Half Yearly Report

RNS Number : 6691O

Tasty PLC

24 September 2013

 



Tasty plc

Interim Results (unaudited) for the 26 weeks ended 30 June 2013

Chairman's statement

I am pleased to report on the Group's half year results for the 26 weeks ended on 30 June 2013, which have been prepared in accordance with International Financial Reporting Standards as adopted by the EU ("IFRS").

Results

Turnover for the 26 weeks ended 30 June 2013 was £10,979,000 (2012 - £8,868,000), a 24% increase over the corresponding period. 

The operating profit, before pre-opening costs, share based payments and interest, was £1,045,000 (2012 - £752,000), a 39% increase over last year.

Pre-opening costs have been highlighted in the income statement as they are necessarily incurred in the period prior to a new unit being opened and are specific to the opening but are not part of the Group's normal ongoing trading performance.

Pre-opening costs were £171,000 (2012 - £348,000), share based payments were £28,000 (2012 - £28,000) and finance expenses were £59,000 (2012 - £16,000).  The statutory profit before tax for the period was £787,000 (2012 - £360,000).

Basic and diluted earnings per share for the period were 1.28p and 1.25p (2012 - 0.75p and 0.74p).

Cash flows and financing

During the period capital expenditure of £2,511,000 (2012 - £2,450,000) was incurred.  Two new Wildwood restaurants were opened: at South Woodford and Newmarket in April plus a Wildwood Kitchen at Didcot in March.  A further Wildwood Kitchen was opened in July at Barnes.

Overall, the net cash outflow was £55,000 (2012 - £557,000).

To finance the growth, the Group drew down a further £1,500,000 of its bank loan facility taking the balance to £2,500,000. 

As at 30 June 2013, the Group had net cash balances of £1,556,000 (2012 - £1,451,000).

Outlook

The Group continues to move forward by increasing sales through updated menus and improving the food and labour margins, all of which are continually reviewed.

The new openings during the period, reported above, bring the number of restaurants to 27, consisting of 6 Dimts, 17 Wildwoods and 4 Wildwood Kitchens.

The Group continues to look at new sites and has the resources for further acquisitions.

Despite the on-going general economic conditions, the Group continues to grow and invest for the future.

K Lassman

Chairman

Tasty plc

24 September 2013

Consolidated Statement of Comprehensive Income
(unaudited)
	26 weeks ended		26 weeks ended		52 weeks ended
	30 June		1 July		30 December
	2013		2012		2012
	£'000		£'000		£'000
Revenue	10,979		8,868		19,315
Cost of sales	(9,704)		(8,113)		(17,221)
	______		______		______
Gross profit	1,275		755		2,094
Administrative expenses	(429)		(379)		(480)
	______		______		______
Operating profit excluding pre-opening costs and non trading items	1,045		752		1.773
Pre-opening costs	(171)		(348)		(403)
Reversal of impairment of property, plant and         equipment	-		-		300
Share based payment	(28)		(28)		(56)
Operating profit	846		376		1,614
Finance expense	(59)		(16)		(62)
	______		______		______
Profit before taxation	787		360		1,522
Income tax expense	(173)		-		(275)
	______		______		______
Profit and total comprehensive income for the period - attributable to equity shareholders	614		360		1,277
	______		______		______
Profit per share - basic	1.28p		0.75p		2.67p
Profit per share - diluted	1.25p		0.74p		2.61p

Consolidated Statement of Changes in Equity
(unaudited)

                                                                                                                            Share           Share     Merger     Retained          Total

                                                                                                                           capital     premium    reserve          deficit        equity

                                                                                                                             £'000            £'000        £'000            £'000         £'000

Balance at 2 January 2012                                                                           4,784          10,350            992          (5,127)     10,999

Changes in equity for 26 weeks ended 1 July 2012

Profit for the period                                                                                                    -                     -                 -               360            360

                                                                                                                         ______        ______     ______        ______     ______

Total comprehensive income for the period                                                     -                     -                 -               360            360

