Last checked at 7 Sep 2009 07:00
Tasty plc
Chairman's statement
I am pleased to report on the Group's half year results for the 26 weeks ended on 28 June 2009, which have been prepared in accordance with International Financial Reporting Standards as adopted by the EU ("IFRS").
Results
Turnover for the 26 weeks ended 28 June 2009 was £4,332,000 (2008 - £3,716,000), a 16% increase over the corresponding period. The operating profit, before pre-opening costs of £58,000 (2008 - £107,000), share based payments of £63,000 (2008 - £nil) and redundancy costs of £9,000 (2008 - £50,000), was £69,000 (2008 - £2,000). The overall loss before tax for the period was £49,000 (2008 - £92,000), a 53% improvement to the loss over the previous period.
Basic and diluted loss per share for the period was 0.11p (2008 - 0.29p).
Cash flows and financing
During the period capital expenditure of £834,000 (2008 - £1,786,000) was incurred, predominantly on the fit-out of our new Hornchurch restaurant. Overall, the net cash outflow prior to financing flows was £407,000 (2008 - £1,393,000) and as at 28 June 2009 the Group had net cash balances of £2,195,000 (2008 - £1,986,000).
Outlook
During the first six months of 2009, we opened one new restaurant, re-branded one from DimT to the new 'Wildwood' brand and sub-let one under-performing restaurant, bringing the number of restaurants at the period end to eleven, made up of eight DimT and three 'Wildwood' restaurants. We intend to acquire a new unit before the end of the year and further expansion will be dependent on the cash resources and opportunities available to the Group.
Despite the continuing challenging economic conditions, we continue to hold our own and trade in line with expectations for 2009.
K Lassman
Chairman
Tasty plc
4 September 2009
| Consolidated Statement of Comprehensive Income | |||||
| (unaudited) | |||||
| 26 weeks ended | 26 weeks ended | 52 weeks ended | |||
| 28 June | 29 June | 28 December | |||
| 2009 | 2008 | 2008 | |||
| £'000 | '£'000 | £'000 | |||
| Revenue | 4,332 | 3,716 | 8,006 | ||
| Cost of sales | (4,084) | (3,449) | (7,717) | ||
| ______ | ______ | ______ | |||
| Gross profit | 248 | 267 | 289 | ||
| Administrative expenses | (309) | (422) | (1,983) | ||
| ______ | ______ | ______ | |||
| Operating profit/(loss) excluding pre-opening costs and non trading items | 69 | 2 | (111) | ||
| Pre-opening costs | (58) | (107) | (150) | ||
| Share based payment | (63) | - | (110) | ||
| Disposal and impairment of property, plant and equipment | - | - | (1,229) | ||
| Redundancy costs | (9) | (50) | (94) | ||
| Operating loss | (61) | (155) | (1,694) | ||
| Finance Income | 12 | 63 | 109 | ||
| ______ | ______ | ______ | |||
| Loss before taxation | (49) | (92) | (1,585) | ||
| Income tax receipt | 6 | - | 6 | ||
| ______ | ______ | ______ | |||
| Loss and total comprehensive income for the period | (43) | (92) | (1,579) | ||
| attributable to equity shareholders | ______ | ______ | ______ | ||
| Loss per share - basic and diluted | (0.11p) | (0.29p) | (4.80p) | ||
| Consolidated Statement of Changes in Equity | ||||||
| (unaudited) | ||||||
| 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 | ||||
| Changes in equity for 26 weeks ended 29 June 2008 | |||||||||
| Loss for the period | - | - | - | (92) | (92) | ||||
| Total recognised income and expense for the period | - | - | - | (92) | (92) | ||||
| Balance at 29 June 2008 | 3,117 | 8,234 | 992 | (3,441) | 8,902 | ||||
| Changes in equity for 26 weeks ended 28 December 2008 | |||||||||
| Loss for the period | - | - | - | (1,487) | (1,487) | ||||
| Total recognised income and expense for the period | - | - | - | (1,487) | (1,487) | ||||
| 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 28 December 2008 | 3,784 | 9,450 | 992 | (4,818) | 9,408 | ||||
