Tasty : Report and financial statements year ended 2022

TASTY PLC

Report and financial statements

52 weeks ended 25 December 2022

Contents

1. Directors and information
2. Chairman's statement

5 Strategic report

1. Report of the directors

1. Corporate governance

1. Statement of directors' responsibilities

27 Independent auditor's report

1. Consolidated statement of comprehensive income
2. Consolidated statement of changes in equity
3. Company statement of changes in equity
4. Consolidated balance sheet
5. Company balance sheet
6. Consolidated statement of cash flows
7. Company statement of cash flows
8. Notes forming part of the financial statements

Tasty plc Annual report and financial statements 1

Directors and information

Directors

Keith Lassman (Non-Executive Chairman)

Daniel Jonathan Plant (Chief Executive Officer)

Mayuri Vachhani (Chief Financial Officer)

Harald Samúelsson (Executive Director)

Wendy Dixon (Non-Executive Director - appointed 22 June 2022)

Secretary and registered office

Keith Lassman

32 Charlotte Street

London W1T 2NQ

Company number

05826464

Independent Auditor

Haysmacintyre LLP

10 Queen Street Place

London EC4R 1AG

Solicitors

Howard Kennedy LLP

No. 1 London Bridge

London SE1 9BG

Setfords Solicitors

46 Chancery Lane

London WC2A 1JE

Bankers

Barclays Bank plc 1 Churchill Place London E14 5HP

Nominated adviser and broker

Cenkos Securities plc

6.7.8. Tokenhouse Yard

London EC2R 7AS

Registrars

Computershare Investor Services plc

P O Box 82

The Pavilions

Bridgwater Road

Bristol BS99 6ZY

Tasty plc Annual report and financial statements 2

Chairman's statement

I am pleased to be reporting on the Group's annual results for the 52 weeks period ended 25 December 2022 and the comparative 52 weeks period ended 26 December 2021.

The Group comprises 54 restaurants: six dim t and 48 Wildwood restaurants.

It was hard to predict the challenges that we faced in 2022 would immediately follow what had already been extraordinarily difficult years during the pandemic. The Group delivered strong sales growth, despite the severe impediments of transportation strikes, the World Cup, and bad weather all coinciding with the most important trading period of the year. We have estimated the adverse sales impact of all these factors to be in excess of £0.65m. As reported in our Interim Results, the energy crisis and unprecedented inflationary costs suppressed the results further, significantly increasing our running costs.

We reopened two Wildwood restaurants which were closed during the pandemic, and we are now trading from 52 restaurants out of a total estate of 54. We also converted Wildwood Loughton into a dim t in November 2022 with results which have exceeded expectations. Dim t has proved to be a robust brand over the last few years due to both a rise in popularity for Asian food and also an increased demand for takeaway and delivery of this cuisine. Given the initial solid performance of this converted unit we are currently considering other opportunities to rebrand within our estate. We have started a process to sell the two restaurants that remain closed, and we will also consider the sale or surrender of other underperforming sites.

Delivery and takeaway have remained strong throughout the year but there has been a marginal shift towards dine-in. The sales performance for the start of 2023 has been better than initially expected, but it is still challenging. We believe that this is partially due to customers drawing upon personal savings built up during the pandemic and a resilience to conservative menu price increases however, whether this resilience continues, remains to be seen in the coming months. The Board expects the Group's profitability to continue to be impacted by both energy costs, which remain significantly higher than pre-pandemic levels, and also increasing food costs. The Group's expansion plan of opening additional sites will be reviewed once inflation and the economy have stabilised.

The Group repaid and cancelled its outstanding Barclays Bank facility of £1.1m as it was unutilised, and it was considered prudent given the increasing interest rate charges. Based on the Bank of England base rate at the time of cancellation, there will be an annualised interest saving of approximately £57,000. The Group still has a £250,000 overdraft facility.

As with previous challenges, the Group is confident it has a structure that can navigate the current macroeconomic headwinds.

Dividend

The Board does not propose to recommend a dividend (2021: £nil).

Future Trading

Performance to date is ahead of management expectations although, at this stage, it is difficult to predict the full extent of the cost of living crisis and input cost inflation and shortages. When the current energy cap reduces at the end of March 2023, with advice from our newly appointed energy brokers, we are adopting a revised strategy to reduce our energy costs. We expect our customers to continue to enjoy eating out and relish the social occasion at Wildwood and dim t but we will continue to focus on managing our cost base and increasing efficiencies within the business. We are living in

Tasty plc Annual report and financial statements 3

Chairman's statement

very unpredictable times, both politically and economically, and these no doubt will continue to be factors in the performance of the Group for the coming year.

Keith Lassman

Chairman

29 March 2023

Tasty plc Annual report and financial statements 4