27 September 2023
Tasty plc
("Tasty", the "Group" or the "Company")
Unaudited Interim Results for the 26 weeks ended 25 June 2023
Tasty (AIM: TAST), the owner and operator of restaurants in the casual dining sector, announces its interim results for the 26 week period ended 25 June 2023.
Key Points:
· Revenue of £21.7m (H1 2022: £21.5m); increase of 0.9%
· Adjusted EBITDA1 of £1.1m (H1 2022: £2.7m)
· Impairment charge of £4.0m (H1 2022: £1.6m)
· Loss after tax for the period of £6.2m (H1 2022: loss £2.7m)
· Cash balance of £2.8m (H1 2022: £8.0m)
· 52 of 54 restaurants traded through the period
· Like-for-like sales compared with 2022 up 1.4%
· Staff retention improving despite challenges
· Cost of living crisis and interest rate increases expected to further impact revenue in H2 2023
· Inflationary pressure on labour, food and utilities continues to adversely affect profitability
1 Adjusted for depreciation, amortisation and share based payments.
Chairman's statement
Introduction
2023 traded ahead of 2022 for the corresponding period with like-for-like sales up 1.4% against the first half of 2022. The first quarter performed strongly, with like-for-like sales up 3.1% against the previous year which was impacted by Omicron, which unfortunately was not matched by the second quarter which disappointed with like for like sales down 0.3%. However, summer trading exceeded the Board's expectations.
Nonetheless, the casual dining market continues to face inflationary pressures on food, labour and utility costs. The cost-of-living crisis and interest rates are at their worst for many years, directly reducing the discretionary spend of our customers. We continue to navigate through challenging times and although this is expected to continue through H2 2023 we are continuing to adapt the business to mitigate the cost increases and reduced trading performance.
We have focused on optimising the current estate by selling or surrendering leases in the tail of the estate and seeking to turn around the underperforming sites. One under-performing restaurant was returned to the landlord after the period end in August 2023.
The Board was pleased to welcome Gordon Browne as Finance Director (currently a non-Board appointment) in May 2023. Gordon formerly held senior finance roles at Oakman Group plc, Chopstix Group and Park Chinois.
People
Labour costs have continued to increase; however, staff shortages have been alleviated to a certain extent as the hospitality sector has shrunk and our recruitment, training and people engagement has significantly improved. As a result, staff retention and labour shortages are not as challenging as previously experienced. However, with a competitive labour market, we continue to motivate and develop our teams and ensure that we are competitive through regular training, progression and pay reviews.
Inflationary costs
Despite food inflation continuing to rise we have improved our food margin by 1.5% compared to H2 2022 by constantly refreshing our offer and menu choice, whilst still delivering good value through close analysis of market trends and competitive pricing including, a set price two and three course lunch offer.
Environmental, social and governance
The wellbeing and safety of our employees and customers is at the centre of everything we do. We have also retained our focus on sustainability and the environmental impact of the business, and we remain an equal opportunity employer.
Results
Revenue increased by 0.9% to £21.7m (H1 2022: £21.5m). Q1 performed ahead of the Board's expectations, however, the second quarter slowed and was flat against 2022. Delivery sales continue to decline as expected, in line with the market as customer habits swing back to dine-in.
The adjusted EBITDA for the period was £1.1m (H1 2022: £2.7m).
The main reasons for the reduction in EBITDA are due to Covid related support falling away in terms of VAT reductions, rent and rate concessions as well as utility price increases.
Operating loss before highlighted items was £1.0m (H1 2022: profit £0.4m).
We have reviewed the impairment provision across the right-of-use-assets and fixed assets and have made a net provision of £4.0m allowing for a number of poorly performing sites (H1 2022: £1.6m).
After taking into account of all non-trade adjustments, the Group reports a loss after tax for the period of £6.2m (H1 2022: loss £2.7m).
Cash flows and financing
Cash outflow from operations was £1.5m (H1 2022: inflow £0.9m). Our bank loan of £1.25m was fully repaid in H1 2022 and the Company remains debt free.
Overall, the net cash outflow for the period was £4.2m (H1 2022: outflow £3m). As at 25 June 2023, the Group had net cash of £2.8m (H1 2022: net cash of £8.0m).
