Tasty, the Wildwood and Dim T brands, has said it does not intend to open any new restaurants in 2018 as it focuses on restructuring its existing portfolio.
The group this morning updated on the 52 weeks to 31 December, in which EBITDA halved to £3.5m, despite a revenue rise of 9.7% to £50.3m. The group recorded a pre-tax loss (after highlighted items) of £9.5m.
The company disposed of three underperforming restaurants and opened six new Wildwood restaurants during the period. Post year end, it has disposed of a further three sites – leaving it with an estate of 61. It said there were “a number of sites” still earmarked for disposal.
The group said that early signs of its 18-month plan to address issues in its operational structure were positive, with better customer engagement and staff retention.
It also announced a replacement for finance director, Tim Cundy, who announced his resignation at the start of the year, although did not specify who it was.
On the outlook, the group said: “The board does not expect market conditions to improve in 2018 and believes that a further deterioration is likely. Underlying input costs will continue to rise and consumer spending will face increased pressures. The group’s next round of operational improvements are targeting improvements in the areas of sales, food and labour margins, however it will be some time before the full benefit of these changes is felt and financial performance in 2018 is very unlikely to see any improvement on 2017.
“The directors believe that the group’s brands remain attractive to customers and the Group has the right strategic plan in place to ensure future growth.”
The group gave a rundown of the sites it has disposed of:
“Canary Wharf Wildwood
The lease for this property was assigned on 5 January 2018 for a premium receivable by the Group of £1.45m. This contract was unconditional at the year end and has therefore been recognised in these financial statements.
Ilkley Wildwood Kitchen
The lease of this property was assigned on 22 September 2017 for a premium receivable by the Group of £120,000.
Abingdon Wildwood Kitchen
A surrender of the lease was agreed on 14 January 2018 at no cost to the Group.
Bristol Wildwood Kitchen
The lease on this site was surrendered on 31 December 2017 at a cost of £195,000 to the Group.
Barnes Wildwood Kitchen
Contracts have exchange on this property with the lease due to be assigned imminently at a net cost of £nil to the Group.
Gloucester Road Wildwood
On 8 March 2018 this unit was sold as a going concern for a consideration of £2.7m
In addition to the above, the Company undertook a sale and leaseback transaction during the period, purchasing and later selling the freehold of its Kettering site.
