Tasty plc

("Tasty" or the "Group")

Interim Results (unaudited) for the 27 weeks ended 3 July 2016

Highlights:

·     Revenue up 28% to £21,794,000 (H1 20s15 - £17,050,000)

·     Operating profit, before pre-opening costs, share based payments and interest, up 14% to £1,925,000 (H1 2015 - £1,684,000)

·     Adjusted* pre-tax profit for the period increased by 17.5% to £1,615,000 (H1 2015 - £1,375,000). Reported pre-tax loss of £2,305,000 (H1 2015 - pre-tax profit of £1,327,000) due to a £3.58m impairment charge against five sites.

·     Four new sites opened in the period and a further three sites opened since the period end bringing the estate to 55 restaurants

 *Adjusted for non-trading items (note 3)

This announcement contains inside information.

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 report on the Group's half year results for the 27 weeks ended on 3 July 2016, prepared in accordance with International Financial Reporting Standards as adopted by the EU ("IFRS").

Results

Sales increased by 28% on the corresponding period to £21,794,000 (2015 - £17,050,000).  Adjusted operating profit*, before pre-opening costs, non-trade items and interest, was £1,925,000 (2015 - £1,684,000), a 14% increase on the corresponding period and adjusted pre-tax profit* for the period increased by 17.5% to £1,615,000 (2015 - £1,375,000).

The Group has successfully implemented its programme of operational improvements during the period which has included changes to the central kitchen infrastructure and upgrades to a number of key systems.  Appointments have been made across the Group in: Operations, Marketing, Finance and HR departments to support future openings and the Group's expansion.  The Group websites and the wider digital marketing strategy continue to be developed as planned.

The Group has undertaken a comprehensive review of its estate during the period and has recognised impairment charges against five sites.  Aside from these units, trade remains in line with expectations across the wider estate and the Group is benefitting from a number of cost savings which are offsetting pressures on direct input costs.   After taking into account all non-trade adjustments the Group has a stated loss after tax for the period of £2,637,000 (2015 - profit £1,052,000).

Cash flows and financing

During the period capital expenditure of £5,044,000 (2015 - £4,495,000) was incurred.  Four sites have been opened in the period, with a further three sites opened since the period end.  The Group is currently undertaking construction on three sites and expects to start construction on at least a further four sites during Q4 of 2016.   The Board has reviewed its property pipeline and now expects to open fifteen restaurants in 2017.

Overall, the net cash inflow for the period was £334,000 (2015 - outflow £731,000).   As at 3 July 2016, the Group had net borrowings of £7,445,000 (2015 - £1,737,000).  The Group has an available banking facility of £12,000,000.

Outlook

The Group continues to expand its operations through new openings.  Actions are regularly taken to improve profitability at all sites, increasing sales through updated menus and improving food and labour margins.

The Group currently trades from fifty-five restaurants which consists of seven Dim t and forty-eight Wildwoods and Wildwood Kitchens. The Group continues to evaluate new sites for further acquisitions.

K Lassman

Chairman

Tasty plc

6 September 2016

Consolidated statement of comprehensive income
for the 27 weeks ended 3 July 2016 (unaudited)

Consolidated statement of changes in equity
for the 27 weeks ended 3 July 2016 (unaudited)

Consolidated balance sheet
At 3 July 2016 (unaudited)

Consolidated cash flow statement
for the 27 weeks ended 3 July 2016 (unaudited)

Notes to the condensed financial statements
for the 27 weeks ended 3 July 2016 (unaudited)

1      General information

Tasty plc ("Tasty") is a public limited company incorporated in the United Kingdom under the Companies Act (registration number 5826464).  The Company is domiciled in the United Kingdom and its registered address is 32 Charlotte Street, London, W1T 2NQ.  The Company's ordinary shares are traded on the Alternative Investment Market of the London Stock Exchange ("AIM").  Copies of this Interim Report or the Annual Report and Financial Statements 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

The condensed financial statements have been prepared using accounting policies consistent with International Financial Reporting Standards (IFRS) and International Financial Reporting Interpretations Committee (IFRIC) interpretations as endorsed by the European Union. The same accounting policies, presentation and methods of computation have been followed in the preparation of these results as were applied in the Company's latest annual audited financial statements.

The financial information for the period ended 27 December 2015 does not constitute the full statutory accounts for that period. The Annual Report and Financial Statements for 2015 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statements for 2015 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

The condensed 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.

3      Non-trading items

4      Income tax

The income tax charge has been calculated by reference to the estimated effective corporation tax and deferred tax rates of 20% (2015 - 21.5%).

5      Earnings per share

The basic earnings per share figures are calculated by dividing the net profit for the period attributable to shareholders by the weighted average number of ordinary shares in issue during the period.  The diluted earnings per share figure allows for the dilutive effect of the conversion into ordinary shares of the weighted average number of options outstanding during the period. Options are only taken into account when their effect is to reduce basic earnings per share.

Earnings per share have been calculated using the numbers shown below:

6      Reconciliation of profit before tax to net cash inflow from operating activities