TIDMTAST
RNS Number : 4637T
Tasty PLC
30 March 2016
Tasty plc
("Tasty" or the "Company")
Preliminary results for the 52 weeks ended 27 December
2015
Highlights:
* Revenue up 20% to GBP35,794,000 (2014 -
GBP29,734,000)
* Operating profit before pre-opening costs and
non-trading items was up 28% to GBP3,951,000 (2014 -
GBP3,090,000)
* Profit before tax up 20% to GBP3,067,000 (2014 -
GBP2,552,000)
* Twelve new Wildwood and Wildwood Kitchen restaurants
and one new Dim t restaurant opened in the year
* Two new restaurants have opened since the year end
* The Company also has two sites under construction and
a number of other sites at various stages of
completion and negotiation
Enquiries:
Tasty plc Tel: 020 7637 1166
Jonny Plant, Chief Executive
Cenkos Securities Tel: 020 7397 8927
Bobbie Hilliam
Harry Pardoe
Chairman's statement
I am pleased to be reporting on the Group's profitable results
of GBP2,467,000 (December 2014 - GBP2,052,000). The results are for
the 52 weeks period ended 27 December 2015 and a comparative with
the 52 week period ended 28 December 2014.
Results
Revenue for the year was up 20% on last year to GBP35,794,000
(2014 - GBP29,734,000). Operating profit before pre-opening costs
and non-trading items was up 28% on last year at GBP3,951,000 (2014
- GBP3,090,000). Pre-opening costs for the period totalled
GBP644,000 (2014 - GBP360,000).
The overall statutory pre-tax profit was up by some 20% at
GBP3,067,000 (2014 - GBP2,552,000).
The Board does not recommend the payment of a dividend at this
stage of the Group's development.
Openings
Twelve Wildwood and Wildwood Kitchen restaurants were opened
during the year: Plymouth, Hereford, Telford, Chichester and
Taunton were opened in the first half of the year with Royal
William Yard, Worcester, Port Solent, Brentwood, Whiteley, Kingston
and Liverpool opening in the second half of the year. The Company
opened a Dim t restaurant in Whiteley in November.
Since the year end the Company has continued its expansion
programme with two new sites opened, two sites under construction
and a number of other sites at various stages of completion and
negotiation.
Cash flows
Net cash outflow for the period before financing was
GBP4,759,000 (2014- GBP1,061,000). This is largely represented by
capital expenditure on the expansion of the business through the
opening of the above sites. Cash flows from operating activities
were GBP5,076,000 (2014 - GBP5,308,000).
During the year the Group updated its banking facility with
Barclays, increasing the facility to GBP8,000,000 (2014 - available
facility of GBP4,000,000) to be used for future capital
expenditure. As at 27 December 2015 the Company had drawn
GBP5,750,000 of the available facility.
Cash and cash equivalents held at the end of the period were
GBP2,221,000 (2014 - GBP2,044,000).
Review of the business
The Group delivered another good performance in 2015, with an
improvement in operating profit margin and a 20% increase in
pre-tax profits.
The Group continued its expansion during the year, adding
thirteen new sites to the estate. The rate of development will
accelerate in the medium term. Openings in the coming 12 months
will expand the UK geographical footprint of the Group.
At the end of the period the Group operated 48 restaurants.
Currently, the Group has 50 restaurants in operation - 7 DimTs and
43 Wildwoods and Wildwood Kitchens.
Pre-opening costs and accounting adjustments
Pre-opening costs have been highlighted in the income statement
as these costs represent revenue expenses, such as rent, rates and
training costs, which are necessarily incurred in the period before
a new unit is opened, but which are specific to the opening of that
unit and not part of the Group's normal ongoing trading
performance.
The Group recognises a number of charges in the accounts which
arise under accounting rules which have no transactional cash
impact. These charges include share based payments.
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 again for their hard work and effort.
Current Trading
Since the year end trading has been broadly in line with
expectations.
Keith Lassman
Chairman
30 March 2016
Chief Executive's Statement
2015 was another strong year for Tasty across all aspects of the
business. We continued to grow at a rapid rate, with 13 new
openings achieved in 2015, taking the estate to 48 restaurants, an
increase of 37% on the previous year.
Improvements in Tasty's trading profits have been achieved
through a combination of increased sales and cost reductions which
has resulted in the adjusted EBITDA margin increasing by 1 % to
16.3%. Adjusted EBITDA (excluding pre-opening and non-operating
costs) increased by 28% to GBP5.8m for the year.
Since the year end we have opened two more restaurants and a
further two sites are under construction. The property pipeline is
looking strong for 2016 and we expect to open 15 sites.
Brands
Expansion has focussed on the Wildwood (43) brands and this will
continue in the future. The 'all day' appeal of these brands has
been improved by the development of a delicatessen which has driven
additional morning and mid-afternoon trade.
Our sites are primarily based on the high street. However, we
have a number of leisure, retail and tourist locations which all
trade well, highlighting the broad appeal and scalability of the
offering. Continued expansion across all of these location types
are planned in the coming year.
A review of the Dimt (7) brand has identified mixed retail and
leisure developments as a key area of expansion. An additional Dimt
site was opened in the year in the Whiteley Development in
Fareham.
Alongside the Dimt in Whiteley, we opened a Wildwood, the first
time the Group have operated these two brands in the same location.
Both sites are trading above expectations and pave the way for
similar future openings if the opportunity should arise.
Expansion
We are now preparing for an acceleration in the rollout
programme with the appointment of David Street as property director
and a number of key business functions will be expanded and
strengthened to facilitate this more rapid growth.
A significant investment will be made to upgrade the existing
restaurant websites and greatly enhance the entire digital
marketing strategy for the Group, which will increase the reach and
recognition of all the Tasty brands.
To ensure that we retain our high level of food quality and
consistency we will be investing in Tasty's Central Kitchen's
infrastructure.
Additionally, a number of appointments are being made in our
Operations, Marketing, Finance and People departments, along with a
number of systems upgrades, to ensure a continued successful
expansion programme.
Outlook
The business is at an exciting stage and is well positioned to
expand. 2016 will be a year of growth and investment as we lay the
foundations for the future.
