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Tasty has narrowed its operating loss from £2.6m to £1.6m for the year ended 29 December 2024, while its post-IFRS 16 operating profit rose by 33% to £0.4m.
It comes as the owner and operator of dim t and Wildwood restaurants closed 16 sites through the restructuring plan it initiated in April 2024, which was sanctioned by the High Court in June the same year.
The group also agreed on leases for three further sites outside of the restructuring plan, having secured a £750k loan which was converted to equity with shareholders’ consent and was invested into the company.
During the year, Tasty saw its revenues fall by 21.9% to £36.6m year-on-year, as it operated from a smaller portfolio.
Adjusted EBITDA before the impact of IFRS 16 showed a loss of £0.3m, an improvement from the £0.9m loss reported in 2023, indicating a strengthening in the company’s underlying cash performance.
However, on a post-IFRS 16 basis, adjusted EBITDA fell to £3.6m from £4.4m, reflecting a £0.8m decline in headline profitability after lease accounting adjustments.
According to Tasty, it is now on “a secure footing” for potential future growth, having reported no material uncertainty qualification in the year ended December 2024.
Looking ahead, the group’s board maintains a “cautious” outlook, as the increase in the National Living Wage and employer’s National Insurance contributions have come into effect from this April.
Nevertheless, Tasty is optimistic that once the disruption from the restructuring plan subsides and the group reaches a period of stability, it will “experience a modest uplift in sales and should be able to return to profitability”.
