group's financial instruments apart from cash and cash equivalents are measured on an amortised cost basis. Due to the short-term nature of trade receivables and trade/ other payables, the carrying value approximates their fair value.

 
                                          25 December    26 December 
   Financial assets                              2022           2021 
                                              GBP'000        GBP'000 
 
   Cash and cash equivalents                    7,002         11,005 
   Trade and other receivables                    186            316 
 
   Total financial assets                       7,188         11,321 
 -------------------------------------  -------------  ------------- 
 
 
   Financial liabilities (amortised 
    cost) 
 
   Trade and other payables                     7,384          5,753 
   Loans and borrowings                             -          1,250 
   Finance leases                              50,311         52,181 
 
   Total financial liabilities                 57,695         59,184 
 -------------------------------------  -------------  ------------- 
 
 
   Company - Financial assets (amortised       25 December         26 December 
    cost)                                             2022                2021 
                                                   GBP'000             GBP'000 
 
   Intercompany loan                                 3,162               3,836 
 ------------------------------------------  -------------  ---  ------------- 
 
 

General objectives, policies and processes

The Board has overall responsibility for the determination of the Group's risk management objectives and policies.

The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the Group's competitiveness and flexibility. Further details regarding these policies are set out below:

Credit risk

The Group's assets and liabilities are wholly attributable to one operating segment (operating restaurants) and arises solely in one geographical segment (United Kingdom).

Credit risk is the risk of the financial loss to the Group if a customer or a counterparty to a financial instrument fails to meet its contractual obligations. The Group is mainly exposed to credit risk from rebates from suppliers, sub-letting income and trade receivables.

Trade and other receivables are disclosed in note 17 and represent the maximum credit exposure for the Group.

The following table sets out the ageing of trade receivables:

 
                                    25 December    26 December 
                                           2022           2021 
  Ageing of receivables                 GBP'000        GBP'000 
 
  <30 days                                   75             60 
  31-60 days                                 11             15 
  61-120 days                                17             33 
  >120 days                                 127            194 
  Provision for doubtful debt             (109)           (91) 
--------------------------------  -------------  ------------- 
                                            121            211 
  ------------------------------  -------------  ------------- 
 

The Group's principal financial assets are cash and trade receivables. There is minimal credit risk associated with the Group's cash balances. Cash balances are all held with recognised financial institutions. Trade receivables arise in respect of rebates from a major supplier and therefore they are largely offset by trade payables. As such the net amounts receivable form an insignificant part of the Group's business model and therefore the credit risk associated with them is also insignificant to the Group as a whole. Accordingly, the Company does not consider there to be any risk arising from concentration of receivables due from any counterparty.

The Company's principal financial assets are intercompany receivables. These balances arise due to the funds flow from the listed Company to the trading subsidiary and are repayable on demand. The credit risk arising from these assets are linked to the underlying trading performance of the trading subsidiary. See note 17 for further details on intercompany debt.

Liquidity risk

Liquidity risk arises from the Group's management of working capital. It is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due. The Group's policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when they become due. To achieve this aim, the Group seeks to maintain cash balances to meet its expected cash requirements as determined by regular cash flow forecasts prepared by management.

The following table sets out the contractual maturities (representing undiscounted contractual cash-flows) of financial liabilities:

 
                                  Up to       Between     Between     Between     Over 5 
                               3 months         3 and       1 and     2 and 5      years 
                                            12 months     2 years       years 
                                GBP'000       GBP'000     GBP'000     GBP'000    GBP'000 
 
   Trade & other payables         7,256            24           -           -        104 
   Finance leases                   645         1,214       3,134       9,617     35,701 
 
   As at 25 December 
    2022                          7,901         1,238       3,134       9,617     35,805 
 -------------------------  -----------  ------------  ----------  ----------  --------- 
 
 
                                     Up to       Between     Between     Between     Over 5 
                                  3 months         3 and       1 and     2 and 5      years 
                                               12 months     2 years       years 
                                   GBP'000       GBP'000     GBP'000     GBP'000    GBP'000 
 
   Trade & other payables            5,673            24           -           -         56 
   Loan and other borrowings           134           235         455         542          - 
   Finance leases                      760         1,263       2,976       9,395     37,787 
 
   As at 26 December 
    2021                             6,567         1,522       3,431       9,937     37,843 
 ----------------------------  -----------  ------------  ----------  ----------  --------- 
 

Non-current other payables are sub-let site rent deposits.

