Tasty has reported a loss after tax of £2.7m, as it warned inflationary pressure on labour, food and utilities was impacting the business “considerably”.
The Wildwood operator said staff shortage challenges remain, while cost of living pressures were beginning to impact on revenue in H2 2022.
Despite staffing and inflationary challenges, like-for-like sales compared with pre-covid-19 are “encouraging”.
Tasty was reporting unaudited interim results for the 26 weeks ended 26 June 2022.
Revenue was £21.5m (H1 2021: £11.6m), while adjusted EBITDA was £2.7m (H1 2021: £0.8m)
The company recorded an impairment charge of £1.6m, and repaid an outstanding loan of £1.1m in full in June 2022.
The company said 51 of 54 restaurants traded through the period.
Chairman Keith Lassman said “Like many of our competitors and the economy in general, we are facing severe headwinds. Inflationary pressures on food, labour and utility costs and the cost-of-living crisis will inevitably impact the performance of the Company for at least the remainder of the year.”
He said a tight focus on cost controls would help the business trade through the challenges.
The business has agreed heads of terms for a new Wildwood site in Oxfordshire.
An underperforming Wildwood in Loughton is being converted into the dim t brand, and due to open in the Autumn.
Due to current uncertainties, Tasty has slowed its previously announced expansion plans as we it braces for an “even more challenging economic environment, which is beginning to adversely impact our profitability in the second half of 2022”.
