Last checked at 12 Apr 2011 07:00
Tasty plc
Preliminary results for the 53 weeks ended 2 January 2011
Highlights
* Revenue up 15% to £10,560,000 (2009 - £9,185,000)
* Improvement in the trading position despite the adverse economic climate
* Operating profit excluding pre-opening costs and non-trading items of £528,000 (2009 - loss £84,000)
* Statutory pre-tax profit of £244,000 (2009 - loss £2,080,000)
* Current trading shows continued improvement in profits
* Further new units in pipeline and well positioned to continue expansion
Enquiries
Tasty plc Tel: 020 7637 1166
Jonny Plant, Chief Executive
Evolution Securities Tel: 020 7071 4300
Bobbie Hilliam
Chairman's statement
I am delighted to report on the Group's results for 2010, the first year in which we are reporting a statutory profit, of some £244,000 (2009 - loss £2,074,000). The results are for the 53 week period ended 2 January 2011 and a comparative of the 52 week period ended 27 December 2009. During the year a former DimT restaurant was successfully re-branded into a Wildwood restaurant; four new Wildwood restaurants were opened and the Milton Keynes restaurant was sub-let. The Group now has fourteen restaurants in operation - 6 DimTs and 8 Wildwoods.
Results
Revenue for the 53 week period ended 2 January 2011 was up 15% on last year to £10,560,000 (2009 - £9,185,000). Operating profit before pre-opening costs and non-trading items was £528,000 (2009 - loss £84,000). Pre-opening costs for the period totalled £294,000 (2009 - £58,000). The overall statutory pre-tax profit was £244,000 (2009 - loss £2,080,000).
The Board do not recommend payment of a dividend at this stage of the Group's development.
Openings
Gloucester Road was re-branded as a Wildwood, re-opened in July and has traded above expectations since then. In addition, four new Wildwood restaurants were opened: Chelmsford in September; Loughton in November and Billericay and Cobham in December. The Group has just exchanged contracts for a new unit in Canary Wharf which is expected to open in May 2011, with others in the pipeline.
Cash flows
Net cash outflow for the period before financing was £831,000 (2009 - £752,000). This is largely represented by capital expenditure on the expansion of the business through the opening of four sites and rebranding of another. Cash flows from operating activities increased to £1,217,000 (2009 - £359,000). During the period £1,900,000 (2009 - £nil) was raised from a share issue. Net cash and cash equivalents held at the end of the year were £2,919,000 (2009 - £1,850,000).
Review of the business
2010 has proved to be a year of expansion. The Group has continually looked to update the menus of both the DimT and Wildwood brands and for much of the year has successfully offered promotions to encourage growth in sales.
Management have continued to focus on food and labour margins throughout the year and these continue to be kept under constant review. This has resulted in an improvement in the trading position of the Group despite the adverse economic climate in the United Kingdom.
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 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.
Staff
As ever, it is our dedicated staff that have contributed significantly throughout the year to the Group's performance, and I would like to take this opportunity of thanking them for their hard work and effort.
Current Trading
Since the year end trading has improved still further with a profitable first quarter in 2011.
AGM
The Company's annual general meeting will take place on 25 May 2011. Apart from matters normally dealt with at AGMs, this year we are taking the opportunity to update our Articles of Association to bring them in to line with the Companies Act 2006. Shareholders are asked to complete and return the proxy form relating to the AGM whether or not they intend to attend.
