Last checked at 29 Apr 2010 07:00
Tasty plc
Preliminary results for the 52 weeks ended 27 December 2009
Highlights
* Revenue up 15% to £9,185,000 (2008 - £8,006,000)
* Improvement in the trading position despite the adverse economic climate.
* Wildwood pizza, pasta and grill brand trading well.
* Operating loss excluding pre-opening costs and non-trading items of £84,000 (2008 - loss £221,000)
* Statutory pre-tax loss of £2,080,000 (2008 - loss £1,585,000)
Enquiries
Tasty plc Tel: 020 7637 1166
Jonny Plant, Chief Executive
Evolution Securities Tel: 020 7071 4300
Bobbie Hilliam
Chairman's statement
I am pleased to report on the Group's results for 2009. During the year a former DimT restaurant was successfully re-branded into a Wildwood restaurant and a new Wildwood unit was also successfully opened, with a DimT unit closing at the beginning of the year. The Group now has eleven restaurants in operation - 8 DimTs and 3 Wildwoods.
Results
Revenue for the 52 weeks ended 27 December 2009 was up 15% to £9,185,000 (2008 - £8,006,000). Operating loss before pre-opening costs and non-trading items was £84,000 (2008 - loss £221,000). Pre-opening costs for the period totalled £58,000 (2008 - £150,000). Non-trading items relate to an impairment of properties of £1,850,000 (2008 - £1,062,000), an onerous lease provision of £100,000 (2008 - £nil), a loss on disposal and a sub-letting of property of £nil (2008 - £167,000) and redundancy expenses of £9,000 (2008 - £94,000). The overall statutory pre-tax loss was £2,080,000 (2008 - loss £1,585,000).
The Board do not recommend payment of a dividend at this stage of the Group's development.
Openings
The Maidstone unit was re-branded as a Wildwood and re-opened in April and in June a new Wildwood was opened in Hornchurch. The Group has just exchanged contracts for a new unit in Chelmsford which is expected to open in August 2010
Impairment
Due to the prevailing economic conditions, the Board has written down the value of some of its assets, which has resulted in a total impairment charge for the period of £1,850,000 (2008 - £1,164,000).
Cash flows
Net cash outflow for the period before financing was £752,000 (2008 - £2,660,000). This is largely represented by capital expenditure on the expansion of the business through the opening of one site and rebranding of another. Cash flows from operating activities increased to £359,000 (2008 - £16,000). During the period £nil (2008 - £1,883,000) was raised from a share issue. Net cash and cash equivalents held at the end of the year were £1,850,000 (2008 - £2,602,000).
Review of the business
2009 has proved to be a year of consolidation. 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, when excluding non-trading items.
Non-trading items include a one-off redundancy expense of £9,000 (2008 - £94,000) together with property impairments of £1,850,000 (2008 - £1,062,000) and an onerous lease provision of £100,000 (2008 - £nil). The impairments arise as a result of the Board's detailed evaluation of all units in order to ensure that each unit is shown in the Group's accounts at a conservative book value having regard to both capital and economic value considerations, particularly in the current prevailing economic market. Pre-opening costs have been highlighted as these costs represent revenue expenses, including rent free periods, which give rise to a charge under accounting standards, 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 2010.
