Tasty's shares dive as restaurateur struggles in 'difficult' market conditions

21st Sep 2018 09:12

(Sharecast News) - Tasty saw its shares plummet on Friday after posting an increased loss and warning investors that the restaurant industry remained "challenging".The company, which owns the Wildwood and dim t restaurant chains, registered a 24% increase in its loss before tax compared to the same period last year as revenue fell by 6% to £23m.Tasty blamed the disappointing results on difficult market conditions that it said were "exacerbated" by unfavourable weather and the World Cup.The AIM traded company has issued two profit warnings, closed several underperforming stores and introduced a raft of changes so far this year, measures which are beginning to yield "early signs of improvement".Though actively looking to rid itself of further loss-making sites, the company has written down the value of its properties by £11.2m which it has recognised as a one-off impairment charge.At 30 June, the company had cash and cash equivalents of £2.9m, up from £1.6m at the same point last year.Keith Lassman, chairman of Tasty, said: "Market conditions remain difficult, but we are starting to see the benefits of the infrastructure changes that have been, and continue to be, implemented. Our focus will continue to be growing sales and maximising value."High-street restaurants have been struggling recently with chains including Byron, Jamie's Italian and Carluccio's forced into restructuring by financial difficulties as market oversaturation, Brexit uncertainty and high rents take their toll on the industry.Tasty's shares were down 14.71% at 14.50p at 0913 BST.