Preliminary Results

RNS Number : 0521D

Tasty PLC

24 April 2013

 



Tasty plc

Preliminary results for the 52 weeks ended 30 December 2012

Highlights

*        Revenue up 33% to £19,315,000 (2011 - £14,565,000)

*        Operating profit excluding pre-opening costs of £1,717,000 (2011 -£1,164,000)

*        Statutory pre-tax profit of £1,552,000 (2011 -£1,066,000)

*        Further new units in pipeline and well positioned and financed to continue expansion

Enquiries

Tasty plc                                                               Tel: [phone]

Jonny Plant, Chief Executive

Cenkos Securities                                                Tel: [phone]

Bobbie Hilliam

Chairman's statement

I am pleased to be reporting on the Group's profitable results of some £1,277,000  (1 January 2012 - £1,276,000).  The results are for the 52 week period ended 30 December 2012 and a comparative to the 52 week period ended 1 January 2012.

During the year five new Wildwood restaurants were opened, and the former Cambridge Chez Gerard restaurant was converted into a Wildwood restaurant.  The Group had twenty-three restaurants in operation at the year-end - 6 DimTs, 17 Wildwoods. As of today, the Board is pleased to say it has twenty-six restaurants in operation - 6 DimTs and 20 Wildwoods.

Results

Revenue for the year was up 33% on last year to £19,315,000  (1 January 2012 - £14,565,000). 

Operating profit before pre-opening costs and non-trading items was £1,717,000 (1 January 2012 - £1,164,000).  Pre-opening costs for the period totalled £403,000 (1 January 2012 - £110,000).

The overall statutory pre-tax profit was £1,552,000 (1 January 2012 - £1,066,000).

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

Openings

Five new Wildwood restaurants were opened during the year: at Epping in March; Market Harborough in April; Ely and Bow St both in May and Canterbury in October.  The former Chez Gerard site at Cambridge acquired in December 2011 was closed in February and re-opened as a Wildwood restaurant in March 2012. 

Since the year end the Group's two Cafe Pasta restaurants at Shaftesbury Avenue and Stratford-upon-Avon acquired in November 2011, were successfully converted into a new sub-brand of Wildwood, Wildwood Kitchen.  We have also successfully opened a new Wildwood Kitchen at Didcot in March 2013 and two Wildwood restaurants in South Woodford and Newmarket in April 2013; with a number of other sites already in the pipeline, at various stages of completion and negotiation.

Cash flows

Net cash outflow for the period before financing was £1,370,000 (1 January 2012 - £911,000).  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 £2,398,000 (1 January 2012 - £1,742,000). 

During the period a new loan facility of £2,500,000 was negotiated, of which at 30 December 2012 £1,000,000 was called down.  This gave rise to a £68,000 finance expense during the period (1 January 2012 - £Nil).

Net cash and cash equivalents held at the end of the year were £1,611,000 (1 January 2012 - £2,008,000).

Pre-opening costs

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.

Review of the business

2012 has proved to be a year of considered expansion, with five new sites successfully opened, which will only show their true value on a full year of trading without the initial pre-opening costs.  Further new openings are in the pipeline for 2013.

The Group continually looks to update its menus and for much of the year has successfully offered promotions to encourage growth in sales although less aggressively than in previous years. 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.

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 again for their hard work and effort.

Current Trading

Since the year end trading has been in line with expectations.

……………………………………

Keith Lassman

Chairman

Date: 23 April 2013

Tasty plc

Consolidated Statement of Comprehensive Income for the 52 weeks ended 30 December 2012

		2012		2011
		£'000		£'000
Revenue		19,315		14,565
Cost of sales		(17,221)		(12,946)
Gross profit		2,094		1,619
Administrative costs		(480)		(565)
Operating profit excluding pre-opening costs		1,717		1,164
Pre-opening costs		(403)		(110)
Reversal of impairment of property, plant and equipment		300		-
Operating profit		1,614		1,054
Finance income		6		12
Finance expense		(68)		-
Profit before taxation		1,552		1,066
Income tax (charge) / credit		(275)		210
Profit and total comprehensive income for the period
- attributable to equity shareholders		1,277		1,276
Profit per ordinary share
Basic		2.67p		2.67p
Diluted		2.61p		2.64p

Tasty plc

Consolidated statement of changes in equity as at 30 December 2012

		Share		Share		Merger		Retained		Total
		capital		premium		reserve		deficit		Equity
		£'000		£'000		£'000		£'000		£'000
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
Total comprehensive income for the period		-		-		-		1,277		1,277
Issue of share capital		6		9		-		-		15
Share based payments - credit to equity		-		-		-		56		56
Balance at 30 December 2012		4,790		10,359		992		(3,794)		12,347

Tasty plc

Consolidated balance sheet 30 December 2012

	Note	2012		2012		2011		2011
		£'000		£'000		£'000		£'000
Assets
Non-current assets
Intangible assets		448				450
Property, plant and equipment		11,791				8,546
Pre-paid operating lease charges		1,747				1,382
Deferred tax asset		185				460
Other receivables		486				451
Total non-current assets				14,657				11,289
Current assets
Inventories		689				499
Trade and other receivables		1,107				711
Pre-paid operating lease charges		87				67
Cash and cash equivalents		1,611				2,008
Total current assets				3,494				3,285
Total assets				18,151				14,574
Liabilities
Non-current liabilities
Accrual for lease incentives		206				200
Provisions		75				85
Total non-current liabilities				281				285
Current liabilities
Trade and other payables		4,523				3,290
Bank loan		1,000				-
Total current liabilities				5,523				3,290
Total liabilities				5,804				3,575
TOTAL NET ASSETS				12,347				10,999
Capital and reserves attributable
to equity holders of the parent
Share capital				4,790				4,784
Share premium reserve				10,359				10,350
Retained deficit				(3,794)				(5,127)
Merger reserve				992				992
TOTAL EQUITY				12,347				10,999

