Interim Results

RNS Number : 9836C
Tasty PLC
09 September 2008
 



Tasty plc



Chairman's statement


I am pleased to report on the Group's half year results for the 26 weeks ended on 29 June 2008.  



Results


Turnover for the 26 weeks ended 29 June 2008 was £3,716,000 (2007 - £2,439,000).  Turnover has increased by more than 52% reflecting new openings and maturing units. The profit before pre-opening costs of £107,000 (2007 - £92,000) and redundancy costs of £50,000 (2007 - nil) was £65,000 (2007 - loss £45,000). The overall loss before tax for the period was £92,000 (2007 - £137,000). A reduction in operating loss has been achieved by wage cost management and increased buying power offsetting food cost increases across the sector. The allocation of various costs between cost of sales and administrative expenses was changed at year ended 30 December 2007 in order to fall in line with general industry practice without affecting our underlying results and the comparative figures for the 26 weeks ended 1 July 2007 shown in this report have been adjusted accordingly. On this basis, cost of sales for the period were £3,449,000 (2007 - 2,311,000) and total administrative expenses were £422,000 (2007 - £336,000). The results have been prepared in accordance with International Financial Reporting Standards as adopted by the EU ('IFRS').


Basic and diluted loss per share for the period was 0.29p (2007 - 0.51p).


Cash flows and financing


During the period we incurred capital expenditure of £1,786,000 (2007 - £2,806,000)predominantly on the fit-out of new restaurants. Overall, the net cash outflow prior to financing flows was £1,393,000 (2007 - £3,032,000) and as at 29 June 2008 the Group had net cash balances of £1,986,000 (2007 - £3,702,000).


Outlook


During the first six months of 2008, we opened two new restaurants bringing the number of restaurants at the period end to ten and we will be opening a further restaurant later on this month under the Italian themed 'Wildwood' brand. Further new openings will be dependent on the cash resources available to the Group.


Despite the continuing challenging economic conditions, we continue to trade in line with expectations for 2008 and the average spend at the restaurants means the business should be well positioned for the economic conditions ahead. 





K Lassman

Chairman

Tasty plc


9 September 2008


Enquiries


Tasty plc Tel: 020 7637 1166

Jonny Plant

Chief Executive Officer


Evolution Securities Tel: 020 7071 4300

Tom Price

Bobbie Hilliam  

Consolidated Income Statement

(unaudited)







26 weeks ended


26 weeks ended


52 weeks ended


29 June


1 July


30 December


2008


2007


2007


£'000


'£'000


£'000







Revenue

3,716


2,439


5,437

Cost of sales

(3,449)


(2,311)


(5,531)


______


______


______







Gross profit/(loss)

267


128


  (94)







Administrative expenses

(422)


(336)


(1,434)

Other operating expenses

-


-


(1,604)


______


______


______







Operating profit/(loss) excluding pre-opening costs and non trading items

2


(116)


(659)

    Pre-opening costs

(107)


(92)


(279)

Disposal and impairment of property, plant and equipment

-


-


(2,194)

    Redundancy costs

(50)


-


-







Operating loss

(155)


(208)


(3,132)

Finance Income

63


71


151


______


______


______







(Loss) before taxation

(92)


(137)


(2,981)

Income tax expense

-


-


134


______


______


______







(Loss) for the period

(92)


(137)


(2,847)

attributable to equity shareholders

______


______


______







(Loss) per share - basic and diluted

(0.29p)


(0.51p)


(10.20p)








  

Consolidated Statement of Changes in Equity

(unaudited)






            



Share Capital 

Share Premium

Merger reserve

Retained deficit

Total 

equity


£'000

£'000

£'000

£'000

£'000







Balance at 31 December 2006

2,601

3,732

992

(525)

6,800







Changes in equity for 26 weeks ended 1 July 2007












Loss for the period

-


-

(137)

(137)







Total recognised income and expense for the period

-

-

-

(137)

(137)







Issue of share capital (net of £70,000 issue costs)

273

2,685

-

-

2,958

Equity share options granted

-

-

-

8

8


______

______

______

______

______







Balance at 1 July 2007

2,874

6,417

992

(654)

9,629


______

______

______

______

______













Changes in equity for 26 weeks ended 30 December 2007












Loss for the period

-

-

-

(2,710)

(2,710)

Tax on items taken directly to equity

-

-

-

-

-







Total recognised income and expense for the period

-

-

-

(2,710)

(2,710)







Issue of share capital (net of £99,000 issue costs)

243

1,817

-

-

2,060

Equity share options granted

-


-

15

15


______

______

______

______

______







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)







Issue of share capital

-

-

-

-

-

Equity share options granted

-

-

-

-

-


______

______

______

______

______








3,117

8,234

992

(3,441)

8,902


______

______

______

______

______











Consolidated Balance Sheet


(unaudited)

