Tasty plc
Preliminary results for the 52 weeks ended 1 January 2012
Highlights
* Revenue up 38% to £14,565,000 (2010 - £10,560,000)
* Like for like sales increased by 10%
* Operating profit excluding pre-opening costs of £1,164,000 (2010 -£528,000)
* Statutory pre-tax profit of £1,066,000 (2010 -£244,000)
* Further new units in pipeline and well positioned to continue expansion
Enquiries
Tasty plc Tel: 020 7637 1166
Jonny Plant, Chief Executive
Cenkos Securities Tel: 020 7397 8927
Bobbie Hilliam
Chairman's statement
I am pleased to be reporting on the Group's profitable results of some £1,276,000 (2010 - £244,000). The results are for the 52 week period ended 1 January 2012 and a comparative of the 53 week period ended 2 January 2011. During the year a new Wildwood restaurant was opened, and two Café Pasta restaurants and a Chez Gerard restaurant were acquired. The Group now has eighteen restaurants in operation - 6 DimTs, 9 Wildwoods and 3 others.
Results
Revenue for the year was up 38% on last year to £14,565,000 (2010 - £10,560,000). On a like-for-like basis sales increased by 10%; made up of 5.5% at DimT and 16.7% at Wildwood.
Operating profit before pre-opening costs and non-trading items was £1,164,000 (2010 - £528,000). Pre-opening costs for the period totalled £110,000 (2010 - £294,000). The overall statutory pre-tax profit was £1,066,000 (2010 - £244,000).
The Board does not recommend the payment of a dividend at this stage of the Group's development.
Openings
A new Wildwood restaurant was opened at Canary Wharf in July: and two Café Pasta restaurants were acquired at Shaftesbury Avenue and Stratford-upon-Avon in November; and a Chez Gerard site at Cambridge was purchased in December.
Since the year end we have successfully opened 2 Wildwood restaurants in Epping and Cambridge. Market Harborough is due to open in April 2012 with a number of others already in the pipeline, at various stages of completion and negotiation.
Cash flows
Net cash outflow for the period before financing was £911,000 (2010 - £831,000). This is largely represented by capital expenditure on the expansion of the business through the opening and acquisition of the above sites. Cash flows from operating activities increased to £1,742,000 (2010 - £1,217,000). During the period £nil (2010 - £1,900,000) was raised from a share issue. Net cash and cash equivalents held at the end of the year were £2,008,000 (2010 - £2,919,000).
Review of the business
2011 has proved to be a year of expansion. The Group continually looks to update its menus 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 and these continue to be kept under constant review. This has resulted in a considerable improvement in the trading position of the Group despite the continuing challenging 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 technical 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 much improved 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 been in line with expectations.
AGM
The Company's annual general meeting will take place on 24 May 2012.
