Tasty, the owner of casual dining brands Wildwood and Dim t, has announced today that it has secured £3.25m in funds through share placing.
The owner and operator of 58 restaurants across the country raised the funds by offering 75 million new shares to both new and existing investors, at 4p each.
A proposed open offer would also help to raise an additional £0.25m through the issue of up to 6,294,262 shares to qualifying shareholders, also at 4pm each.
If given the go ahead by shareholders, the proceeds raised from the campaign would be used to pay down debt and ‘general working capital purposes’.
Shareholders are set to vote on the conditional share issuing on May 1.
Keith Lassman, chairman of Tasty, said: “This is an important fundraise for Tasty as it will enable us to continue our strategic plans with vigour. We are delighted with the level of investor support for the Placing and we would like to thank our shareholders for their continued support.”
In the company’s latest financial results for the year ended 30 December 2018, revenue for Tasty was down 6% to £47.28m due to the closure of sites and like-for-like decline.
The Group currently operates 58 restaurants, comprising 6 Dim t and 52 Wildwood restaurants. Three restaurants were sold last year, one closed and no new restaurants were opened over the last 12 months.
The company generated adjusted EBITDA of £1.58m compared to £3.5m for the previous year, in what Lassman described as ‘extremely challenging’ market conditions over the last 12 months.
Tasty also said 2018 has been a ‘transitional year’, implementing key operational changes in February that resulted in savings of approximately £300,000 per annum.
The report also showed that the company did not intend to open any new restaurants in 2019, with management focused on restructuring and improving profitability from the existing portfolio.