The owner of the Wildwood restaurant chain delivered more gloom to the market this morning by warning that the sector faces “further deterioration” in 2018.
Giving an update for the year to 31 December, Tasty Plc said that trading for the period had been in line with expectations. But it ominously stated: “The board has previously highlighted the difficult trading environment faced by the restaurant sector and expects a further deterioration in 2018.”
Tasty, which runs 65 sites in the UK, announced its intention to restructure its estate last year, with underperforming sites facing the axe.
Today it said that “progress” has been made in this area after four sites were offloaded and a sales-and-leaseback arrangement was agreed on one further site.
The net proceeds from these transactions totals £2m, Tasty said. Two further sites are currently under offer and are expect to be disposed of in the coming months.
The board also announced that it has accepted the resignation of Tim Cundy as finance director. He will serve three months’ notice and will continue his responsibility for the 2017 year-end financial statements and audit.
“The company has identified a replacement with significant sector experience who will take over the finance function upon appointment,” Tasty said.