REG - Tasty PLC - Half Yearly Report <Origin Href="QuoteRef">TAST.L</Origin>
RNS Number : 7867QTasty PLC04 September 2014Tasty plc
("Tasty" or the "Group")
Interim Results (unaudited) for the 26 weeks ended 29 June 2014
Highlights:
Revenue up 26% to 13,794,000 (H1 2013 - 10,979,000)
Operating profit, before pre-opening costs, up 16% to 1,210,000 (H1 2013 - 1,045,000)
Pre-tax profit up 24% to 973,000 (H1 2013 - 787,000)
Four new sites opened in the period and three sites opened since the period end
Chairman's Statement
I am pleased to report on the Group's half year results for the 26 weeks ended on 29 June 2014, which have been prepared in accordance with International Financial Reporting Standards as adopted by the EU ("IFRS").
Results
Turnover for the 26 weeks ended 29 June 2014 was 13,794,000 (2013 - 10,979,000), a 26% increase over the corresponding period.
The operating profit, before pre-opening costs, share based payments and interest, was 1,210,000 (2013 - 1,045,000), a 16% increase over last year.
Pre-tax profit was 973,000 (2013 - 787,000) a 23.6% increase on the corresponding period. Basic and diluted earnings per share for the period were 1.40p and 1.38p (2013 - 1.28p and 1.25p) a 9% and a 10% increase over last year.
Cash flows and financing
During the period capital expenditure of 1,962,000 (2013 - 2,511,000) was incurred. 4 sites have been opened in the period, with a further 3 sites opened since the period end. The Group is currently undertaking construction on 2 sites which are expected to open in Q4 of 2014.
Overall, the net cash outflow for the period was 474,000 (2013 - 55,000). As at 29 June 2014, the Group had a net cash balance of 1,933,000 (2013 - net borrowings 944,000). The Group has an available banking facility of 4,000,000.
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 new sites, as reported above, will bring the total number of restaurants operated by the Group to 37, which will consist of 6 Dim t, 29 Wildwood and Wildwood Kitchens and 2 others. The Group continues to look at new sites and has the resources for further acquisitions.
K Lassman
Chairman
Tasty plc
Consolidated statement of comprehensive income
for the 26 weeks ended 29 June 2014 (unaudited)
26weeksto
26 weeks to
52 weeks to
29 June
30 June
29December
2014
2013
2013
'000
'000
'000
Revenue
13,794
10,979
23,192
Cost of sales
(12,276)
(9,704)
(20,386)
Gross profit
1,518
1,275
2,806
Administrative costs
(492)
(429)
(944)
Operating profit excluding pre-opening costs and non-trading items
1,210
1,045
2,301
Pre-opening costs
(136)
(171)
(259)
Non-trading items
(48)
(28)
(180)
Operating profit
1,026
846
1,862
Finance expense
(53)
(59)
(120)
Profit before tax
973
787
1,742
Income tax
(230)
(173)
(300)
Profit and total comp income for period
attributable to equity shareholders
743
614
1,442
Profit per ordinary share
Basic
1.40p
1.28p
2.95p
Diluted
1.38p
1.25p
2.90p
Consolidated statement of changes in equity
for the 26 weeks ended 29 June 2014 (unaudited)
Share capital
Share premium
Merger reserve
Retained deficit
Total
'000
'000
'000
'000
'000
Balance at 29 December 2013
5,293
13,317
992
(2,157)
17,445
Issue of ordinary shares
1
1
-
-
2
Total comprehensive income for the period
-
-
-
743
743
Share based payments - credit to equity
-
-
-
48
48
Balance at 29 June 2014
5,294
13,318
992
(1,366)
18,238
Balance at 30 December 2012
4,790
10,359
992
(3,794)
12,347
Issue of ordinary shares
6
6
-
-
12
Total comprehensive income for the period
-
-
-
614
614
Share based payments - credit to equity
-
-
-
28
28
Balance at 30 June 2013
4,796
10,365
992
(3,152)
13,001
Balance at 30 December 2012
4,790
10,359
992
(3,794)
12,347
Issue of ordinary shares
503
2,958
-
-
3,461
Total comprehensive income for the period
-
-
-
1,442
1,442
Share based payments - credit to equity
-
-
-
195
195
Balance at 29 December 2013
5,293
13,317
992
(2,157)
17,445
Consolidated balance sheet
At 29 June 2014 (unaudited)
29 June
30 June
29 December
2014
2013
2013
'000
'000
'000
Non-current assets
Intangible assets
445
448
446
Property, plant and equipment
16,641
13,795
15,384
Pre-paid operating lease charges
1,831
2,011
1,895
Deferred tax asset
-
12
-
Other non-current assets
381
437
381
19,298
16,703
18,106
Current assets
Inventories
821
733
811
Trade and other receivables
2,125
1,573
1,350
Pre-paid operating lease charges
152
100
152
Cash and cash equivalents
2,933
1,556
3,407
6,031
3,962
5,720
Total assets
25,329
20,665
23,826
