Final Results

RNS Number : 7180E

Tasty PLC

12 April 2011

 



Tasty plc

Preliminary results for the 53 weeks ended 2 January 2011

Highlights

*        Revenue up 15% to £10,560,000 (2009 - £9,185,000)

*        Improvement in the trading position despite the adverse economic climate

*        Operating profit excluding pre-opening costs and non-trading items of £528,000 (2009 - loss £84,000)

*        Statutory pre-tax profit of £244,000 (2009 - loss £2,080,000)

*        Current trading shows continued improvement in profits

*        Further new units in pipeline and well positioned to continue expansion

Enquiries

Tasty plc                                                   Tel: [phone]

Jonny Plant,  Chief Executive

Evolution Securities                                 Tel: [phone]

Bobbie Hilliam

Chairman's statement

I am delighted to report on the Group's results for 2010, the first year in which we are reporting a statutory profit, of some £244,000 (2009 - loss £2,074,000).  The results are for the 53 week period ended 2 January 2011 and a comparative of the 52 week period ended 27 December 2009.  During the year a former DimT restaurant was successfully re-branded into a Wildwood restaurant; four new Wildwood restaurants were opened and the Milton Keynes restaurant was sub-let.  The Group now has fourteen restaurants in operation - 6 DimTs and 8 Wildwoods.

Results

Revenue for the 53 week period ended 2 January 2011 was up 15% on last year to £10,560,000 (2009 - £9,185,000).  Operating profit before pre-opening costs and non-trading items was £528,000 (2009 - loss £84,000).  Pre-opening costs for the period totalled £294,000 (2009 - £58,000). The overall statutory pre-tax profit was £244,000 (2009 - loss £2,080,000).

The Board do not recommend payment of a dividend at this stage of the Group's development.

Openings

Gloucester Road was re-branded as a Wildwood, re-opened in July and has traded above expectations since then. In addition, four new Wildwood restaurants were opened: Chelmsford in September; Loughton in November and Billericay and Cobham in December.  The Group has just exchanged contracts for a new unit in Canary Wharf which is expected to open in May 2011, with others in the pipeline.

Cash flows

Net cash outflow for the period before financing was £831,000 (2009 - £752,000).  This is largely represented by capital expenditure on the expansion of the business through the opening of four sites and rebranding of another. Cash flows from operating activities increased to £1,217,000 (2009 - £359,000).  During the period £1,900,000 (2009 - £nil) was raised from a share issue.  Net cash and cash equivalents held at the end of the year were £2,919,000 (2009 - £1,850,000).

Review of the business

2010 has proved to be a year of expansion.  The Group has continually looked to update the menus of both the DimT and Wildwood brands and for much of the year has successfully offered promotions to encourage growth in sales.

Management have continued to focus on food and labour margins throughout the year and these continue to be kept under constant review. This has resulted in an improvement in the trading position of the Group despite the adverse economic climate in the United Kingdom.

Pre-opening costs have been highlighted in the income statement as these costs represent revenue expenses, including rent free periods, which give rise to a charge under accounting rules, which are necessarily incurred in the period prior to a new unit being opened, but which are specific to the opening of that unit and not part of the Group's normal ongoing trading performance.

Staff

As ever, it is our dedicated staff that have contributed significantly throughout the year to the Group's performance, and I would like to take this opportunity of thanking them for their hard work and effort.

Current Trading

Since the year end trading has improved still further with a profitable first quarter in 2011.

AGM

The Company's annual general meeting will take place on 25 May 2011.  Apart from matters normally dealt with at AGMs, this year we are taking the opportunity to update our Articles of Association to bring them in to line with the Companies Act 2006.  Shareholders are asked to complete and return the proxy form relating to the AGM whether or not they intend to attend.

