Tasty - Trading update and restructuring plan

Trading conditions remained difficult in 2023, impacted by intense cost-of-living pressures, transportation strikes, and significant inflationary pressure on labour, food and utilities. In response, Tasty implemented various efficiency measures which helped narrow FY23 EBITDA losses to -£0.9m (FY22A: -£2.7m loss). With the economic environment remaining challenging, however, Tasty intends to implement a restructuring plan (funded by a new £750k loan with potential for conversion), which will inv

Morning Note – 27 September 2023

Tasty - Interim Results

Well-documented cost-of-living pressures continue to have a material impact on the casual dining sector, and Tasty is no exception. LFL sales rose +1.4% YoY in H1 to £21.7m, which was offset by material cost inflation (food, labour, utilities etc), leading to Adj EBITDA reducing to £1.1m (H1/22 £2.7m). Whilst trading conditions are likely to remain challenging in the near-term, we see grounds for optimism in FY24 – inflation is falling steadily and the Bank of England recently held interest rate

Hybridan Small Cap Feast - 30 Mar 23

30 March 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectiv

cenkos: Tasty Plc -- Full year results

Despite relentless industry headwinds, Tasty has continued to show its resilience against the tightening of consumer purse strings with revenues rising by 26% to £44.0m, a level not seen since before the pandemic. A buoyant top line is a testament to the Group's differentiated product offering and value for money proposition as it remains relevant despite the ongoing cost-of-living crisis. However, adj EBITDA declined to £2.6m, a 67% YoY reduction, a direct result of inflationary pressures from

Hybridan Small Cap Feast - 17 Feb 23

17 February 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objec

Cenkos: Consumer Q1/23

Key Observations Despite a second successive decline in CPI during the quarter, inflation remained at one of the highest levels in 40 years (10.5% in December) contributing to a winter of discontent, with each day in December facing some form of industrial action. The industrial action materially impacted the consumer sector and provided an insight into the simmering frustration around the decline in real wages of the UK population. There were multiple examples of consumer corporate failures d

Cenkos: Consumer Q3/22 Review

Third Quarter Key Observations  Escalating inflation continued to cut further into consumers' discretionary income, impacting demand across the consumer sector. The systemic rise in input costs significantly impacted companies' bottom lines, testing the resilience of even the strongest in the sector, as businesses balanced the long-term need to maintain relevance to their customer base (in terms of pricing & quality) whilst also seeking to navigate immediate economic challenges. The Gf

Cenkos: Tasty Plc -- Navigating industry headwinds

Momentum for the Group has remained with consumer pent up demand continuing to fuel the wider hospitality sector. The Group's revenue for the period rose by 85.3% whilst Adj EBITDA rose by 237.5%. This strong performance is despite the onset of the cost-of-living crisis during the period and is testament to the Group's value for money proposition. With the inflationary environment becoming more acute and exacerbating the current cost-of-living crisis, consumer discretionary spending will increas

Cenkos: Tasty Plc -- Strong performance despite challenges

Tasty Plc has produced solid revenue growth of c44% and an increase in Adj EBITDA of £2.7m to £8.0m. This growth was underpinned by; continued consumer pent up demand for socialising, an appreciation of the brand, and increases in takeaway and delivery. The Group has proven its resilience to adapt to the pandemic related challenges and should be well equipped to operate under current and future challenges, namely the strong inflationary pressures. With the planned removal of government support r

Hybridan Small Cap Feast 08/03/2022

Joiners: No Joiners Today. Leavers: No Leavers Today. What’s cooking in the IPO kitchen? Summerway Capital plc, (AIM:SWC) to be renamed Celadon Pharmaceuticals plc following completion of the acquisition of Vertigrow Technology Ltd, is to relist on AIM. Vertigrow is a UK based pharmaceutical Company specialising in the researching, growing and supply of medicinal cannabis, for a total consideration of £80m. Summerway is an investing company focused on investment and acquisition opportunities acr

Hybridan Small Cap Feast 04/01/2022

While we were away Joiners: Mac Alpha Limited (MACA.L) joined the Main Market. (24/12/21) Atome Energy PLC (ATOM.L) joined AIM. (30/12/21) Leavers: No leavers What’s cooking in the IPO kitchen? Graft Polymer a business focused on the development of polymer modification and drug delivery systems is to join the Main Market (Standard). Graft Polymer has developed a proprietary set of polymer modification technologies, which can improve existing products and processing methodologies by enhancing per

Cenkos: Tasty Plc -- Opportunities emerging from the pandemic

Tasty delivered c33% YoY revenue growth ahead of general market performance as the number of UK casual dining restaurants has reduced by c20% since the start of the pandemic. However, the UK eating out market is expected to grow by c33% in FY21E and we believe Tasty is well positioned to take advantage of the restaurant closures and reduced supply in the sector with a healthy net cash position, and a clear strategy to increase market share.

Cenkos: Tasty Plc -- Positioned to recover as restrictions ease

Tasty delivered like-for-like revenue growth ahead of management's expectations in the first two months of the year and whilst lockdown restrictions were lifted during the summer. However, the full effect of COVID-19 severely impacted FY20A financial performance. The Group managed their cash through consensual negotiations and implementing cost controls and a strategic site sale, ending the year in a net cash position after deferred payments of £1.5m. The Group is in a strong position with a low