Last checked at 24 Apr 2013 07:00
Tasty plc
Preliminary results for the 52 weeks ended 30 December 2012
Highlights
* Revenue up 33% to £19,315,000 (2011 - £14,565,000)
* Operating profit excluding pre-opening costs of £1,717,000 (2011 -£1,164,000)
* Statutory pre-tax profit of £1,552,000 (2011 -£1,066,000)
* Further new units in pipeline and well positioned and financed to continue expansion
Enquiries
Tasty plc Tel: 020 7637 1166
Jonny Plant, Chief Executive
Cenkos Securities Tel: 020 7397 8927
Bobbie Hilliam
Chairman's statement
I am pleased to be reporting on the Group's profitable results of some £1,277,000 (1 January 2012 - £1,276,000). The results are for the 52 week period ended 30 December 2012 and a comparative to the 52 week period ended 1 January 2012.
During the year five new Wildwood restaurants were opened, and the former Cambridge Chez Gerard restaurant was converted into a Wildwood restaurant. The Group had twenty-three restaurants in operation at the year-end - 6 DimTs, 17 Wildwoods. As of today, the Board is pleased to say it has twenty-six restaurants in operation - 6 DimTs and 20 Wildwoods.
Results
Revenue for the year was up 33% on last year to £19,315,000 (1 January 2012 - £14,565,000).
Operating profit before pre-opening costs and non-trading items was £1,717,000 (1 January 2012 - £1,164,000). Pre-opening costs for the period totalled £403,000 (1 January 2012 - £110,000).
The overall statutory pre-tax profit was £1,552,000 (1 January 2012 - £1,066,000).
The Board does not recommend the payment of a dividend at this stage of the Group's development.
Openings
Five new Wildwood restaurants were opened during the year: at Epping in March; Market Harborough in April; Ely and Bow St both in May and Canterbury in October. The former Chez Gerard site at Cambridge acquired in December 2011 was closed in February and re-opened as a Wildwood restaurant in March 2012.
Since the year end the Group's two Cafe Pasta restaurants at Shaftesbury Avenue and Stratford-upon-Avon acquired in November 2011, were successfully converted into a new sub-brand of Wildwood, Wildwood Kitchen. We have also successfully opened a new Wildwood Kitchen at Didcot in March 2013 and two Wildwood restaurants in South Woodford and Newmarket in April 2013; with a number of other sites already in the pipeline, at various stages of completion and negotiation.
Cash flows
Net cash outflow for the period before financing was £1,370,000 (1 January 2012 - £911,000). This is largely represented by capital expenditure on the expansion of the business through the opening and acquisition of the above sites. Cash flows from operating activities increased to £2,398,000 (1 January 2012 - £1,742,000).
During the period a new loan facility of £2,500,000 was negotiated, of which at 30 December 2012 £1,000,000 was called down. This gave rise to a £68,000 finance expense during the period (1 January 2012 - £Nil).
Net cash and cash equivalents held at the end of the year were £1,611,000 (1 January 2012 - £2,008,000).
Pre-opening costs
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 technical 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.
Review of the business
2012 has proved to be a year of considered expansion, with five new sites successfully opened, which will only show their true value on a full year of trading without the initial pre-opening costs. Further new openings are in the pipeline for 2013.
The Group continually looks to update its menus and for much of the year has successfully offered promotions to encourage growth in sales although less aggressively than in previous years. Management have continued to focus on food and labour margins and these continue to be kept under constant review. This has resulted in a considerable improvement in the trading position of the Group despite the continuing challenging economic climate in the United Kingdom.
Staff
As ever, it is our dedicated staff that have contributed significantly throughout the year to the Group's much improved performance, and I would like to take this opportunity of thanking them again for their hard work and effort.
Current Trading
Since the year end trading has been in line with expectations.