Going concern
The Directors have a reasonable expectation that the Group has sufficient resources to continue in existence for the foreseeable future. In reaching this conclusion the Directors have considered the financial position of the Group, together with its forecasts for the coming 12 months and taking into account possible changes in its trading performance. The going concern basis of accounting has, therefore, been adopted in preparing this interim financial report.
Outlook
In these uncertain times we continue to remain cautious in our approach. Retention of staff and cost control is a key priority, and the Board remains cautiously confident of managing current challenges.
Finally, and most importantly, we would like to thank all our people, shareholders, suppliers and other stakeholders for their continued support throughout these difficult times.
Change of Name of Nominated Adviser and Broker
The Company also announces that its nominated adviser and broker has changed its name to Cavendish Securities plc (formerly Cenkos Securities plc) following completion of its own corporate merger.
K Lassman
Chairman
Tasty plc
26 September 2023
Enquiries:
Tasty plc Tel: 020 7637 1166
Jonny Plant, Chief Executive
Cavendish Securities Tel: 020 7220 0500
Katy Birkin/George Lawson
Certain of the information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK version of the EU Market Abuse Regulation (596/2014). Upon publication of this announcement via a regulatory information service, this information is considered to be in the public domain.
Consolidated statement of comprehensive income
for the 26 weeks ended 25 June 2023 (unaudited)
|
26 weeks to |
|
26 weeks to |
52 weeks Ended |
| 25 June |
| 26 June | 25 December |
| 2023 |
| 2022 | 2022 |
| £'000 |
| £'000 | £'000 |
| | | | |
| | | | |
Revenue | 21,724 |
| 21,522 | 44,027 |
| | | | |
Cost of sales | (21,843) | | (20,375) | (44,123) |
| | | | |
Gross (loss)/profit | (119) |
| 1,147 | (96) |
| | | | |
Other income | 159 | | 213 | 414 |
| | | | |
Total operating expenses | (5,184) | | (2,778) | (4,370) |
| | | | |
Operating (loss)/profit before highlighted items | (1,018) | | 445 | (1,687) |
Highlighted items | (4,126) | | (1,863) | (2,365) |
| | | | |
Operating loss | (5,144) |
| (1,418) | (4,052) |
Finance income | 62 | | 3 | 41 |
Finance expense | (1,157) | | (1,249) | (2,421) |
| | | | |
Loss before tax | (6,239) |
| (2,664) | (6,432) |
| | | | |
| | | | |
Loss and total comprehensive income for period and attributable to owners of the parent
| (6,239) |
| (2,664) | (6,432) |
Loss per share attributable to the ordinary equity owners of the parent
|
| | | |
Basic | (4.26p) | | (1.89p) | (4.40p) |
Diluted | (3.82p) | | (1.66p) | (4.03p) |
The table below gives additional information to shareholders on key performance indicators:
| Post IFRS 16 | | Pre IFRS 16 | | Post IFRS 16 | Pre IFRS 16 |
| 26 weeks to |
| 26 weeks to |
| 26 weeks to | 26 weeks to |
| 25 June |
| 25 June |
| 26 June | 26 June |
| 2023 |
| 2023 |
| 2022 | 2022 |
| £'000 |
| £'000 |
| £'000 | £'000 |
| | | | | | |
EBITDA before highlighted items | 1,133 |
| (1,510) |
| 2,733 | 101 |
Depreciation of PP&E and amortisation | (875) |
| (908) |
| (958) | (980) |
Depreciation of right-of-use assets (IFRS16) | (1,276) | | - | | (1,330) | - |
| | | | | | |
Operating (loss)/profit before highlighted items | (1,018) |
| (2,418) |
| 445 | (879) |
Analysis of highlighted items |
26 weeks to |
|
26 weeks to |
52 weeks ended |
| 25 June |
| 26 June | 25 December |
| 2023 |
| 2022 | 2022 |
| £'000 |
| £'000 | £'000 |
Loss on disposal of property plant and equipment | - | | - | (154) |
Exceptional cost - restructuring | (56) | | - | (14) |
Impairment of right-of-use assets |
(2,584) | |
(1,258) |
(2,153) |
Impairment charge of property, plant and equipment |
(1,376) | |
(304) |
(180) |
Share based payments | (12) | | (31) | (58) |
Pre-opening costs | - | | - | (51) |
(Loss)/gain on lease modifications | (98) | | (270) | 245 |
Total highlighted items | (4,126) |
| (1,863) | (2,365) |
The above items have been highlighted to give more detail on items that are included in the Consolidated statement of comprehensive income and which when adjusted shows a profit or loss that reflects the ongoing trade of the business.