Share based payments - credit to equity                                                             -                     -                 -                 28              28

                                                                                                                         ______        ______     ______        ______     ______

Balance at 1 July 2012                                                                                   4,784          10,350            992          (4,739)     11,387

                                                                                                                         ______        ______     ______        ______     ______

Changes in equity for 26 weeks ended 30 December 2012

Issue of shares                                                                                                        6                    9                 -                     -              15

Profit for the period                                                                                                    -                     -                 -               917            917

                                                                                                                         ______        ______     ______        ______     ______

Total comprehensive income for the period                                                     -                     -                 -               917            917

Share based payments - credit to equity                                                             -                                        -                 28              28

                                                                                                                         ______        ______     ______        ______     ______

Balance at 30 December 2012                                                                    4,790          10,359            992          (3,794)     12,347

                                                                                                                         ______        ______     ______        ______     ______

Changes in equity for 26 weeks ended 30 June 2013

Issue of shares                                                                                                        6                    6                 -                     -              12

Profit for the period                                                                                                    -                     -                 -               614            614

                                                                                                                         ______        ______     ______        ______     ______

Total comprehensive income for the period                                                     -                     -                 -               614            614

Share based payments - credit to equity                                                             -                     -                 -                 28              28

                                                                                                                         ______        ______     ______        ______     ______

Balance at 30 June 2013                                                                               4,796          10,365            992          (3,152)     13,001

                                                                                                                         ______        ______     ______        ______     ______

Consolidated Balance Sheet
(unaudited)	30 June			1 July		30 December
	2013			2012		2012
	£'000			£'000		£'000
Non-current assets
Intangible assets	448			450		448
Property, plant and equipment	13,795			10,623		11,791
Pre-paid operating lease charges	2,011			1,586		1,747
Deferred tax asset	12			460		185
Other receivables	437			437		486
	______			______		______
	16,703			13,556		14,657
Current assets
Inventories	733			647		689
Pre-paid operating lease charges	100			78		87
Trade and other receivables	1,573			1,258		1,107
Cash and cash equivalents	1,556			1,451		1,611
	______			______		______
	3,962			3,434		3,494
	______			______		______
Total assets	20,665			16,990		18,151
	______			______		______
Non current liabilities
Accruals for lease incentives	(199)			(194)		(206)
Provisions	(72)			(79)		(75)
	______			______		______
	(271)			(273)		(281)
	______			______		______
Current liabilities
Trade and other payables Bank borrowings	(4,893) (2,500)			(4,330) (1,000)		(4,523) (1,000)
	______			______		______
Total current liabilities	(7,393)			(5,330)		(5,523)
	______			______		______
Total liabilities	(7,664)			(5,603)		(5,804)
	______			______		______
Total net assets	13,001			11,387		12,347
	______			______		______
Capital and reserves attributable to equity shareholders
Share capital	4,796			4,784		4,790
Share premium	10,365			10,350		10,359
Merger reserve	992			992		992
Retained deficit	(3,152)			(4,739)		(3,794)
	______			______		______
Total equity	13,001			11,387		12,347
	______			______		______

Consolidated Cash Flow
(unaudited)	26 weeks ended		26 weeks ended		52 weeks ended
	30 June		1 July		30 December
	2013		2012		2012
	£'000		£'000		£'000
Net cash inflow from operating activities
Profit  for the period before taxation	787		360		1,552
Adjustments for
Depreciation	506		373		830
Amortisation	-		-		2
Impairment reversal Onerous lease provision movement Equity settled share-based payment expense	- (3) 28		- - 28		(300) (10) 56
Net finance expense	59		16		62
	______		______		______
Net cash inflow from operating activities
Before changes in working capital	1,377		777		2,192
(Increase) / decrease in trade and other receivables	(520)		(748)		(816)
(Increase) / decrease in inventories	(44)		(148)		(190)
Increase / (decrease) in trade and other payables	156		1,028		1,212
	______		______		______
Cash generated from operations	969		909		2,398
Income tax received	-		-		-
	______		______		______
Net cash flows from operating activities	969		909		2,398
Investing activities
Purchase of property, plant and equipment	(2,511)		(2,450)		(3,774)
Interest received	-		-		6
	______		______		______
Net cash outflow from investment activities	(2,511)		(2,450)		(3,768)
Financing activities Issue of ordinary shares Bank  loan receipt Bank loan repaid Interest paid	12 1,500 - (25) ______		- 1,000 - (16) ______		15 1,500 (500) (42) ______
Net cash inflow from financing	1,487		984		973
	______		______		______
Net (decrease) / increase in cash and cash equivalents	(55)		(557)		(397)
Cash and equivalents at beginning of period	1,611		2,008		2,008
	______		______		______
Cash and equivalents at end of period	1,556		1,451		1,611
	______		______		______

