Tasty is negotiating with landlords in a bid to avoid implemented a CVA or similar formal procedure, as the impact of lack of trading continues to impact its financial position.

The operator of Wildwood and dim t restaurants has announced revenue was down £44.6m in 2019 to £24.2m for the 52 weeks to 27 December 2020.

Adjusted EBITDA loss (pre IFRS 16) stood at -£1.5m, compared to a profit of £1.1m for the comparable period in 2019.

Loss for the period came in at £12.7m (post IFRS 16), compared with a loss of £0.3m in 2019 (pre IFRS 16).

However the firm has no bank loans as at the end of the year and has net cash of £1.5m (after allowing for deferred creditors and HMRC payments).

The group said it had successfully achieved consensual lease concessions and rent deductions to March 2021 on more than two-thirds of the estate and was continuing negotiations with landlords and other creditors regarding outstanding debts.

It said that given the current lockdown and rent moratorium expected to end in June it anticipated requiring further landlord support.

“The Board believes that with continued creditor assistance, a more formal procedure such as a company voluntary arrangement (“CVA”) may be avoided but we continue to consider all options,” it said.

During the year Tasty rationalised its estate, completing the sale of its More London dim t site in January last year for gross proceeds of £2m.

The group said the past 12 months had been extremely tough and had required swift action to mitigate the challenges brought about by the pandemic.

Following the sale of its More London site the group repaid its bank loan “and were fortunate to have no banking covenant pressure when we shut our estate in March 2020”.

Chairman Keith Lassman said cash preservation had been key to maximising its 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,” he said.

Lassman added that trading in between lockdowns and restrictions had been encouraging and that the business had found new ways to be agile which included new delivery partnerships (with Uber Eats and Just Eat in addition to Deliveroo) which the group envisage will continue in the future.

He said it believed the company was in a good position to service the pent-up consumer demand and to take advantage of reduced competition.

It is currently trading from 38 of 54 restaurants for delivery and takeaway. (49 Wildwood and five dim t)

Former joint CEO and current non-executive director Samuel Kaye will be stepping down from the board following its 2021 Annual General Meeting.

Topics