……………………………………
Keith Lassman
Chairman
Date: 23 April 2013
Tasty plc
Consolidated Statement of Comprehensive Income for the 52 weeks ended 30 December 2012
2012 | 2011 | |||
£'000 | £'000 | |||
Revenue | 19,315 | 14,565 | ||
Cost of sales | (17,221) | (12,946) | ||
Gross profit | 2,094 | 1,619 | ||
Administrative costs | (480) | (565) | ||
Operating profit excluding pre-opening costs | 1,717 | 1,164 | ||
Pre-opening costs | (403) | (110) | ||
Reversal of impairment of property, plant and equipment | 300 | - | ||
Operating profit | 1,614 | 1,054 | ||
Finance income | 6 | 12 | ||
Finance expense | (68) | - | ||
Profit before taxation | 1,552 | 1,066 | ||
Income tax (charge) / credit | (275) | 210 | ||
Profit and total comprehensive income for the period | ||||
- attributable to equity shareholders | 1,277 | 1,276 | ||
Profit per ordinary share | ||||
Basic | 2.67p | 2.67p | ||
Diluted | 2.61p | 2.64p |
Tasty plc
Consolidated statement of changes in equity as at 30 December 2012
Share | Share | Merger | Retained | Total | ||||||
capital | premium | reserve | deficit | Equity | ||||||
£'000 | £'000 | £'000 | £'000 | £'000 | ||||||
Balance at 2 January 2011 | 4,784 | 10,350 | 992 | (6,432) | 9,694 | |||||
Total comprehensive income for the period | - | - | - | 1,276 | 1,276 | |||||
Share based payments - credit to equity | - | - | - | 29 | 29 | |||||
Balance at 1 January 2012 | 4,784 | 10,350 | 992 | (5,127) | 10,999 | |||||
Total comprehensive income for the period | - | - | - | 1,277 | 1,277 | |||||
Issue of share capital | 6 | 9 | - | - | 15 | |||||
Share based payments - credit to equity | - | - | - | 56 | 56 | |||||
Balance at 30 December 2012 | 4,790 | 10,359 | 992 | (3,794) | 12,347 | |||||
Tasty plc
Consolidated balance sheet 30 December 2012
Note | 2012 | 2012 | 2011 | 2011 | ||||
£'000 | £'000 | £'000 | £'000 | |||||
Assets | ||||||||
Non-current assets | ||||||||
Intangible assets | 448 | 450 | ||||||
Property, plant and equipment | 11,791 | 8,546 | ||||||
Pre-paid operating lease charges | 1,747 | 1,382 | ||||||
Deferred tax asset | 185 | 460 | ||||||
Other receivables | 486 | 451 | ||||||
Total non-current assets | 14,657 | 11,289 | ||||||
Current assets | ||||||||
Inventories | 689 | 499 | ||||||
Trade and other receivables | 1,107 | 711 | ||||||
Pre-paid operating lease charges | 87 | 67 | ||||||
Cash and cash equivalents | 1,611 | 2,008 | ||||||
Total current assets | 3,494 | 3,285 | ||||||
Total assets | 18,151 | 14,574 | ||||||
Liabilities | ||||||||
Non-current liabilities | ||||||||
Accrual for lease incentives | 206 | 200 | ||||||
Provisions | 75 | 85 | ||||||
Total non-current liabilities | 281 | 285 | ||||||
Current liabilities | ||||||||
Trade and other payables | 4,523 | 3,290 | ||||||
Bank loan | 1,000 | - | ||||||
Total current liabilities | 5,523 | 3,290 | ||||||
Total liabilities | 5,804 | 3,575 | ||||||
TOTAL NET ASSETS | 12,347 | 10,999 | ||||||
Capital and reserves attributable | ||||||||
to equity holders of the parent | ||||||||
Share capital | 4,790 | 4,784 | ||||||
Share premium reserve | 10,359 | 10,350 | ||||||
Retained deficit | (3,794) | (5,127) | ||||||
