Source - RNS
RNS Number : 0151J
Tasty PLC
06 September 2016
 

Tasty plc

("Tasty" or the "Group")

 

Interim Results (unaudited) for the 27 weeks ended 3 July 2016

 

Highlights:

 

·     Revenue up 28% to £21,794,000 (H1 20s15 - £17,050,000)

·     Operating profit, before pre-opening costs, share based payments and interest, up 14% to £1,925,000 (H1 2015 - £1,684,000)

·     Adjusted* pre-tax profit for the period increased by 17.5% to £1,615,000 (H1 2015 - £1,375,000). Reported pre-tax loss of £2,305,000 (H1 2015 - pre-tax profit of £1,327,000) due to a £3.58m impairment charge against five sites.

·     Four new sites opened in the period and a further three sites opened since the period end bringing the estate to 55 restaurants

 *Adjusted for non-trading items (note 3)

 

This announcement contains inside information.

 

Enquiries

 

Tasty plc                                                               Tel: 020 7637 1166

Jonny Plant, Chief Executive

 

Cenkos Securities                                               Tel: 020 7397 8927

Bobbie Hilliam

Harry Pardoe

 

 

Chairman's statement

 

I am pleased to report on the Group's half year results for the 27 weeks ended on 3 July 2016, prepared in accordance with International Financial Reporting Standards as adopted by the EU ("IFRS").

 

Results

Sales increased by 28% on the corresponding period to £21,794,000 (2015 - £17,050,000).  Adjusted operating profit*, before pre-opening costs, non-trade items and interest, was £1,925,000 (2015 - £1,684,000), a 14% increase on the corresponding period and adjusted pre-tax profit* for the period increased by 17.5% to £1,615,000 (2015 - £1,375,000).

 

The Group has successfully implemented its programme of operational improvements during the period which has included changes to the central kitchen infrastructure and upgrades to a number of key systems.  Appointments have been made across the Group in: Operations, Marketing, Finance and HR departments to support future openings and the Group's expansion.  The Group websites and the wider digital marketing strategy continue to be developed as planned.

 

The Group has undertaken a comprehensive review of its estate during the period and has recognised impairment charges against five sites.  Aside from these units, trade remains in line with expectations across the wider estate and the Group is benefitting from a number of cost savings which are offsetting pressures on direct input costs.   After taking into account all non-trade adjustments the Group has a stated loss after tax for the period of £2,637,000 (2015 - profit £1,052,000).

 

 

Cash flows and financing

During the period capital expenditure of £5,044,000 (2015 - £4,495,000) was incurred.  Four sites have been opened in the period, with a further three sites opened since the period end.  The Group is currently undertaking construction on three sites and expects to start construction on at least a further four sites during Q4 of 2016.   The Board has reviewed its property pipeline and now expects to open fifteen restaurants in 2017.

 

Overall, the net cash inflow for the period was £334,000 (2015 - outflow £731,000).   As at 3 July 2016, the Group had net borrowings of £7,445,000 (2015 - £1,737,000).  The Group has an available banking facility of £12,000,000.

 

Outlook

The Group continues to expand its operations through new openings.  Actions are regularly taken to improve profitability at all sites, increasing sales through updated menus and improving food and labour margins.

 

The Group currently trades from fifty-five restaurants which consists of seven Dim t and forty-eight Wildwoods and Wildwood Kitchens. The Group continues to evaluate new sites for further acquisitions.

