Interim Results

Tasty PLC 28 September 2007 Tasty plc Chairman's statement I am pleased to report on the Group's results for the 26 weeks ended on 1 July 2007. Results Revenue for the 26 weeks ended 1 July 2007 was Â£2,684,000 ( 2006 - Â£1,151,000), an increase of 133%. The loss before tax for the period was Â£137,000 (2006 - profit Â£90,000). Cost of sales, which include restaurant food and wages costs were Â£1,745,000 (2006 - Â£660,000) and total administrative expenses which include all other overheads were Â£1,147,000 (2006 - Â£422,000). This is the first set of reported results prepared in accordance with International Financial Reporting Standards as adopted by the EU ('IFRS'). The principal changes relate to the treatment of lease premiums, lease incentives and the impact of a change in basis for the calculation of deferred taxation. The overall impact of conversion on our profits has been set out and fully explained in the IFRS Conversion statement issued today. Given that these are changes in accounting policy only, there is no impact whatsoever on the operating fundamentals or the underlying cash flows within the business. Under IFRS we are required to spread the benefit of any rent free periods at the start of a new lease over the full term of that lease rather than over the period to the first rent review under UK GAAP. As a consequence the pre-opening costs to be accounted for in any year will be higher. For the 26 weeks ended 1 July 2007, those pre-opening costs amounted to Â£65,000 (2006 - Â£nil). Basic and diluted (loss)/earnings per share for the period was 0.51p - loss (2006 - 0.31p - earnings). Cash flows and financing In May of this year the Group raised a further Â£3m through an institutional placing. During the period, we incurred capital expenditure of Â£2,806,000 (2006 - Â£464,000), predominantly on the fit-out of new restaurants. Overall, the net cash outflow prior to financing flows was Â£3,032,000 (2006 - Â£169,000) and as at 1 July 2007 the Group had net cash balances of Â£3,702,000 (2006 - Â£1,167,000). Board appointment I am delighted to take this opportunity to announce that Jo Fleet has accepted our invitation to join the Board as Executive Director with immediate effect. Jo has had a long career in catering and only recently left her position as Chief Executive of ASK Restaurants. Jo has been granted 500,000 share options. Outlook During the first six months of 2007, we opened one new restaurant bringing the number of restaurants at the period end to seven. Since then we have had a successful opening in Maidstone and all locations continue to perform in line with our expectations, with the exception of our restaurant in Nottingham. By the end of the calendar year we expect to have opened a further two restaurants. Our central kitchen in Park Royal is now fully operational with sufficient capacity to cope with our expansion for the foreseeable future. K Lassman Chairman Tasty plc 28 September 2007 Consolidated Income Statement (unaudited) 26 weeks 26 weeks Year ended ended ended 1 July 2 July 31 December 2007 2006 2006 Â£000 Â£000 Â£000 Revenue 2,684 1,151 2,676 Cost of sales (1,745) (660) (1,598) ______ ______ ______ Gross profit 939 491 1,078 Administrative expenses Exceptional flotation expenses - - (118) Share based payments (8) - (136) Other administrative expenses (1,139) (422) (1,153) Total administrative expenses (1,147) (422) (1,407) ______ ______ ______ Operating (loss)/profit (208) 69 (329) Finance income 71 21 77 ______ ______ ______ (Loss)/Profit before taxation (137) 90 (252) Income tax expense - (29) 21 ______ ______ ______ (Loss)/Profit for the period (137) 61 (231) attributable to equity shareholders ______ ______ ______ (Loss)/Earnings per share - basic and diluted (0.51p) 0.31p (1.14p) Statement of Changes in Equity (unaudited) 26 weeks 26 weeks Year ended ended ended 1 July 2 July 31 December 2007 2006 2006 Â£000 Â£000 Â£000 (Loss)/profit for the period (137) 61 (231) ______ ______ ______ Total income and expense for the period (137) 61 (231) New capital subscribed 2,958 106 4,391 Share-based payments - credit to equity 8 - 186 Merger reserve arising on group re-organisation - - 106 ______ ______ ______ Total change in equity 2,829 167 4,452 Opening equity 6,800 2,348 2,348 ______ ______ ______ Closing equity 9,629 2,515 6,800 ______ ______ ______ Consolidated Balance Sheet (unaudited) 1 July 2 July 31 December 2007 2006 2006 Â£000 Â£000 Â£000 Non-current assets Intangibles 10 - 7 Property, plant and equipment 4,850 1,398 3,193 Pre-paid operating lease charges 1,229 137 311 Deferred tax asset 116 60 116 Rent deposits 197 123 197 ______ ______ ______ 6,402 1,718 3,824 Current assets Inventories 105 25 82 Pre-paid operating lease charges 46 6 14 Trade and other receivables 746 298 304 Cash and cash equivalents 3,702 1,167 4,003 ______ ______ ______ 4,599 1,496 4,403 ______ ______ ______ Total assets 11,001 3,214 8,227 ______ ______ ______ Current liabilities Bank overdraft - - (227) Trade and other payables (1,234) (699) (1,129) ______ ______ ______ (1,234) (699) (1,356) Non current liabilities Accruals and deferred income (138) - (71) ______ ______ ______ Total liabilities (1,372) (699) (1,427) ______ ______ ______ Net assets 9,629 2,515 6,800 ______ ______ ______ Capital and reserves attributable to equity shareholders Share capital 2,874 2,774 2,601 Share premium 6,417 159 3,732 Share option reserve 194 - 186 Merger reserve 992 - 992 Retained earnings (848) (418) (711) ______ ______ ______ Equity 9,629 2,515 6,800 ______ ______ ______ Consolidated Cash Flow (unaudited) 26 weeks 26 weeks Year ended ended ended 1 July 2 July 31 December 2007 2006 2006 Â£000 Â£000 Â£000 Net cash inflow from operating