Preliminary Results

RNS Number : 3165Q

Tasty PLC

08 April 2009

 



Tasty plc

Preliminary results for the 52 weeks ended 28 December 2008

Highlights

* Revenue up 47% to £8,006,000 (2007 - £5,437,000)

*  Dim t opened in Victoria in April and Milton Keynes in May.  

* New 'Wildwood' rustic pizza, pasta and grill brand launched in September in Gerrards Cross.

* Loss before taxation excluding pre-opening costs and non-trading items of £112,000 (2007 - loss £508,000) 

* Statutory pre-tax loss after non-trading items of £1,585,000 (2007 - loss £2,981,000)

Enquiries

Tasty plc                                           Tel: [phone]

Jonny Plant, Chief Executive

Evolution Securities                        Tel: [phone]

Tom Price

Bobbie Hilliam

Chairman's statement

I am pleased to report on the Group's results for 2008. During the year two new Dim t units were successfully opened and we also launched our first 'Wildwood' restaurant. The Group now has 10 restaurants in operation.

Results

Revenue for the 52 weeks ended 28 December 2008 was up 47% to £8,006,000 (2007 - £5,437,000).  Loss before taxation before pre-opening costs and non-trading items was £112,000 (2007 - loss £508,000).  Pre-opening costs for the period totalled £150,000 (2007 - £279,000) and the non-trading items relate to an impairment of property of £1,062,000 (2007 - £590,000), loss on disposal and sub-let of property of £167,000 (2007 - £1,604,000) and redundancy expenses of £94,000 (2007 - nil). The overall statutory pre-tax loss after non trading items was £1,585,000 (2007 - loss £2,981,000).

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

Openings

Dim t opened in Victoria in April and Milton Keynes in May, and in September a new Wildwood opened in Gerrards Cross.  

Impairment

Due to the performance of Tunbridge Wells, the Board decided to sub-let this unit in December 2008 resulting in a £102,000 impairment. Furthermore due to the prevailing economic conditions the Board has taken a prudent view and has written down the value of some of its assets in line with general economic forecasts which has resulted in a total impairment charge for the period of £1,164,000 (2007 - £590,000).

  Cash flows

Net cash out flow for the period before financing was £2,660,000 (2007 - £5,415,000). This is largely represented by capital expenditure on the expansion of business. During the period £1,883,000 (2007 - £5,018,000) was raised from a share issue. Net cash and cash equivalents held at the end of the year were £2,602,000 (2007 - £3,379,000).

Review of the business

2008 has proved to be a year of consolidation. In the earlier part of the year the Group took the opportunity to reduce its overhead costs.  Along with the expansion of Dim t we have converted an old country pub into a rustic pizza, pasta and grill restaurant under the Wildwood brand. This concept has proved particularly popular with our customers, and the Group sees this as an area of particular growth, especially outside London.

Contracts have been exchanged for a further unit in Hornchurch which will open in the summer. Our Maidstone unit was re-branded into a Wildwood branch in March which opened earlier this month

Management have continued to focus on food and labour margins throughout the year and these continue to be kept under constant review.

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 been in line with expectations and revenue has responded well to promotional marketing and offers without having a significant adverse effect on margins.

Keith Lassman

Chairman

7 April 2009

  Tasty plc

Consolidated Income statement for the 52 weeks ended 28 December 2008

	Note	2008		2007
		£’000		£’000
Revenue		8,006		5,437
Cost of sales		(7,717)		(5,531)
Gross profit/(loss)		289		(94)
Administrative costs		(1,983)		(1,434)
Other operating expenses		-		(1,604)
Operating loss excluding pre-opening costs and
non trading items		(221)		(659)
Pre-opening costs		(150)		(279)
Disposal and impairment of property, plant and equipment		(1,229)		(2,194)
Redundancy expenses		(94)		-
Operating loss		(1,694)		(3,132)
Finance income		109		151
Loss before taxation		(1,585)		(2,981)
Income tax credit	3	6		134
Loss for the period - attributable
to equity shareholders		(1,579)		(2,847)
Loss per ordinary share
Basic and diluted	4	(4.80p)		(10.20p)

