Interim Results
Tasty PLC
28 September 2007
Tasty plc
Chairman's statement
I am pleased to report on the Group's results for the 26 weeks ended on 1 July
2007.
Results
Revenue for the 26 weeks ended 1 July 2007 was £2,684,000 ( 2006 - £1,151,000),
an increase of 133%. The loss before tax for the period was £137,000 (2006 -
profit £90,000). Cost of sales, which include restaurant food and wages costs
were £1,745,000 (2006 - £660,000) and total administrative expenses which
include all other overheads were £1,147,000 (2006 - £422,000).
This is the first set of reported results prepared in accordance with
International Financial Reporting Standards as adopted by the EU ('IFRS'). The
principal changes relate to the treatment of lease premiums, lease incentives
and the impact of a change in basis for the calculation of deferred taxation.
The overall impact of conversion on our profits has been set out and fully
explained in the IFRS Conversion statement issued today. Given that these are
changes in accounting policy only, there is no impact whatsoever on the
operating fundamentals or the underlying cash flows within the business.
Under IFRS we are required to spread the benefit of any rent free periods at the
start of a new lease over the full term of that lease rather than over the
period to the first rent review under UK GAAP. As a consequence the pre-opening
costs to be accounted for in any year will be higher. For the 26 weeks ended 1
July 2007, those pre-opening costs amounted to £65,000 (2006 - £nil).
Basic and diluted (loss)/earnings per share for the period was 0.51p - loss
(2006 - 0.31p - earnings).
Cash flows and financing
In May of this year the Group raised a further £3m through an institutional
placing. During the period, we incurred capital expenditure of £2,806,000 (2006
- £464,000), predominantly on the fit-out of new restaurants. Overall, the net
cash outflow prior to financing flows was £3,032,000 (2006 - £169,000) and as
at 1 July 2007 the Group had net cash balances of £3,702,000 (2006 -
£1,167,000).
Board appointment
I am delighted to take this opportunity to announce that Jo Fleet has accepted
our invitation to join the Board as Executive Director with immediate effect.
Jo has had a long career in catering and only recently left her position as
Chief Executive of ASK Restaurants. Jo has been granted 500,000 share options.
Outlook
During the first six months of 2007, we opened one new restaurant bringing the
number of restaurants at the period end to seven. Since then we have had a
successful opening in Maidstone and all locations continue to perform in line
with our expectations, with the exception of our restaurant in Nottingham. By
the end of the calendar year we expect to have opened a further two restaurants.
Our central kitchen in Park Royal is now fully operational with sufficient
capacity to cope with our expansion for the foreseeable future.
K Lassman
Chairman
Tasty plc
28 September 2007
Consolidated Income Statement
(unaudited)
26 weeks 26 weeks Year
ended ended ended
1 July 2 July 31 December
2007 2006 2006
£000 £000 £000
Revenue 2,684 1,151 2,676
Cost of sales (1,745) (660) (1,598)
______ ______ ______
Gross profit 939 491 1,078
Administrative expenses
Exceptional flotation expenses - - (118)
Share based payments (8) - (136)
Other administrative expenses (1,139) (422) (1,153)
Total administrative expenses (1,147) (422) (1,407)
______ ______ ______
Operating (loss)/profit (208) 69 (329)
Finance income 71 21 77
______ ______ ______
(Loss)/Profit before taxation (137) 90 (252)
Income tax expense - (29) 21
______ ______ ______
(Loss)/Profit for the period (137) 61 (231)
attributable to equity shareholders ______ ______ ______
(Loss)/Earnings per share - basic and diluted (0.51p) 0.31p (1.14p)
Statement of Changes in Equity
(unaudited)
26 weeks 26 weeks Year
ended ended ended
1 July 2 July 31 December
2007 2006 2006
£000 £000 £000
(Loss)/profit for the period (137) 61 (231)
______ ______ ______
Total income and expense for the period (137) 61 (231)
New capital subscribed 2,958 106 4,391
Share-based payments - credit to equity 8 - 186
Merger reserve arising on group re-organisation - - 106
______ ______ ______
Total change in equity 2,829 167 4,452
Opening equity 6,800 2,348 2,348
______ ______ ______
Closing equity 9,629 2,515 6,800
______ ______ ______
Consolidated Balance Sheet
(unaudited) 1 July 2 July 31 December
2007 2006 2006
£000 £000 £000
Non-current assets
Intangibles 10 - 7
Property, plant and equipment 4,850 1,398 3,193
Pre-paid operating lease charges 1,229 137 311
Deferred tax asset 116 60 116
Rent deposits 197 123 197
______ ______ ______
6,402 1,718 3,824
Current assets
Inventories 105 25 82
Pre-paid operating lease charges 46 6 14
Trade and other receivables 746 298 304
Cash and cash equivalents 3,702 1,167 4,003
______ ______ ______
4,599 1,496 4,403
______ ______ ______
Total assets 11,001 3,214 8,227
______ ______ ______
Current liabilities
Bank overdraft - - (227)
Trade and other payables (1,234) (699) (1,129)
______ ______ ______
(1,234) (699) (1,356)
Non current liabilities
Accruals and deferred income (138) - (71)
______ ______ ______
Total liabilities (1,372) (699) (1,427)
______ ______ ______
Net assets 9,629 2,515 6,800
______ ______ ______
Capital and reserves attributable to equity shareholders
Share capital 2,874 2,774 2,601
Share premium 6,417 159 3,732
Share option reserve 194 - 186
Merger reserve 992 - 992
Retained earnings (848) (418) (711)
______ ______ ______
Equity 9,629 2,515 6,800
______ ______ ______
Consolidated Cash Flow
(unaudited) 26 weeks 26 weeks Year
ended ended ended
1 July 2 July 31 December
2007 2006 2006
£000 £000 £000
Net cash inflow from operating activities
(Loss)/profit before taxation (137) 90 (252)