| Changes in equity for 26 weeks ended 28 June 2009 | |||||||||
| Loss for the period | - | - | - | (43) | (43) | ||||
| Total recognised income and expense for the period | - | - | - | (43) | (43) | ||||
| Share based payments - credit to equity | - | - | - | 63 | 63 | ||||
| Balance at 28 June 2009 | 3,784 | 9,450 | 992 | (4,798) | 9,428 | ||||
| Consolidated Balance Sheet | ||||||||
| (unaudited) | 28 June | 29 June | 28 December | |||||
| 2009 | 2008 | 2008 | ||||||
| £'000 | £'000 | £'000 | ||||||
| Non-current assets | ||||||||
| Intangible assets | 14 | 10 | 14 | |||||
| Property, plant and equipment | 7,482 | 6,648 | 6,861 | |||||
| Pre-paid operating lease charges | 748 | 1,134 | 767 | |||||
| Deferred tax asset | 250 | 250 | 250 | |||||
| Other receivables | 241 | 241 | 241 | |||||
| ______ | ______ | ______ | ||||||
| 8,735 | 8,283 | 8,133 | ||||||
| Current assets | ||||||||
| Inventories | 351 | 220 | 313 | |||||
| Pre-paid operating lease charges | 36 | 50 | 34 | |||||
| Trade and other receivables | 599 | 759 | 505 | |||||
| Cash and cash equivalents | 2,195 | 1,986 | 2,602 | |||||
| ______ | ______ | ______ | ||||||
| 3,181 | 3,015 | 3,454 | ||||||
| ______ | ______ | ______ | ||||||
| Total assets | 11,916 | 11,298 | 11,587 | |||||
| ______ | ______ | ______ | ||||||
| Non current liabilities | ||||||||
| Accruals for lease incentives | (234) | (249) | (239) | |||||
| Current liabilities | ||||||||
| Trade and other payables | (2,254) | (2,147) | (1,940) | |||||
| ______ | ______ | ______ | ||||||
| Total liabilities | (2,488) | (2,396) | (2,179) | |||||
| ______ | ______ | ______ | ||||||
| Net assets | 9,428 | 8,902 | 9,408 | |||||
| ______ | ______ | ______ | ||||||
| Capital and reserves attributable to equity shareholders | ||||||||
| Share capital | 3,784 | 3,117 | 3,784 | |||||
| Share premium | 9,450 | 8,234 | 9,450 | |||||
| Merger reserve | 992 | 992 | 992 | |||||
| Retained earnings | (4,798) | (3,441) | (4,818) | |||||
| ______ | ______ | ______ | ||||||
| Equity | 9,428 | 8,902 | 9,408 | |||||
| ______ | ______ | ______ | ||||||
| Consolidated Cash Flow | ||||||
| (unaudited) | 26 weeks ended | 26 weeks ended | 52 weeks ended | |||
| 28 June | 29 June | 28 December | ||||
| 2009 | 2008 | 2008 | ||||
| £'000 | £'000 | £'000 | ||||
| Net cash outflow from operating activities | ||||||
| Loss for the period before taxation | (49) | (92) | (1,585) | |||
| Adjustments for | ||||||
| Depreciation | 211 | 179 | 386 | |||
| Amortisation | 1 | - | 2 | |||
| Impairment losses | - | - | 1,164 | |||
| Equity settled share-based payment expense | 63 | - | 110 | |||
| Finance income | (12) | (63) | (109) | |||
| ______ | ______ | ______ | ||||
| Net cash inflow/(outflow) from operating activities | ||||||
| before changes in working capital | 214 | 24 | (32) | |||
| Increase in trade and other receivables | (38) | (381) | (279) | |||
| Increase in inventories | (77) | (48) | (141) | |||
| Increase in trade and other payables | 310 | 735 | 462 | |||
| ______ | ______ | ______ | ||||
| Cash generated from operations | 409 | (330) | 10 | |||
| Income tax received | 6 | - | 6 | |||
| ______ | ______ | ______ | ||||
| Net cash flows from operating activities | 415 | (330) | 16 | |||
| Investing activities | ||||||
| Purchase of property, plant and equipment | (833) | (1,786) | (2,779) | |||
| Purchase of intangible assets | (1) | - | (6) | |||
| Interest received | 12 | 63 | 109 | |||
| ______ | ______ | ______ | ||||
| Net cash outflow from investment activities | (822) | (1,723) | (2,676) | |||
| Net cash inflow from financing | ||||||
| Issue of share capital | - | - | 1,883 | |||
| ______ | ______ | ______ | ||||
| Net decrease in cash and cash equivalents | (407) | (1,393) | (777) | |||
| Cash and equivalents at beginning of period | 2,602 | 3,379 | 3,379 | |||