  Tasty plc

Consolidated statement of changes in equity as at 28 December 2008

		Share		Share		Merger		Retained		Total
		capital		premium		reserve		deficit		Equity
		£’000		£’000		£’000		£’000		£’000
Balance at 1 January 2007		2,601		3,732		992		(525)		6,800
Changed in equity for 2007
Loss for the period		-				-		(2,847)		(2,847)
Total recognised income and expense for the period		-		-		-		(2,847)		2,847
Issue of share capital (net of £169,000 issue costs		516		4,502		-		-		5,018
Share based payments - credit to equity		-		-		-		23		23
Balance at 30 December 2007		3,117		8,234		992		(3,349)		8,994
Changes in equity for 2008
Loss for the period		-		-		-		(1,579)		(1,579)
Total recognised income and expense for the
period		-		-		-		(1,579)		(1,579)
Issue of share capital (net of £117,000 issue
costs		667		1,216		-		-		1,883
Share based payments - credit to equity		-		-		-		110		110
Balance at 28 December 2008		3,784		9,450		992		(4,818)		9,408

  Tasty plc

Consolidated balance sheet at 28 December 2008

		2008		2008		2007		2007
		£’000		£’000		£’000		£’000
Assets
Non-current assets
Intangible assets		14				10
Property, plant and equipment		6,861				5,230
Pre-paid operating lease charges		767				1,103
Deferred tax asset		250				250
Other receivables		241				196
Total non-current assets				8,133				6,789
Current assets
Inventories		313				172
Trade and other receivables		505				503
Pre-paid operating lease charges		34				48
Cash and cash equivalents		2,602				3,379
Total current assets				3,454				4,102
Total assets				11,587				10,891
Liabilities
Non-current liabilities
Accrual for lease incentives		239				219
Total non-current liabilities				239				219
Current liabilities
Trade and other payables		1,940				1,678
Total current liabilities				1,940				1,678
Total liabilities				2,179				1,897
TOTAL NET ASSETS				9,408				8,994
Capital and reserves attributable to
equity holders of the parent
Share capital				3,784				3,117
Share premium reserve				9,450				8,234
Retained deficit				(4,818)				(3,349)
Merger reserve				992				992
TOTAL EQUITY				9,408				8,994

  Tasty plc

Consolidated cash flow statement for the 52 weeks ended 28 December 2008

		2008		2008		2007		2007
		£’000		£’000		£’000		£’000
Cash flows from operating activities
Loss for the period before taxation		(1,585)				(2,981)
Adjustments for:
Depreciation		386				309
Amortisation		2				1
Impairment losses		1,164				590
Loss on sale of property, plant and
equipment		-				1,604
Equity settled share-based payment
expense		110				23
Finance income		(109)				(151)
Cash flows from operating activities
before changes in working capital		(32)				(605)
Increase in trade and other receivables		(279)				(1,128)
Increase in inventories		(141)				(90)
Increase in trade and other payables		462				696
Cash generated from operations				10				(1,127)
Income tax received				6				-
Net cash flows from operating activities
carried forward				16				(1,127)

  Tasty plc

Consolidated cash flow statement for the 52 weeks ended 28 December 2008 (Continued)

		2008		2008		2007		2007
		£’000		£’000		£’000		£’000
Cash flows from operating activities
brought forward				16				(1,127)
Investing activities before taxation
Purchases of property, plant and
equipment		(2,779)				(4,535)
Purchase of intangible assets		(6)				(4)
Sale of property, plant and equipment		-				100
Interest received		109				151
Net cash outflow from investing
activities				(2,676)				(4,288)
Financing activities
Issue of ordinary shares (net of issue
costs of £117,000 - 2007 - £169,000)		1,883				5,018
Net cash from financing activities				1,883				5,018
Net decrease in cash and cash
equivalents				(777)				(397)
Cash and cash equivalents at beginning
of period				3,379				3,776
Cash and cash equivalents at end of
period				2,602				3,379

