RNS Number : 7064U
Tasty PLC
19 May 2008
Tasty plc
Preliminary results for the 52 weeks ended 30 December 2007
Highlights
* Turnover up 103% to £5,437,000 (2006 - £2,676,000)
* Dim-t opened in Gloucester Road in April, Maidstone in August and Winchester in
November, and all three have proved to be
successful openings
* Our Central Kitchen facilities and management resources are well placed to cope with
the next phase of our roll out programme.
* Operating loss before tax and non-trading items of £659,000 (2006 - loss
£28,000)
* Statutory pre-tax loss after non-trading items of £2,981,000 (2006 - loss
£252,000)
Enquiries
Tasty plc Tel: 020 7637
1166
Jonny Plant, Chief Executive
Evolution Securities Tel: 020 7071 4300
Tom Price
Bobbie Hilliam
Chairman's statement
I am pleased to report on the Group's full period results for 2007. Our 2007 results will
be the first set of financial statements we
have prepared under IFRS. Under IFRS the principal changes for the Group relate to the
treatment of lease premiums, lease incentives and the
basis for calculating deferred taxation, which have had a net adverse impact on our results.
Given that these are changes in accounting
policy only there is no impact on the operating fundamentals or underlying cash flows of the
business.
During the course of the period three new dim-t restaurants were successfully opened, and
one closed, taking the total number at the
period end to eight and a large central kitchen facility was established in Park Royal,
London. The Group's oldest three restaurants have
been refurbished to a high standard to ensure consistent brand identity throughout the Group.We have made some high level recruitments
during the period to bolster the management and head office team.
Results
Turnover for the 52 weeks ended 30 December 2007 was up 103% to £5,437,000 (2006 -
£2,676,000). Operating losses before tax and non
trading items were £659,000 (2006 - loss £28,000). The non-trading items relate to the
disposal and impairment of property, plant and
equipment of £2,194,000 (2006 - nil), pre-opening costs of £279,000 (2006 - £183,000)
and flotation expenses of nil (2006 - £118,000).The overall statutory pre-tax loss after non-trading items was £2,981,000 (2006 - loss
£252,000), with the loss on closure of our
Nottingham unit, as previously reported, and a reduction in the carrying value of our
Tunbridge Wells unit, as detailed below, contributing
significantly to the loss.
Under IFRS we are required to spread the benefits of any rent free period at the start of
a new lease over the full term of the lease.As a consequence the pre-opening costs in any one year are substantially higher than they were
under UK GAAP. As a result we have separately
identified pre-opening costs of £279,000 (2006 - £183,000) on the income statement.
The Board do not recommend the payment of a dividend.
Openings
Dim-t opened in Gloucester Road in April, Maidstone in August and Winchester in November,
and all three have proved to be successful
openings.
Closure and Impairment
Nottingham was sold in October 2007 and the Board has taken the decision to impair the
value of the Tunbridge Wells branch due to its
performance falling below expectations.
Cashflows
Net cash outflow for the period before financing was £4,288,000 (2006 - £2,255,000).This is largely represented by capital
expenditure on the expansion of the business.
During the period £5,018,000 (2006 - £4,497,000) was raised from share issues.
Net cash and cash equivalents held at the end of the year were £3,379,000 (2006 -
£3,776,000).
Staff and Infrastructure
As previously reported to shareholders, Julia Fleet, formerly CEO of Ask Central plc,
joined the executive Board in September and Jo
Bargery, also a former Ask Central plc director, has joined our operational team.
Our staff continue to make a key contribution to the Group's performance and I would like
to take this opportunity to thank them for
their support and commitment during the period.
The Group is now well positioned for its future growth. Our central kitchen facilities and
management resources are well placed to cope
with the next phase of our roll out programme.
The Sector
Mintel is forecasting that the eating out market is set to continue to grow at 6% p.a.until at least 2012. In the main this is due to
the growth in casual dining, which is where dim-t is positioned in terms of spend and
experience. Regular eating out in the UK has become
accepted practice for a large number of people and customers are looking for a casual dining
experience that offers excellent value for
money at a lower cost rather than change their habits. Dim-t, where the average customer spend
is less than £14, is well positioned to meet
this requirement.
Outlook
We have made an encouraging start to 2008 with the business performing in line with our
expectations, despite the background of a
weakening economy. Our new Victoria restaurant opened in April and Milton Keynes opened
earlier on this month. Two further restaurants are
planned to be open by the period end.