| ______ | ______ | ______ | ||||
| Cash and equivalents at end of period | 2,195 | 1,986 | 2,602 | |||
| ______ | ______ | ______ | ||||
Notes to the 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 19 Cavendish Square London W1A 2AW. The Company's ordinary shares are traded on the Alternative Investment Market ("AIM"). Copies of this Interim Report or the Annual Report and Accounts 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 Tasty plc ("Tasty"') has prepared its results under International Financial Reporting Standards and International Financial Reporting Council "IFRIC" interpretations as adopted by the European Union ("IFRS"). Tasty adopted IFRS with effect from 1 January 2007. These standards remain subject to ongoing amendment and/or interpretation and are, therefore, still subject to change. Accordingly, information contained in these interim financial statements may need to be updated for subsequent amendments to IFRS or for new standards issued after the balance sheet date. The basis of preparation and accounting policies followed in the interim report are the same as those set out in the annual report and accounts for the year ended 28 December 2008. As permitted this interim report has not been prepared in accordance with IAS 34 "Interim Financial Reporting", nor has it been audited nor reviewed pursuant to guidance issued by the Auditing Practices Board. This Results Announcement does not constitute statutory accounts of the Group within the meaning of sections 434(3) and 435(3) of the Companies Act 2006. Statutory financial statements for the year ended 28 December 2008, on which the auditors gave an unqualified opinion, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their reports and did not include a statement under section 237 (2) or (3) of the Companies Act 1985, have been filed with the Registrar of Companies. The results for the 26 weeks to 28 June 2009 and 29 June 2008 are unaudited. The 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 | Income tax expense The taxation charge for the 26 weeks ended 28 June 2009 has been calculated by applying the estimated effective tax rate for the period ending 27 December 2009 |
| unaudited | unaudited | audited | |
| 26 weeks to | 26 weeks to | 52 weeks to | |
| 28 June | 29 June | 28 December | |
| 2009 | 2008 | 2008 | |
| £'000 | £'000 | £'000 | |
| UK corporation tax | |||
| Current tax credit on profit/(loss) for the period | - | - | - |
| Adjustment in respect of prior period | (6) | - | (6) |
| _______ | _______ | _______ | |
| Current tax credit for period | (6) | - | (6) |
| Deferred taxation | |||
| Movement in recoverable deferred tax asset | - | - | - |
| _______ | _______ | _______ | |
| Total income tax expense/(credit) | (6) | - | (6) |
| _______ | _______ | _______ |
4 Earnings per share
| unaudited | unaudited | ||
| 26 weeks to | 26 weeks to | 52 weeks to | |
| 28 June | 29 June | 28 December | |
| 2009 | 2008 | 2008 | |
| Pence | Pence | Pence | |
| Loss per share | (0.11) | (0.29) | (4.80) |
| _______ | _______ | _______ | |
| Basic and diluted earnings per share are the same as there is no dilution. The share options outstanding in the periods 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 periods the effect of taking into account potential ordinary shares would nearly always be to reduce the basic loss per share. Earnings per share has been calculated using the numbers shown below:- |
| unaudited | unaudited | ||
| 26 weeks to | 26 weeks to | 52 weeks to | |
| 28 June | 29 June | 28 December | |
| 2009 | 2008 | 2008 | |
| £'000 | £'000 | £'000 | |
| Loss for the period | (43) | (92) | (1,579) |
| _______ | _______ | _______ | |
| Number | Number | Number | |
| Weighted average number of ordinary shares in issue | 37,837 | 31,170 | 32,892 |
| _______ | _______ | _______ |