Final Results

RNS Number : 4467B

Tasty PLC

17 April 2012

 



Tasty plc

Preliminary results for the 52 weeks ended 1 January 2012

Highlights

*        Revenue up 38% to £14,565,000 (2010 - £10,560,000)

*        Like for like sales increased by 10%

*        Operating profit excluding pre-opening costs of £1,164,000 (2010 -£528,000)

*        Statutory pre-tax profit of £1,066,000 (2010 -£244,000)

*        Further new units in pipeline and well positioned to continue expansion

Enquiries

Tasty plc                                                   Tel: [phone]

Jonny Plant, Chief Executive

Cenkos Securities                                 Tel: [phone]

Bobbie Hilliam

Chairman's statement

I am pleased to be reporting on the Group's profitable results of some £1,276,000 (2010 - £244,000).  The results are for the 52 week period ended 1 January 2012 and a comparative of the 53 week period ended 2 January 2011.  During the year a new Wildwood restaurant was opened, and two Café Pasta restaurants and a Chez Gerard restaurant were acquired.  The Group now has eighteen restaurants in operation - 6 DimTs, 9 Wildwoods and 3 others.

Results

Revenue for the year was up 38% on last year to £14,565,000 (2010 - £10,560,000).  On a like-for-like basis sales increased by 10%; made up of 5.5% at DimT and 16.7% at Wildwood.

Operating profit before pre-opening costs and non-trading items was £1,164,000 (2010 - £528,000).  Pre-opening costs for the period totalled £110,000 (2010 - £294,000). The overall statutory pre-tax profit was £1,066,000 (2010 - £244,000).

The Board does not recommend the payment of a dividend at this stage of the Group's development.

Openings

A new Wildwood restaurant was opened at Canary Wharf in July: and two Café Pasta restaurants were acquired at Shaftesbury Avenue and Stratford-upon-Avon in November; and a Chez Gerard site at Cambridge was purchased in December.

Since the year end we have successfully opened 2 Wildwood restaurants in Epping and Cambridge.  Market Harborough is due to open in April 2012 with a number of others already in the pipeline, at various stages of completion and negotiation.

Cash flows

Net cash outflow for the period before financing was £911,000 (2010 - £831,000).  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 £1,742,000 (2010 - £1,217,000).  During the period £nil (2010 - £1,900,000) was raised from a share issue.  Net cash and cash equivalents held at the end of the year were £2,008,000 (2010 - £2,919,000).

Review of the business

2011 has proved to be a year of expansion.  The Group continually looks to update its menus 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 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.

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.

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 for their hard work and effort.

Current Trading

Since the year end trading has been in line with expectations.

AGM

The Company's annual general meeting will take place on 24 May 2012.

……………………………………

Keith Lassman

Chairman

17 April 2012

Tasty plc

Consolidated Statement of Comprehensive Income for the 52 weeks ended 1 January 2012

	Note	2011		2010
		£'000		£'000
Revenue		14,565		10,560
Cost of sales		(12,836)		(9,456)
Gross profit		1,729		1,104
Administrative costs		(675)		(870)
Operating profit excluding pre-opening costs		1,164		528
Pre-opening costs		(110)		(294)
Operating profit		1,054		234
Finance income		12		10
Profit before taxation		1,066		244
Income tax credit	2	210		-
Profit and total comprehensive income for the period
- attributable to equity shareholders		1,276		244
Profit per ordinary share
Basic	3	2.67p		0.56p
Diluted	3	2.64p		0.56p

Tasty plc

Consolidated statement of changes in equity as at 1 January 2012

		Share		Share		Merger		Retained		Total
		capital		premium		reserve		deficit		Equity
		£'000		£'000		£'000		£'000		£'000
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
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

Tasty plc

Consolidated balance sheet at 1 January 2012

	Note	2011		2011		2010		2010
		£'000		£'000		£'000		£'000
Assets
Non-current assets
Intangible assets	4	450				61
Property, plant and equipment		8,546				7,152
Pre-paid operating lease charges		1,382				893
Deferred tax asset		460				250
Other receivables		451				292
Total non-current assets				11,289				8,648
Current assets
Inventories		499				438
Trade and other receivables		711				569
Pre-paid operating lease charges		67				40
Cash and cash equivalents		2,008				2,919
Total current assets				3,285				3,966
Total assets				14,574				12,614
Liabilities
Non-current liabilities
Accrual for lease incentives		200				213
Total non-current liabilities				200				213
Current liabilities
Trade and other payables		3,290				2,607
Provisions		85				100
Total current liabilities				3,375				2,707
Total liabilities				3,575				2,920
TOTAL NET ASSETS				10,999				9,694
Capital and reserves attributable to
equity holders of the parent
Share capital				4,784				4,784
Share premium reserve				10,350				10,350
Retained deficit				(5,127)				(6,432)
Merger reserve				992				992
TOTAL EQUITY				10,999				9,694