Consolidated statement of changes in equity
for the 26 weeks ended 25 June 2023 (unaudited)
| Share | Share | Merger | Retained | Total |
| Capital | Premium | Reserve | Deficit | Equity |
| £'000 | £'000 | £'000 | £'000 | £'000 |
| | | | | |
Balance at 25 December 2022 | 6,061 | 24,254 | 992 | (33,355) | (2,048) |
Total comprehensive income for the period |
- |
- |
- |
(6,239) |
(6,239) |
Share based payments - credit to equity | - | - | - | 12 | 12 |
Balance at 25 June 2023 | 6,061 | 24,254 | 992 | (39,582) | (8,275) |
| | | | | |
Balance at 26 December 2021 (restated) | 6,061 | 24,254 | 992 | (26,981) | 4,326 |
Total comprehensive income for the period | - | - | - | (2,664) | (2,664) |
Share based payments - credit to equity | - | - | - | 31 | 31 |
Balance at 26 June 2022 | 6,061 | 24,254 | 992 | (29,614) | 1,693 |
| | | | | |
Balance at 26 December 2021 (restated) | 6,061 | 24,254 | 992 | (26,981) | 4,326 |
Total comprehensive income for the period | - | - | - | (6,432) | (6,432) |
Share based payments - credit to equity | - | - | - | 58 | 58 |
Balance at 25 December 2022 | 6,061 | 24,254 | 992 | (33,355) | (2,048) |
Consolidated balance sheet
At 25 June 2023 (unaudited)
| |
26 weeks to |
|
26 weeks to |
|
52 weeks ended |
| | 25 June |
| 26 June |
| 25 December |
| | 2023 |
| 2022 |
| 2022 |
| | £'000 |
| £'000 |
| £'000 |
Non-current assets |
| | | | | |
Intangible assets | | 32 | | 28 | | 25 |
Property, plant and equipment | | 15,255 | | 17,282 | | 17,332 |
Right-of-use- assets | | 29,184 | | 34,639 | | 32,875 |
Other non-current assets | | 65 | | 65 | | 65 |
Total non-current assets |
| 44,536 |
| 52,014 |
| 50,297 |
| | | | | | |
Current assets |
| | | | | |
Inventories | | 2,013 | | 1,994 | | 2,191 |
Trade and other receivables | | 2,499 | | 2,949 | | 1,633 |
Cash and cash equivalents | | 2,777 | | 8,010 | | 7,002 |
Total current assets |
| 7,289 |
| 12,953 |
| 10,826 |
|
|
|
|
|
|
|
Total assets |
| 51,825 |
| 64,967 |
| 61,123 |
| | | | | | |
Current liabilities |
| | | | | |
Trade and other payables | | (10,617) | | (10,336) | | (12,393) |
Lease liabilities | | (1,993) | | (2,202) | | (1,953) |
| | | | | | |
Total current liabilities | | (12,610) |
| (12,538) |
| (14,346) |
| | | | | | |
Non-current liabilities |
| | | | | |
Provisions | | (342) | | (335) | | (339) |
Lease liabilities | | (47,044) | | (50,273) | | (48,358) |
Other payables | | (104) | | (128) | | (128) |
Total non-current liabilities |
| (47,490) |
| (50,736) |
| (48,825) |
|
|
|
|
|
|
|
Total liabilities | | (60,100) |
| (63,274) |
| (63,171) |
| | | | | | |
Total net (liabilities)/assets | | (8,275) |
| 1,693 |
| (2,048) |
| | | | | | |
Equity |
| | | | | |
Share capital | | 6,061 | | 6,061 | | 6,061 |
Share premium | | 24,254 | | 24,254 | | 24,254 |
Merger reserve | | 992 | | 992 | | 992 |
Retained deficit | | (39,582) | | (29,614) | | (33,355) |
Total equity | | (8,275) |
| 1,693 |
| (2,048) |
Consolidated cash flow statement
for the 26 weeks ended 25 June 2023 (unaudited)
| | 26 weeks to |
| 26 weeks to |
| 52 weeks ended |
| | 25 June |
| 26 June |
| 25 December |
| | 2023 |
| 2022 |
| 2022 |
| | £'000 |
| £'000 |
| £'000 |
| | | | | | |
Operating activities |
| | | | | |
Cash generated from operations | | (1,506) | | 945 | | 4,444 |
Net cash inflow from operating activities | (1,506) |
| 945 |
| 4,444 | |
| | | | | | |
Investing activities |
| | | | | |
Purchase of property, plant and equipment | | (181) | | (516) | | (1,645) |
Interest received | | 62 | | 3 | | 41 |
Net cash flows used in investing activities | (119) |
| (513) |
| (1,604) | |