……………………………………
Keith Lassman
Chairman
17 April 2012
Tasty plc
Consolidated Statement of Comprehensive Income for the 52 weeks ended 1 January 2012
|
Note |
2011 |
|
2010 |
|
|
£'000 |
|
£'000 |
|
|
|
|
|
Revenue |
|
14,565 |
|
10,560 |
|
|
|
|
|
Cost of sales |
|
(12,836) |
|
(9,456) |
|
|
|
|
|
Gross profit |
|
1,729 |
|
1,104 |
|
|
|
|
|
Administrative costs |
|
(675) |
|
(870) |
|
|
|
|
|
Operating profit excluding pre-opening costs |
|
1,164 |
|
528 |
Pre-opening costs |
|
(110) |
|
(294) |
|
|
|
|
|
Operating profit |
|
1,054 |
|
234 |
|
|
|
|
|
Finance income |
|
12 |
|
10 |
|
|
|
|
|
Profit before taxation |
|
1,066 |
|
244 |
|
|
|
|
|
Income tax credit |
2 |
210 |
|
- |
|
|
|
|
|
Profit and total comprehensive income for the period |
|
|
|
|
- attributable to equity shareholders |
|
1,276 |
|
244 |
|
|
|
|
|
Profit per ordinary share |
|
|
|
|
Basic |
3 |
2.67p |
|
0.56p |
Diluted |
3 |
2.64p |
|
0.56p |
Tasty plc
Consolidated statement of changes in equity as at 1 January 2012
|
|
Share |
|
Share |
|
Merger |
|
Retained |
|
Total |
|
|
capital |
|
premium |
|
reserve |
|
deficit |
|
Equity |
|
|
£'000 |
|
£'000 |
|
£'000 |
|
£'000 |
|
£'000 |
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period |
|
- |
|
- |
|
- |
|
1,276 |
|
1,276 |
Share based payments - credit to equity |
|
- |
|
- |
|
- |
|
29 |
|
29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 1 January 2012 |
|
4,784 |
|
10,350 |
|
992 |
|
(5,127) |
|
10,999 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tasty plc
Consolidated balance sheet at 1 January 2012
|
Note |
2011 |
|
2011 |
|
2010 |
|
2010 |
|
|
£'000 |
|
£'000 |
|
£'000 |
|
£'000 |
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
|
Intangible assets |
4 |
450 |
|
|
|
61 |
|
|
Property, plant and equipment |
|
8,546 |
|
|
|
7,152 |
|
|
Pre-paid operating lease charges |
|
1,382 |
|
|
|
893 |
|
|
Deferred tax asset |
|
460 |
|
|
|
250 |
|
|
Other receivables |
|
451 |
|
|
|
292 |
|
|
|
|
|
|
|
|
|
|
|
Total non-current assets |
|
|
|
11,289 |
|
|
|
8,648 |
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Inventories |
|
499 |
|
|
|
438 |
|
|
Trade and other receivables |
|
711 |
|
|
|
569 |
|
|
Pre-paid operating lease charges |
|
67 |
|
|
|
40 |
|
|
Cash and cash equivalents |
|
2,008 |
|
|
|
2,919 |
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
|
3,285 |
|
|
|
3,966 |
|
|
|
|
|
|
|
|
|
Total assets |
|
|
|
14,574 |
|
|
|
12,614 |
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
|
Accrual for lease incentives |
|
200 |
|
|
|
213 |
|
|
|
|
|
|
|
|
|
|
|
Total non-current liabilities |
|
|
|
200 |
|
|
|
213 |
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Trade and other payables |
|
3,290 |
|
|
|
2,607 |
|
|
Provisions |
|
85 |
|
|
|
100 |
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
|
3,375 |
|
|
|
2,707 |
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
|
3,575 |
|
|
|
2,920 |
|
|
|
|
|
|
|
|
|
TOTAL NET ASSETS |
|
|
|
10,999 |
|
|
|
9,694 |
|
|
|
|
|
|
|
|
|
Capital and reserves attributable to |
|
|
|
|
|
|
|
|
equity holders of the parent |
|
|
|
|
|
|
|
