Tasty swings to a FY loss amid Covid-19 lockdowns

Casual dining restaurant group Tasty said on Wednesday that it was looking forward to a "promising period" following the Covid-19 lockdowns that swung the group into the red in 2020.

In the twelve months ended 27 December December, Tasty saw revenues tumble 46% to £24.0m and 2019's underlying earnings of £1.1m swing to a loss of £1.5m just twelve months later.

Tasty ended the year with a net cash balance of £8.0m, after allowing for deferred creditors and HMRC payments of £1.5m, but acknowledged that a bank loan of £1.2m was drawn down upon in January.

Tasty stated that while current restrictions remained in place, its focus during the current UK lockdown was to preserve cash and maintain team engagement.

The AIM-listed group noted that it was currently trading from 38 of its 54 venues for delivery and takeaway but highlighted that dine-in remained "central" given that take-out orders eroded margins.

Chairman Keith Lassman said: "We believe that the lessons we have learnt over the last 12 months have strengthened our operating model. We have found new ways of operating the business and have become agile at adapting to the current conditions. This includes new delivery partnerships which we envisage will continue in the future.

"Having survived the turmoil of the past 12 months, and as we come out of this pandemic and restrictions are lifted, we are confident that we are in a good position to service the pent-up customer demand and take advantage of the reduced competition."

As of 1025 BST, Tasty shares were down 14.0% at 5.16p.