AGM
The Company's AGM will take place on 12 June 2008.
Keith Lassman
Chairman
15 May 2008
Tasty plc
Consolidated Income statement for the 52 weeks ended 30 December 2007
Note 2007 2006
£*000 £*000
Revenue 5,437 2,676
Cost of sales (5,531) (2,343)
Gross (loss)/profit (94) 333
Administrative costs (1,434) (662)
Other operating expenses (1,604) -
Operating loss excluding pre-opening (659) (28)
costs and non trading items
Pre-opening costs (279) (183)
Disposal and impairment of property, (2,194) -
plant and equipment
Exceptional flotation expenses - (118)
Operating loss 2 (3,132) (329)
Finance income 151 77
Loss before taxation (2,981) (252)
Income tax expense 3 134 21
Loss for the period * attributable to (2,847) (231)
equity shareholders
Loss per ordinary share
Basic and diluted 4 (10.20p) (1.14p)
Consolidated statement of changes in equity as at 30 December 2007
Share Capital Share Premium Merger Reserve
Retained deficit Total equity
£*000 £*000 £*000
£*000 £*000
Balance at 31 December 2005 1,942 - 886
(480) 2,348
Changes in equity for 2006
Loss for the period - - -
(231) (231)
Tax on items taken directly to - - -
- -
equity
Total recognised income and - - -
(231) (231)
expense for the period
Issue of share capital (net of 659 3,732 -
- 4,391
£359,000 issue costs)
Equity share options granted - - -
186 186
Movements on merger reserve - - 106
- 106
Balance at 31 December 2006 2,601 3,732 992
(525) 6,800
Changes in equity for 2007
Loss for the period - - -
(2,847) (2,847)
Tax on items taken directly to - - -
- -
equity
Total recognised income and - - -
(2,847) (2,847)
expense for the period
Issue of share capital (net of 516 4,502 -
- 5,018
£169,000 issue costs)
Equity share options granted - - -
23 23
Balance at 30 December 2007 3,117 8,234 992
(3,349) 8,994
Consolidated balance sheet at 30 December 2007
Note 2007 2007 2006 2006
£*000 £*000 £*000 £*000
Assets
Non-current assets
Intangible assets 10 7
Property, plant and equipment 5,230 3,193
Pre-paid operating lease 1,103 311
charges
Deferred tax asset 250 116
Other receivables 196 197
Total non-current assets 6,789 3,824
Current assets
Inventories 172 82
Trade and other receivables 503 305
Prepaid operating lease 48 13
charges
Cash and cash equivalents 3,379 4,003
Total current assets 4,102 4,403
Total assets 10,891 8,227
Liabilities
Non-current liabilities
Accrual for lease incentives 219 71
Total non-current liabilities 219 71
Current liabilities
Trade and other payables 1,678 1,356
Total current liabilities 1,678 1,356
Total liabilities 1,897 1,427
TOTAL NET ASSETS 8,994 6,800
Capital and reserves
Called up share capital 3,117 2,601
Share premium reserve 8,234 3,732
Retained deficit (3,349) (525)
Merger reserve 992 992
TOTAL EQUITY 8,994 6,800
Consolidated cash flow statement for the 52 weeks ended 30 December 2007
Note 2007 2007 2006 2006
£*000 £*000 £*000 £*000
Cash flows from operating
activities
Loss for the period before tax (2,981) (252)
adjustments for:
Depreciation 309 102
Amortisation 1 1
Impairment losses 590 -
Loss on sale of property, 1,604 -
plant and equipment
Equity settled 23 186
share-based payment expense
Finance income (151) (77)
Cash flows from operating (605) (40)
activities before changes in
working capital
Increase in trade and other (1,128) (471)
receivables
Increase in inventories (90) (57)
Increase in trade and other 696 878
payables
Cash generated from operations (1,127) 310
Income tax paid - (6)
Net cash flows from operating (1,127) 304
activities carried forward
Tasty plc
Consolidated cash flow statement for the 52 weeks ended 30 December 2007 (Continued)
Note 2007 2007 2006 2006
£*000 £*000 £*000
£*000
Cash flows from operating (1,127) 304
activitiesbrought forward
Investing activities
Purchases of property, (4,535) (2,324)
plant and equipment
Purchase of intangible (4) (8)
assets
Sale of property, plant 100 -
and equipment
Interest received 151 77
Net cash from/(used in) (4,288) (2,255)
investing activities
Financing activities
Issue of ordinary shares 5,018 4,497
(net of issue costs of
£169,000 * 2006 - £359,000)
Net cash from financing 5,018 4,497
activities
Net (decrease)/increase in (397) 2,546
cash and cash equivalents
Cash and cash equivalents at 3,776 1,230
beginning of period
Cash and cash equivalents at 3,379 3,776
end of period
Notes to the preliminary announcement
1. Basis of preparation
The consolidated financial statements incorporate the results of the Company and its
subsidiary, Took Us A Long Time Limited. The
merger method of accounting has been used to consolidate the results of the subsidiary
undertaking.