29 June


1 July


30 December


2008


2007


2007


£'000


£'000


£'000

Non-current assets






Intangible assets

10


10


10

Property, plant and equipment

6,648


4,850


5,230

Pre-paid operating lease charges

1,134


1,229


1,103

Deferred tax asset

250


116


250

Other receivables

241


197


196


______


______


______








8,283


6,402


6,789







Current assets






Inventories

220


105


172

Pre-paid operating lease charges

50


46


48

Trade and other receivables

759


746


503

Cash and cash equivalents

1,986


3,702


3,379


______


______


______








3,015


4,599


4,102


______


______


______













Total assets

11,298


11,001


10,891


______


______


______







Non current liabilities






Accruals for lease incentives

(249)


(138)


(219)







Current liabilities






Trade and other payables

(2,147)


(1,234)


(1,678)


______


______


______







Total liabilities

(2,396)


(1,372)


(1,897)


______


______


______













Net assets

8,902


9,629


8,994


______


______


______







Capital and reserves attributable to equity shareholders



Share capital

3,117


2,874


3,117

Share premium

8,234


6,417


8,234

Merger reserve

992


992


992

Retained earnings

(3,441)


(654)


(3,349)


______


______


______







Equity

8,902


9,629


8,994


______


______


______







  

Consolidated Cash Flow

(unaudited)

26 weeks ended


26 weeks ended


52 weeks ended


29 June


1 July


31 December


2008


2007


2007


£'000


£'000


£'000







Net cash (outflow)/inflow from operating activities






(Loss) for the period before taxation

(92)


(137)


(2,981)







Adjustments for






Depreciation 

179


227


309

Amortisation

-


1


1

Impairment losses

-


-


590

Loss on sale of property, plant and equipment

-


-


1.604

Equity settled share-based payment expense

-


8


23

Finance income

(63)


(71)


(151)


______


______


______

Net cash (outflow)/inflow from operating activities






before changes in working capital

24


28


(605)



















Increase in trade and other receivables

(381)


(428)


(1,128)

Increase in inventories

(48)


(22)


(90)

Increase in trade and other payables

735


125


696


______


______


______







Cash generated from operations

330


(297)


(1,127)







Investing activities






Purchase of property, plant and equipment

(1,786)


(2,803)


(4,535)

Purchase of intangible assets

-


(3)


(4)

Sale of property, plant and equipment

-


-


100

Interest received

63


71


151








______


______


______







Net cash outflow from investment activities

(1,723)


(2,735)


(4,288)







Net cash inflow from financing






Issue of share capital

-


2,958


5,018


______


______


______







Net (decrease) in cash and cash equivalents

(1,393)


(74)


(397)







Cash and equivalents at beginning of period

3,379


3,776


3,776


______


______


______







Cash and equivalents at end of period

1,986


3,702


3,379


______


______


______








  

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 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 31 December 2007. As permitted this interim report has not been prepared in accordance with IAS 34 'Interim Financial Reporting'.


This statement does not comprise statutory accounts as defined in Section 240 of the Companies Act 1985. Statutory financial statements for the year ended 30 December 2007, 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 29 June 2008 and 1 July 2007 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. 


As part of the IFRS conversion process, though not a requirement of IFRS, the Group changed its accounting policy in respect of allocation of costs between cost of sales and administrative expenses in the 30 December 2007 accounts.


The presentation of various costs such as rent and rates and other direct occupancy expenses together with marketing and other operational costs and depreciation of the Group's assets have been reallocated in arriving at the loss from operations. Costs which were previously treated as administrative expenses have been reclassified as cost of sales.  The prior period comparatives for the 26 weeks to 1 July 2007 have been restated as a result. This is in order that the Group falls into line with the common way of reporting in the industry and has had no affect on the underlying performance of the business.


The effect on the comparative figure has been to increase cost of sales and decrease administrative expenses by £811,000. Comparative turnover for the 26 weeks to 1 July 2007 has also been reduced by £245,000 due to a reclassification of sales from the central kitchen.





  3    Income tax expense


The taxation charge for the 26 weeks ended 29 June 2008 has been calculated by applying the estimated effective tax rate for the period ending 28 December 2008



  unaudited

  unaudited



26 weeks to

 26 weeks to

52 weeks to


  29 June

  1 July

30 December


2008

2007

2007


£'000

£'000

£'000





UK corporation tax




Current tax credit on (Loss) for the period

-

-

-





Deferred taxation




Increase in recoverable deferred tax asset

-

-

(134)


_______

_______

_______





Total income tax expense/(credit)

-

-

(134)


_______

_______

_______



4    Earnings per share



   unaudited

  unaudited



26 weeks to

 26 weeks to

52 weeks to


  29 June

  1 July

30 December


2008

2007

2007


Pence

Pence

Pence





Loss per share

(0.29)

(0.51)

(10.20)


_______

_______

_______






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


  1 July

  1 July

30 December


2007

2007

2007


£'000

£'000

£'000





(Loss) for the period

(92)

(137)

(2847)


_______

_______

_______










Number

Number

Number





Weighted average number of ordinary shares in issue

31,170

26,581

27,911


_______

_______

_______



This information is provided by RNS
The company news service from the London Stock Exchange
 
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