……………………………………

Keith Lassman

Chairman

11 April 2011

Tasty plc

Consolidated Statement of Comprehensive Income for the 53 weeks ended 2 January 2011

	Note	2010		2009
		£'000		£'000
Revenue		10,560		9,185
Cost of sales		(9,456)		(8,781)
Gross profit		1,104		404
Administrative costs		(870)		(2,505)
Operating profit/(loss) excluding pre-opening costs and
non trading items		528		(84)
Pre-opening costs		(294)		(58)
Disposal and impairment of property, plant and equipment		-		(1,850)
Onerous lease provision		-		(100)
Redundancy expenses		-		(9)
Operating profit/(loss)		234		(2,101)
Finance income		10		21
Profit/(loss) before taxation		244		(2,080)
Income tax credit	3	-		6
Profit/(loss) and total comprehensive income for the period
- attributable to equity shareholders		244		(2,074)
Profit/(loss) per ordinary share
Basic	4	0.56p		(5.49p)
Diluted	4	0.56p		(5.49p)

Tasty plc

Consolidated statement of changes in equity as at 2 January 2011

		Share		Share		Merger		Retained		Total
		capital		premium		reserve		deficit		Equity
		£'000		£'000		£'000		£'000		£'000
Balance at 28 December 2008		3,784		9,450		992		(4,818)		9,408
Total comprehensive income for the period		-		-		-		(2,074)		(2,074)
Share based payments - credit to equity		-		-		-		126		126
Balance at 27 December 2009		3,784		9,450		992		(6,766)		7,460
Total comprehensive income for the period		-		-		-		244		244
Issue of share capital (net of £100,000 issue costs)		1,000		900		-		-		1,900
Share based payments - credit to equity		-		-		-		90		90
Balance at 2 January 2011		4,784		10,350		992		(6,432)		9,694

Tasty plc

Consolidated balance sheet at 2 January 2011

		2010		2010		2009		2009
		£'000		£'000		£'000		£'000
Assets
Non-current assets
Intangible assets		61				13
Property, plant and equipment		7,152				5,668
Pre-paid operating lease charges		893				731
Deferred tax asset		250				250
Other receivables		292				241
Total non-current assets				8,648				6,903
Current assets
Inventories		438				350
Trade and other receivables		569				537
Pre-paid operating lease charges		40				36
Cash and cash equivalents		2,919				1,850
Total current assets				3,966				2,773
Total assets				12,614				9,676
Liabilities
Non-current liabilities
Accrual for lease incentives		213				227
Total non-current liabilities				213				227
Current liabilities
Trade and other payables		2,607				1,889
Provisions		100				100
Total current liabilities				2,707				1,989
Total liabilities				2,920				2,216
TOTAL NET ASSETS				9,694				7,460
Capital and reserves attributable to
equity holders of the parent
Share capital				4,784				3,784
Share premium reserve				10,350				9,450
Retained deficit				(6,432)				(6,766)
Merger reserve				992				992
TOTAL EQUITY				9,694				7,460

Tasty plc

Consolidated cash flow statement for the 53 weeks ended 2 January 2011

		2010		2010		2009		2009
		£'000		£'000		£'000		£'000
Cash flows from operating activities
Profit/(loss) for the period before taxation		244				(2,080)
Adjustments for:
Depreciation		435				474
Amortisation		3				2
Impairment losses		-				1,850
Onerous lease provision		-				100
Equity settled share-based payment
expense		90				126
Finance income		(10)				(21)
Gain on sale of property, plant and
equipment		(25)				-
Cash flows from operating activities
before changes in working capital		737				451
Increase in trade and other receivables		(249)				(37)
Increase in inventories		(87)				2
Increase/(decrease) in trade and other payables		816				(63)
Cash generated from operations				1,217				353
Income tax received				-				6
Net cash flows from operating activities
carried forward				1,217				359

Tasty plc

Consolidated cash flow statement for the 53 weeks ended 2 January 2011 (Continued)

		2010		2010		2009		2009
		£'000		£'000		£'000		£'000
Cash flows from operating activities
brought forward				1,217				359
Investing activities before taxation
Purchases of property, plant and
equipment		(1,619)				(1,131)
Purchase of intangible assets		-				(1)
Acquisition		(464)				-
Sale of property, plant and equipment		25				-
Interest received		10				21
Net cash outflow from investing
activities				(2,048)				(1,111)
Financing activities
Issue of ordinary shares (net of issue
costs of £100,000 - 2009 - £nil)		1,900				-
Net cash from financing activities				1,900				-
Net increase/(decrease) in cash and cash
equivalents				1,069				(752)
Cash and cash equivalents at beginning
of period				1,850				2,602
Cash and cash equivalents at end of
period				2,919				1,850