|
Share capital |
|
|
|
4,784 |
|
|
|
4,784 |
Share premium reserve |
|
|
|
10,350 |
|
|
|
10,350 |
Retained deficit |
|
|
|
(5,127) |
|
|
|
(6,432) |
Merger reserve |
|
|
|
992 |
|
|
|
992 |
|
|
|
|
|
|
|
|
|
TOTAL EQUITY |
|
|
|
10,999 |
|
|
|
9,694 |
|
|
|
|
|
|
|
|
|
Tasty plc
Consolidated cash flow statement for the 52 weeks ended 1 January 2012
|
|
2011 |
|
2011 |
|
2010 |
|
2010 |
|
|
£'000 |
|
£'000 |
|
£'000 |
|
£'000 |
|
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period before taxation |
|
1,066 |
|
|
|
244 |
|
|
Adjustments for: |
|
|
|
|
|
|
|
|
Depreciation |
|
582 |
|
|
|
435 |
|
|
Amortisation |
|
2 |
|
|
|
3 |
|
|
Impairment losses |
|
- |
|
|
|
- |
|
|
Onerous lease provision |
|
- |
|
|
|
- |
|
|
Equity settled share-based payment |
|
|
|
|
|
|
|
|
expense |
|
29 |
|
|
|
90 |
|
|
Finance income |
|
(12) |
|
|
|
(10) |
|
|
Gain on sale of property, plant and |
|
|
|
|
|
|
|
|
equipment |
|
- |
|
|
|
(25) |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
before changes in working capital |
|
1,667 |
|
|
|
737 |
|
|
|
|
|
|
|
|
|
|
|
Increase in trade and other receivables |
|
(537) |
|
|
|
(249) |
|
|
Increase in inventories |
|
(43) |
|
|
|
(87) |
|
|
Increase in trade and other payables |
|
655 |
|
|
|
816 |
|
|
|
|
|
|
|
|
|
|
|
Cash generated from operations |
|
|
|
1,742 |
|
|
|
1,217 |
|
|
|
|
|
|
|
|
|
Income tax received |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
Net cash flows from operating activities |
|
|
|
|
|
|
|
|
carried forward |
|
|
|
1,742 |
|
|
|
1,217 |
|
|
|
|
|
|
|
|
|
Tasty plc
Consolidated cash flow statement for the 52 weeks ended 1 January 2012 (Continued)
|
|
2011 |
|
2011 |
|
2010 |
|
2010 |
|
|
£'000 |
|
£'000 |
|
£'000 |
|
£'000 |
|
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
brought forward |
|
|
|
1,742 |
|
|
|
1,217 |
|
|
|
|
|
|
|
|
|
Investing activities before taxation |
|
|
|
|
|
|
|
|
Purchases of property, plant and |
|
|
|
|
|
|
|
|
equipment |
|
(1,607) |
|
|
|
(1,619) |
|
|
Purchase of intangible assets |
|
- |
|
|
|
- |
|
|
Acquisition |
|
(1,058) |
|
|
|
(464) |
|
|
Sale of property, plant and equipment |
|
- |
|
|
|
25 |
|
|
Interest received |
|
12 |
|
|
|
10 |
|
|
|
|
|
|
|
|
|
|
|
Net cash outflow from investing |
|
|
|
|
|
|
|
|
activities |
|
|
|
(2,653) |
|
|
|
(2,048) |
|
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
|
|
Issue of ordinary shares (net of issue |
|
|
|
|
|
|
|
|
costs of £100,000) |
|
- |
|
|
|
1,900 |
|
|
|
|
|
|
|
|
|
|
|
Net cash from financing activities |
|
|
|
- |
|
|
|
1,900 |
|
|
|
|
|
|
|
|
|
Net (decrease)/increase in cash and cash |
|
|
|
|
|
|
|
|
equivalents |
|
|
|
(911) |
|
|
|
1,069 |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning |
|
|
|
|
|
|
|
|
of period |
|
|
|
2,919 |
|
|
|
1,850 |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of |
|
|
|
|
|
|
|
|
period |
|
|
|
2,008 |
|
|
|
2,919 |
|
|
|
|
|
|
|
|
|
Notes to the preliminary announcement
1. |
Basis of preparation
The financial information has 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 Company's 2010 Report and Accounts.