Strategic Report for the 52 weeks ended 27 December 2015
Business review and key performance indicators
Revenue for the 52 week period increased 20% on last year to
GBP35,794,000 (2014 - GBP29,734,000). Operating profit before
pre-opening costs and non-operating items was GBP3,951,000 (2014 -
GBP3,090,000). Pre-opening costs for the period totalled GBP644,000
(2014 - GBP360,000). The overall statutory pre-tax profit was
GBP3,067,000 (2014 - GBP2,552,000).
The Directors utilise a large number of detailed performance
indicators which are used to manage the business but, as with most
businesses, the focus in the Income Statement is on sales, margins
and overheads compared to budget and the previous year. In the
balance sheet the focus is on managing working capital.
The Directors recognise the importance of customer relations and
staff are extensively trained in this regard. Performance is
monitored by reference to the results of regular "mystery diner"
visits , and staff bonuses are calculated on the basis of the
results and comments arising from these visits and other customer
feedback.
A further review of the business and KPIs is included in the
Chairman's Statement and in the Chief Executive's statement.
Principal uncertainties and risks
Economic conditions
There have been a number of encouraging signs regarding the UK
economic outlook. However, there still remains a high level of
uncertainty. Deterioration in consumer confidence due to future
economic conditions could have a detrimental impact on the Group in
terms of footfall and sales. This risk is mitigated by the
positioning of the Group's brands, which is within the affordable
segment of the casual dining market. Continued focus on customer
relations and targeted and adaptable marketing initiatives help the
Group retain and drive sales where footfall declines.
Input cost inflation
(MORE TO FOLLOW) Dow Jones Newswires
March 30, 2016 02:00 ET (06:00 GMT)
The Group's key variable inputs are the cost of food and labour,
both of which face inflationary pressures in the medium term. The
Group monitors its food supply chain closely, regularly reviewing
food costs and implementing a variety of strategies to mitigate the
impact of increases. Labour cost pressures which are outside of the
control of the Group, such as the recently introduced National
Living Wage and annual minimum wage increases, are suffered by the
Group and its competitors. However, labour cost are regularly
monitored and on-going initiatives are used to reduce the impact of
such pressures.
Strategic risks
The acquisition of suitable and well located quality sites in
order to continue the Group's expansion is necessary to achieve the
Group's strategic aims. The Group has a strong and experienced
property acquisition team with good relationships with external
agents and advisers.
On behalf of the Board.
Jonny Plant
Joint Chief Executive Officer
30 March 2016
Consolidated statement of comprehensive income for the 52 weeks
ended 27 December 2015
Note 2015 2014
GBP'000 GBP'000
Revenue 3 35,794 29,734
Cost of sales (31,594) (26,207)
-------------------------------------- -------- ---------- ----------
Gross profit 4,200 3,527
Administrative costs (1,026) (901)
Operating profit excluding
non-trading items and pre-opening
costs 3,951 3,090
Pre-opening costs (644) (360)
Non-trading items 5 (133) (104)
-------------------------------------- -------- ---------- ----------
Operating profit 4 3,174 2,626
Finance income 9 9
Finance expense 6 (116) (83)
-------------------------------------- -------- ---------- ----------
Profit before tax 3,067 2,552
Income tax expense 9 (600) (500)
-------------------------------------- -------- ---------- ----------
Profit and total comprehensive
income for the period attributable
to shareholders 2,467 2,052
-------------------------------------- -------- ---------- ----------
Earnings per share
Basic 10 4.64p 3.88p
Diluted 10 4.58p 3.83p
-------------------------------------- -------- ---------- ----------
Consolidated statement of changes in equity for the 52 weeks
ended 27 December 2015
Share Share Merger Retained Total
capital premium reserve deficit
/ earnings
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 29 December
2013 5,293 13,317 992 (2,157) 17,445
Issue of ordinary shares 12 19 - - 31
Total comprehensive
income for the period - - - 2,052 2,052
Share based payments
- credit to equity - - - 104 104
Balance at 28 December
2014 5,305 13,336 992 (1) 19,632
Issue of ordinary shares 17 35 - - 52
Total comprehensive
income for the period - - - 2,467 2,467
Share based payments
- credit to equity - - - 133 133
Balance at 27 December
2015 5,322 13,371 992 2,599 22,284
--------------------------- ---------- ---------- ---------- ------------- ---------
Consolidated balance sheet at 27 December 2015
2015 2014
GBP'000 GBP'000
Non-current assets
Intangible assets 12 470 444
Property, plant and equipment 13 28,496 20,391
Pre-paid operating lease
charges 14 1,936 1,731
Other non-current assets 148 341
31,050 22,907
-------------------------------- ---- ---------- ---------
Current assets
Inventories 16 1,812 1,051
Trade and other receivables 17 2,529 1,801
Pre-paid operating lease
charges 14 140 152
Cash and cash equivalents 2,221 2,044
6,702 5,048
-------------------------------- ---- ---------- ---------
Total assets 37,752 27,955
-------------------------------- ---- ---------- ---------
Current liabilities
Trade and other payables 18 (8,076) (6,536)
Borrowings 21 (750) (500)
(8,826) (7,036)
-------------------------------- ---- ---------- ---------
Non-current liabilities
Provisions 19 (45) (55)
Lease incentives (715) (367)
Deferred tax liability 20 (882) (615)
Long-term borrowings 21 (5,000) (250)
(6,642) (1,287)
-------------------------------- ---- ---------- ---------
Total liabilities (15,468) (8,323)
-------------------------------- ---- ---------- ---------
Total net assets 22,284 19,632
-------------------------------- ---- ---------- ---------
Equity
Share capital 22 5,322 5,305
Share premium 23 13,371 13,336
Merger reserve 23 992 992
Retained deficit / earnings 23 2,599 (1)
-------------------------------- ----
Total equity 22,284 19,632
-------------------------------- ---- ---------- ---------
The financial statements were approved by the board of directors
of the Company and authorised for issue on 30 March 2016 and signed
on their behalf by Jonny Plant.
