Tasty PLC (AIM:TAST) shares traded higher in Friday’s dealing, up around 5%, after it detailed efforts to improve performance.
The UK-based casual dining firm, in a trading update ahead of results for 2024, said it was launching a new electronic point of sale system and loyalty platform to leverage off its approximate 1.5m customer database, to pursue more targeted marketing.
It also noted that in early January it received settlement of an insurance claim, and, alongside its debt-free position it was “confident of being able to overcome the current challenges but remains cautious in the current climate.”
In terms of trading in 2024, Tasty said the year presented significant challenges, especially during the second half, with declining consumer confidence, inflationary food prices, and increasing staff costs.
Tasty said the UK government's October 2024 budget added further strain.
In June, the company undertook a restructuring, closing parts of its portfolio to secure long-term profitability.
As a result, estate sales are expected to have netted some £36.6 million when Tasty reports financials for the year. It added that earnings (adjusted EBITDA) is at £3.8 million, from £4.4 million in 2023.
It had £3.3 million cash at the end of the financial year.
Tasty shares traded up 5.5% to trade at 0.95p, giving it a market cap of around £2 million.