The financial information set out in this announcement does not constitute the Company's statutory accounts for the 52 weeks ended 1 January 2012 or the 53 weeks ended 2 January 2011. Statutory accounts for the 52 weeks ended 1 January 2012 and the 53 weeks ended 2 January 2011 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 2010 have been filed with the Registrar of Companies. The statutory accounts for the 52 weeks ended 1 January 2012 will be delivered to the registrar in due course.
|
|||
|
|
|||
2. |
Tax on profit on ordinary activities |
|
|
|
|
|
2011 |
|
2010 |
|
|
£'000 |
|
£'000 |
|
|
|
|
|
|
(a) Analysis of charge for the period |
|
|
|
|
|
|
|
|
|
Current tax |
|
|
|
|
UK corporation tax on profits of the period |
- |
|
- |
|
|
|
|
|
|
Current tax charge for the period |
- |
|
- |
|
|
|
|
|
|
Deferred tax |
|
|
|
|
Recognition of tax losses |
210 |
|
- |
|
|
|
|
|
|
Total deferred tax |
210 |
|
- |
|
|
|
|
|
|
Total income tax credit |
210 |
|
- |
|
|
|
|
|
|
|
|
|
|
|
(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: |
|||
|
||||
|
|
2011 |
|
2010 |
|
|
£'000 |
|
£'000 |
|
|
|
|
|
|
Profit on ordinary activities before tax |
1,066 |
|
244 |
|
|
|
|
|
|
Profit on ordinary activities multiplied by average |
|
|
|
|
standard rate of corporation tax in the UK of 20.25% |
|
|
|
|
(2010 - 21%) |
216 |
|
51 |
|
|
|
|
|
|
Effects of: |
|
|
|
|
Expenses not deductible for tax purposes |
12 |
|
33 |
|
Utilisation oftax losses |
(228) |
|
(84) |
|
Recognition of losses carried forward |
(210) |
|
- |
|
|
|
|
|
|
Total tax credit (see (a) above) |
(210) |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3. |
Profit per ordinary share (EPS) |
|
|
|
|
|
2011 |
|
2010 |
|
|
£'000 |
|
£'000 |
|
Numerator |
|
|
|
|
|
|
|
|
|
Profit for the period |
1,276 |
|
244 |
|
|
|
|
|
|
Denominator |
|
|
|
|
|
|
|
|
|
|
Number |
|
Number |
|
|
'000 |
|
'000 |
|
|
|
|
|
|
Weighted average number of ordinary shares (basic) |
47,836 |
|
43,230 |
|
Weighted average number of ordinary shares (diluted) |
48,328 |
|
43,368 |
|
|
|
|
|
|
Basic profit per ordinary share (pence) |
2.67p |
|
0.56p |
|
Diluted profit per ordinary share (pence) |
2.64p |
|
0.56p |
|
|
|
|
|
|
2,553,460 share options have been excluded when calculating the diluted EPS as they were anti-dilutive (2010 - 2,195,472). |
|||
|
|
4. |
Acquisition |
In November 2011, the Group entered into an agreement to purchase two leasehold sites from Café Pasta for cash consideration of £640,000 plus the value of inventory.
In December 2012, the Group entered into an agreement to purchase the leasehold site at Cambridge from Chez Gerard for cash consideration of £400,000, plus the value of inventory.
The Group also took on the previous employees in both situations. The assets acquired continued to trade in their existing state. The rationale for the acquisition was to ultimately expand the Wildwood brand into locations the Group felt it could achieve a return.
These transactions have been treated as a business combination under IFRS 3 (revised). The table below sets out the fair value of the identifiable assets and liabilities acquired, as well as the consideration and consequent goodwill.
|
|
|
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|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
The result for the financial period includes revenue of £213,000 and profit of £1,000, which has arisen from the acquired leases in the period post acquisition.
It has not been possible to calculate the revenue and profit that would have resulted had the acquisitions been completed on the first day of the accounting period due to the limited information available about these sites. The rationale for the acquisitions was to continue the expansion of the Group's brands into new locations.
In the prior period on 7 October 2011 the Group entered into an agreement to purchase 2 leasehold sites from Caffe Uno Brasseries Limited for cash consideration of £450,000 plus the value of inventory. The group also took on the previous employees. The assets acquired continued to trade in their existing state initially, before closing for refurbishment and rebranding. The rationale for the acquisition was to expand the Wildwood brand into locations the Group felt it could achieve a return.
As a result the Group recognised goodwill of £50,000.