Tasty PLC on Wednesday reported a widened half-year loss on higher costs, but the restaurant operator said it is adapting to mitigate inflationary cost pressures.
The London-based owner of restaurant chains Wildwood and dim t said pretax loss widened to £6.2 million in the half-year that ended June 25 from £2.7 million a year prior, as total operating expenses rose 86% to £5.2 million.
Shares in Tasty fell by 25% at 1.77 pence each in London on Wednesday morning following the announcement.
Revenue ticked up to £21.7 million from £21.5 million the year before. The company noted revenue performance in the first quarter of the financial year was ahead of expectations, but performance slowed in the second quarter.
Adjusted earnings before interest, tax, depreciation and amortisation for the half-year was £1.1 million, down 59% from £2.7 million in the first six months of the previous financial year, due to Covid-related support ‘falling away’, as well as rent and rate concessions and utility price increases, Tasty explained.
Looking ahead, Tasty said that the continued inflationary pressures on labour, food and utilities within the dining market have continued to ‘adversely affect profitability’.
‘We continue to navigate through challenging times and although this is expected to continue through [the second half of] 2023 we are continuing to adapt the business to mitigate the cost increases and reduced trading performance,’ the company said.
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