Half-yearly Report

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: [phone]

Jonny Plant, Chief Executive

Cenkos Securities                                               Tel: [phone]

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

 

END

 

 

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