28 January 2022
By Maynard Paton
Results summary for Tasty (TAST):
- A predictably poor performance due to the pandemic, albeit with revenue up 33% on the even worse H1 2020 following greater takeaway and delivery sales.
- Favourable changes to both the ‘going concern’ small-print and CVA commentary suggest the risk of failure has diminished.
- But underlying net cash of £4m does not leave enormous room for error given an estimated underlying cash outflow of £1m for this H1.
- IFRS 16 total lease obligations remaining at £55m looks odd given annual rents may have been reduced by 27%.
- A post-results update citing “extremely encouraging” trading plus plans to re-open the remaining closed restaurants provide hope of a recovery. I continue to hold.