Half Yearly Report

RNS Number : 5944S

Tasty PLC

14 September 2010

 



tasty plc - chairman's statement

I am pleased to report on Tasty plc's (the "Group") unaudited half year results for the 26 weeks ended on 27 June 2010.

Results for the 26 Weeks ended 27 June 2010

The highlights of the results are as follows:-

·          Turnover: £4.83million (2009 - £4.33million)

·          Operating profit (before opening costs of £22,000 (2009 - £58,000), share based payments of £63,000 (2009 - £63,000) and redundancy costs of nil (2009 - £9,000)  £94,000 (2009 - £69,000)

·          Profit before tax: £13,000 (2009 - loss £49,000)

·          Basic and diluted earnings per share: 0.03p (2009 - loss 0.11p)

Cash Flows and Financing

During the period the Group incurred capital expenditure of £208,000 (2009 - £834,000), primarily on the re-branding of our Gloucester Road unit and on the initial fit out of our newly acquired Chelmsford Wildwood restaurant, which is due to open this week. Overall, the net cash inflow, prior to financing was £179,000 (2009 - outflow £407,000) and as at the period end the Group had net cash balances of £3.92million (2009 - £2.19million), which included the net proceeds of a £1.9million Placing undertaken by the Group in June 2010.

Business review

During the first half of the year we took the decision to re-brand one Dim T restaurant at Gloucester Road into a Wildwood restaurant, and this re-opened successfully in July and is now trading well.  After much deliberation we took the decision in July to close our poorly performing Milton Keynes unit which had been fully impaired in prior periods, and this has now been sub-let.  Accordingly, once Chelmsford is open, we will have eleven operating restaurants, six Dim Ts and five Wildwoods. I am delighted to advise shareholders that the Group has now exchanged contracts for the purchase of two further restaurants in Loughton and Billericay. These are both due to open before the year end, and each will trade under the Wildwood brand. As each of these units is currently operating, it is hoped that they can be operational as Wildwoods shortly, and will prove to be a successful addition to the Group's estate of restaurants.

Outlook

The Group is trading in line with expectations and the opening schedule of new restaurants is looking positive.  The one-off opening costs of the new units set out above will be incurred in the second half of the financial year with the trading benefit being felt in 2011. Overall the Board is looking forward to a promising second half.

K Lassman
Chairman
Tasty plc

14 September 2010

Consolidated Statement of Comprehensive Income
	Unaudited		Unaudited		Audited
	26 weeks ended		26 weeks ended		52 weeks ended
	27 June		28 June		27 December
	2010		2009		2009
	£'000		'£'000		£'000
Revenue	4,830		4,332		9,185
Cost of sales	(4,533)		(4,084)		(8,781)
	______		______		______
Gross profit	297		248		404
Administrative expenses	(288)		(309)		(2,505)
	______		______		______
Operating profit excluding pre-opening costs and non trading items	94		69		42
Pre-opening costs	(22)		(58)		(58)
Share based payment	(63)		(63)		(126)
Onerous lease provision	-		-		(100)
Disposal and impairment of property, plant and equipment	-		-		(1,850)
Redundancy costs	-		(9)		(9)
Operating profit / (loss)	9		(61)		(2,101)
Finance Income	4		12		21
	______		______		______
Profit / (loss) before taxation	13		(49)		(2,080)
Income tax receipt	-		6		6
	______		______		______
Profit / (loss) and total comprehensive income for the period - attributable to owners of the parent	13		(43)		(2,074)
	______		______		______
Profit / (loss) per share - basic and diluted	0.03p		(0.11p)		(5.49p)

Consolidated Statement of Changes in Equity
(unaudited)

                                                                                                                            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

Changes in equity for 26 weeks ended 28 June 2009

Loss for the period                                                                                                    -                     -                 -                (43)           (43)

                                                                                                                         ______        ______     ______        ______     ______

Total comprehensive income 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

                                                                                                                         ______        ______     ______        ______     ______

Changes in equity for 26 weeks ended 27 December 2009

Loss for the period                                                                                                    -                     -                 -          (2,031)      (2,031)

                                                                                                                         ______        ______     ______        ______     ______

Total comprehensive income for the period                                                     -                     -                 -          (2,031)      (2,031)

Share based payments - credit to equity                                                             -                                        -                 63              63

                                                                                                                         ______        ______     ______        ______     ______

Balance at 27 December 2009                                                                    3,784            9,450            992          (6,766)       7,460

                                                                                                                         ______        ______     ______        ______     ______

Changes in equity for 26 weeks ended 27 June 2010

Profit for the period                                                                                                    -                     -                 -                 13              13

                                                                                                                         ______        ______     ______        ______     ______

Total comprehensive income for the period                                                     -                     -                 -                 13              13

Issue of share capital (net of £100,000 issue costs)                               1,000               900                 -                     -         1,900

Share based payments - credit to equity                                                             -                     -                 -                  63               63

                                                                                                                         ______        ______     ______        ______     ______

Balance at 27 June 2010                                                                               4,784          10,350            992          (6,690)       9,436

