Tasty, the owner and operator of 55 Wildwood and Dim T restaurants, has reported its annual results for the 52 week period ended 27 December 2020 and announced that co-founder Samuel Kaye will be stepping down from the Board o focus on other commercial interests.
Key financial points:
• Revenue £24.2m (2019: £44.6m), significantly impacted by Covid-19 related restrictions
• Adjusted EBITDA loss of £1.5m (2019: profit £1.1m)
• Adjusted EBITDA of £2.7m
• Loss after tax for the period of £12.7m (2019: loss of £0.3m)
• Bank loan as at 27 December 2020 of £nil (29 December 2019: £1.7m)
• Net cash after allowing for deferred creditors and HMRC payments of £1.5m
• Post year end - bank loan of £1.25m fully drawn in January 2021
Key operational points:
Sale of more London Dim T sites completed in January 2020 for £2m
All sites closed from 24 March 2020 including takeaway
Phased reopening of some sites for takeaway from end of May 2020 and gradually reopened most sites for eat-in from July 2020
All sites closed again in November 2020 for in-store dining, with further tier restrictions introduced in December 2020 impacting trading
Currently trading from 38 of 54 restaurants for delivery and takeaway
Adam Kaye stepped down from the board in September. Samuel Kaye stepped down as joint chief executive to become a non-executive director in December and will step away from the board following the group's 2021 annual general meeting.
The pair founded the Ask and Zizzi chains of Italian restaurants before selling up and buying Dim T restaurant in London's Hampstead in 2003.
Chairman Keith Lassman said, 'I am pleased to be reporting on the Group's annual results for the 52 week period ended 27 December 2020 and the comparative 52 week period ended 29 December 2019. The Group currently operates 54 restaurants, comprising of five dim t and 49 Wildwood restaurants.
'The last 12 months have been extremely tough and required swift action to mitigate the extraordinary challenges and uncertainty following the outbreak of the pandemic. From the onset, the Group quickly implemented various measures to stabilise the business and ensure the safety of our staff and customers.
'We navigated our way through the cycle of various lockdown restrictions and consequent reopenings, through agility and quick responses to the everchanging constraints. The Board would like to thank our loyal staff, suppliers, customers, landlords and other trade creditors who have supported us throughout this unprecedented difficult period.
'Following the sale of More London dim t for £2m in January 2020, we repaid our bank loan and were fortunate to have no banking covenant pressure when we shut down our estate in March 2020. As previously communicated, cash preservation has been key to maximising the Group's ability to manage the impact of the pandemic.
'With lockdown continuing into this year, in January 2021, the Group drew down its £1.25 million, four year term loan from its existing bankers, Barclays Bank plc, secured in September 2020, in order to strengthen its balance sheet and provide additional working capital.
'In common with much of the UK hospitality industry we have where possible, utilised the various Government support schemes, including furloughing our staff during periods of full or partial closure, VAT reductions and business rate holidays. Sadly, as previously announced, we had to make a significant part of our workforce redundant to preserve the business for our remaining stakeholders, including our current employees.
'While the economic and retail environment continues to be challenging, trading in between lockdowns and restrictions has been encouraging. We currently have 38 restaurants open for takeaway only.
'With the bank facility and continued support from our creditors and landlords, we expect to get through these difficult times due to our responsiveness and restructured operational base. Cash preservation and maintaining our staff and customers' wellbeing continues to be paramount.
'The cash balance at year-end reflects our cash preservation strategy and a deferral of payments due to landlords, HMRC, and other trade creditors. When these outstanding payments are allowed for, our net cash at year-end is approximately £1.5m.
'We believe that the lessons we have learnt over the last 12 months have strengthened our operating model. We have found new ways of operating the business and have become agile at adapting to the current conditions. This includes new delivery partnerships which we envisage will continue in the future.
'Having survived the turmoil of the past 12 months, and as we come out of this pandemic and restrictions are lifted, we are confident that we are in a good position to service the pent-up customer demand and take advantage of the reduced competition.'