Interest rate risk

The Group seeks to minimise interest costs by regularly reviewing cash balances.

Interest rate risk arises from the Group's use of interest-bearing loans linked to LIBOR. The Group is exposed to cash flow interest rate risk from long term borrowings at variable rate. The Board considers the exposure to the interest rate risk to be acceptable.

Surplus funds are invested in interest bearing, instant access bank accounts.

Loans and borrowings

During the year the Group had a loan facility with Barclays Bank Plc.

Capital disclosures

The Group's capital is made up of ordinary share capital, deferred share capital, share premium, merger reserve and retained deficit totalling GBP2.0m (2021: Retained earnings GBP4.3m).

The Group's objective when maintaining capital is to safeguard the entity's ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders. The Group is not subject to any externally imposed capital requirements. There have been no changes in the Group's objectives for maintaining capital nor what it manages in its capital structure.

The Group manages its capital structure and makes adjustments to it in the light of strategic plans. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

   28   Related party transactions 

The Directors are considered to be the key management personnel. Details of directors' remuneration are shown in Note 8.

The Group pays fees, rent and associated insurance to a number of companies considered related parties by virtue of the interests held by the Directors in such companies. The Group also reimburses expenses incurred by such companies on behalf of the Group. Following changes to the Board in 2021, the entities below are no longer considered to be related parties.

 
                                              52 weeks      52 weeks 
                                              ended 25      ended 26 
                                              December      December 
                                                  2022          2021 
                                               GBP'000       GBP'000 
   Rent, insurance and legal services 
    charged to the group: 
 
    *    Kropifko Properties Ltd                      -          (32) 
 
    *    KLP Partnership                              -          (28) 
 
    *    ECH Properties Ltd                           -          (25) 
 
    *    Proper Proper T Ltd                          -          (33) 
 
 
   Balance due to related parties:                    -            11 
 

The rent paid to related parties is considered to be a reasonable reflection of the market rate for the properties.

   29   Reconciliation of (loss)/profit before tax to net cash inflow from operating activities 
 
                                                            Restated 
                                               52 weeks     52 weeks 
                                               ended 25     ended 26 
                                               December     December 
                                                   2022         2021 
                                                GBP'000      GBP'000 
   Group 
   (Loss)/ profit before tax                    (6,432)        1,151 
   Finance income                                  (41)            - 
   Finance expense                                   30           59 
   Finance expense (IFRS 16)                      2,391        2,438 
   Share based payment charge                        58          120 
   Depreciation of right-of-use assets 
    (IFRS 16)                                     2,641        2,579 
   Depreciation of property plant 
    and equipment                                 1,664        1,297 
   Impairment of property, plant 
    and equipment                                   180      (2,346) 
   Impairment of Right-of-use assets              2,153        2,943 
   Profit from sale of property plant 
    and equipment                                   154          (3) 
   Amortisation of intangible assets                  3            3 
   Dilapidations provision charge                    42            - 
   Dilapidations provision utilisation                -         (38) 
   Other non cash                                  (21)            - 
   Decrease / (increase) in inventories            (88)        (282) 
   Decrease / (increase) in trade 
    and other receivables                         (238)           32 
   (Decrease)/ Increase in trade 
    and other payables                            1,948        (127) 
 
                                                  4,444        7,826 
   ---------------------------------------  -----------  ----------- 
 
 
                                                  52 weeks     52 weeks 
                                                  ended 25     ended 26 
                                                  December     December 
                                                      2022         2021 
                                                   GBP'000      GBP'000 
   Company 
   Loss before tax                                   (674)        (145) 
 
   Decrease in trade and other receivables             674          142 
 
                                                         -          (3) 
   ------------------------------------------  -----------  ----------- 
 
   30   Reconciliation of financing activity 
 
                                    Lease           Lease     Bank Loan    Bank Loan      Total 
                              liabilities     liabilities 
                               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 28 
    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 
 ------------------------  --------------  --------------  ------------  -----------  --------- 
 
   31   Post Balance Sheet Events 

There are none to report.

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March 30, 2023 02:00 ET (06:00 GMT)

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