Tasty cuts losses and predicts brighter future post restructure

Dim T and Wildwood owner Tasty has posted a 6.6% rise in revenue to £47m and predicted an uplift in profitability towards the end of the year.

In June its restructuring proposals were sanctioned, with the closure of 18 sites and the surrender of an additional two leases on previously closed sites and three sub-let sites. It now operates 37 sites.

In full year numbers for the 53 weeks to 31 December 2023, the group reported a £14.5m loss before tax after exceptional costs, compared to a £6.4m loss the year before.

It said there had been some positive trading with Dim T performing well during the summer, while “Christmas performance surpassed management expectations”.

Tasty added that performance across the group as a whole in 2024 was “behind management expectations, due largely to the cost of living crisis and the initial impact of the restructuring plan”.

It said: “With underlying labour issues easing, inflation tailing off and the expected positive impact of the restructuring plan, as previously announced, the group should see an uplift in profitability towards the end of the year.”

Tasty chairman Keith Lassman said: “The board expects the group’s performance to continue to be impacted by energy costs, labour costs and increasing food costs, pressure on consumer spend as well as the negative impact on sales of events including the Euros 2024, the Olympics and the upcoming General Election.

“However, an uplift is expected towards the end of the year when a new government will be in place and the group will have a reached a period of stability post restructuring plan with the all the benefits of the smaller, more profitable estate the cost efficiencies will be apparent.”