REG - Tasty PLC - Half-yearly Report <Origin Href="QuoteRef">TAST.L</Origin>

TastyAnnouncement

06/09/2016 07:06

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: 020 7637 1166
Jonny Plant, Chief Executive
Cenkos Securities  Tel: 020 7397 8927
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)
27weeksto
26 weeks to
52 weeks to
3 July
28 June
27December
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)
27weeksto
26weeksto
52weeksto
3 July
28 June
27December
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
27weeksto
26weeksto
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
27weeksto
26weeksto
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:
27weeksto
26weeksto
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
27weeksto
26weeksto
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
27weeksto
26weeksto
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


This information is provided by RNS
The company news service from the London Stock Exchange
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