……………………………………
Keith Lassman
Chairman
28 April 2010
Tasty plc
Consolidated Statement of Comprehensive Income for the 52 weeks ended 27 December 2009
|
| Note | 2009 |
| 2008 |
|
|
| £'000 |
| £'000 |
|
|
|
|
|
|
| Revenue |
| 9,185 |
| 8,006 |
|
|
|
|
|
|
| Cost of sales |
| (8,781) |
| (7,717) |
|
|
|
|
|
|
| Gross profit/(loss) |
| 404 |
| 289 |
|
|
|
|
|
|
| Administrative costs |
| (2,505) |
| (1,983) |
|
|
|
|
|
|
| Operating loss excluding pre-opening costs and |
|
|
|
|
| non trading items |
| (84) |
| (221) |
| Pre-opening costs |
| (58) |
| (150) |
| Disposal and impairment of property, plant and equipment |
| (1,850) |
| (1,229) |
| Onerous lease provision |
| (100) |
|
|
| Redundancy expenses |
| (9) |
| (94) |
|
|
|
|
|
|
| Operating loss |
| (2,101) |
| (1,694) |
|
|
|
|
|
|
| Finance income |
| 21 |
| 109 |
|
|
|
|
|
|
| Loss before taxation |
| (2,080) |
| (1,585) |
|
|
|
|
|
|
| Income tax credit | 3 | 6 |
| 6 |
|
|
|
|
|
|
| Loss and total comprehensive income for the period |
|
|
|
|
| - attributable to equity shareholders |
| (2,074) |
| (1,579) |
|
|
|
|
|
|
| Loss per ordinary share |
|
|
|
|
| Basic and diluted | 4 | (5.49p) |
| (4.80p) |
Tasty plc
Consolidated statement of changes in equity as at 27 December 2009
|
|
| Share |
| Share |
| Merger |
| Retained |
| Total |
|
|
| capital |
| premium |
| reserve |
| deficit |
| Equity |
|
|
| £'000 |
| £'000 |
| £'000 |
| £'000 |
| £'000 |
|
|
|
|
|
|
|
|
|
|
|
|
| Balance at 30 December 2007 |
| 3,117 |
| 8,234 |
| 992 |
| (3,349) |
| 8,994 |
|
|
|
|
|
|
|
|
|
|
|
|
| Total comprehensive income for the period |
| - |
| - |
| - |
| (1,579) |
| (1,579) |
| Issue of share capital (net of £117,000 issue costs |
| 667 |
| 1,216 |
| - |
| - |
| 1,883 |
| Share based payments - credit to equity |
| - |
| - |
| - |
| 110 |
| 110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance at 30 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tasty plc
Consolidated balance sheet at 27 December 2009
|
|
| 2009 |
| 2009 |
| 2008 |
| 2008 |
|
|
| £'000 |
| £'000 |
| £'000 |
| £'000 |
|
|
|
|
|
|
|
|
|
|
| Assets |
|
|
|
|
|
|
|
|
| Non-current assets |
|
|
|
|
|
|
|
|
| Intangible assets |
| 13 |
|
|
| 14 |
|
|
| Property, plant and equipment |
| 5,668 |
|
|
| 6,861 |
|
|
| Pre-paid operating lease charges |
| 731 |
|
|
| 767 |
|
|
| Deferred tax asset |
| 250 |
|
|
| 250 |
|
|
| Other receivables |
| 241 |
|
|
| 241 |
|
|
|
|
|
|
|
|
|
|
|
|
| Total non-current assets |
|
|
| 6,903 |
|
|
| 8,133 |
|
|
|
|
|
|
|
|
|
|
| Current assets |
|
|
|
|
|
|
|
|
| Inventories |
| 350 |
|
|
| 313 |
|
|
| Trade and other receivables |
| 537 |
|
|
| 505 |
|
|
| Pre-paid operating lease charges |
| 36 |
|
|
| 34 |
|
|
| Cash and cash equivalents |
| 1,850 |
|
|
| 2,602 |
|
|
|
|
|
|
|
|
|
|
|
|
| Total current assets |
|
|
| 2,773 |
|
|
| 3,454 |
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
|
| 9,676 |
|
|
| 11,587 |
|
|
|
|
|
|
|
|
|
|
| Liabilities |
|
|
|
|
|
|
|
|
| Non-current liabilities |
|
|
|
|
|
|
|
|
| Accrual for lease incentives |
| 227 |
|
|
| 239 |
|
|
|
|
|
|
|
|
|
|
|
|
| Total non-current liabilities |
|
|
| 227 |
|
|
| 239 |
|
|
|
|
|
|
|
|
|
|
| Current liabilities |
|
|
|
|
|
|
|
|
| Trade and other payables |
| 1,889 |
|
|
| 1,940 |
|
|
| Provisions |
| 100 |
|
|
| - |
|
|
|
|
|
|
|
|
|
|
|
|
| Total current liabilities |
|
|
| 1,989 |
|
|
| 1,940 |
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
| 2,216 |
|
|
| 2,179 |
|
|
|
|
|
|
|
|
|
|
| TOTAL NET ASSETS |
|
|
| 7,460 |
|
|
| 9,408 |
|
|
|
|
|
|
|
|
|
|
| Capital and reserves attributable to |
|
|
|
|
|
|
|
|
| equity holders of the parent |
|
|
|
|
|
|
|
|
| Share capital |
|
|
| 3,784 |
|
|
| 3,784 |
| Share premium reserve |
|
|
| 9,450 |
|
|
| 9,450 |
| Retained deficit |
|
|
| (6,766) |
|
|
| (4,818) |
| Merger reserve |
|
|
| 992 |
|
|
| 992 |
|
|
|
|
|
|
|
|
|
|
| TOTAL EQUITY |
|
|
| 7,460 |
|
|
| 9,408 |
|
|
|
|
|
|
|
|
|
|
Tasty plc
