Tossed has revealed a substantial improvement in its adjusted EBITDA to £300k in its report for the year ended 28 March 2019 released today.

Compared to an EBITDA loss of £143k the previous financial year, the brand cited increased revenues and economies of scale following the acquisition of Vital in October 2018 as the primary reasons for its uplift.

Group turnover was at £17.9k, up from £9.8k in 2018. Again, the Vital acquisition was seen as a key driver, contributing £9.1m to group revenue, although the store closers of the past two years had a negative impact of £900k.

Over the year, two Tossed stores were closed and two Vital Ingredient stores stores were rebranded to Tossed. At year end the group had 16 Tossed and eight Vital stores.

Since the year end, “the performance of the Vital Ingredient estate has been extremely disappointing.” During the six months to September 2019, the two brands’ performance disparity increased.

Tossed delivered +6% revenue growth versus an 8% decline in revenue for the Vital brand.

In December 2019, Tossed and Vital Ingredient parent company Zest Food had CVA plans approved to safeguard its estate from closures.

“The directors believe that the CVA will enable the business to address the underperforming Vital Ingredient stores,” said managing director Neil Sebba.

“The business plans to re-brand certain of the Vital Ingredient stores as Tossed over the course of the next twelve months with the remainder expected to close during that period. As a result, the Directors look forward to the next twelve months with optimism from the Tossed brand.