Consolidated cash flow statement for the 52 weeks ended 27
December 2015
Note 2015 2014
GBP'000 GBP'000
Operating activities
Cash generated from operations 30 5,076 5,308
Corporation tax paid - -
Net cash inflow from operating
activities 5,076 5,308
--------------------------------- -------- --------- ---------
Investing activities
Purchase of property, plant
and equipment (9,844) (6,378)
Interest received 9 9
Net cash flows used in
investing activities (9,835) (6,369)
--------------------------------- -------- --------- ---------
Financing activities
Net proceeds from issues
of ordinary shares 52 31
Bank loan receipt 5,750 -
Bank loan repayment (750) (250)
Interest paid (116) (83)
Net cash flows used in
financing activities 4,936 (302)
--------------------------------- -------- --------- ---------
Net increase in cash and
cash equivalents 177 (1,363)
Cash and cash equivalents
as at 28 December 2014 2,044 3,407
Cash and cash equivalents
as at 27 December 2015 2,221 2,044
--------------------------------- -------- --------- ---------
Notes forming part of the financial statements for the 52 weeks
ended 27 December 2015
1 Accounting policies
(a) Statement of compliance
These financial statements have been prepared in accordance with
International Financial Reporting Standards, International
Accounting Standards and Interpretations (collectively IFRS) issued
by the International Accounting Standards (IASB) as adopted by
European Union ("adopted IFRSs").
(b) Basis of preparation
The financial statements cover the 52 week period ended 27
December 2015, with a comparative period of the 52 week period
ended 28 December 2014. The financial statements are presented in
sterling, rounded to the nearest thousand and are prepared on the
historical cost basis.
(c) Changes in accounting policy
Standards amendments and interpretations, issued by the IASB or
the International Financial Reporting Interpretations Committee
(IFRIC) and endorsed by the EU, which were effective for the first
time in the current financial year did not have a significant
impact on these financial statements.
(MORE TO FOLLOW) Dow Jones Newswires
March 30, 2016 02:00 ET (06:00 GMT)
The following standards and interpretations (including updates
and amendments) are not yet effective and have not been early
adopted by the Group. The Group is assessing the impact these
standards and interpretations will have on the presentation of
results in future periods.
-- Annual improvements to IFRSs (2012 - 2014 Cycle) - effective from 1 January 2018
-- IFRS 15 'Revenue' - effective from 1 January 2018
-- IFRS 16 'Leases' - effective from 1 January 2019*
-- IFRS 9 'Financial Instruments' - effective from 1 January 2018
-- Clarification of Acceptable Methods of Depreciation and
Amortisation: Amendments to IAS 16 and IAS 38 - effective from 1
January 2016
-- Recognition of deferred tax assets for unrealised losses:
Amendment to IAS 12 - effective from 1 January 2017*
* not yet endorsed by EU
(d) Basis of consolidation
The consolidated financial statements incorporate the results of
the Company and its subsidiary, Took Us A Long Time Limited. The
parent Company has taken advantage of the exemption in s 408 of the
Companies Act 2006 not to publish its own income statement. The
accounting period of the subsidiary is co-terminous with that of
the parent undertaking.
The merger method of accounting was used to consolidate the
results of the subsidiary undertaking because the transaction was a
Group reconstruction. The merger of the two companies took place on
26 June 2006 and the shares issued were recorded in the Company's
balance sheet at nominal value of the shares issued plus fair value
of any additional consideration. The difference between the nominal
value of the shares issued and the nominal value of the shares
acquired was taken to a merger reserve in the Group accounts.
(e) Revenue
Revenue represents amounts received and receivable for goods and
services provided (excluding value added tax) in the normal course
of business. Revenue is recognised at the point goods and services
are provided.
(f) Pre-opening costs
Property rentals and other related overhead expenses incurred
prior to a new restaurant opening are written off to the income
statement in the period that they are incurred. Similarly, the
costs of training new staff during the pre-opening phase are
written-off as incurred. These expenses are included within cost of
sales and are specific to the opening of that unit and not part of
the Group's normal ongoing trading performance.
(g) Retirement benefits: Defined contribution schemes
Contributions to defined contribution pension schemes are
charged to the consolidated income statement in the period to which
they relate.
(h) Share based payments
The Company operates a number of equity-settled share-based
payment schemes under which share options are granted to certain
employees. The costs of equity-settled transactions are measured at
fair value at the date of grant. Fair value is measured using the
Black-Scholes or binomial model. In determining fair value, no
account is taken of any vesting conditions, other than conditions
linked to the price of the Company's shares (market-based
conditions).
No expense is recognised for awards that do not ultimately vest,
except for awards where vesting is conditional upon a market
condition, which are treated as vesting irrespective of whether or
not the market condition is satisfied, provided all other
conditions are satisfied. The fair value determined at the grant
date is then expensed on a straight line over the vesting period,
based on the directors' best estimate of the number of shares that
will eventually vest and adjusted for the effect of non-market
based vesting conditions. The movement in the cumulative expense
since the previous balance sheet date is recognised in the Income
Statement, with the corresponding movement taken into equity.
Where the terms and conditions of options are modified before
they vest or where options have been cancelled and reissued with
modified terms, the increase in the fair value of the options,
measured immediately before and after the modification, is also
charged to the income statement over the remaining vesting period.
Where vesting conditions are satisfied and options are exercised
before the end of the vesting period the fair value of the award
not yet expensed is taken to the Income Statement.
The grant by the Company of options over its equity instruments
to the employees of its subsidiary in the Group is treated as a
capital contribution. The fair value of employee services received,
measured by reference to the grant date fair value, is recognised
over the vesting period as an increase to investment in subsidiary
undertakings, with a corresponding credit to equity.
(i) Investments
Investments in subsidiaries are valued at cost less
impairment.
(j) Externally acquired intangible assets
Externally acquired intangible assets are initially recognised
at cost and subsequently amortised on a straight-line basis over
their useful economic lives. The amortisation expense is included
within the cost of sales line in the consolidated income
statement.