Consolidated cash flow statement for the 52 weeks ended 27 December 2009
|
|
| 2009 |
| 2009 |
| 2008 |
| 2008 |
|
|
| £'000 |
| £'000 |
| £'000 |
| £'000 |
|
|
|
|
|
|
|
|
|
|
| Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss for the period before taxation |
| (2,080) |
|
|
| (1,585) |
|
|
| Adjustments for: |
|
|
|
|
|
|
|
|
| Depreciation |
| 474 |
|
|
| 386 |
|
|
| Amortisation |
| 2 |
|
|
| 2 |
|
|
| Impairment losses |
| 1,850 |
|
|
| 1,164 |
|
|
| Onerous lease provision |
| 100 |
|
|
| - |
|
|
| Equity settled share-based payment |
|
|
|
|
|
|
|
|
| expense |
| 126 |
|
|
| 110 |
|
|
| Finance income |
| (21) |
|
|
| (109) |
|
|
|
|
|
|
|
|
|
|
|
|
| Cash flows from operating activities |
|
|
|
|
|
|
|
|
| before changes in working capital |
| 451 |
|
|
| (31) |
|
|
|
|
|
|
|
|
|
|
|
|
| Increase in trade and other receivables |
| (37) |
|
|
| (279) |
|
|
| Increase in inventories |
| 2 |
|
|
| (141) |
|
|
| (Decrease)/Increase in trade and other payables |
|
63 |
|
|
|
461 |
|
|
|
|
|
|
|
|
|
|
|
|
| Cash generated from operations |
|
|
| 353 |
|
|
| 10 |
|
|
|
|
|
|
|
|
|
|
| Income tax received |
|
|
| 6 |
|
|
| 6 |
|
|
|
|
|
|
|
|
|
|
| Net cash flows from operating activities |
|
|
|
|
|
|
|
|
| carried forward |
|
|
| 359 |
|
|
| 16 |
|
|
|
|
|
|
|
|
|
|
Tasty plc
Consolidated cash flow statement for the 52 weeks ended 27 December 2009 (Continued)
|
|
| 2009 |
| 2009 |
| 2008 |
| 2008 |
|
|
| £'000 |
| £'000 |
| £'000 |
| £'000 |
|
|
|
|
|
|
|
|
|
|
| Cash flows from operating activities |
|
|
|
|
|
|
|
|
| brought forward |
|
|
| 359 |
|
|
| 16 |
|
|
|
|
|
|
|
|
|
|
| Investing activities before taxation |
|
|
|
|
|
|
|
|
| Purchases of property, plant and |
|
|
|
|
|
|
|
|
| equipment |
| (1,131) |
|
|
| (2,779) |
|
|
| Purchase of intangible assets |
| (1) |
|
|
| (6) |
|
|
| Sale of property, plant and equipment |
| - |
|
|
| - |
|
|
| Interest received |
| 21 |
|
|
| 109 |
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash outflow from investing |
|
|
|
|
|
|
|
|
| activities |
|
|
| (1,111) |
|
|
| (2,676) |
|
|
|
|
|
|
|
|
|
|
| Financing activities |
|
|
|
|
|
|
|
|
| Issue of ordinary shares (net of issue |
|
|
|
|
|
|
|
|
| costs of £nil - 2008 - £117,000) |
| - |
|
|
| 1,883 |
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash from financing activities |
|
|
| - |
|
|
| 1,883 |
|
|
|
|
|
|
|
|
|
|
| Net decrease in cash and cash |
|
|
|
|
|
|
|
|
| equivalents |
|
|
| (752) |
|
|
| (777) |
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents at beginning |
|
|
|
|
|
|
|
|
| of period |
|
|
| 2,602 |
|
|
| 3,379 |
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents at end of |
|
|
|
|
|
|
|
|
| period |
|
|
| 1,850 |
|
|
| 2,602 |
|
|
|
|
|
|
|
|
|
|
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 accounting policies used have been applied consistently to all periods presented and are the same as those set out in detail in the 2008 Report and Accounts, except for the adoption of IAS 1 Revised which has resulted in the Group presenting a single statement of comprehensive income. This has had no impact on the recognition or measurement of transactions and balances within the financial statements. The financial information set out above does not constitute the Group's statutory accounts for 2008 or 2009. Statutory accounts for the periods ended 27 December 2009 and 28 December 2008 have been reported on by the Independent Auditors. The Independent Auditors' Report on the Annual Report and Financial Statements for 2008 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 237(2) or 237(3) of the Companies Act 1985. The Independent Auditors' Report on the Annual Report and Financial Statements for 2009 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. Statutory accounts for the period ended 28 December 2008 have been filed with the Registrar of Companies. The statutory accounts for the period ended 27 December 2009 will be delivered to the Registrar in due course.
