Wildwood Restaurants owner Tasty PLC (AIM:TAST) has secured a £2.5 million settlement from its insurer as the hospitality operator navigates tough trading conditions.
Tasty announced the payout, which equated to £1.5 million after costs, on Thursday over a claim for breach of an insurance contract for losses arising in 2020.
The company, which also owns the Dim T brand, warned trading conditions had remained tough across the restaurant sector during the latter half of last year, though.
“The casual dining market continues to contend with several adverse factors,” it added in a statement.
Declining consumer confidence had taken its toll on spending, Tasty said, alongside inflationary pressures ahead of higher employer national insurance and national minimum wages following last October’s Budget.
“In particular, the key December period has been disappointing,” the company added, “in these uncertain times, the board is maintaining a cautious outlook”.
Tasty last year had shut a string of sites as part of a restructuring on the back of challenging conditions.
Shares climbed 5.2% to 1p on Thursday.