activities (Loss)/profit before taxation (137) 90 (252) Finance income (71) (21) (77) Depreciation & amortisation 228 40 111 Share based payment charge 8 - 136 Share based payment charge included in exceptional - - 16 flotation expenses Movement in working capital (325) 165 528 Corporation tax paid - - (6) ______ ______ ______ Net cash (outflow)/inflow from operating activities (297) 274 456 Cash outflow from investing activities Finance income 71 21 77 Payments to acquire property, plant and equipment (2,806) (464) (2,518) ______ ______ ______ Net cash outflow from investment activities (3,032) (169) (1,985) Net cash inflow from financing Issue of share capital 2,958 106 4,531 ______ ______ ______ Net (decrease)/increase in cash and cash equivalents (74) (63) 2,546 ______ ______ ______ Cash and equivalents at beginning of period 3,776 1,230 1,230 ______ ______ ______ Cash and equivalents at end of period 3,702 1,167 3,776 ______ ______ ______ Notes to the financial statements 1 General information Tasty plc ('Tasty') is a public limited company ('the Group') incorporated in the United Kingdom under the Companies Act 1985 (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 historically prepared its accounts under UK General Accepted Accounting Practice (UK GAAP'), however, as required by AIM rules, Tasty will in future prepare its results under International Financial Reporting Standards and International Financial Reporting Council 'IFRIC' interpretations as adopted by the European Union ('IFRS'). Tasty has adopted IFRS with effect from 1 January 2007. The Group will apply IFRS in its financial statements in its Annual Report for the 52 weeks ending 30 December 2007. Therefore, these interim statements for the 26 weeks ended 1 July 2007 are prepared using accounting policies in accordance with IFRS that are expected to be applicable to the financial statements for the 52 weeks ending 30 December 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 required for first time adoption or for new standards issued after the balance sheet date. The basis of preparation and accounting policies followed in the Interim Report differ from those set out in the Annual Report and Accounts for the year ended 31 December 2006, which were prepared in accordance with UK GAAP. As permitted this report has not been prepared in accordance with IAS34 'Interim Financial Reporting'. A detailed explanation of the impact of the transition from UK GAAP to IFRS, setting out the restatement of the comparatives for the 26 weeks ended 2 July 2006 and the year ended 31 December 2006, has been provided in a Statement of Conversion issued to the Stock Exchange today. Details of the significant accounting policies used in the preparation of the Group's reported results under IFRS and, therefore, applied in the preparation of this Interim Report were also provided within the Statement of Conversion. Copies of the Statement of Conversion are available on the investor relations section of the Group's website (www.dimt.co.uk) or from the Company Secretary. This statement does not comprise statutory accounts as defined in Section 240 of the Companies Act 1985. The financial information for the year to 31 December 2006 is a restated extract from the latest Group accounts, amended as required on transition to IFRS. Statutory financial statements for the year ended 31 December 2006, prepared in accordance with UK GAAP, 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 1 July 2007 and 2 July 2006 are unaudited. The financial statements are presented in sterling and all values are rounded to the nearest thousand pounds (Â£'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. This was a group reconstruction, as allowed by IFRS3 so the merger method of accounting is used to consolidate the results of the subsidiary undertaking. The merger of the two companies took place on 26 June 2006. The shares issued are recorded in the Group's balance sheet at nominal value together with the amount of any additional consideration. In the Group accounts the subsidiary undertaking is treated as if it had always been a member of the Group. In the year it joined the Group, its results are included for the whole period. Costs totalling Â£145,121 (2006 - Â£12,060), which relate to pre-opening expenditure, have been included in the accounts for the period ended 1 July 2007. 3 Income tax expense The taxation charge for the 26 weeks ended 1 July 2007 has been calculated by applying the estimated effective tax rate for the year ending 31 December 2007 unaudited unaudited (restated) 26 weeks to 26 weeks to Year to 1 July 2 July 31 December 2007 2006 2006 Â£'000 Â£'000 Â£'000 UK corporation tax Current tax credit on (Loss)/profit for the period - (6) - Deferred taxation Increase in recoverable deferred tax asset - 35 21 _______ _______ _______ Total income tax expense/(credit) - 29 (21) _______ _______ _______ 4 Earnings per share unaudited unaudited (restated) 26 weeks to 26 weeks to Year to 1 July 2 July 31 December 2007 2006 2006 Pence Pence Pence Basic earnings per share (0.51) 0.31 (1.14) _______ _______ _______ Basic and diluted earnings per share are the same as there is no dilution. Earnings per share has been calculated using the numbers shown below:- unaudited unaudited (restated) 26 weeks to 26 weeks to Year to 1 July 2 July 31 December 2007 2006 2006 Â£'000 Â£'000 Â£'000 (Loss)/Profit for the period (137) 61 (231) _______ _______ _______ Number Number Number Weighted average number of ordinary shares in issue 26,581 19,420 20,221 _______ _______ _______ This information is provided by RNS The company news service from the London Stock Exchange

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