Current liabilities
Trade and other payables
(5,435)
(4,893)
(5,009)
Borrowings
(375)
(2,500)
(250)
(5,810)
(7,393)
(5,259)
Non-current liabilities
Provisions
(65)
(72)
(65)
Lease incentives
(246)
(199)
(192)
Deferred tax liability
(345)
-
(115)
Long-term borrowings
(625)
-
(750)
(1,281)
(271)
(1,122)
Total liabilities
(7,091)
(7,664)
(6,381)
Total net assets
18,238
13,001
17,445
Equity
Share capital
5,294
4,796
5,293
Share premium
13,318
10,365
13,317
Merger reserve
992
992
992
Retained deficit
(1,366)
(3,152)
(2,157)
Total equity
18,238
13,001
17,445
Consolidated cash flow statement
for the 26 weeks ended 29 June 2014 (unaudited)
26weeksto
26weeksto
52 weeks to
29 June
30 June
29December
2014
2013
2013
'000
'000
'000
Operating activities
Cash generated from operations
1,539
969
3,238
Corporation tax paid
-
-
-
Net cash inflow from operating activities
1,539
969
3,238
Investing activities
Purchase of property, plant and equipment
(1,962)
(2,511)
(4,783)
Interest received
-
-
14
Net cash flows used in investing activities
(1,962)
(2,511)
(4,769)
Financing activities
Net proceeds from issues of ordinary shares
2
12
3,461
Bank loan receipt
-
1,500
1,500
Bank loan repayment
-
-
(1,500)
Interest paid
(53)
(25)
(134)
Net cash flows used in financing activities
(51)
1,487
3,327
Net increase/(decrease) in cash and cash equivalents
(474)
(55)
1,796
Cash and cash equivalents at beginning of the period
3,407
1,611
1,611
Cash and cash equivalents as at 29 June 2014
2,933
1,556
3,407
Notes to the condensed financial statements
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 however, for the current period the Group has adopted IFRS 13 "Fair value measurement" which has had no significant impact on the results or financial position.
The financial information for the period ended 29 December 2013 does not constitute the full statutory accounts for that period. The Annual Report and Financial Statements for 2013 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statements for 2013 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
26weeksto
26weeksto
52 weeks to
29 June
30 June
29 December
2014
2013
2013
'000
'000
'000
Reversal of Impairment of property, plant and equipment
-
-
15
Share based payments
(48)
(28)
(195)
(48)
(28)
(180)
4 Income tax
The income tax charge has been calculated by reference to the estimated effective corporation tax and deferred tax rates for the 52 weeks to 28 December 2014 applied to the profit before tax for the 26 weeks ending 29 June 2014. The full-year effective tax rate on profit before tax is estimated to be 23.5% (2013 - 23.75%).
5 Earnings per share
26weeksto
26weeksto
52 weeks to
29 June
30 June
29 December
2014
2013
2013
pence
pence
pence
Basic earnings per ordinary share
1.40
1.28
2.95
Diluted earnings per ordinary share
1.38
1.25
2.90
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:
26weeks
to
26 weeks
to
52 weeks
to
29 June
30 June
29 December
2014
2013
2013
number '000
number '000
number
'000Weighted average ordinary shares (basic)
52,928
47,963
48,896
Weighted average ordinary shares (diluted)
53,788
49,012
49,734
26 weeks to
26 weeks to
52 weeks
to
29 June
30 June
29 December
2014
2013
2013
'000
'000
'000
Profit for the financial period
743
614
1,442
6 Reconciliation of profit before tax to net cash inflow from operating activities
26 weeks to
26 weeks to
52 weeks
to
29 June
30 June
29 December
2014
2013
2013
'000
'000
'000
Profit before tax
973
787
1,742
Finance income
-
-
(14)
Finance expense
53
59
134
Share based payment charge
48
28
195
Depreciation and amortisation and impairment
770
506
1,124
Loss on disposal
-
-
68
Onerous lease provision movement
-
(3)
(10)
Increase in inventories
(10)
(44)
(122)
Increase in trade and other receivables
(775)
(520)
(138)
Increase in trade and other payables
480
156
259
1,539
969
3,238
7 Related party transactions
During the period the Group has entered into one new operating lease with a related party. The rent paid under this lease (32,000 per annum) is considered to be a reasonable reflection of the market rent for the property concerned. Other than annual commitments under ongoing lease arrangements which were disclosed in note 29 of the 2013 annual report and financial statements, there were no other related party transactions in the period.
This information is provided by RNSThe company news service from the London Stock ExchangeENDIR MMGGLVFMGDZM
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