The significant intangibles recognised by the Group and their
useful economic lives are as follows:-
Intangible Useful economic
asset life
Trade marks 10 years
(k) Property, plant and equipment
Items of property, plant and equipment are stated at cost less
accumulated depreciation (see below) and impairment losses.
Depreciation is provided to write off the cost or valuation,
less estimated residual values, of all fixed assets, evenly over
their expected useful lives and it is calculated at the following
rates:-
Leasehold improvements over the period of the
lease
Fixtures, fittings 10% per annum straight
and equipment line
Restaurants under construction are included in Property, plant
and equipment. No depreciation is provided on restaurants under
construction until the asset is available for use.
All property, plant and equipment is reviewed for impairment in
accordance with IAS36 Impairment of Assets, when there are
indications that the carrying value may not be recoverable.
(l) Impairment of non-financial assets (excluding inventories and deferred tax assets)
Non-financial assets are subject to impairment tests whenever
events or changes in circumstances indicate that their carrying
amount may not be recoverable. Where the carrying value of an asset
exceeds its recoverable amount (i.e. the higher of value in use and
fair value less costs to sell), the asset is written down
accordingly.
Impairment charges are included in the administrative expenses
line item in the consolidated statement of comprehensive
income.
(m) Onerous contracts
Provisions for onerous contracts are recognised when the
expected benefits to be derived by the Group from a contract are
lower than the unavoidable cost of meeting its obligation under the
contract.
(n) Loans and receivables
Trade and other receivables are non-derivative financial assets
with fixed or determinable payments that are not quoted in an
active market. They arise principally through the provision of
goods and services to customers (e.g. trade receivables), but also
incorporate other types of contractual monetary asset. They are
initially recognised at fair value plus transaction costs that are
directly attributable to their acquisition or issue, and are
subsequently carried at amortised cost, less provision for
impairment.
Impairment provisions are recognised when there is objective
evidence that the Group will be unable to collect all of the
amounts due under the terms of the receivable, the amount of such a
provision being the difference between the net carrying amount and
the present value of the future expected cash flows associated with
the impaired receivable. For trade receivables, which are reported
net, such provisions are recorded in a separate allowance account
with the loss being recognised within administrative expenses in
the income statement. On confirmation that the trade receivable
will not be collectable, the gross carrying value of the asset is
written off against the associated provision.
The Group's loans and receivables comprise trade and other
receivables and cash and cash equivalents in the balance sheet. The
Company's loans and receivables comprise only inter-Company
receivables. Cash and cash equivalents include cash in hand and
deposits held with banks.
(o) Financial liabilities
Financial liabilities include trade payables, accrued lease
charges and other short term monetary liabilities, which are
initially recognised at fair value and subsequently carried at
amortised cost.
(p) Inventories
Inventories are stated at the lower of cost and net realisable
value. Cost comprises all costs of purchase and other costs
incurred in bringing the inventories to their present location and
condition. Net realisable value is based on estimated selling price
less costs incurred up to the point of sale.
(q) Leased assets
Leases are classified as finance leases whenever the terms of
the lease are such that they transfer substantially all the risks
and rewards of ownership to the Group. All other leases are
classified as operating leases. The Group currently has no finance
leases. Assets leased under operating leases are not recorded on
the balance sheet.
The total rentals payable under the operating leases are charged
to the consolidated income statement on a straight-line basis over
the lease term. Where the Group sub-let sites to tenants, the
rental income and expense are offset within administrative
expenses.
Lease incentives received, primarily rent-free periods, are
capitalised and then systematically released to the income
statement over the period of the lease term. Payments made to
acquire operating leases are treated as pre-paid lease expenses and
are amortised over the term of the lease.
(r) Deferred taxation
(MORE TO FOLLOW) Dow Jones Newswires
March 30, 2016 02:00 ET (06:00 GMT)
Deferred tax assets and liabilities are recognised where the
carrying amount of an asset or liability in the balance sheet
differs from its tax base.
Recognition of deferred tax assets is restricted to those
instances where it is probable that taxable profit will be
available against which the difference can be utilised.
Deferred tax is provided using the balance sheet liability
method, providing for all temporary differences between the
carrying amounts of assets and liabilities recorded for reporting
purposes and the amounts used for tax purposes. Deferred tax is
calculated on an undiscounted basis, at the tax rates that are
expected to apply when the liability is settled or the asset is
realised. Deferred tax is charged or credited to the Statement of
Comprehensive income, except when it relates to items charged or
credited directly to equity, in which case deferred tax is also
dealt with in equity.
The carrying value of deferred tax assets is reviewed at each
balance sheet date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow
all or part of the asset to be recovered.
(s) Business combinations
The financial statements incorporate the results of business
combinations using the purchase method. In the balance sheet, the
identifiable assets, liabilities and contingent liabilities are
initially recognised at their fair values at the acquisition date.
The results of acquired operations are included in the statement of
comprehensive income from the date on which control is obtained.
They are deconsolidated from the date control ceases.
(t) Goodwill
Goodwill represents the difference between the fair value of
consideration paid and the fair value of the net identifiable
assets acquired in a business combination.
Goodwill is stated as originally calculated less any accumulated
provision for impairment. Goodwill is allocated to individual cash
generating units and is subject to an impairment review at each
reporting date.
(u) Contingent liabilities
Where the Company enters into financial guarantee contracts and
guarantees the indebtedness of other companies within the Group,
the Company considers these to be insurance arrangements and
accounts for them as such. In this respect, the Company treats the
guarantee contract as a contingent liability until such time that
it becomes probable that the Company will be required to make a
payment under the guarantee.
(v) Share capital
The Company's ordinary shares are classified as equity
instruments.
(w) Dividend policy
Dividends declared after the balance sheet date are not
recognised as a liability at that balance sheet date, and are
recognised in the financial statements when they have received
approval by shareholders.
(x) Operating profit
Operating profit is stated after all expenses, but before
financial income or expenses. Non-trading items are items of income
or expense which because of their nature and the events giving rise
to them, are not directly related to the delivery of the Company's
restaurant service to its patrons and merit separate presentation
to allow shareholders to understand better the elements of
financial performance in the year, so as to facilitate comparison
with prior periods and to assess better trends in financial
performance.