| |||
|
2. |
Non trading items | |||
|
|
| 2009 |
| 2008 |
|
|
| £'000 |
| £'000 |
|
|
|
|
|
|
|
| Loss on sale of sublet of property, plant and equipment | - |
| 167 |
|
| Provision for impairment | 1,850 |
| 1,062 |
|
| Onerous lease provision | 100 |
| - |
|
| Redundancy payments | 9 |
| 94 |
|
|
| 1,959 |
| 1,323 |
|
|
|
|
|
|
|
|
| |||
|
| During the year there were no site disposals or sublets (2008 - the interest in one leasehold property was sublet for net costs of £65,000, and with £80,000 written off lease premiums and £22,000 impairing property, plant and equipment on the sublet).
The Group has carried out an impairment review 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. The Group has identified certain sites where recent and anticipated performance in light of the economic downturn indicate they may have a value in use to the business below carrying value. The value in use to the business has been valued by discounting expected future pre-tax cashflows at 17% (2008 - 17%). The Group has also impaired assets to net realisable value where these are expected to be replaced on rebranding. As a result the Group's assets have been subjected to an impairment charge of £1,850,000 (2008 - £1,062,000) to write them down to what is deemed to be their recoverable amount, of which £nil (2008 - £512,000) represents lease premiums paid. Under IFRS lease premiums are normally treated as prepaid rent and expensed in the Statement of comprehensive income over the period of the lease. | |||
|
|
|
|
|
|
| 3. | Tax on profit on ordinary activities |
|
|
|
|
|
| 2009 |
| 2008 |
|
|
| £'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) |
| (6) |
|
|
|
|
|
|
|
| Current tax charge for the period | (6) |
| (6) |
|
|
|
|
|
|
|
| Deferred tax |
|
|
|
|
| Adjustment in respect of prior period | - |
| - |
|
| Origination and reversal of temporary differences | - |
| - |
|
|
|
|
|
|
|
| Total deferred tax | - |
| - |
|
|
|
|
|
|
|
| Total income tax credit | (6) |
| (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: | |||
|
| ||||
|
|
| 2009 |
| 2008 |
|
|
| £'000 |
| £'000 |
|
|
|
|
|
|
|
| Loss on ordinary activities before tax | (2,080) |
| (1,585) |
|
|
|
|
|
|
|
| Loss on ordinary activities multiplied by average |
|
|
|
|
| standard rate of corporation tax in the UK of 21% |
|
|
|
|
| (2008 - 20.75%) | (437) |
| (329) |
|
|
|
|
|
|
|
| Effects of: |
|
|
|
|
| Expenses not deductible for tax purposes | 133 |
| 214 |
|
| Increase in unprovided tax losses carried forward | 304 |
| 115 |
|
| Adjustment in respect of prior period | (6) |
| (6) |
|
|
|
|
|
|
|
| Total tax credit (see (a) above) | (6) |
| (6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 4. | Loss per ordinary share (EPS) |
|
|
|
|
|
| 2009 |
| 2008 |
|
|
| £'000 |
| £'000 |
|
| Numerator |
|
|
|
|
|
|
|
|
|
|
| Loss for the period | (2,074) |
| (1,579) |
|
|
|
|
|
|
|
| Denominator |
|
|
|
|
|
|
|
|
|
|
|
| Number |
| Number |
|
|
| '000 |
| '000 |
|
|
|
|
|
|
|
| Weighted average number of ordinary shares (basic and |
|
|
|
|
| diluted eps) | 37,837 |
| 32,892 |
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| Basic loss per ordinary share (pence) | (5.49p) |
| (4.80p) |
|
| Diluted loss per ordinary share (pence) | (5.49p) |
| (4.80p) |
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| Basic and diluted earnings per share are the same as there is no dilution. The 2,589,000 (2008 - 2,162,000) unexercised share options have not been included in the calculation of the loss per share as they are anti-dilutive.
Options are only taken into account when their effect is to reduce basic earnings per share or increase basic loss per share. Since the Group has made a loss in the current and prior period 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.
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