Half Yearly Report

RNS Number : 3431Y

Tasty PLC

08 September 2015

 

Tasty plc

("Tasty" or the "Group")

Interim Results (unaudited) for the 26 weeks ended 28 June 2015

Highlights:

·     Revenue up 24% to £17,050,000 (H1 2014 - £13,794,000)

·     Operating profit, before pre-opening costs, share based payments and interest, up 39% to £1,684,000 (H1 2014 - £1,210,000)

·     Pre-tax profit up 36% to £1,327,000 (H1 2014 - £973,000)

·     Six new sites opened in the period and one site opened since the period end

Chairman's Statement

I am pleased to report on the Group's half year results for the 26 weeks ended on 28 June 2015, prepared in accordance with International Financial Reporting Standards as adopted by the EU ("IFRS").

Results

Turnover for the period was £17,050,000 (2014 - £13,794,000), a 24% increase over the corresponding period and operating profit, before pre-opening costs, share based payments and interest, was £1,684,000 (2014 - £1,210,000), a 39% increase over last year.

Pre-tax profit was £1,327,000 (2014 - £973,000) a 36% increase over the corresponding period.  Basic and diluted earnings per share for the period were 1.98p and 1.94p (2014 - 1.40p and 1.38p) a 41% and a 40% increase respectively over last year.

Cash flows and financing

During the period capital expenditure of £4,335,000 (2014 - £1,962,000) was incurred.  6   sites have been opened in the period, with a further site opened since the period end.  The Group is currently undertaking construction on 4 sites which are expected to open in Q4 of 2015.

Overall, the net cash outflow for the period was £731,000 (2014 - £474,000).   As at 28 June 2015, the Group had net borrowings of £1,737,000 (2014 - net cash £1,933,000).  The Group has an available banking facility of £8,000,000.

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 new sites, as reported above, will bring the total number of restaurants operated by the Group to 46, which will consist of 6 Dim t and 40 Wildwood and Wildwood Kitchens. The Group continues to look at new sites, has the resources for further acquisitions and expects to have opened a further 4 restaurants by the year end.

K Lassman

Chairman

Tasty plc

8 September 2015

Consolidated statement of comprehensive income
for the 26 weeks ended 28 June 2015 (unaudited)

			26 weeks to		26 weeks to		52 weeks to
			28 June		29 June		28 December
			2015		2014		2014
			£'000		£'000		£'000
	Revenue		17,050		13,794		29,734
	Cost of sales		(15,182)		(12,276)		(26,207)
	Gross profit		1,868		1,518		3,527
	Administrative costs		(484)		(492)		(901)
	Operating profit excluding pre-opening costs and  non-trading items		1,684		1,210		3,090
	Pre-opening costs		(252)		(136)		(360)
	Non-trading items		(48)		(48)		(104)
	Operating profit		1,384		1,026		2,626
	Finance expense		(57)		(53)		(74)
	Profit before tax		1,327		973		2,552
	Income tax		(275)		(230)		(500)
	Profit and total comprehensive income for period
	attributable to equity shareholders		1,052		743		2,052
	Profit per ordinary share
	Basic		1.98p		1.40p		4.20p
	Diluted		1.94p		1.38p		4.13p

Consolidated statement of changes in equity
for the 26 weeks ended 28 June 2015 (unaudited)

		Share capital	Share premium	Merger reserve	Retained deficit	Total
		£'000	£'000	£'000	£'000	£'000
	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 29 December 2013	5,293	13,317	992	(2,157)	17,445
	Issue of ordinary shares	1	1	-	-	2
	Total comprehensive income for the period	-	-	-	743	743
	Share based payments - credit to equity	-	-	-	48	48
	Balance at 29 June 2014	5,294	13,318	992	(1,366)	18,238
	Balance at 29 December 2013	5,293	13,317	992	(2,157)	17,445
	Issue of ordinary shares	12	19	-	-	31
	Total comprehensive income for the period	-	-	-	2,052	2,052
	Share based payments - credit to equity	-	-	-	104	104
	Balance at 28 December 2014	5,305	13,336	992	(1)	19,632

Consolidated balance sheet
At 28 June 2015 (unaudited)