2 Critical accounting estimates and judgements
The Group makes certain estimates and judgements that affect the
application of policies and reported amounts. Estimates and
judgements are continually evaluated based on historical experience
and other factors, including expectations of future events that are
believed to be reasonable under the circumstances. In the future,
actual experience may differ from these estimates and assumptions.
The estimates and assumptions that have a significant risk of
causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial period are discussed
below.
(a) Share based payments
The Group operates equity share-based remuneration schemes for
employees. Employee services received and the corresponding
increase in equity are measured by reference to the fair value of
the equity instruments at the date of grant, excluding the impact
of any non-market vesting conditions. The fair value of share
options is estimated by using valuation models, such as Black
Scholes or binomial on the date of grant based on certain
assumptions. Those assumptions are described in note 27 and
include, among others, the dividend growth rate, expected
volatility, expected life of the options (for options with market
conditions) and number of options expected to vest.
(b) Accruals
In order to provide for all valid liabilities which exist at the
balance sheet date, the Group is required to accrue for certain
costs or expenses which have not been invoiced and therefore the
amount of which cannot be known with certainty. Such accruals are
based on management's best judgement and past experience. Delayed
billing in some significant expense categories such as utility
costs can lead to sizeable levels of accruals. The total value of
accruals as at the balance sheet date is set out in note 18.
(c) Useful lives of property, plant and equipment
Property, plant and equipment are amortised or depreciated over
their useful lives. Useful lives are based on management estimates
of the period that the assets will generate revenue, which are
periodically reviewed for continued appropriateness.
(d) Impairment reviews
In carrying out an impairment review in accordance with IAS 36
it has been necessary to make estimates and judgements regarding
the future performance and cash flows generated by individual
trading units which cannot be known with certainty. Past
performance is often used as a guide in estimating future
performance, or comparison with similar sites. Where the
circumstances surrounding a particular trading unit have changed
then forecasting future performance becomes extremely judgemental
and for these reasons the actual impairment required in the future
may differ from the charge made in the financial statements.
(e) Deferred tax
The deferred tax liability provided in the accounts is based on
temporary difference between the tax written down values of assets
and liabilities and their carrying values in the accounts and as
such it is dependent on assumptions made in the Company's
corporation tax computations. The assumptions on the proportion of
certain elements of capital expenditure which will be eligible for
tax relief are subjective and the final calculations agreed with
HMRC could differ from the provision made in the financial
statements.
3 Revenue and segmental analysis
The revenue for the Group is wholly attributable to one
operating segment (operating restaurants) and arises solely in one
geographical segment (United Kingdom).
4 Operating profit
2015 2014
This has been arrived at GBP'000 GBP'000
after charging
Staff costs 13,730 10,691
Share based payments 133 104
Operating lease rentals 3,765 3,101
Amortisation of intangible
assets 2 2
Depreciation 1,710 1,310
Amortisation of prepaid
operating leases 170 164
Loss on disposal - 61
Auditor remuneration:
Audit fee - Parent Company 8 8
- Group financial statements 10 10
- Subsidiary undertaking 22 20
Other services - Taxation
compliance 6 6
- Other taxation advisory 6 6
-------------------------------------------------------- --------- ---------
5 Non-trading items - charged to administrative expenses
2015 2014
GBP'000 GBP'000
Reversal of Impairment of property,
plant and equipment - -
Share based payments (133) (104)
(133) (104)
-------------------------------------- --------- ---------
During the year a review of impairments and site performance was
undertaken resulting in no net adjustment to non-current asset
value.
Share based payments are valued at the date of grant and
amortised over the vesting period, the current year charge is
GBP133,000 (2014 - GBP104,000).
6 Finance expense
2015 2014
GBP'000 GBP'000
Loan interest payable 116 83
116 83
------------------------ --------- ---------
7 Employees
2015 2014
Staff costs (including
directors) consist of GBP'000 GBP'000
Wages and salaries 12,699 9,779
Social security costs 979 849
Other pension costs 52 63
Equity settled share based
payment expense 133 104
13,863 10,795
----------------------------- --------- ---------
(MORE TO FOLLOW) Dow Jones Newswires
March 30, 2016 02:00 ET (06:00 GMT)
The average number of persons, including directors, employed by
the Group during the period was 846, of which 836 were restaurant
staff and 10 were administration staff, (2014 - 642 of which 634
were restaurant staff and 8 were administration staff).
No staff are employed by the Company.
Of the total staff costs GBP13,028,000 was classified as cost of
sales (2014 - GBP10,099,000) and GBP835,000 as administrative
expenses (2014 - GBP788,000).
8 Directors and key management personnel remuneration
Key management personnel are those persons having authority and
responsibility for planning, directing and controlling the
activities of the Group, and represent the Directors of the
Company.
2015 2014
GBP'000 GBP'000
Directors remuneration
Emoluments 320 360
Share based payments 71 69
Benefits in Kind 13 13
404 442
------------------------- --------- ---------
2015 2014
GBP'000 GBP'000
Individual Directors' emoluments
J Plant 140 140
S Kaye 110 130
A Kaye 40 60
K Lassman 30 30
320 360
----------------------------------- --------- ---------
In addition to the above, benefits in kind for the period were
provided to J Plant of GBP5,000, S Kaye of GBP4,000 and A Kaye of
GBP4,000.
Share based payments for the period that are attributable to the
directors are GBP31,000 to J Plant, GBP20,000 to S Kaye and
GBP20,000 to A Kaye.
Company
The Company paid no director emoluments during the year.