 

K Lassman

Chairman

Tasty plc


6 September 2016

 

 

Consolidated statement of comprehensive income
for the 27 weeks ended 3 July 2016 (unaudited)

 

  

 

27 weeks to

 

26 weeks to

 

52 weeks to

 

 

 

 

 

3 July

 

28 June

 

27 December

 

 

 

 

 

2016

 

2015

 

2015

 

 

 

 

 

£'000

 

£'000

 

£'000

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

21,794

 

17,050

 

35,794

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

(23,409)

 

(15,182)

 

(31,594)

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

(1,615)

 

1,868

 

4,200

 

 

 

 

 

 

 

 

 

 

 

 

 

Administrative costs

 

(577)

 

(484)

 

(1,026)

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit excluding pre-opening costs and  non-trading items

 

1,925

 

1,684

 

3,951

 

 

 

Pre-opening costs

 

(197)

 

(252)

 

(644)

 

 

 

Non-trading items

 

(3,920)

 

(48)

 

(133)

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit

 

(2,192)

 

1,384

 

3,174

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance expense

 

(113)

 

(57)

 

(107)

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit before tax

 

(2,305)

 

1,327

 

3,067

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax

 

(332)

 

(275)

 

(600)

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit / (loss) and total comprehensive income period

 

 

 

 

 

 

 

 

 

attributable to equity shareholders

 

(2,637)

 

1,052

 

2,467

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

 

 

Basic

 

(4.95p)

 

1.98p

 

4.64p

 

 

 

Diluted

 

(4.80p)

 

1.94p

 

4.58p

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated statement of changes in equity
for the 27 weeks ended 3 July 2016 (unaudited)

 

 

 

Share capital

Share premium

Merger reserve

Retained deficit

Total

 

 

 

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

 

 

Balance at 27 December 2015

5,322

13,371

992

2,599

22,284

 

 

 

 

 

 

 

 

 

 

Issue of ordinary shares

14

32

-

-

46

 

 

Total comprehensive income for the period

-

-

-

(2,637)

(2,637)

 

 

Share based payments - credit to equity

-

-

-

50

50

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 3 July 2016

5,336

13,403

992

12

19,743

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 28 December 2014

5,305

13,336

992

(1)

19,632

 

 

 

 

 

 

 

 

 

 

Issue of ordinary shares

14

31

-

-

45

 

 

Total comprehensive income for the period

-

-

-

1,052

1,052

 

 

Share based payments - credit to equity

-

-

-

48

48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 28 June 2015

5,319

13,367

992

1,099

20,777

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 28 December 2014

5,305

13,336

992

(1)

19,632

 

 

 

 

 

 

 

 

 

 

Issue of ordinary shares

17

35

-

-

52

 

 

Total comprehensive income for the period

-

-

-

2,467

2,467

 

 

Share based payments - credit to equity

-

-

-

133

133

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 27 December 2015

5,322

13,371

992

2,599

22,284

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated balance sheet
At 3 July 2016 (unaudited)

 

 

 

3 July

 

28 June

 

27 December

 

 

 

 

 

2016

 

2015

 

2015

 

 

 

 

 

£'000

 

£'000

 

£'000

 

 

 

Non-current assets

 

 

 

 

 

 

 

 

 

Intangible assets

 

469

 

443

 

470

 

 

 

Property, plant and equipment

 

28,944

 

24,025

 

28,496

 

 

 

Pre-paid operating lease charges

 

1,614

 

1,671

 

1,936

 

 

 

Other non-current assets

 

198

 

327

 

148

 

 

 

 

 

31,225

 

26,466

 

31,050

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

Inventories

 

1,980

 

1,328

 

1,812

 

 

 

Trade and other receivables

 

3,270

 

2,177

 

2,529

 

 

 

Pre-paid operating lease charges

 

168

 

152

 

140

 

 

 

Cash and cash equivalents

 

2,555

 

1,313

 

2,221

 

 

 

 

 

7,973

 

4,970

 

6,702

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

39,198

 

31,436

 

37,752

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

Trade and other payables

 

(7,364)

 

(6,236)

 

(8,076)

 

 

 

Borrowings

 

-

 

(375)

 

(750)

 

 

 

 

 

(7,364)

 

(6,611)

 

(8,826)

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

 

 

Provisions

 

(45)

 

(55)

 

(45)

 

 

 

Lease incentives

 