| | | | | | |
Financing activities |
| | | | | |
Bank loan repayment | | - | | (1,250) | | (1,250) |
Finance expense | | (1,157) | | (1,249) | | (2,421) |
Principal paid on lease liabilities | | (1,443) | | (928) | | (3,172) |
Net cash flows used in financing activities | | (2,600) | | (3,427) | | (6,843) |
|
|
|
|
|
| |
Net increase in cash and cash equivalents | | (4,225) | | (2,995) | | (4,003) |
Cash and cash equivalents at beginning of the period | | 7,002 | | 11,005 | | 11,005 |
Cash and cash equivalents as at 25 June 2023 | 2,777 |
| 8,010 |
| 7,002 |
Notes to the condensed financial statements
for the 26 weeks ended 25 June 2023 (unaudited)
1 General information
Tasty plc is a public limited company incorporated in the United Kingdom under the Companies Act (registration number 05826464). The Company is domiciled in the United Kingdom and its registered address is 32 Charlotte Street, London, W1T 2NQ. The Company's ordinary shares are traded on the AIM Market of the London Stock Exchange ("AIM"). Copies of this Interim Report and the Annual Report and Financial Statements may be obtained from the above address or on the investor relations section of the Company's website at www.dimt.co.uk.
2 Basis of accounting
The condensed set of financial statements included in this interim financial report has been prepared in accordance with IAS 34 'Interim Financial Reporting', as adopted by the United Kingdom and accounting policies consistent with International Financial Reporting Standards (IFRS) and International Financial Reporting Interpretations Committee (IFRIC) interpretations as endorsed by the United Kingdom. The same accounting policies, presentation and methods of computation have been followed in the preparation of these results as were applied in the Company's latest annual audited financial statements.
The financial information for the 26 weeks ended 25 June 2023 has not been subject to an audit nor a review in accordance with International Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity, issued by the Financial Reporting Council.
The financial information for the period ended 25 December 2022 does not constitute the full statutory accounts for that period. The Annual Report and Financial Statements for 2022 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statements for 2022 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.
The condensed financial statements are presented in sterling and all values are rounded to the nearest thousand pounds (£'000).
Except when otherwise indicated, the consolidated accounts incorporate the financial statements of Tasty plc and its subsidiary, Took Us A Long Time Limited, made up to the relevant period end.
Use of judgements and estimates
In preparing these interim financial statements management has made judgements and estimates that affect the application of accounting policies and measurement of assets and liabilities, income and expense provisions. Actual results may differ from these estimates.
Going concern
The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. In reaching this conclusion the Directors have considered the financial position of the Group, together with its forecasts for the next 12 months from the date of approval of these interim accounts and taking into account possible changes in trading performance. The Group monitors cash balances and the impact of inflation closely to ensure there is sufficient liquidity. Accordingly, the Directors believe that it remains appropriate to prepare the financial statements on a going concern basis.