			28 June 2015		29 June 2014		28 December 2014
			£'000		£'000		£'000
	Non-current assets
	Intangible assets		443		445		444
	Property, plant and equipment		24,025		16,641		20,391
	Pre-paid operating lease charges		1,671		1,831		1,731
	Other non-current assets		327		381		341
			26,466		19,298		22,907
	Current assets
	Inventories		1,328		821		1,051
	Trade and other receivables		2,177		2,125		1,801
	Pre-paid operating lease charges		152		152		152
	Cash and cash equivalents		1,313		2,933		2,044
			4,970		6,031		5,048
	Total assets		31,436		25,329		27,955
	Current liabilities
	Trade and other payables		(6,236)		(5,435)		(6,536)
	Borrowings		(375)		(375)		(500)
			(6,611)		(5,810)		(7,036)
	Non-current liabilities
	Provisions		(55)		(65)		(55)
	Lease incentives		(478)		(246)		(367)
	Deferred tax liability		(890)		(345)		(615)
	Long-term borrowings		(2,625)		(625)		(250)
			(4,048)		(1,281)		(1,287)
	Total liabilities		(10,659)		(7,091)		(8,323)
	Total net assets		20,777		18,238		19,632
	Equity
	Share capital		5,319		5,294		5,305
	Share premium		13,367		13,318		13,336
	Merger reserve		992		992		992
	Retained deficit		1,099		(1,366)		(1)
	Total equity		20,777		18,238		19,632

Consolidated cash flow statement
for the 26 weeks ended 28 June 2015 (unaudited)

				26 weeks to		26 weeks to		52 weeks to
				28 June		29 June		28 December
				2015		2014		2014
				£'000		£'000		£'000
	Operating activities
	Cash generated from operations			1,526		1,539		5,308
	Corporation tax paid			-		-		-
	Net cash inflow from operating activities			1,366		1,539		5,308
	Investing activities
	Purchase of property, plant and equipment			(4,495)		(1,962)		(6,378)
	Interest received			-		-		9
	Net cash flows used in investing activities			(4,495)		(1,962)		(6,369)
	Financing activities
	Net proceeds from issues of ordinary shares			45		2		31
	Bank loan receipt			2,250		-		-
	Bank loan repayment			-		-		(250)
	Interest paid			(57)		(53)		(83)
	Net cash flows generated / (used) in financing activities			2,238		(51)		(302)
	Net decrease in cash and cash equivalents			(731)		(474)		(1,363)
	Cash and cash equivalents at beginning of the period			2,044		3,407		3,407
	Cash and cash equivalents as at 29 June 2014			1,313		2,933		2,044

Notes to the condensed financial statements
for the 26 weeks ended 28 June 2015 (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 28 December 2014 does not constitute the full statutory accounts for that period. The Annual Report and Financial Statements for 2014 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statements for 2014 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

				26 weeks to		26 weeks to		52 weeks to
				28 June		29 June		28 December
				2015		2014		2014
				£'000		£'000		£'000
	Share based payments			(48)		(48)		(104)
				(48)		(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 21.5% (2014 - 23.5%).

5      Earnings per share

				26 weeks to		26 weeks to		52 weeks to
				28 June		29 June		28 December
				2015		2014		2014
				Pence		pence		Pence
	Basic earnings per ordinary share			1.98		1.40		3.88
	Diluted earnings per ordinary share			1.94		1.38		3.83

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:

				26 weeks to		26 weeks to		52 weeks to
				28 June		29 June		28 December
				2015		2014		2014
				number '000		number '000		number     '000
	Weighted average ordinary shares (basic)			53,171		52,928		52,954
	Weighted average ordinary shares (diluted)			54,278		53,788		53,616

				26 weeks to		26 weeks to		52 weeks to
				28 June		29 June		28 December
				2015		2014		2014
				£'000		£'000		£'000
	Profit for the financial period			1,052		743		2,052

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

				26 weeks to		26 weeks to		52 weeks to
				28 June		29 June		28 December
				2015		2014		2014
				£'000		£'000		£'000
	Profit before tax			1,327		973		2,552
	Finance income			-		-		(9)
	Finance expense			57		53		83
	Share based payment charge			48		48		104
	Depreciation and amortisation and impairment			922		770		1,310
	Loss on disposal			-		-		63
	Onerous lease provision movement			-		-		(10)
	Increase in inventories			(277)		(10)		(240)
	Increase in trade and other receivables			(362)		(775)		(411)
	Increase in trade and other payables			(189)		480		1,866
				1,526		1,539		5,308

 

END

 

 

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