9 Income tax expense
2015 2014
GBP'000 GBP'000
UK Corporation tax
Current tax on profits
for the period (333) -
Total current tax (333) -
---------------------------- --------- ---------
Deferred tax
Total deferred tax (267) (500)
---------------------------- --------- ---------
Total income tax charge (600) (500)
---------------------------- --------- ---------
The tax charge for the period is lower than the standard rate of
corporation tax in the UK. The differences are explained below:
2015 2014
GBP'000 GBP'000
Profit before tax 3,067 2,552
---------------------------------- --------- ---------
Tax on profit at the ordinary
rate of corporation
tax in UK of 20.25% (2014
- 21.5%) 621 549
Effects of
Expenses not deductible
for tax 8 8
Depreciation on ineligible
fixed assets 80 63
Utilisation of tax losses (109) (120)
Total tax charge 600 500
---------------------------------- --------- ---------
10 Earnings per share
2015 2014
pence Pence
Basic earnings per ordinary
share 4.64 3.88
Diluted earnings per ordinary
share 4.58 3.83
2015 2014
Number Number
'000 '000
Earnings per share have been
calculated using the numbers
shown below:
Weighted average ordinary shares
(basic) 53,189 52,954
Dilutive shares to be issued
in respect of option granted 697 662
Weighted average ordinary shares
(diluted) 53,886 53,616
2015 2014
GBP'000 GBP'000
Profit for the financial period 2,467 2,052
------------------------------------- --------- ---------
1,263,785 share options have been used when calculating the
diluted EPS (2014 - 1,091,888). 2,900,000 share options have been
excluded when calculating the diluted EPS as they were
anti-dilutive and did not meet performance conditions (2014 -
2,021,785).
11 Dividend
No final dividend has been proposed by the Directors (2014 -
nil).
12 Intangibles
Trademarks Goodwill Total
GBP'000 GBP'000 GBP'000
At 29 December 2013 5 441 446
Amortisation of trademarks (2) - (2)
------------------------------- -------------- ------------ ---------
At 28 December 2014 3 441 444
Additions 28 - 28
Amortisation of trademarks (2) - (2)
At 27 December 2015 29 441 470
------------------------------- -------------- ------------ ---------
The recoverable amount of goodwill has been determined on a
value in use basis. This has been based on the performance of the
units since they were acquired and management's forecasts, which
assume the sites will perform at least as well as the market
generally. The forecast cash flows are discounted at a rate of
10%.
13 Property, plant and equipment
Furniture Assets
fixtures in the
Leasehold and computer course
improvements equipment of construction Total
GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 29 December
2013 15,128 5,429 298 20,855
Additions 4,736 1,462 180 6,378
Disposals (120) (11) - (131)
Transfers 197 85 (282) -
-------------------- --------------- --------------- ------------------ ---------
At 28 December
2014 19,941 6,965 196 27,102
Additions 7,442 2,134 239 9,815
Disposals - - - -
Transfers 115 49 (164) -
At 27 December
2015 27,498 9,148 271 36,917
-------------------- --------------- --------------- ------------------ ---------
Depreciation 3,468 2,003 - 5,471
At 29 December
2013 748 562 - 1,310
Provided for the
period (62) (8) (70)
Disposals - - -
------------------- --------------- --------------- ------------------ ---------
At 28 December
2014 4,154 2,557 - 6,711
Provided for the
period 958 752 - 1,710
Disposals - -
At 27 December
2015 5,112 3,309 - 8,421
-------------------- --------------- --------------- ------------------ ---------
Net book value
At 27 December
2015 22,386 5,839 271 28,496
-------------------- --------------- --------------- ------------------ ---------
At 28 December
2014 15,787 4,408 196 20,391
-------------------- --------------- --------------- ------------------ ---------
Company
The Company holds no property, plant and equipment.
14 Prepaid operating leases
2015 2014
GBP'000 GBP'000
Held within current assets 140 152
Held within non-current
assets 1,936 1,731
2,076 1,883
----------------------------- --------- ---------
Prepaid operating leases represent lease premiums paid on the
acquisition of sites, amortised evenly over the lease term.
15 Investments
GBP'000
Company
At 29 December 2013 2,548
Share based payment in
respect of subsidiary 104
----------------------------- -----------
At 28 December 2014 2,652
Share based payment in
respect of subsidiary 133
At 27 December 2015 2,785
----------------------------- -----------
(MORE TO FOLLOW) Dow Jones Newswires
March 30, 2016 02:00 ET (06:00 GMT)
The Company's investments are wholly related to a 100% ordinary
shareholding in Took Us a Long Time Limited, a company registered
in England and Wales. Took Us a Long Time Limited is primarily
engaged with the operation of restaurants.
16 Inventories
2015 2014
GBP'000 GBP'000
Raw materials and consumables 774 531
Crockery and utensils 1,038 520
1,812 1,051
-------------------------------- --------- ---------
In the Directors' opinion there is no material difference
between the replacement cost of stocks and the amounts stated
above. Inventory purchased and recognised as an expense in the
period is GBP8,410,000 (2014 - GBP7,145,000).
17 Trade and other receivables
2015 2014
GBP'000 GBP'000
Group
Trade receivables 179 353
Prepayments and other receivables 2,498 1,789
Total trade and other receivables 2,677 2,142
-------------------------------------- --------- ---------
Less non-current portion (148) (341)
2,529 1,801
------------------------------------ --------- ---------
Company
Amounts due from subsidiary 16,420 16,403
Total trade and other receivables 16,420 16,403
-------------------------------------- --------- ---------
Classified as non-current 16,420 16,403
-------------------------------------- --------- ---------
During the year the Company issued shares and passed the net
proceeds of GBP52,000 (2014 - GBP31,000) to its subsidiary.