……………………………………
Keith Lassman
Chairman
11 April 2011
Tasty plc
Consolidated Statement of Comprehensive Income for the 53 weeks ended 2 January 2011
| Note | 2010 |
| 2009 |
|
| £'000 |
| £'000 |
|
|
|
|
|
Revenue |
| 10,560 |
| 9,185 |
|
|
|
|
|
Cost of sales |
| (9,456) |
| (8,781) |
|
|
|
|
|
Gross profit |
| 1,104 |
| 404 |
|
|
|
|
|
Administrative costs |
| (870) |
| (2,505) |
|
|
|
|
|
Operating profit/(loss) excluding pre-opening costs and |
|
|
|
|
non trading items |
| 528 |
| (84) |
Pre-opening costs |
| (294) |
| (58) |
Disposal and impairment of property, plant and equipment |
| - |
| (1,850) |
Onerous lease provision |
| - |
| (100) |
Redundancy expenses |
| - |
| (9) |
|
|
|
|
|
Operating profit/(loss) |
| 234 |
| (2,101) |
|
|
|
|
|
Finance income |
| 10 |
| 21 |
|
|
|
|
|
Profit/(loss) before taxation |
| 244 |
| (2,080) |
|
|
|
|
|
Income tax credit | 3 | - |
| 6 |
|
|
|
|
|
Profit/(loss) and total comprehensive income for the period |
|
|
|
|
- attributable to equity shareholders |
| 244 |
| (2,074) |
|
|
|
|
|
Profit/(loss) per ordinary share |
|
|
|
|
Basic | 4 | 0.56p |
| (5.49p) |
Diluted | 4 | 0.56p |
| (5.49p) |
Tasty plc
Consolidated statement of changes in equity as at 2 January 2011
Share | Share | Merger | Retained | Total | ||||||
capital | premium | reserve | deficit | Equity | ||||||
£'000 | £'000 | £'000 | £'000 | £'000 | ||||||
Balance at 28 December 2008 | 3,784 | 9,450 | 992 | (4,818) | 9,408 | |||||
Total comprehensive income for the period | - | - | - | (2,074) | (2,074) | |||||
Share based payments - credit to equity | - | - | - | 126 | 126 | |||||
Balance at 27 December 2009 | 3,784 | 9,450 | 992 | (6,766) | 7,460 | |||||
Total comprehensive income for the period | - | - | - | 244 | 244 | |||||
Issue of share capital (net of £100,000 issue costs) | 1,000 | 900 | - | - | 1,900 | |||||
Share based payments - credit to equity | - | - | - | 90 | 90 | |||||
Balance at 2 January 2011 | 4,784 | 10,350 | 992 | (6,432) | 9,694 | |||||
Tasty plc
Consolidated balance sheet at 2 January 2011
|
| 2010 |
| 2010 |
| 2009 |
| 2009 |
|
| £'000 |
| £'000 |
| £'000 |
| £'000 |
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
|
Intangible assets |
| 61 |
|
|
| 13 |
|
|
Property, plant and equipment |
| 7,152 |
|
|
| 5,668 |
|
|
Pre-paid operating lease charges |
| 893 |
|
|
| 731 |
|
|
Deferred tax asset |
| 250 |
|
|
| 250 |
|
|
Other receivables |
| 292 |
|
|
| 241 |
|
|
|
|
|
|
|
|
|
|
|
Total non-current assets |
|
|
| 8,648 |
|
|
| 6,903 |
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Inventories |
| 438 |
|
|
| 350 |
|
|
Trade and other receivables |
| 569 |
|
|
| 537 |
|
|
Pre-paid operating lease charges |
| 40 |
|
|
| 36 |
|
|
Cash and cash equivalents |
| 2,919 |
|
|
| 1,850 |
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
| 3,966 |
|
|
| 2,773 |
|
|
|
|
|
|
|
|
|
Total assets |
|
|
| 12,614 |
|
|
| 9,676 |
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
|
Accrual for lease incentives |
| 213 |
|
|
| 227 |
|
|
|
|
|
|
|
|
|
|
|
Total non-current liabilities |
|
|
| 213 |
|
|
| 227 |
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Trade and other payables |
| 2,607 |
|
|
| 1,889 |
|
|
Provisions |
| 100 |
|
|
| 100 |
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
| 2,707 |
|
|
| 1,989 |
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
| 2,920 |
|
|
| 2,216 |
|
|
|
|
|
|
|
|
|
TOTAL NET ASSETS |
|
|
| 9,694 |
|
|
| 7,460 |
|
|
|
|
|
|
|
|
|
Capital and reserves attributable to |
|
|
|
|
|
|
|
|
equity holders of the parent |
|
|
|
|
|
|
|
|
Share capital |
|
|
| 4,784 |
|
|
| 3,784 |
