Tasty, the Wildwood operator, has said it has “no plans to open any new sites at the current time” and has cancelled its unused £5m revolving credit facility earmarked for expansion.

The group this morning reported on trading for the 26 weeks to 1 July, in which revenue was down 5.7% to £23m year-on-year.

The group, which closed three sites during the period, has recognised an impairment charge of £11. 2m and an onerous lease provision of £1.7m. After taking into account all non-trade adjustments the group has a stated loss after tax for the period of £10.7m

The board of Tasty, which operates 54 Wildwood and 6 dim t restaurants, said major operational structural changes implemented in February were beginning to drive early signs of improvements

The company said it was continually assessing its estate with a view to utilising the proceeds of property disposals to reduce gearing.

It said menu development and improvement remained integral to its strategy to keep the brand relevant and that work was being undertaken in areas such as vegan and gluten free menus.

Tasty has invested in its training infrastructure and launched additional apprenticeship programmes, which will be expanded over the next six months. It said: “For every level of the team, we will be introducing a comprehensive career pathway to support their development, enhance job satisfaction and increase staff retention.”

On the outlook chairman Keith Lassman said: “Market conditions remain difficult, but we are starting to see the benefits of the infrastructure changes that have been, and continue to be, implemented. Our focus will continue to be growing sales and maximising value. We have a dedicated team that is leading the Group through the challenges we are facing and we would like to thank all of them for their hard work. The Directors believe that our restaurants are appealing to customers and, once the economic climate has improved, the Group is well placed to resume growth.”