Finance income (71) (21) (77)
Depreciation & amortisation 228 40 111
Share based payment charge 8 - 136
Share based payment charge included in exceptional - - 16
flotation expenses
Movement in working capital (325) 165 528
Corporation tax paid - - (6)
______ ______ ______
Net cash (outflow)/inflow from operating activities (297) 274 456
Cash outflow from investing activities
Finance income 71 21 77
Payments to acquire property, plant and equipment (2,806) (464) (2,518)
______ ______ ______
Net cash outflow from investment activities (3,032) (169) (1,985)
Net cash inflow from financing
Issue of share capital 2,958 106 4,531
______ ______ ______
Net (decrease)/increase in cash and cash equivalents (74) (63) 2,546
______ ______ ______
Cash and equivalents at beginning of period 3,776 1,230 1,230
______ ______ ______
Cash and equivalents at end of period 3,702 1,167 3,776
______ ______ ______
Notes to the financial statements
1 General information
Tasty plc ('Tasty') is a public limited company ('the Group') incorporated in
the United Kingdom under the Companies Act 1985 (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 historically prepared its accounts under UK General
Accepted Accounting Practice (UK GAAP'), however, as required by AIM rules,
Tasty will in future prepare its results under International Financial Reporting
Standards and International Financial Reporting Council 'IFRIC' interpretations
as adopted by the European Union ('IFRS'). Tasty has adopted IFRS with effect
from 1 January 2007. The Group will apply IFRS in its financial statements in
its Annual Report for the 52 weeks ending 30 December 2007. Therefore, these
interim statements for the 26 weeks ended 1 July 2007 are prepared using
accounting policies in accordance with IFRS that are expected to be applicable
to the financial statements for the 52 weeks ending 30 December 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 required for first time adoption or for new standards issued
after the balance sheet date.
The basis of preparation and accounting policies followed in the Interim Report
differ from those set out in the Annual Report and Accounts for the year ended
31 December 2006, which were prepared in accordance with UK GAAP. As permitted
this report has not been prepared in accordance with IAS34 'Interim Financial
Reporting'.
A detailed explanation of the impact of the transition from UK GAAP to IFRS,
setting out the restatement of the comparatives for the 26 weeks ended 2 July
2006 and the year ended 31 December 2006, has been provided in a Statement of
Conversion issued to the Stock Exchange today. Details of the significant
accounting policies used in the preparation of the Group's reported results
under IFRS and, therefore, applied in the preparation of this Interim Report
were also provided within the Statement of Conversion. Copies of the Statement
of Conversion are available on the investor relations section of the Group's
website (www.dimt.co.uk) or from the Company Secretary.
This statement does not comprise statutory accounts as defined in Section 240 of
the Companies Act 1985. The financial information for the year to 31 December
2006 is a restated extract from the latest Group accounts, amended as required
on transition to IFRS. Statutory financial statements for the year ended 31
December 2006, prepared in accordance with UK GAAP, on which the auditors gave
an unqualified opinion, did not include references to any matters to which the
auditors drew attention by way of emphasis without qualifying their reports and
did not include a statement under section 237 (2) or (3) of the Companies Act
1985, have been filed with the Registrar of Companies. The results for the 26
weeks to 1 July 2007 and 2 July 2006 are unaudited.
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.
This was a group reconstruction, as allowed by IFRS3 so the merger method of
accounting is used to consolidate the results of the subsidiary undertaking.
The merger of the two companies took place on 26 June 2006. The shares issued
are recorded in the Group's balance sheet at nominal value together with the
amount of any additional consideration. In the Group accounts the subsidiary
undertaking is treated as if it had always been a member of the Group. In the
year it joined the Group, its results are included for the whole period.
Costs totalling £145,121 (2006 - £12,060), which relate to pre-opening
expenditure, have been included in the accounts for the period ended 1 July
2007.
3 Income tax expense
The taxation charge for the 26 weeks ended 1 July 2007 has been calculated by
applying the estimated effective tax rate for the year ending 31 December 2007
unaudited unaudited (restated)
26 weeks to 26 weeks to Year to
1 July 2 July 31 December
2007 2006 2006
£'000 £'000 £'000
UK corporation tax
Current tax credit on (Loss)/profit for the period - (6) -
Deferred taxation
Increase in recoverable deferred tax asset - 35 21
_______ _______ _______
Total income tax expense/(credit) - 29 (21)
_______ _______ _______
4 Earnings per share
unaudited unaudited (restated)
26 weeks to 26 weeks to Year to
1 July 2 July 31 December
2007 2006 2006
Pence Pence Pence
Basic earnings per share (0.51) 0.31 (1.14)
_______ _______ _______
Basic and diluted earnings per share are the same as there is no dilution.
Earnings per share has been calculated using the numbers shown below:-
unaudited unaudited (restated)
26 weeks to 26 weeks to Year to
1 July 2 July 31 December
2007 2006 2006
£'000 £'000 £'000
(Loss)/Profit for the period (137) 61 (231)
_______ _______ _______
Number Number Number
Weighted average number of ordinary shares in issue 26,581 19,420 20,221
_______ _______ _______
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