Share premium reserve |
|
|
| 10,350 |
|
|
| 9,450 |
Retained deficit |
|
|
| (6,432) |
|
|
| (6,766) |
Merger reserve |
|
|
| 992 |
|
|
| 992 |
|
|
|
|
|
|
|
|
|
TOTAL EQUITY |
|
|
| 9,694 |
|
|
| 7,460 |
|
|
|
|
|
|
|
|
|
Tasty plc
Consolidated cash flow statement for the 53 weeks ended 2 January 2011
|
| 2010 |
| 2010 |
| 2009 |
| 2009 |
|
| £'000 |
| £'000 |
| £'000 |
| £'000 |
|
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) for the period before taxation |
| 244 |
|
|
| (2,080) |
|
|
Adjustments for: |
|
|
|
|
|
|
|
|
Depreciation |
| 435 |
|
|
| 474 |
|
|
Amortisation |
| 3 |
|
|
| 2 |
|
|
Impairment losses |
| - |
|
|
| 1,850 |
|
|
Onerous lease provision |
| - |
|
|
| 100 |
|
|
Equity settled share-based payment |
|
|
|
|
|
|
|
|
expense |
| 90 |
|
|
| 126 |
|
|
Finance income |
| (10) |
|
|
| (21) |
|
|
Gain on sale of property, plant and |
|
|
|
|
|
|
|
|
equipment |
| (25) |
|
|
| - |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
before changes in working capital |
| 737 |
|
|
| 451 |
|
|
|
|
|
|
|
|
|
|
|
Increase in trade and other receivables |
| (249) |
|
|
| (37) |
|
|
Increase in inventories |
| (87) |
|
|
| 2 |
|
|
Increase/(decrease) in trade and other payables |
|
816 |
|
|
|
(63) |
|
|
|
|
|
|
|
|
|
|
|
Cash generated from operations |
|
|
| 1,217 |
|
|
| 353 |
|
|
|
|
|
|
|
|
|
Income tax received |
|
|
| - |
|
|
| 6 |
|
|
|
|
|
|
|
|
|
Net cash flows from operating activities |
|
|
|
|
|
|
|
|
carried forward |
|
|
| 1,217 |
|
|
| 359 |
|
|
|
|
|
|
|
|
|
Tasty plc
Consolidated cash flow statement for the 53 weeks ended 2 January 2011 (Continued)
|
| 2010 |
| 2010 |
| 2009 |
| 2009 |
|
| £'000 |
| £'000 |
| £'000 |
| £'000 |
|
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
brought forward |
|
|
| 1,217 |
|
|
| 359 |
|
|
|
|
|
|
|
|
|
Investing activities before taxation |
|
|
|
|
|
|
|
|
Purchases of property, plant and |
|
|
|
|
|
|
|
|
equipment |
| (1,619) |
|
|
| (1,131) |
|
|
Purchase of intangible assets |
| - |
|
|
| (1) |
|
|
Acquisition |
| (464) |
|
|
| - |
|
|
Sale of property, plant and equipment |
| 25 |
|
|
| - |
|
|
Interest received |
| 10 |
|
|
| 21 |
|
|
|
|
|
|
|
|
|
|
|
Net cash outflow from investing |
|
|
|
|
|
|
|
|
activities |
|
|
| (2,048) |
|
|
| (1,111) |
|
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
|
|
Issue of ordinary shares (net of issue |
|
|
|
|
|
|
|
|
costs of £100,000 - 2009 - £nil) |
| 1,900 |
|
|
| - |
|
|
|
|
|
|
|
|
|
|
|
Net cash from financing activities |
|
|
| 1,900 |
|
|
| - |
|
|
|
|
|
|
|
|
|
Net increase/(decrease) in cash and cash |
|
|
|
|
|
|
|
|
equivalents |
|
|
| 1,069 |
|
|
| (752) |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning |
|
|
|
|
|
|
|
|
of period |
|
|
| 1,850 |
|
|
| 2,602 |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of |
|
|
|
|
|
|
|
|
period |
|
|
| 2,919 |
|
|
| 1,850 |
|
|
|
|
|
|
|
|
|
Notes to the preliminary announcement
1. | Basis of preparation
The financial statements have 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 Group's 2009 Report and Accounts except that during the period the Group has adopted IFRS 3 (revised) "Business Combinations". Under IFRS 3 (revised) goodwill is measured as the fair value of consideration transferred less fair value of the indentified assets and liabilities assumed, all measured at the acquisition date. Transaction costs incurred by the Company on a business combination are expensed as incurred. The adoption of these standards and interpretations has no significant impact on the recognition or measurement of transactions and balances within the financial statements The financial information set out in this announcement does not constitute the Group's statutory accounts for the 53 weeks ended 2 January 2011 or the 52 weeks ended 27 December 2009. Statutory accounts for the 53 weeks ended 2 January 2011 and the 52 weeks ended 27 December 2009 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 2009 have been filed with the Registrar of Companies.. The statutory accounts for the 53 weeks ended 2 January 2011 will be delivered to the registrar in due course. | |||
