Tasty on track to meet FY expectations, sells More London site

Restaurant owner and operator Tasty said on Thursday that it was on track to meet market expectations for the year as it announced the disposal of its More London dim t site for £2m in cash.

The AIM-listed company said the disposal is in line with its strategy of reducing exposure where it is experiencing increasing property and labour costs and strengthening the balance sheet.

The More London restaurant generated earnings before interest, tax, depreciation and amortisation of £106,000 for the year ended 31 December 2018 and had a net book value of £878,000 as at 30 June 2019.

The sale proceeds, net of associated costs, are expected to come to about £1.95m and will be used to pay off the company's remaining bank debt and fund working capital and selected restaurant refurbishment plans.

Tasty also said that fourth-quarter sales to date remain in line with management's expectations "and, with the continued assistance of landlords, the board remains confident that current market forecasts for the year ended 31 December 2019 will be achieved".

At 0850 GMT, the shares were up 26% at 3.44p.