Tasty plc

Consolidated cash flow statement for the 52 weeks ended 30 December 2012

		2012		2012		2011		2011
		£'000		£'000		£'000		£'000
Cash flows from operating activities
Profit for the period before taxation		1,552				1,066
Adjustments for:
Depreciation		830				582
Amortisation		2				2
Impairment reversal		(300)				-
Onerous lease provision movement		(10)				(15)
Equity settled share-based payment
expense		56				29
Finance income		(6)				(12)
Finance expense		68				-
Cash flows from operating activities
before changes in working capital		2,192				1,652
Increase in trade and other receivables		(816)				(537)
Increase in inventories		(190)				(43)
Increase in trade and other payables		1,212				670
Cash generated from operations				2,398				1,742
Income tax received				-				-
Net cash flows from operating activities
carried forward				2,398				1,742

Tasty plc

Consolidated cash flow statement for the 52 weeks ended 30 December 2012 (Continued)

		2012		2012		2011		2011
		£'000		£'000		£'000		£'000
Cash flows from operating activities
brought forward				2,398				1,742
Investing activities before taxation
Purchases of property, plant and
equipment		(3,774)				(1,607)
Acquisition		-				(1,058)
Interest received		6				12
Net cash outflow from investing
activities				(3,768)				(2,653)
Financing activities
Issue of ordinary shares		15				-
Bank loan receipt		1,500				-
Bank loan payment		(500)				-
Interest paid		(42)				-
Net cash from financing activities				973				-
Net (decrease)/increase in cash and cash
equivalents				(397)				(911)
Cash and cash equivalents at beginning
of period				2,008				2,919
Cash and cash equivalents at end of
period				1,611				2,008

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 2011 Report and Accounts. The financial information set out in this announcement does not constitute the Company's statutory accounts for the 52 weeks ended 30 December 2012 or the 52 weeks ended 1 January 2012. Statutory accounts for the 52 weeks ended 30 December 2012 and the 52 weeks ended 1 January 2012 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 2011 have been filed with the Registrar of Companies. The statutory accounts for the 52 weeks ended 30 December 2012 will be delivered to the registrar in due course.
2.		Revenue

Revenue is wholly attributable to the principal activity of the Group and arises solely in the United Kingdom.

3.	Operating profit
		52 weeks		52 weeks
		ended		ended
		30 December		1 January
	Group	2012		2012
		£'000		£'000
	This has been arrived at after charging:
	Staff costs (see note 7)	6,954		5,126
	Share based payments (see notes 7 and 28)	56		29
	Operating lease rentals	2,304		1,540
	Amortisation of intangible fixed assets	2		2
	Depreciation	830		582
	Pre-opening costs	403		110
	Auditors' remuneration
	Audit fee
	- Audit of parent Company	8		8
	- Audit of Group financial statements	10		10
	- Audit of subsidiary undertaking	20		20
	Other services
	- Taxation services	7		5
	- Others	10		9
		________		________

4.	Finance expense
		52 weeks	52 weeks
		ended	ended
		30 December	1 January
		2012	2012
		£'000	£'000
	Loan interest payable	68 ________	- ________
		68 _______	- ________

5.	Staff costs
	Staff costs for all employees, including directors, consist of
		52 weeks		52 weeks
		ended		ended
		30 December		1 January
		2012		2012
		£'000		£'000
	Wages and salaries	6,426		4,730
	Social security costs	501		362
	Other pension costs	27		34
	Equity settled share based payment expense (note 28)	56		29
		________		________
		7,010		5,155
		________		________

The average number of persons, including executive directors, employed by the Group during the period was 453, of which 444 were restaurant staff and 9 were administration staff, (1 January 2012 - 325 of which 317 were restaurant staff and 8 were administration staff).  No staff  are employed by the Company.

Of the total staff costs £6,396,000 was classified as cost of sales (1 January 2012 - £4,769,000) and £614,000  as administrative expenses (1 January 2012 - £387,000).

	6.			Tax on profit on ordinary activities
					2012		2011
					£'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
				(Utilisation) / recognition of tax losses	(120)		210
				Origination and reversal of temporary differences	(110)		-
				Impact of change in future rate of taxation	(45)		-
				Total deferred tax	(275)		210
				Total income tax (charge) / credit	(275)		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:
					2012		2011
					£'000		£'000
				Profit on ordinary activities before tax	1,552		1,066
				Profit on ordinary activities multiplied by average
				standard rate of corporation tax in the UK of 24.5%
				(2011 - 26.5%)	380		282
				Effects of:
				Expenses not deductible for tax purposes	47		16
				Utilisation of tax losses	(152)		(298)
				Recognition of losses carried forward	-		(210)
				Total tax charge / (credit) (see (a) above)	275		(210)
	7.		Profit per ordinary share (EPS)
					2012		2011
					£'000		£'000
			Numerator
			Profit for the period		1,277		1,276
			Denominator
					Number		Number
					'000		'000
			Weighted average number of ordinary shares (basic)		47,841		47,836
			Weighted average number of ordinary shares (diluted)		48,890		48,328
			Basic profit per ordinary share (pence)		2.67p		2.67p
			Diluted profit per ordinary share (pence)		2.61p		2.64p
			2,015,000 share options have been excluded when calculating the diluted EPS as they were anti-dilutive (1 January 2012 - 2,553,460).

 

END

 

 

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