REG - Tasty PLC - Trading Update

TastyAnnouncement

08/03/2022 07:00

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RNS Number : 9416D  Tasty PLC  08 March 2022

8 March 2022

Tasty plc

("Tasty", the "Company" or the "Group")

 

Trading Update

 

Tasty (AIM: TAST), the owner and operator of restaurants in the casual dining
sector, announces the following unaudited trading update for the 52 week
period ended 26 December 2021.

 

·   Revenue of £34.9m (2020: £24.2m), an increase of 44% year-on-year
with 33 weeks dine-in trading, driven by strong sales post re-opening despite
weaker trading for the peak December period than anticipated, due to the onset
of the Omicron variant

·   2021 revenue represented 78% of the Company's 2019 revenues of £44.6m
despite fewer operating sites

·   Adjusted EBITDA(1) is expected to be approximately £8.0m (2020:
£2.7m)

·   Pre IFRS 16 adjusted EBITDA(1) is expected to be approximately £3.9m
(2020: £1.5m loss)

·   Cash at the year-end was £11.0m. After allowing for deferred HMRC
payments, creditors and bank loan our net cash position was approximately
£6.8m

Tasty is now trading out of 50 venues, with four restaurants currently closed
but at different stages of re-opening planning. There are still ongoing
negotiations to dispose of, or re-gear, two or three of the restaurant leases
within the Group.

 

Since re-opening for dine-in in May 2021, the Group was EBITDA positive and
cash generative for the remainder of 2021. The strong trading post full
re-opening of the estate up until the outbreak of Omicron in late November
2021 was encouraging, however, this has been tempered by the challenges which
the Company expects as a result of the end of Government support including VAT
and business rates. There is also an expectation of a reduction in pent-up
demand, disposable income and staycations as well as a steep rise in inflation
in relation to wages, utilities and input supplier costs as the UK adjusts to
Brexit, the aftermath of the pandemic and the current war in Ukraine.

 

Well publicised industry employee shortages and supply issues are being
managed and will continue to be a focus for the Company. During the last
twelve months, the Company has invested in refreshing some of the older sites
and increasing and renewing the outside seating across the estate, and this
programme will continue throughout this year.

 

In addition, there has been a recruitment drive to strengthen the head office
team and operational structure. This increase in head count will facilitate a
measured expansion plan for a pipeline of five to six new units this year and
a refocus on takeaway and delivery which, following the lifting of Covid
restrictions, due to employee shortages has once again become secondary to the
dine-in trade.

 

 (1                   ) Adjusted for depreciation,
amortisation and highlighted items including share-based payments and
impairments. Note the adjusted EBITDA figure includes £1.9m of exceptional
Government grant income.

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 which is part of UK law by virtue
of the European Union (Withdrawal) Act 2018. Upon publication of this
announcement, this inside information is now considered to be in the public
domain.

For further information, please contact:

 Tasty plc                                                  Tel: 020 7637 1166
 Jonny Plant, Chief Executive
 Cenkos Securities plc (Nominated adviser and broker)
 Mark Connelly / Katy Birkin                                Tel: 020 7397 8900

 

 

 

 

 

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