18 Trade and other payables
2015 2014
GBP'000 GBP'000
Trade payables 3,309 3,422
Taxation and social security 1,475 957
Accruals 2,810 1,803
Other payables 482 354
8,076 6,536
------------------------------- --------- ---------
19 Provisions
2015 2014
GBP'000 GBP'000
At 28 December 2014 55 65
Utilisation in period (10) (10)
At 27 December 2015 45 55
-------------------------- --------- ---------
20 Deferred tax
2015 2014
GBP'000 GBP'000
At 28 December 2014 (615) (115)
Profit and loss charge (267) (500)
-----------------------------------
(882) (615)
--------------------------------- --------- ---------
Accelerated capital allowances (882) (766)
Tax losses carried forward - 151
At 27 December 2015 (882) (615)
----------------------------------- --------- ---------
21 Borrowings
2015 2014
GBP'000 GBP'000
Current
Secured bank borrowings 750 500
------------------------------- --------- ---------
750 500
----------------------------- --------- ---------
Non-current
Secured bank borrowings 5,000 250
------------------------------- --------- ---------
5,000 250
----------------------------- --------- ---------
5,750 750
----------------------------- --------- ---------
Maturity of secured bank
borrowings
Due within one year 881 518
Due In more than one year
but less than two years 530 259
Due In more than two years
but less than five years 4,741 -
------------------------------- --------- ---------
6,152 777
----------------------------- --------- ---------
Future interest payments (402) (27)
5,750 750
----------------------------- --------- ---------
Bank borrowings comprise of a term loan of GBP5,000,000 and an
additional committed facility of GBP3,000,000 of which GBP750,000
was drawn down at the balance sheet date. There were no instances
of default, including covenant terms, in either the current or
prior period. The bank loan is secured by a charge on Group assets
and a cross guarantee from the parent and subsidiary company. The
Company's maximum exposure to this loan is shown above.
22 Share capital
Number GBP'000
Authorised, issued, called
up and fully paid:
At 29 December 2013 52,927,101 5,293
Exercise of share options 121,335 12
At 28 December 2014 53,048,436 5,305
Exercise of share options 166,888 17
At 27 December 2015 53,215,324 5,322
------------------------------- ------------ ---------
23 Reserves
Share capital comprises of the nominal value of the issued
shares.
Share premium reserve is the amount subscribed in excess of the
nominal value of shares net of issue costs.
Cumulative gains and losses recognised in the income statement
are shown in the Retained deficit reserves, together with other
items taken direct to equity.
The merger reserve is the difference between the nominal value
of shares issued and the nominal value of shares acquired on
merger.
24 Capital commitments
At the balance sheet date the Group and the Company had no
capital commitments which were contracted but not provided for
(2014 - GBPnil). Capital commitments relate to committed
expenditure in respect of restaurants under construction.
25 Operating lease commitments
The total future value of minimum lease payments under
non-cancellable operating leases are shown below. The receipts are
from sub-tenants on contractual sub-leases, the net position
represents the cash liability of the Group.
2015 2014
GBP'000 GBP'000
Within one year: payments 4,465 3,016
Within one year: receipts (230) (230)
------------------------------ --------- ---------
4,235 2,786
---------------------------- --------- ---------
Within two to five years:
payments 17,679 12,663
Within two to five years:
receipts (920) (920)
------------------------------ --------- ---------
16,759 11,743
---------------------------- --------- ---------
Over five years: payments 57,161 40,759
Over five years: receipts (3,647) (4,086)
53,514 36,673
---------------------------- --------- ---------
74,508 51,202
---------------------------- --------- ---------
26 Pensions
The Group, last year, made contributions of GBPnil to the
personal pension plan of the Directors. The total amount paid
during the period was also GBPnil. During the year the Group made
contributions to employee pensions of GBP52,000 (2014 -
GBP63,000).
27 Share based payments
Weighted
average
exercise
price Number
(pence) '000
At 29 December 2013 44.2 1,594
Exercised 26.9 (522)
Granted 101.4 2,042
------------------------ ----------- --------
At 28 December 2014 80.6 3,114
Exercised 31.3 (167)
Cancelled 112.0 (20)
Granted 114.0 1,237
At 27 December 2015 92.4 4,164
------------------------ ----------- --------
The exercise price of options outstanding at the end of the
period ranged between 31.5p and 139p (2014 - 18p and 112p) and
their weighted average remaining contractual life was 8 years (2014
- 8 years).
Of the total number of options outstanding at the end of period
2,505,000 (2014 - 1,071,888) had vested and were exercisable at the
end of the period.
The market price of the Company's ordinary shares as at 27
December 2015 was 191p and the range during the financial year was
from 115p to 200p.
On 30 April 2015 the Company's subsidiary issued 500,000 'A'
ordinary shares of GBP0.0001 each that carry rights enabling the
holder of those 'A' ordinary shares to exchange such shares for
ordinary shares in the Company subject to the share price of the
Company remaining at or above GBP1.50 for fifteen consecutive days
and satisfying length of service conditions of 1 to 4 years. 'A'
ordinary shares convey similar rights to the holder as EMI options
with an exercise price of GBP1.00 and a contractual life of 10
years. These shares have been valued as a share based payment with
conditional performance options ("ESOP A").
(MORE TO FOLLOW) Dow Jones Newswires
March 30, 2016 02:00 ET (06:00 GMT)
On 30 April 2015 the Company's subsidiary issued 600,000 'B'
ordinary shares of GBP0.0001 each that carry rights enabling the
holder of those 'B' ordinary shares to exchange such shares for
ordinary shares in the Company subject to the share price of the
Company remaining at or above GBP2.00 for fifteen consecutive days.
'B' ordinary shares convey similar rights to the holder as EMI
options with an exercise price of GBP1.20 and a contractual life of
10 years. These shares have been valued as a share based payment
with conditional performance options ("ESOP B").
On 9 April 2015 the Company issued a further 137,000 options in
the Company Share Option Plan ("CSOP"). These options have an
exercise price of 139p, a vesting period of 3 years and a
contractual life of 10 years.
In the current period 166,888 (2014 - 121,335) options were
exercised. The weighted average share price at the date of exercise
was 31.3p (2014 - 26.9p).
The following information is relevant in the determination of
the fair value of options granted during the period under the
equity settled shared based remuneration schemes operated by the
group.
ESOP ESOP
CSOP A B
Option pricing model used Binomial Binomial Binomial
Weighted average share price
at grant date (pence) 138.5 136.5 136.5
Exercise price 139 100 120
3-4
Vesting period 3 years years 6 years
10 10
Contractual life years 10 years years
Expected volatility 21% 21% 21%
Expected dividend growth
rate 0% 0% 0%
Staff turnover 12% 7% 7%
------------------------------- ---------- ---------- ----------
The volatility assumption, measured at the standard deviation of
expected share price returns, is based on a statistical analysis of
daily share prices over the last three periods.