IFRS 16 'Leases'
Group's accounting policies for leases are as follows:
Lessee accounting
IFRS 16 distinguishes between leases and service contracts on the basis of whether the use of an identified asset is controlled by the customer. Control is considered to exist if the customer has:
• The right to obtain substantially all of the economic benefits from the use of an identified asset; and
• The right to direct the use of that asset in exchange for consideration.
All leases are accounted for by recognising a right-of-use asset and a lease liability except for:
• Leases of low value assets, and
• Leases with a duration of 12 months or less.
Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments made. Right-of-use assets are amortised on a straight-line basis over the remaining term of the lease.
Lessor accounting
Under IFRS 16, a lessor continues to classify leases as either finance leases or operating leases and account for those two types of leases differently.
Based on an analysis of the Group's operating leases as at 25 June 2023 on the basis of the facts and circumstances that exist at that date, the Directors of the Group have assessed that the impact of this change has not had any impact on the amounts recognised in the Group's consolidated financial statements.
Short-term leases and leases of low-value assets
The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low value assets. The Group recognises these payments as an expense on a straight-line basis over the lease term. Currently the Group has no low value assets or short-term leases.
Covid-19 related rent concessions
IFRS 16 defines a lease modification as a change in the scope of a lease, or the consideration for a lease, that was not part of the original terms and conditions of the lease. The Group has considered the Covid-19 related rent concessions and applied the lease modifications accounting.
Impairments
All assets (ROU and fixed assets) are reviewed for impairment in accordance with IAS 36 Impairment of Assets, when there are indications that the carrying value may not be recoverable.
Assets are subject to impairment tests whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Where the carrying value of an asset or a cash generating unit (CGU) exceeds its recoverable amount, i.e. the higher of value in use and fair value less costs to dispose of the asset, the asset is written down accordingly.
The Group views each restaurant as a separate CGU. Value in use is calculated using cash flows excluding outflows from financing costs over the remaining life of the lease for the CGU discounted at 9% (2022: 8%), being the rate considered to reflect the risks associated with the CGUs. A growth rate of 1.0% has been applied (2022: 2%).
An impairment review was undertaken across the ROU assets and fixed assets which resulted in a net impairment charge of £4.0m (2022: £1.6m). Where an impairment reversal is recognised, the carrying amount of the asset will be increased to its recoverable amount with the increase being recognised in the income statement. This increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years.
The assumptions will be reviewed at year-end to ensure that the cashflow expectations are in line with the latest outlook.
3 Revenue, other income and segmental analysis
The Group's activities, comprehensive income, assets and liabilities are wholly attributable to one operating segment (operating restaurants) and arises solely in the one geographical segment (United Kingdom) that the Group is located and operates in. All the Group's revenue is recognised at a point in time being when control of the goods has transferred to the customer.
An analysis of the Group's total revenue is as follows:
| 26 weeks to 25 June |
| 26 weeks to 26 June | 52 weeks ended 25 December |
| 2023 |
| 2022 | 2022 |
| £'000 |
| £'000 | £'000 |
| | | | |
Sale of goods and services: dine-in | 19,401 | | 18,862 | 39,004 |
Sale of goods and services: delivery and takeaway | 2,323 | | 2,660 | 5,023 |
| 21,724 |
| 21,522 | 44,027 |
An analysis of the Group's other income is as follows:
| 26 weeks to 25 June |
| 26 weeks to 26 June | 52 weeks ended 25 December |
| 2023 |
| 2022 | 2022 |
| £'000 |
| £'000 | £'000 |
| | | | |
Sub-let site rental income | 132 | | 181 | 362 |
Other | 27 | | 32 | 52 |
| 159 |
| 213 | 414 |
|
|
|
|
|
4 Income tax
The income tax charge has been calculated by reference to the estimated effective corporation tax and deferred tax rates of 19% (2022: 19%).
Tax charge £nil (2022: £nil).
