REG - Tasty PLC - Trading Update

TastyAnnouncement

24/01/2025 07:00

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RNS Number : 5226U  Tasty PLC  24 January 2025

The information communicated in this announcement contains inside information
for the purposes of Article 7 of the UK version of the EU Market Abuse
Regulation (2014/596) which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018, as amended and supplemented from time to time.

24 January 2025

 

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 a trading update for the 53 week period ended 31 December
2024.

 

As announced in the trading update on 2 January 2025, trading in H2 2024 has
continued to be a challenge, particularly in the last quarter of the year.
Although the Group's restructuring plan, sanctioned on 4 June 2024, will
enable the return to profitability and should secure the Company's long-term
future, the resultant closures of part of the Group's estate has had a
negative impact on sales and has precipitated some significant operational
adjustments.

 

Furthermore, the hospitality industry and particularly the casual dining
sector, continue to face significant headwinds, including declining consumer
confidence, reduced discretionary spend, inflationary food pricing and rising
labour costs. These pressures have been compounded by the UK Government's
October 2024 Budget, which introduced an increase in employers' National
Insurance contributions and a reduction in the secondary threshold effective
from April 2025, although the Company has proactively introduced many
cost-saving measures to partially mitigate this.

 

As a result of the above and subject to audit, the Company expects to report
total sales from the restructured estate of £36.6m (2023 full estate:
£46.9m,) and adjusted EBITDA of £3.8m (2023: £4.4m). Cash at the year-end
is expected to be £3.3m after restructuring and exceptional costs (2023:
£4.2m).

 

The Company's plans to counter the economic headwinds include launching a new
electronic point of sale system and loyalty platform to leverage off its
approximate 1.5m customer database to allow smarter, more targeted marketing.

 

With the recent settlement of the insurance claim announced on 2 January 2025
and the debt free position of the Group, as well as the proposed initiatives
for 2025, the Board is confident of being able to overcome the current
challenges but remains cautious in the current climate.

 

For further information, please contact:

 Tasty plc                           Tel: 020 7637 1166
 Jonny Plant, Chief Executive

 Cavendish Capital Markets Limited

 Nominated Adviser and Broker
 Katy Birkin/George Lawson           Tel: 020 7220 0500

 

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