Shares in restaurant group Tasty (LON:TAST) fell nearly 30 percent on Tuesday, after warning that the next year’s trading environment would remain challenging and store openings would be cut.
Results for the full year of 2016 were in line with expectations, with headline operating profit before pre-opening costs and non-trading items up 21 percent to £4.8 million. The group, who own the dim t and Wildwood restaurant chains, saw revenue rise 28 percent over the year alongside a 26 percent rise in gross profit to £5.3 million.
Tasty opened thirteen Wildwood restaurants during the year but also recognised impairment charges against a number of sites. However, turnaround strategies have now been implemented in an effort to bring performance of these restaurants in line with the rest of the estate.
Despite the results, the company added that post year end trade has been below expectations and the “trading environment for the coming 12 months will remain challenging”.
“As a result, the Group has revised down the planned number of openings for the current year from 15 to 7 and expects that headline operating profit will be below that achieved in 2016,” a statement said.
Shares are currently trading down 27.29 percent at 82.89 (1002GMT).