Notes to the preliminary announcement

1.	Basis of preparation   The consolidated financial statements incorporate the results of the Company and its subsidiary, Took Us A Long Time Limited. The merger method of accounting has been used to consolidate the results of the subsidiary undertaking.    The results presented are for the 52 weeks ended 28 December 2008. The comparative results are for the 52 weeks ended 30 December 2007. The financial information set out above relating to the results of Tasty plc (the “Group”) for the periods ended 28 December 2008 and 30 December 2007 does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985.   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 accounting policies used have been applied consistently to all periods presented and are the same as those set out in detail in the 2007 Report and Accounts.       The financial information set out above for the period ended 28 December 2008 is derived from those accounts that have been audited. A copy of the statutory accounts for the period ended 30 December 2007 has been delivered to the Registrar of Companies. The comparative numbers for the period ended 30 December 2007 have been extracted from those accounts. The auditors' report on those accounts was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under section 237(2)-(3) of the Companies Act 1985.   The annual report and accounts for the period ended 28 December 2008 will be sent out to shareholders. Further copies of the documents can be accessed from the Company's website at www.dimt.co.uk.
2.	Non trading items
		2008		2007
		£’000		£’000
	Loss on sale of sublet of property, plant and equipment	167		1,604
	Provision for impairment	1,062		590
	Redundancy payments	94		-
		1,323		2,194
	During the year, the interest in one leasehold property was sublet for net costs of £65,000, and with 80,000 written off lease premiums and £22,000 impairing property, plant and equipment on the sublet. (2007 – one sale for net proceeds of £100,000. In 2007 the overall loss on disposal from the transaction was £1,604,000). There were no disposals in the current year. All of the above have been charged to administrative costs except for the loss on disposal in the prior year which was charged to other operating expenses.   The Group has carried out an annual impairment review 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. The Group has identified certain sites where recent and anticipated performance in light of the economic downturn indicate they may have a value in use to the business below carrying value. The value in use to the business has been valued by discounting expected future pre-tax cashflows at 17%. The Group has also impaired assets to net realisable value where these are expected to be replaced on rebranding. As a result the Group’s assets have been subjected to an impairment charge of £1,062,000 (2007 – £590,000) to write them down to what is deemed to be their recoverable amount, of which £512,000 represents lease premiums paid. Under IFRS lease premiums are normally treated as prepaid rent and expensed in the income statement over the period of the lease.
3.	Tax on profit on ordinary activities
		2008		2007
		£’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	-		(134)
	Total deferred tax	-		(134)
	Total income tax credit	(6)		(134)
	(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:
		2008		2007
		£’000		£’000
	Loss on ordinary activities before tax	(1,585)		(2,981)
	Loss on ordinary activities multiplied by average
	standard rate of corporation tax in the UK of 20.75%
	(2007 - 20%)	(329)		(894)
	Effects of:
	Expenses not deductible for tax purposes	214		396
	Effects of changes in enacted tax rates and small
	companies rate	-		59
	Increase in unprovided tax losses carried forward	115		305
	Adjustment in respect of prior period	(6)		-
	Total tax credit (see (a) above)	(6)		(134)

4.	Loss per ordinary share (EPS)
		2008		2007
		£’000		£’000
	Numerator
	Loss for the period	(1,579)		(2,847)
	Denominator
		Number		Number
		‘000		‘000
	Weighted average number of ordinary shares (basic and
	diluted eps)	32,892		27,911
	Basic loss per ordinary share (pence)	(4.80p)		(10.20p)
	Diluted loss per ordinary share (pence)	(4.80p)		(10.20p)
	Basic and diluted earnings per share are the same as there is no dilution. The 2,162,000 (2007 – 2,087,000) unexercised share options have not been included in the calculation of the loss per share as they are anti-dilutive.   Options are only taken into account when their effect is to reduce basic earnings per share or increase basic loss per share. Since the Group has made a loss in the current and prior period 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.

 

 

 

 

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