4 June 2024
Tasty plc
("Tasty",
the "Company" or the "Group")
Result of Sanction Hearing
and Final Restructuring Plan
Tasty (AIM: TAST), the owner and
operator of restaurants in the casual dining sector, is pleased to
announce that the Restructuring Plan has been sanctioned by the
Court following the Sanction Hearing held today. Details of the
Restructuring Plan were announced by the Company on 9 April
2024.
The Restructuring Plan, alongside a
number of additional measures to be implemented across the Group,
has restructured the Group to enable it to return it to
profitability and secure its long-term future, in order to deliver
the best outcome for stakeholders.
Prior to the sanctioning of the
Restructuring Plan, the Group held 54 sites comprised of 43
Wildwood, 6 dim-t branded sites, 2 non trading sites and 3 sub-let
sites. The implementation of the Restructuring Plan
has enabled the Company to (i) compromise 23
leases (including 2 previously closed sites and 3 sub-let sites)
and (ii) compromise the claims of a number of non-critical
unsecured trade creditors.
The Board expects the RP to enable a
significant EBITDA improvement of up to £2.1m between FY 2023 to FY
2025 through site rationalisations and other tangible cost savings,
including head office savings of £0.6m per annum and expected lease
savings from exited sites in FY 2024 of £2.1m. The Loan and RP are
expected to stabilise the Company in FY 2024 and ensure
transformation to meet new opportunities in the sector in FY 2025
beyond existing operations, including exploring new audiences, new
concepts and potential partnerships.
Following completion of the Loan
Agreement announced on 9 April 2024 and sanction of the RP, the
Group is currently operating 38 restaurants with FY 2024 EBITDA
expected to be £0.3m. Revenue of approximately £33.4m and cash
generation of approximately £1.3m is expected in FY 2025, with the
loss in FY 2023 of £0.9m expecting to improve to a £1.2m profit in
FY 2025.
Summary of Final Restructuring Plan
There were 7 classes of creditors
with each class of creditors voting on the Restructuring Plan as
summarised below:
|
Plan Creditor Class
|
Voting Result
|
|
Secured Creditor
|
For
|
|
Category B Landlords
|
For
|
|
Category C Landlords
|
For
|
|
Category A Rating - Authority
Creditors
|
For
|
|
Category B Rating - Authority
Creditors
|
For
|
|
Category C Rating - Authority
Creditors
|
Abstention
|
|
Non-Critical Creditors
|
Abstention
|
As such, as 2 classes of creditors
abstained from voting, and the Court was asked to sanction the
Restructuring Plan pursuant to section 901G of the Companies Act
2006. TheCourt sanctioned the Restructuring
Plan on 4 June 2024.
Plan Creditors will receive under
the Restructuring Plan:
·
an estimated dividend of 4.17p/£
(such aggregate sum to be paid in three
equal tranches in August 2024, March 2025 and June 2025)
from a Compromised Creditors' Payment Fund (being
a trust account for the benefit of those Plan Creditors that have
an allowed plan claim, established and funded by the Company to the
sum of £525,000); plus
·
payments from a Restructuring Surplus Fund,
including 10% of the amount by which the Group EBITDA increases
from the sanction of the Restructuring Plan to 31 December 2024 and
a possible payment from the Upside Fund if the Group exceeds its
forecasted EBITDA from the sanction of the Restructuring Plan to 31
December 2024, 50% of any increase over forecast will be paid in
March 2025.
In connection with the Restructuring
Plan, the Board has committed not to pay a dividend to Shareholders
in 2024 or 2025.
Related Party Transaction
Certain of the lease liabilities
compromised under the Restructuring Plan are held by entities
controlled by Samuel Kaye who, as a substantial shareholder of the
Company, is deemed to be a related party of the Company and such
arrangements constitute a related party transaction under the AIM
Rules. The Directors, having consulted with Cavendish, the
Company's nominated adviser, believe that the compromise
arrangements involving entities held and controlled by Samuel Kaye,
are fair and reasonable insofar as Shareholders are
concerned.
FY
2023 Final Results
The Group's audit is progressing
well and the Board currently expects to announce FY 2023 results
and publish its FY 2023 annual report and accounts in June
2024.
This Announcement is released by Tasty plc and contains inside
information for the purposes of Article 7 of MAR, and is disclosed
in accordance with the Company's obligations under Article 17 of
MAR.
For the purposes of MAR, Article 2 of Commission Implementing
Regulation (EU) 2016/1055 and the UK version of such implementing
regulation (as amended), the person responsible for arranging
for the release of this Announcement on behalf of the Company
is Jonny Plant, Chief Executive Officer.
Enquiries:
|
Tasty plc
Jonny Plant, Chief
Executive
|
Tel: 020 7637 1166
|
|
Cavendish Capital Markets Limited
Katy Birkin/George Lawson
|
Tel: 020 7220 0500
|