28 Financial instruments
In common with all other businesses, the Group is exposed to
risks that arise from its use of financial instruments. This note
describes the Group's objectives, policies and processes for
managing those risks and the methods used to measure them. Further
quantitative information in respect of these risks is presented
throughout these financial statements.
The Group is exposed through its operations to the following
financial risks:
-- Credit risk
-- Interest rate risk
-- Liquidity risk
The Group does not have any material exposure to currency risk
or other market price risk.
There have been no substantive changes in the Group's exposure
to financial instrument risks, its objectives, policies and
processes for managing those risks or the methods used to measure
them from previous periods unless otherwise stated in this
note.
Principal financial instruments
The principal financial instruments used by the Group, from
which financial instrument risk arises, are as follows:-
-- loans and borrowings
-- trade receivables
-- cash and cash equivalents
-- trade and other payables
General objectives, policies and processes
The Board has overall responsibility for the determination of
the Group's risk management objectives and policies.
The overall objective of the Board is to set policies that seek
to reduce risk as far as possible without unduly affecting the
Group's competitiveness and flexibility. Further details regarding
these policies are set out below:
Credit risk
Credit risk is the risk of the financial loss to the Group if a
customer or a counterparty to a financial instrument fails to meet
its contractual obligations. The Group is mainly exposed to credit
risk from rebates from suppliers and the risk is considered
minimal
Trade and other receivables, which are neither past due nor
impaired, are disclosed in note 17 and represent the maximum credit
exposure for the Group.
The Group's principal financial assets are cash and trade
receivables. There is minimal credit risk associated with the
Group's cash balances. Cash balances are all held with recognised
financial institutions. Trade receivables arise in respect of
rebates from a major supplier and therefore they are largely offset
by trade payables. As such the net amounts receivable form an
insignificant part of the Group's business model and therefore the
credit risk associated with them is also insignificant to the Group
as a whole.
Liquidity risk
Liquidity risk arises from the Group's management of working
capital. It is the risk that the Group will encounter difficulty in
meeting its financial obligations as they fall due.
The Group's policy is to ensure that it will always have
sufficient cash to allow it to meet its liabilities when they
become due.
The Group seeks to manage its financial risk to ensure that
sufficient liquidity is available to meet foreseeable needs both in
the short and long term (note 21). The Board consider detailed cash
flow forecasts together with future obligations from capital
projects in progress and the resulting impact on its cash
balances.
Interest rate risk
The Group seeks to minimise interest costs by regularly
reviewing cash balances.
Interest rate risk arises from the Group's use of interest
bearing financial instruments. This is the risk that the future
cash flows of the financial instrument will fluctuate because of
changes in the interest rates.
The Group is exposed to cash flow interest rate risk from long
term borrowings at variable rate. The Group does not seek to fix
interest rates on these borrowings because the Board considers the
exposure to the interest rate risk to be acceptable.
Surplus funds are invested in interest bearing, instant access
bank accounts. The Group also holds short term deposit accounts in
relation to tenant deposits received on sublet sites.
Loans and borrowings
The Group has a loan facility with Barclays Bank Plc. Under the
terms of the facility the Group may borrow up to a maximum of
GBP3.0m on flexible loan terms and GBP5.0m on a 5 year fixed term.
Interest on this facility is charged at 1.7% above LIBOR plus a
variable charge for mandatory associated costs of the lender for
all amounts drawn down, with a 0.68% charge on any amounts of the
facility that is not drawn down.
At 27 December 2015 if the Bank of England base rate had been 1%
higher / lower with all other variables held constant this would
not have resulted in any significant variance in the profit or loss
or net assets of the Group.
The bank loans are secured by a legal charge over the issued
share capital of the Group companies, a legal charge over all the
Group's trading sites, and a cross guarantee between Group
companies.
Capital disclosures
The Group considers its capital to comprise the ordinary share
capital, share premium and retained earnings.
The Group's objective when maintaining capital is to safeguard
the entity's ability to continue as a going concern, so that it can
continue to provide returns for shareholders and benefits for other
stakeholders.
The Group manages its capital structure and makes adjustments to
it in the light of strategic plans. In order to maintain or adjust
the capital structure, the Group may adjust the amount of dividends
paid to shareholders, return capital to shareholders or issue new
shares.
29 Related party transactions
The Directors are considered to be the key management personnel.
Details of directors remuneration is shown in note 8.
The Group pays rent and associated insurance to a number of
companies considered related parties by virtue of the interests
held by the directors in such companies. The Group also reimburses
expenses incurred by such companies on behalf of the Group. The
Group receives income from related parties for fees in relation to
consultancy services offered.
2015 2014
GBP'000 GBP'000
Rent and insurance
* Kropifko Properties Limited (371) (371)
* KLP Partnership (336) (184)
* ECH Properties Limited (69) (69)
Expenses reimbursed (6) (4)
Income - 5
Balance due to related
parties 4 176
Balance due from related
parties - 1
-------------------------------------- --------- ---------
The rent paid to related parties are considered to be a
reasonable reflection of the market rate for the properties.
30 Reconciliation of profit before tax to net cash inflow from operating activities
2015 2014
GBP'000 GBP'000
Group
Profit before tax 3,067 2,552
Finance income (9) (9)
Finance expense 116 83
Share based payment
charge 133 104
Depreciation and
impairment 1,710 1,310
Amortisation of
intangible assets 2 2
Loss on disposal - 61
Onerous lease provision
movement (10) (10)
(Increase) / decrease
in inventories (761) (240)
(Increase) / decrease
in trade and other
(MORE TO FOLLOW) Dow Jones Newswires
March 30, 2016 02:00 ET (06:00 GMT)
receivables (535) (411)
Increase / (decrease)
in trade and other
payables 1,363 1,866
Net cash generated
from operations 5,076 5,308
------------------------------- --------- ---------
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR PGUUPWUPQGBB
(END) Dow Jones Newswires
March 30, 2016 02:00 ET (06:00 GMT)
Tasty (LSE:TAST)
Historical Stock Chart
From Apr 2024 to May 2024
Tasty (LSE:TAST)
Historical Stock Chart
From May 2023 to May 2024