5 Earnings per share
| | | | 26 weeks to |
| 26 weeks to |
| 52 weeks ended |
| | | | 25 June |
| 26 June |
| 25 December |
| | | | 2023 |
| 2022 |
| 2022 |
| | | | Pence |
| Pence |
| Pence |
| | | | | | | | |
Basic loss per ordinary share | | | (4.26p) | | (1.89p) | | (4.40p) | |
Diluted loss per ordinary share | | | (3.82p) | | (1.66p) | | (4.03p) | |
| | | | | | | | |
| | | 25 June 2023 |
| 26 June 2022 |
| 25 December 2022 | |
| | | Number '000 |
| Number '000 |
| Number '000 | |
Loss per share has been calculated using the numbers shown below: | | | | | | | | |
Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share | | |
146,315 | |
141,090 | |
146,315 | |
| | | | | | | | |
Adjustments for calculation of diluted earnings per share: | | | | | | | | |
| | | | | | | | |
Ordinary B shares | | | 10,451 | | 15,677 | | 10,451 | |
Options | | | 6,400 | | 3,265 | | 2,975 | |
| | | | | | | | |
Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating diluted earnings per share | | |
163,166 | |
160,032 | |
159,741 | |
| | | | | | | | |
| | |
25 June 2023 | |
26 June 2022 | |
25 December 2022 | |
| | | £'000 | | £'000 | | £'000 | |
Loss for the financial period | | |
(6,239) | |
(2,664) | |
(6,432) |
The basic and diluted Loss per share figures are calculated by dividing the net loss for the period attributable to shareholders by the weighted average number of ordinary shares in issue during the period. The diluted earnings per share figure allows for the dilutive effect of the conversion into ordinary shares of the weighted average number of options outstanding during the period. Options are only taken into account when their effect is to reduce basic earnings per share.
6 Reconciliation of result before tax to net cash generated from operating activities
| 26 weeks to |
| 26 weeks to |
| 52 weeks ended |
| 25 June |
| 26 June |
| 25 December |
| 2023 |
| 2022 |
| 2022 |
| £'000 |
| £'000 |
| £'000 |
| | | | | |
Loss before tax | (6,239) | | (2,664) | | (6,432) |
Finance income | (62) | | (3) | | (41) |
Finance expense | - | | 30 | | 30 |
Finance expense (IFRS 16) | 1,157 | | 1,219 | | 2,391 |
Share based payment charge | 12 | | 31 | | 58 |
Depreciation of right-of-use assets (IFRS 16) | 1,276 | | 1,330 | | 2,641 |
Depreciation of property, plant and equipment | 874 | | 956 | | 1,664 |
Amortisation of intangible assets | 2 | | 2 | | 3 |
Impairment charge of property, plant and equipment | 1,376 | | 304 | | 542 |
Impairment of Right-of-use assets | 2,584 | | 1,258 | | 1,791 |
Profit from sale of property, plant and equipment | - | | - | | 154 |
Dilapidations provision charge | 3 | | 38 | | 42 |
Other non cash | - | | - | | (21) |
Decrease/(Increase) in inventories | 177 | | 108 | | (88) |
(Increase) in trade and other receivables | (866) | | (1,553) | | (238) |
Increase/(decrease) in trade and other payables | (1,800) | | (111) | | 1,948 |
Net cash (outflow)/inflow from operating activities | (1,506) |
| 945 |
| 4,444 |
7 Property, plant and equipment and right-of-use assets
| Leasehold improvements | Furniture fixtures and computer equipment | Total fixed assets |
| ROU assets |
| Total |
| £'000 | £'000 | £'000 |
| £'000 |
| £'000 |
Cost |
| | | | | | |
At 26 December 2021 | 37,321 | 10,291 | 47,612 | | 53,567 | | 101,179 |
| | | | | | | |
Additions | 709 | 936 | 1,645 | | - | | 1,645 |
Lease modification | - | - | - | | 1,301 | | 1,301 |
Disposals | (181) | (334) | (515) | | (50) | | (565) |
At 25 December 2022 | 37,849 | 10,893 | 48,742 |
| 54,818 |
| 103,560 |