|
| |||
2. |
Non trading items | |||
|
| 2010 |
| 2009 |
|
| £'000 |
| £'000 |
|
|
|
|
|
| Provision for impairment | - |
| 1,850 |
| Onerous lease provision | - |
| 100 |
| Redundancy payments | - |
| 9 |
|
| - |
| 1,959 |
|
|
|
|
|
|
| |||
| The Group carried out an impairment review in 2009 of the carrying values of plant, property and equipment, taking into account the current trading performance and anticipated future cashflows from individual cash generating units in accordance with IAS 36 Impairment of Assets. Impaired assets are carried at their recoverable amount which is the higher of fair value less costs to sell or their economic use in the business. In the Group's view in 2010 no sites have a value to the business which is less than carrying value and no current sites are expected to be re-branded. As a result no impairment charge has been made (2009 - £1,850,000). | |||
|
|
|
|
|
3. | Tax on profit on ordinary activities |
|
|
|
|
| 2010 |
| 2009 |
|
| £'000 |
| £'000 |
|
|
|
|
|
| (a) Analysis of charge for the period |
|
|
|
|
|
|
|
|
| Current tax |
|
|
|
| UK corporation tax on profits of the period | - |
| - |
| Adjustment in respect of prior period | - |
| (6) |
|
|
|
|
|
| Current tax charge for the period | - |
| (6) |
|
|
|
|
|
| Deferred tax |
|
|
|
| Adjustment in respect of prior period | - |
| - |
| Origination and reversal of temporary differences | - |
| - |
|
|
|
|
|
| Total deferred tax | - |
| - |
|
|
|
|
|
| Total income tax credit | - |
| (6) |
|
|
|
|
|
|
|
|
|
|
| (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: | |||
| ||||
|
| 2010 |
| 2009 |
|
| £'000 |
| £'000 |
|
|
|
|
|
| Profit/(loss) on ordinary activities before tax | 244 |
| (2,080) |
|
|
|
|
|
| Loss on ordinary activities multiplied by average |
|
|
|
| standard rate of corporation tax in the UK of 21% |
|
|
|
| (2009 - 21%) | 51 |
| (437) |
|
|
|
|
|
| Effects of: |
|
|
|
| Expenses not deductible for tax purposes | 33 |
| 133 |
| Decrease/(increase) in unprovided tax losses carried |
|
|
|
| forward | (84) |
| 304 |
| Adjustment in respect of prior period | - |
| (6) |
|
|
|
|
|
| Total tax credit (see (a) above) | - |
| (6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4. | Loss per ordinary share (EPS) |
|
|
|
|
| 2010 |
| 2009 |
|
| £'000 |
| £'000 |
| Numerator |
|
|
|
|
|
|
|
|
| Profit/(loss) for the period | 244 |
| (2,074) |
|
|
|
|
|
| Denominator |
|
|
|
|
|
|
|
|
|
| Number |
| Number |
|
| '000 |
| '000 |
|
|
|
|
|
| Weighted average number of ordinary shares (basic) | 43,230 |
| 37,837 |
| Weighted average number of ordinary shares (diluted) | 43,368 |
| 37,837 |
|
|
|
|
|
| Basic loss per ordinary share (pence) | 0.56p |
| (5.49p) |
| Diluted loss per ordinary share (pence) | 0.56p |
| (5.49p) |
|
|
|
|
|
| In 2010 138,528 dilutive share options have been taken into account when calculating the diluted EPS. In 2009 the Group made a loss and the effect of taking into account potential ordinary shares would be to reduce the basic loss per share. Share options have therefore been excluded in the calculation of diluted EPS. | |||
|
| |||