(832)

 

(478)

 

(715)

 

 

 

Deferred tax liability

 

(1,214)

 

(890)

 

(882)

 

 

 

Long-term borrowings

 

(10,000)

 

(2,625)

 

(5,000)

 

 

 

 

 

(12,091)

 

(4,048)

 

(6,642)

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

(19,455)

 

(10,659)

 

(15,468)

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net assets

 

19,743

 

20,777

 

22,284

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

Share capital

 

5,336

 

5,319

 

5,322

 

 

 

Share premium

 

13,403

 

13,367

 

13,371

 

 

 

Merger reserve

 

992

 

992

 

992

 

 

 

Retained profit

 

12

 

1,099

 

2,599

 

 

 

Total equity

 

19,743

 

20,777

 

22,284

 

 

 

 

 

Consolidated cash flow statement
for the 27 weeks ended 3 July 2016 (unaudited)

 

 

 

 

 

27 weeks to

 

26 weeks to

 

52 weeks to

 

 

 

 

 

 

3 July

 

28 June

 

27 December

 

 

 

 

 

 

2016

 

2015

 

2015

 

 

 

 

 

 

£'000

 

£'000

 

£'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities

 

 

 

 

 

 

 

 

 

 

Cash generated from operations

 

 

1,195

 

1,526

 

5,076

 

 

 

Corporation tax paid

 

 

-

 

-

 

-

 

 

 

Net cash inflow from operating activities

 

 

1,195

 

1,526

 

5,076

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

 

 

 

 

Purchase of property, plant and equipment

 

 

(5,044)

 

(4,495)

 

(9,844)

 

 

 

Interest received

 

 

-

 

-

 

9

 

 

 

Net cash flows used in investing activities

 

 

(5,044)

 

(4,495)

 

(9,835)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financing activities

 

 

 

 

 

 

 

 

 

 

Net proceeds from issues of ordinary shares

 

 

46

 

45

 

52

 

 

 

Bank loan receipt

 

 

4,250

 

2,250

 

5,750

 

 

 

Bank loan repayment

 

 

-

 

-

 

(750)

 

 

 

Interest paid

 

 

(113)

 

(57)

 

(116)

 

 

 

Net cash flows generated / (used) in financing activities

 

 

4,183

 

2,238

 

4,936

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net decrease in cash and cash equivalents

 

 

334

 

(731)

 

177

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of the period

 

 

2,221

 

2,044

 

2,044

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents as at 3 July 2016

 

 

2,555

 

1,313

 

2,221

 

 

 

 

 

Notes to the condensed financial statements
for the 27 weeks ended 3 July 2016 (unaudited)

1      General information

Tasty plc ("Tasty") is a public limited company incorporated in the United Kingdom under the Companies Act (registration number 5826464).  The Company is domiciled in the United Kingdom and its registered address is 32 Charlotte Street, London, W1T 2NQ.  The Company's ordinary shares are traded on the Alternative Investment Market of the London Stock Exchange ("AIM").  Copies of this Interim Report or the Annual Report and Financial Statements may be obtained from the above address or on the investor relations section of the Company's website at www.dimt.co.uk.

 

2      Basis of accounting

The condensed financial statements have been prepared using accounting policies consistent with International Financial Reporting Standards (IFRS) and International Financial Reporting Interpretations Committee (IFRIC) interpretations as endorsed by the European Union. The same accounting policies, presentation and methods of computation have been followed in the preparation of these results as were applied in the Company's latest annual audited financial statements.

The financial information for the period ended 27 December 2015 does not constitute the full statutory accounts for that period. The Annual Report and Financial Statements for 2015 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statements for 2015 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

The condensed financial statements are presented in sterling and all values are rounded to the nearest thousand pounds (£'000).

Except when otherwise indicated, the consolidated accounts incorporate the financial statements of Tasty plc and its subsidiary, Took Us A Long Time Limited, made up to the relevant period end.