| | | | | | | |
Additions | 46 | 127 | 173 | | - | | 173 |
Lease modification | - | - | - | | 169 | | 169 |
At 25 June 2023 | 37,895 | 11,020 | 48,915 |
| 54,987 |
| 103,902 |
| | | | | | | |
Depreciation |
| | | | | | |
At 26 December 2021 (as restated) | 22,057 | 7,529 | 29,586 | | 17,562 | | 47,148 |
Provided for the period | 981 | 683 | 1,664 | | 2,641 | | 4,305 |
Impairments | 232 | (52) | 180 | | 2,153 | | 2,333 |
Disposals | (75) | (307) | (382) | | (51) | | (433) |
At 25 December 2022 (as previously stated) | 23,195 | 7,853 | 31,048 | | 22,305 | | 53,353 |
| | | | | | | |
Impairment reclassification | 267 | 95 | 362 | | (362) | | - |
| | | | | | | |
At 25 December 2022 (as restated) | 23,462 | 7,948 | 31,410 | | 21,943 | | 53,353 |
| | | | | | | |
Provided for the period | 507 | 367 | 874 | | 1,276 | | 2,150 |
Impairments | 1,187 | 189 | 1,376 | | 2,584 | | 3,960 |
At 25 June 2023 | 25,156 | 8,504 | 33,660 |
| 25,803 |
| 59,463 |
|
| | | | | | |
Net book value |
| | | | | | |
At 25 June 2023 | 12,739 | 2,516 | 15,255 |
| 29,184 |
| 44,439 |
| | | | | | | |
At 25 December 2022 (as restated) | 14,387 | 2,945 | 17,332 | | 32,875 | | 50,207 |
8 Leases
| | 26 weeks to |
| 26 weeks to |
| 52 weeks ended |
| | 25 June |
| 26 June |
| 25 December |
| | 2023 |
| 2022 |
| 2022 |
| | £'000 |
| £'000 |
| £'000 |
Current | | | | | | |
Lease liabilities |
| 1,993 | | 2,202 | | 1,953 |
| | | | | | |
Non-current |
| | | | | |
Lease liabilities | 47,044 | | 50,273 | | 48,358 | |
| | | | | | |
Total | 49,037 |
| 52,475 |
| 50,311 | |
| |
|
|
|
| |
| |
|
|
|
| |
Due within one year | 1,993 |
| 2,202 |
| 1,953 | |
Due two to five years | 9,586 |
| 12,792 |
| 11,386 | |
Due over five years | 37,458 |
| 37,481 |
| 36,972 | |
Total | 49,037 |
| 52,475 |
| 50,311 |
Lease liabilities are measured at the present value of the remaining lease payments, discounted using the Group's incremental borrowing rate of 4.5% and the Bank of England (BoE) base rate at the time of any lease modification or a new lease. The average rate used for modification in 2023 was 8.0% (2022: 5.1%).
The lease liabilities as at 25 June 2023 were £49.0m (2022: £52.5m).
The right-of-use assets all relate to property leases. The right-of-use assets as at 25 June 2023 were £29.2m (2022: £34.6m). During the period ended 25 June 2023 the Group made a provision for impairment of the right-of-use assets against a number of sites totalling £2.6m (2022: £1.3m).
Included in profit and loss for the period is £1.2m depreciation of right-of-use assets and £1.2m financial expenses on lease liabilities.
9 Reconciliation of financing activity
|
| Lease liabilities | Lease liabilities | Bank Loan | Bank Loan
| Total
|
|
| Due within 1 year | Due after 1 year | Due within 1 year | Due after 1 year |
|
|
| £'000
| £'000 | £'000 | £'000 | £'000 |
| Net debt as at 27 December 2020 | 2,904 | 52,219 | - | - | 55,123 |
| Cashflow |
(3,064) |
- | 313 | 937 | (1,814) |
| Addition/(decrease) to lease liability |
2,184 |
(2,062) |
- |
- |
122 |
| Net debt as at 26 December 2021 | 2,024 | 50,157 | 313 | 937 | 53,431 |
| Cashflow | (3,172) | - | (313) | (937) | (4,422) |
| Addition/(decrease) to lease liability | 3,101 | (1,799) | - | - | 1,302 |
| Net debt as at 25 December 2022 | 1,953 | 48,358 | - | - | 50,311 |
| Cashflow | (1,443) | - | - | - | (1,443) |
| Addition/(decrease) to lease liability | 1,483 | (1,314) | - | - | 169 |
| Net debt as at 25 June 2023 | 1,993 | 47,044 | - | - | 49,037 |
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