Merger reserve | 992 | 992 | ||||||
TOTAL EQUITY | 12,347 | 10,999 | ||||||
Tasty plc
Consolidated cash flow statement for the 52 weeks ended 30 December 2012
2012 | 2012 | 2011 | 2011 | |||||
£'000 | £'000 | £'000 | £'000 | |||||
Cash flows from operating activities | ||||||||
Profit for the period before taxation | 1,552 | 1,066 | ||||||
Adjustments for: | ||||||||
Depreciation | 830 | 582 | ||||||
Amortisation | 2 | 2 | ||||||
Impairment reversal | (300) | - | ||||||
Onerous lease provision movement | (10) | (15) | ||||||
Equity settled share-based payment | ||||||||
expense | 56 | 29 | ||||||
Finance income | (6) | (12) | ||||||
Finance expense | 68 | - | ||||||
Cash flows from operating activities | ||||||||
before changes in working capital | 2,192 | 1,652 | ||||||
Increase in trade and other receivables | (816) | (537) | ||||||
Increase in inventories | (190) | (43) | ||||||
Increase in trade and other payables | 1,212 | 670 | ||||||
Cash generated from operations | 2,398 | 1,742 | ||||||
Income tax received | - | - | ||||||
Net cash flows from operating activities | ||||||||
carried forward | 2,398 | 1,742 | ||||||
Tasty plc
Consolidated cash flow statement for the 52 weeks ended 30 December 2012 (Continued)
2012 | 2012 | 2011 | 2011 | |||||
£'000 | £'000 | £'000 | £'000 | |||||
Cash flows from operating activities | ||||||||
brought forward | 2,398 | 1,742 | ||||||
Investing activities before taxation | ||||||||
Purchases of property, plant and | ||||||||
equipment | (3,774) | (1,607) | ||||||
Acquisition | - | (1,058) | ||||||
Interest received | 6 | 12 | ||||||
Net cash outflow from investing | ||||||||
activities | (3,768) | (2,653) | ||||||
Financing activities | ||||||||
Issue of ordinary shares | 15 | - | ||||||
Bank loan receipt | 1,500 | - | ||||||
Bank loan payment | (500) | - | ||||||
Interest paid | (42) | - | ||||||
Net cash from financing activities | 973 | - | ||||||
Net (decrease)/increase in cash and cash | ||||||||
equivalents | (397) | (911) | ||||||
Cash and cash equivalents at beginning | ||||||||
of period | 2,008 | 2,919 | ||||||
Cash and cash equivalents at end of | ||||||||
period | 1,611 | 2,008 | ||||||
Notes to the preliminary announcement
| 1. Basis of preparation
The financial information has 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 Company's 2011 Report and Accounts.
The financial information set out in this announcement does not constitute the Company's statutory accounts for the 52 weeks ended 30 December 2012 or the 52 weeks ended 1 January 2012. Statutory accounts for the 52 weeks ended 30 December 2012 and the 52 weeks ended 1 January 2012 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 2011 have been filed with the Registrar of Companies. The statutory accounts for the 52 weeks ended 30 December 2012 will be delivered to the registrar in due course. | |||
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2. | Revenue |
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Revenue is wholly attributable to the principal activity of the Group and arises solely in the United Kingdom.