The Group has historically prepared its accounts under UK Generally Accepted
Accounting Practice ('UK GAAP'), however, for the 52
weeks ended 30 December 2007 it has prepared its financial statements in accordance with
International Financial Reporting Standards
('IFRSs') and its interpretations adopted by the International Accounting Standards Board
('IASB') and as endorsed for use by companies
listed on an EU regulated exchange.
The financial information contained in this announcement is extracted from but does
not constitute the Group's statutory accounts
for the period ended 30 December 2007 as defined in Section 240 of the Companies Act 1985. The
directors approved the statutory accounts on
15 May 2008. The statutory accounts for the period ended 31 December 2006, which were prepared
under UK GAAP, have been filed with the
Registrar of Companies. The auditors' have reported on the full accounts for both periods and
their reports were unqualified, did not
include references to any matters to which the auditors drew attention by way of emphasis
without qualifying their report and did not
contain a statement under Section 237(2) or (3) of the Companies Act 1985. The statutory
accounts for the period ended 30 December 2007 will
be delivered to the Registrar of Companies in due course.
As part of the IFRS conversion process, though not as a requirement of IFRS, the Group
has changed its accounting policy in respect
of allocation of costs between cost of sales and administrative expenses.
The financial statements are presented in sterling, rounded to the nearest thousand.They are prepared on the historical cost
basis.
The annual report and accounts for the period ended 30 December 2007 has been posted
to shareholders today. Electronic copies of the
documents can be accessed from the Company's website at www.dimt.co.uk.
2 Operating loss from operations
2007 2006
£*000 £*000
This has been arrived at after charging
Staff costs 2,220 1,032
Operating lease rentals 797 351
Amortisation of intangible fixed assets 1 1
Depreciation 309 110
Loss on disposal of fixed assets 1,604 -
Impairment of property plant and equipment 590 -
Share based payments 23 136
Pre-opening costs 279 183
Exceptional flotation expenses - 118
Auditors* remuneration
Audit fee
- Audit of parent Company 7 2
- Audit of Group financial statements 8 3
- Audit of subsidiary undertaking 15 10
Other services
- Taxation services 7 9
3 Tax on profit on ordinary activities
2007 2006
£*000 £*000
(a) Analysis of charge for the period
Current tax
UK corporation tax on profits of the period - -
Current tax charge for period - -
Deferred tax
Adjustment in respect of prior period - -
Origination and reversal of temporary (134) (21)
differences
Total deferred tax (134) (21)
Total income tax expense (134) (21)
(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:
2007 2006
£*000 £*000
Loss on ordinary activities before tax (2,981) (252)
Loss on ordinary activities multiplied by (894) (76)
standard rate of corporation tax in the UK of 30% (2006 *
30%)
Effects of:
Expenses not deductible for tax purposes 396 48
Effects of changes in enacted tax rates and 59 7
small companies rate
Increase in unprovided tax losses carried 305 -
forward
Total tax expense (see (a) above) (134) (21)
4 Loss per ordinary share (EPS)
2007 2006
£*000 £*000
Numerator
Loss for the period (2,847) (231)
Denominator
Number Number
£*000 £*000
Weighted average number of ordinary shares (basic 27,911 20,221
and diluted eps)
Basic loss per ordinary share (pence) (10.20p) (1.14p)
Diluted loss per ordinary (pence) (10.20p) (1.14p)
Basic and diluted loss per ordinary share are the same as there is no dilution. The
1,015,000 (2006 - 1,071,531) share options that
have been granted in the period 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 period the effect of taking into account
potential ordinary shares would nearly always be to
reduce the basic loss per share. Share options have therefore been excluded in the calculation
of diluted EPS.
This information is provided by RNS
The company news service from the London Stock Exchange
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