Tasty PLC (LON:TAST) shares jumped on Thursday as it announced the sale of its dim t More London restaurant for £2mln in cash to pay off debt and fund refurbishment plans for other sites and said trading is in line with forecasts.
The venue being sold produced underlying earnings (EBITDA) of £106,000 for the year ended 31 December 2018 and had a net book value of £878,000 as at 30 June.
In a brief trading update, the restaurant group also said its fourth-quarter sales were in line with expectations and full-year forecasts will be achieved.
“This disposal is in line with the company's strategy of reducing exposure where it is experiencing increasing property and labour costs and strengthening the company's balance sheet,” Tasty said in a statement.
Shares were up 10% to 3p on Thursday at the opening bell.