Restaurants operator Tasty reported lower 2018 revenues due to a combination of site closures and like-for-like declines.
The share price slumped 1.75p to 6.75p, which is a new low.
Three restaurants were sold and another closed last year. There were 58 Wildwood and Dim t restaurants at the end of 2018. Four more sites are set to be exited this year. Three of the four sites have generated £550,000 in additional cash since the year end. There are no plans to open new sites and more could be sold.
In 2018, revenues fell from £50.3m to £47.3m and there was an underlying loss of £619,000, compared with a £1m profit. This excludes a £11.2m provision and write-down, which followed a £10.5m write-down in the previous year. This means that the NAV more than halved to £10.6m.
There was a cash inflow from operating activities and cash generate by disposals. Net debt declined from £5.16m to £2.1m. There are provisions against onerous leases of £3.35m and this will flow out in cash over the next three years. The directors have agreed to inject £500,000 into the company by the end of June.
Trading is not expected to improve but the cost base has been reduced.
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