3. | Operating profit | |||||
52 weeks | 52 weeks |
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ended | ended |
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30 December | 1 January |
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Group | 2012 | 2012 |
| |||
£'000 | £'000 |
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This has been arrived at after charging: |
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| ||||||
Staff costs (see note 7) | 6,954 | 5,126 |
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Share based payments (see notes 7 and 28) | 56 | 29 |
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Operating lease rentals | 2,304 | 1,540 |
| |||
Amortisation of intangible fixed assets | 2 | 2 |
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Depreciation | 830 | 582 |
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Pre-opening costs | 403 | 110 |
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Auditors' remuneration |
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Audit fee |
| |||||
- Audit of parent Company | 8 | 8 |
| |||
- Audit of Group financial statements | 10 | 10 |
| |||
- Audit of subsidiary undertaking | 20 | 20 |
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Other services |
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- Taxation services | 7 | 5 |
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- Others | 10 | 9 |
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________ | ________ |
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4. | Finance expense | ||||
52 weeks | 52 weeks |
| |||
ended | ended |
| |||
30 December | 1 January |
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2012 | 2012 |
| |||
£'000 | £'000 |
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Loan interest payable | 68 ________ | - ________
|
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68 _______
| - ________ |
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5. | Staff costs | |||||
Staff costs for all employees, including directors, consist of | ||||||
52 weeks | 52 weeks |
| ||||
ended | ended |
| ||||
30 December | 1 January |
| ||||
2012 | 2012 |
| ||||
£'000 | £'000 |
| ||||
| ||||||
Wages and salaries | 6,426 | 4,730 |
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Social security costs | 501 | 362 |
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Other pension costs | 27 | 34 |
| |||
Equity settled share based payment expense (note 28) | 56 | 29 |
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________ | ________ |
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| ||||||
7,010 | 5,155 |
| ||||
________ | ________ |
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The average number of persons, including executive directors, employed by the Group during the period was 453, of which 444 were restaurant staff and 9 were administration staff, (1 January 2012 - 325 of which 317 were restaurant staff and 8 were administration staff). No staff are employed by the Company.
Of the total staff costs £6,396,000 was classified as cost of sales (1 January 2012 - £4,769,000) and £614,000 as administrative expenses (1 January 2012 - £387,000).
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| 6. | Tax on profit on ordinary activities | ||||||
| 2012 | 2011 | ||||||
| £'000 | £'000 | ||||||
| ||||||||
| (a) Analysis of charge for the period | |||||||
| ||||||||
| Current tax |
| ||||||
| UK corporation tax on profits of the period | - | - | |||||
| ||||||||
| Current tax charge for the period | - | - | |||||
| ||||||||
| Deferred tax | |||||||
| (Utilisation) / recognition of tax losses | (120) | 210 | |||||
| Origination and reversal of temporary differences | (110) | - | |||||
| Impact of change in future rate of taxation | (45) | - | |||||
| ||||||||
| Total deferred tax | (275) | 210 | |||||
| ||||||||
| Total income tax (charge) / credit | (275) | 210 | |||||
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| (b) Factors affecting tax charge for the period | |||||||
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| The tax charge for the period is lower than the standard rate of corporation tax in the UK. The differences are explained below: | |||||||
| ||||||||
| 2012 | 2011 | ||||||
| £'000 | £'000 | ||||||
| ||||||||
| Profit on ordinary activities before tax | 1,552 | 1,066 | |||||
| ||||||||
| Profit on ordinary activities multiplied by average | |||||||
| standard rate of corporation tax in the UK of 24.5% | |||||||
| (2011 - 26.5%) | 380 | 282 | |||||
| ||||||||
| Effects of: | |||||||
| Expenses not deductible for tax purposes | 47 | 16 | |||||
| Utilisation of tax losses | (152) | (298) | |||||
| Recognition of losses carried forward | - | (210) | |||||
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| Total tax charge / (credit) (see (a) above) | 275 | (210) | |||||
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| 7. | Profit per ordinary share (EPS) |
| |||||
| 2012 | 2011 | ||||||
| £'000 | £'000 | ||||||
| Numerator | |||||||
| ||||||||
| Profit for the period | 1,277 | 1,276 | |||||
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| Denominator | |||||||
| ||||||||
| Number | Number | ||||||
| '000 | '000 | ||||||
| ||||||||
| Weighted average number of ordinary shares (basic) | 47,841 | 47,836 | |||||
| Weighted average number of ordinary shares (diluted) | 48,890 | 48,328 | |||||
| ||||||||
| Basic profit per ordinary share (pence) | 2.67p | 2.67p | |||||
| Diluted profit per ordinary share (pence) | 2.61p | 2.64p | |||||
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| 2,015,000 share options have been excluded when calculating the diluted EPS as they were anti-dilutive (1 January 2012 - 2,553,460). | |||||||