09 December 2020
By Maynard Paton
Results summary for Tasty (TAST):
- Revenue down 59% led to a £10m operating loss after the pandemic guaranteed an awful performance.
- Cash of £3.2m and six-month cash burn of £1.6m implies TAST will run out of money by June 2021.
- Immediate survival hopes seem dependent on landlord negotiations, CVA hints, a loan from Barclays, UK vaccinations and Christmas burgers delivered to your door.
- One pandemic positive: management has been forced/allowed to instigate much-needed changes to an underperforming restaurant estate.
- The £4m market cap could be a bargain, assuming government restrictions are lifted, rents are reset, competition is reduced and a recovery one day takes place. I continue to hold.