Notes to the preliminary announcement

1.	Basis of preparation The financial statements have been prepared in accordance with the accounting policies and presentation required by International Financial Reporting Standards, incorporating International Accounting Standards ("IAS") and Interpretations (collectively 'IFRS') as endorsed by the EU. They are presented in pounds sterling, rounded to the nearest thousand. The same accounting policies, presentation and methods of computation have been followed in the preparation of these results as were applied in the Group's 2009 Report and Accounts except that during the period the Group has adopted IFRS 3 (revised) "Business Combinations". Under IFRS 3 (revised) goodwill is measured as the fair value of consideration transferred less fair value of the indentified assets and liabilities assumed, all measured at the acquisition date. Transaction costs incurred by the Company on a business combination are expensed as incurred. The adoption of these standards and interpretations has no significant impact on the recognition or measurement of transactions and balances within the financial statements The financial information set out in this announcement does not constitute the Group's statutory accounts for the 53 weeks ended 2 January 2011 or the 52 weeks ended 27 December 2009. Statutory accounts for the 53 weeks ended 2 January 2011 and the 52 weeks ended 27 December 2009 have been reported on by the Independent Auditors. The Independent Auditors' Report on the Annual Report and Financial Statement for both periods 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 Annual Report and Financial Statements for 2009 have been filed with the Registrar of Companies.. The statutory accounts for the 53 weeks ended 2 January 2011 will be delivered to the registrar in due course.
2.	Non trading items
		2010		2009
		£'000		£'000
	Provision for impairment	-		1,850
	Onerous lease provision	-		100
	Redundancy payments	-		9
		-		1,959
	The Group carried out an impairment review in 2009 of the carrying values of plant, property and equipment, taking into account the current trading performance and anticipated future cashflows from individual cash generating units in accordance with IAS 36 Impairment of Assets. Impaired assets are carried at their recoverable amount which is the higher of fair value less costs to sell or their economic use in the business.   In the Group's view in 2010 no sites have a value to the business which is less than carrying value and no current sites are expected to be re-branded.  As a result no impairment charge has been made (2009 - £1,850,000).

3.	Tax on profit on ordinary activities
		2010		2009
		£'000		£'000
	(a)   Analysis of charge for the period
	Current tax
	UK corporation tax on profits of the period	-		-
	Adjustment in respect of prior period	-		(6)
	Current tax charge for the period	-		(6)
	Deferred tax
	Adjustment in respect of prior period	-		-
	Origination and reversal of temporary differences	-		-
	Total deferred tax	-		-
	Total income tax credit	-		(6)
	(b)  Factors affecting tax charge for the period
	The tax charge for the period is lower than the standard rate of corporation tax in the UK.       The differences are explained below:
		2010		2009
		£'000		£'000
	Profit/(loss) on ordinary activities before tax	244		(2,080)
	Loss on ordinary activities multiplied by average
	standard rate of corporation tax in the UK of 21%
	(2009 - 21%)	51		(437)
	Effects of:
	Expenses not deductible for tax purposes	33		133
	Decrease/(increase) in unprovided tax losses carried
	forward	(84)		304
	Adjustment in respect of prior period	-		(6)
	Total tax credit (see (a) above)	-		(6)

4.	Loss per ordinary share (EPS)
		2010		2009
		£'000		£'000
	Numerator
	Profit/(loss) for the period	244		(2,074)
	Denominator
		Number		Number
		'000		'000
	Weighted average number of ordinary shares (basic)	43,230		37,837
	Weighted average number of ordinary shares (diluted)	43,368		37,837
	Basic loss per ordinary share (pence)	0.56p		(5.49p)
	Diluted loss per ordinary share (pence)	0.56p		(5.49p)
	In 2010 138,528 dilutive share options have been taken into account when calculating the diluted EPS.  In 2009 the Group made a loss and the effect of taking into account potential ordinary shares would be to reduce the basic loss per share.  Share options have therefore been excluded in the calculation of diluted EPS.

 

END

 

 

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