                                                                                                                         ______        ______     ______        ______     ______

Consolidated Balance Sheet
	Unaudited			Unaudited		Audited
	27 June			28 June		27 December
	2010			2009		2009
	£'000			£'000		£'000
Non-current assets
Intangible assets	13			14		13
Property, plant and equipment	5,669			7,482		5,668
Pre-paid operating lease charges	714			748		731
Deferred tax asset	250			250		250
Other receivables	297			241		241
	______			______		______
	6,943			8,735		6,903
Current assets
Inventories	326			351		350
Pre-paid operating lease charges	36			36		36
Trade and other receivables	725			599		537
Cash and cash equivalents	3,929			2,195		1,850
	______			______		______
	5,016			3,181		2,773
	______			______		______
Total assets	11,959			11,916		9,676
	______			______		______
Non current liabilities
Accruals for lease incentives	(222)			(234)		(227)
Current liabilities
Trade and other payables Provisions	(2,201) (100)			(2,254) -		(1,889) (100)
	______			______		______
Total current liabilities	(2,301)			(2,254)		(1,989)
	______			______		______
Total liabilities	(2,523)			(2,488)		(2,216)
	______			______		______
Total net assets	9,436			9,428		7,460
	______			______		______
Capital and reserves attributable to owners of the parent
Share capital	4,784			3,784		3,784
Share premium	10,350			9,450		9,450
Merger reserve	992			992		992
Retained deficit	(6,690)			(4,798)		(6,766)
	______			______		______
Total equity	9,436			9,428		7,460
	______			______		______

Consolidated Cash Flow
	Unaudited		Unaudited		Audited
	26 weeks ended		26 weeks ended		52 weeks ended
	27 June		28 June		27 December
	2010		2009		2009
	£'000		£'000		£'000
Net cash inflow/(outflow) from operating activities
Profit / (loss) for the period before taxation	13		(49)		(2,080)
Adjustments for
Depreciation	207		211		474
Amortisation	-		1		2
Impairment losses	-		-		1,850
Onerous lease provision	-		-		100
Equity settled share-based payment expense	63		63		126
Finance income	(4)		(12)		(21)
	______		______		______
Net cash inflow from operating activities
before changes in working capital	279		214		451
Increase / (decrease) in trade and other receivables	(227)		(38)		(37)
Increase / (decrease) in inventories	24		(77)		2
Increase / (decrease) in trade and other payables	307		310		(63)
	______		______		______
Cash generated from operations	383		409		353
Income tax received	-		6		6
	______		______		______
Net cash flows from operating activities	383		415		359
Investing activities
Purchase of property, plant and equipment	(208)		(833)		(1,131)
Purchase of intangible assets	-		(1)		(1)
Interest received	4		12		21
	______		______		______
Net cash outflow from investment activities	(204)		(822)		(1,111)
Net cash inflow from financing
Issue of share capital	1,900		-		-
	______		______		______
Net increase/(decrease) in cash and cash equivalents	2,079		(407)		(752)
Cash and equivalents at beginning of period	1,850		2,602		2,602
	______		______		______
Cash and equivalents at end of period	3,929		2,195		1,850
	______		______		______

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 27 December 2009.  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 Group on a business combination, other than those associated with the issue of equity securities, are expensed as incurred. 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.

The financial information for the 52 week period ended 27 December 2009 does not constitute the full statutory accounts for that period.  The Annual Report and Financial Statements for 2009 have been filed with the Registrar of Companies.  The Independent Auditors' Report on the Annual Report and Financial Statement 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.

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 27 June 2010 has been calculated by applying the estimated effective tax rate for the 53 week period ending 2 January 2011

	Unaudited	Unaudited	Audited
	26 weeks to	26 weeks to	52 weeks to
	27 June	28 June	27 December
	2010	2009	2009
	£'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	Audited
	26 weeks to	26 weeks to	52 weeks  to
	27 June	28 June	27 December
	2010	2009	2009
	Pence	Pence	Pence
Basic earnings / (loss) per share	0.03	(0.11)	(5.49)
	_______	_______	_______
Diluted earnings / (loss) per share	0.03	(0.11)	(5.49)
	_______	_______	_______

The basic earnings per share figures are calculated by dividing the net profit for the period attributable to shareholders by the weighted average number of ordinary shares in issue during the period.  The diluted earnings per share figure allows for the dilutive effect of the conversion into ordinary shares of the weighted average number of options outstanding during the period. Options are only taken into account when their effect is to reduce basic earnings per share or increase basic loss per share, when the Group has made a profit.

Earnings per share has been calculated using the numbers shown below:-

	26 weeks to	26 weeks to	52 weeks to
	27 June	28 June	27 December
	2010	2009	2009
	£'000	£'000	£'000
Profit / (loss) for the period	13	(43)	(2,074)
	_______	_______	_______
	Number	Number	Number
	'000	'000	'000
Basic weighted average number of ordinary shares	38,084	37,837	37,837
Effect of dilution - share options	2,589	Nil	Nil
	_______	_______	_______
Diluted weighted average number of ordinary shares	40,673	37,837	37,837
	_______	_______	_______

Enquiries

Tasty plc                                                   Tel: [phone]

Jonny Plant, Chief Executive

Evolution Securities                                 Tel: [phone]

Bobbie Hilliam

 

END

 

 

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