Notes to the financial statements

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 19 Cavendish Square London W1A 2AW.  The Company's ordinary shares are traded on the Alternative Investment Market ("AIM").  Copies of this Interim Report or the Annual Report and Accounts 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

Tasty plc ("Tasty"') has prepared its results under International Financial Reporting Standards and International Financial Reporting Council "IFRIC" interpretations as adopted by the European Union ("IFRS").  Tasty  adopted IFRS with effect from 1 January 2007. 

These standards remain subject to ongoing amendment and/or interpretation and are, therefore, still subject to change.  Accordingly, information contained in these interim financial statements may need to be updated for subsequent amendments to IFRS or for new standards issued after the balance sheet date.

                The basis of preparation and accounting policies followed in the interim report are the same as those set out in the annual report and accounts for the year ended 30 December 2012, however, for the current period the Group has adopted IFRS 13 "Fair value measurement" which has had no significant impact on the results or financial position.  As permitted this interim report has not been prepared in accordance with IAS 34 "Interim Financial Reporting", nor has it been audited nor reviewed pursuant to guidance issued by the Auditing Practices Board.

The financial information for the period ended 30 December 2012 does not constitute the full statutory accounts for that period.  The Annual Report and Financial Statements for 2012 have been filed with the Registrar of Companies.  The Independent Auditors' Report on the Annual Report and Financial Statement for 2012 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 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              Income tax expense

The taxation charge for the 26 weeks ended 30 June 2013 has been calculated by applying the estimated effective tax rate for the period ending 30 December 2012

	Unaudited	Unaudited	Audited
	26 weeks to	26 weeks to	52 weeks to
	30 June	1 July	30 December
	2013	2012	2012
	£'000	£'000	£'000
UK corporation tax
Current tax credit on profit/(loss) for the period	-	-	-
Adjustment in respect of prior period	-	-	-
	_______	_______	_______
Current tax credit for period	-	-	-
Deferred taxation
Reversal of temporary differences	(173)	-	(275)
	_______	_______	_______
Total income tax	(173)	-	(275)
	_______	_______	_______

4              Earnings per share

	Unaudited	Unaudited	Audited
	26 weeks to	26 weeks to	52 weeks  to
	30 June	1 July	30 December
	2013	2012	2012
	Pence	Pence	Pence
Basic earnings per share	1.28	0.75	2.67
	_______	_______	_______
Diluted earnings per share	1.25	0.74	2.61
	_______	_______	_______

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 has been calculated using the numbers shown below:-

	Unaudited	Unaudited	Audited
	26 weeks to	26 weeks to	52 weeks to
	30 June	1 July	30 December
	2013	2012	2012
	£'000	£'000	£'000
Profit  for the period	614	360	1,277
	_______	_______	_______
	Number	Number	Number
	' 000	' 000	' 000
Basic weighted average number of ordinary shares	47,963	47,836	47,841
Effect of dilution - share options	1,049	492	1,049
	_______	_______	_______
Diluted weighted average number of ordinary shares	49,012	48,328	48,890
	_______	_______	_______

Enquiries

Tasty plc

Jonny Plant                                           Tel: [phone]

Cenkos Securities plc

Bobbie Hilliam                                     Tel: [phone] 

NOMAD and Broker

 

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