By Michael Susin
Tasty shares fell after the group reported a widened pretax loss for the first half of fiscal 2023 and warned that profitability will continue to be hit by inflationary pressures in the second half.
Shares on Wednesday at 0703 GMT were down 0.5 pence, or 21%, at 1.85 pence.
The U.K. restaurant operator said pretax loss for the six-months ended June 25 was 6.2 million pounds ($7.5 million), compared with a loss of GBP2.7 million reported the same period a year ago.
The loss was mainly driven by an increase in operating expenses to GBP5.2 million from GBP2.8 million.
Revenue slightly rose to GBP21.7 million from GBP21.5 million.
The company said first-quarter performance was ahead of expectations, however, the second quarter slowed and was flat against 2022.
“Delivery sales continue to decline as expected, in line with the market as customer habits swing back to dine-in,” it added.
For the second half, Tasty expects the cost of living crisis and interest rate increases to further impact revenue while inflationary pressure continues to affect profitability.
Write to Michael Susin at [email protected]
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