Tasty plc

Consolidated cash flow statement for the 52 weeks ended 1 January 2012

		2011		2011		2010		2010
		£'000		£'000		£'000		£'000
Cash flows from operating activities
Profit for the period before taxation		1,066				244
Adjustments for:
Depreciation		582				435
Amortisation		2				3
Impairment losses		-				-
Onerous lease provision		-				-
Equity settled share-based payment
expense		29				90
Finance income		(12)				(10)
Gain on sale of property, plant and
equipment		-				(25)
Cash flows from operating activities
before changes in working capital		1,667				737
Increase in trade and other receivables		(537)				(249)
Increase in inventories		(43)				(87)
Increase in trade and other payables		655				816
Cash generated from operations				1,742				1,217
Income tax received				-				-
Net cash flows from operating activities
carried forward				1,742				1,217

Tasty plc

Consolidated cash flow statement for the 52 weeks ended 1 January 2012 (Continued)

		2011		2011		2010		2010
		£'000		£'000		£'000		£'000
Cash flows from operating activities
brought forward				1,742				1,217
Investing activities before taxation
Purchases of property, plant and
equipment		(1,607)				(1,619)
Purchase of intangible assets		-				-
Acquisition		(1,058)				(464)
Sale of property, plant and equipment		-				25
Interest received		12				10
Net cash outflow from investing
activities				(2,653)				(2,048)
Financing activities
Issue of ordinary shares (net of issue
costs of £100,000)		-				1,900
Net cash from financing activities				-				1,900
Net (decrease)/increase in cash and cash
equivalents				(911)				1,069
Cash and cash equivalents at beginning
of period				2,919				1,850
Cash and cash equivalents at end of
period				2,008				2,919

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 2010 Report and Accounts. The financial information set out in this announcement does not constitute the Company's statutory accounts for the 52 weeks ended 1 January 2012 or the 53 weeks ended 2 January 2011. Statutory accounts for the 52 weeks ended 1 January 2012 and the 53 weeks ended 2 January 2011 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 2010 have been filed with the Registrar of Companies. The statutory accounts for the 52 weeks ended 1 January 2012 will be delivered to the registrar in due course.
2.	Tax on profit on ordinary activities
		2011		2010
		£'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
	Recognition of tax losses	210		-
	Total deferred tax	210		-
	Total income tax credit	210		-
	(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:
		2011		2010
		£'000		£'000
	Profit on ordinary activities before tax	1,066		244
	Profit on ordinary activities multiplied by average
	standard rate of corporation tax in the UK of 20.25%
	(2010 - 21%)	216		51
	Effects of:
	Expenses not deductible for tax purposes	12		33
	Utilisation oftax losses	(228)		(84)
	Recognition of losses carried forward	(210)		-
	Total tax credit (see (a) above)	(210)		-

3.	Profit per ordinary share (EPS)
		2011		2010
		£'000		£'000
	Numerator
	Profit for the period	1,276		244
	Denominator
		Number		Number
		'000		'000
	Weighted average number of ordinary shares (basic)	47,836		43,230
	Weighted average number of ordinary shares (diluted)	48,328		43,368
	Basic profit per ordinary share (pence)	2.67p		0.56p
	Diluted profit per ordinary share (pence)	2.64p		0.56p
	2,553,460 share options have been excluded when calculating the diluted EPS as they were anti-dilutive (2010 - 2,195,472).

4.	Acquisition

In November 2011, the Group entered into an agreement to purchase two leasehold sites from Café Pasta for cash consideration of £640,000 plus the value of inventory. 

In December 2012, the Group entered into an agreement to purchase the leasehold site at Cambridge from Chez Gerard for cash consideration of £400,000, plus the value of inventory.

The Group also took on the previous employees in both situations. The assets acquired continued to trade in their existing state. The rationale for the acquisition was to ultimately expand the Wildwood brand into locations the Group felt it could achieve a return.

These transactions have been treated as a business combination under IFRS 3 (revised). The table below sets out the fair value of the identifiable assets and liabilities acquired, as well as the consideration and consequent goodwill.

	Café Pasta Cambridge Total Fair value £'000 £'000 £'000 Property, plant and equipment 249 120 369 Pre-paid operating lease expenses (premiums) 130 150 280 Inventories 10 8 18 ________ ________ ________ Total net assets acquired 389 278 667 Consideration paid (all cash) 650 408 1,058 ________ ________ ________ Goodwill on acquisition 261 130 391 ________ ________ ________

The result for the financial period includes revenue of £213,000 and profit of £1,000, which has arisen from the acquired leases in the period post acquisition.

It has not been possible to calculate the revenue and profit that would have resulted had the acquisitions been completed on the first day of the accounting period due to the limited information available about these sites. The rationale for the acquisitions was to continue the expansion of the Group's brands into new locations.

In the prior period on 7 October 2011 the Group entered into an agreement to purchase 2 leasehold sites from Caffe Uno Brasseries Limited for cash consideration of £450,000 plus the value of inventory.  The group also took on the previous employees. The assets acquired continued to trade in their existing state initially, before closing for refurbishment and rebranding. The rationale for the acquisition was to expand the Wildwood brand into locations the Group felt it could achieve a return.

As a result the Group recognised goodwill of £50,000.

 

END

 

 

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