 

3      Non-trading items

 

 

 

 

 

27 weeks  to

 

26 weeks to

 

52 weeks to

 

 

 

 

 

 

3 July

 

28 June

 

27 December

 

 

 

 

 

 

2016

 

2015

 

2015

 

 

 

 

 

 

£'000

 

£'000

 

£'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Write-off of rent premium

 

 

(294)

 

-

 

           -

 

 

 

Share based payments

 

 

(50)

 

(48)

 

(104)

 

 

 

Impairment of property, plant and equipment

 

 

(3,576)

 

-

 

           -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,920)

 

(48)

 

(104)

 

 

 

 

4      Income tax

The income tax charge has been calculated by reference to the estimated effective corporation tax and deferred tax rates of 20% (2015 - 21.5%).

 

5      Earnings per share

 

 

 

 

 

27 weeks to

 

26 weeks to

 

52 weeks to

 

 

 

 

 

 

3 July

 

28 June

 

27 December

 

 

 

 

 

 

2016

 

2015

 

2015

 

 

 

 

 

 

Pence

 

pence

 

Pence

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per ordinary share

 

 

(4.95)

 

1.98

 

4.64

 

 

 

Diluted earnings per ordinary share

 

 

(4.80)

 

1.94

 

4.58

 

 



The basic earnings per share figures are calculated by dividing the net profit for the period attributable to shareholders by the weighted average number of ordinary shares in issue during the period.  The diluted earnings per share figure allows for the dilutive effect of the conversion into ordinary shares of the weighted average number of options outstanding during the period. Options are only taken into account when their effect is to reduce basic earnings per share.

Earnings per share have been calculated using the numbers shown below:

 

 

 

 

 

 

27 weeks to

 

26 weeks to

 

52 weeks to

 

 

 

 

 

 

3 July

 

28 June

 

27 December

 

 

 

 

 

 

2016

 

2015

 

2015

 

 

 

 

 

 

number '000

 

number '000

 

number
'000

 

 

 

Weighted average ordinary shares (basic)

 

 

53,243

 

53,171

 

53,189

 

 

 

Weighted average ordinary shares (diluted)

 

 

54,951

 

54,278

 

53,886

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27 weeks to

 

26 weeks to

 

52 weeks to

 

 

 

 

 

 

3 July

 

28 June

 

27 December

 

 

 

 

 

 

2016

 

2015

 

2015

 

 

 

 

 

 

£'000

 

£'000

 

£'000

 

 

 

Profit for the financial period

 

 

(2,637)

 

1,052

 

2,467

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6      Reconciliation of profit before tax to net cash inflow from operating activities

 

 

 

 

 

27 weeks to

 

26 weeks to

 

52 weeks to

 

 

 

 

 

 

3 July

 

28 June

 

27 December

 

 

 

 

 

 

2015

 

2015

 

2015

 

 

 

 

 

 

£'000

 

£'000

 

£'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit before tax

 

 

(2,305)

 

1,327

 

3,067

 

 

 

Finance income

 

 

-

 

-

 

(9)

 

 

 

Finance expense

 

 

113

 

57

 

116

 

 

 

Write-off of rent premium

 

 

294

 

 

 

 

 

 

 

Share based payment charge

 

 

50

 

48

 

133

 

 

 

Depreciation

 

 

1,020

 

922

 

1,710

 

 

 

Impairment

 

 

3,576

 

-

 

-

 

 

 

Amortisation of intangible assets

 

 

1

 

-

 

2

 

 

 

Onerous lease provision movement

 

 

-

 

-

 

(10)

 

 

 

Increase in inventories

 

 

(168)

 

(277)

 

(761)

 

 

 

Increase in trade and other receivables

 

 

(791)

 

(362)

 

(535)

 

 

 

Increase in trade and other payables

 

 

(595)

 

(189)

 

1,363

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,195

 

1,526

 

5,076

 

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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