Tasty Plc, the owner and operator of restaurants in the casual dining sector, has sold its Dim t More London site for £2m.
The disposal is in line with the company’s strategy of reducing exposure where it is experiencing increasing property and labour costs and strengthening its balance sheet.
The More London restaurant produced an EBITDA 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 amount to approximately £1.95m and will be applied towards paying off the company’s remaining bank debt, and to fund the group’s working capital and selected restaurant refurbishment plans.
Tasty added 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.
Back in September, Tasty revealed that its food development team was working hard to make its menus “more exciting” after it was dogged by weak sales during the first half of 2019.
Revenue for the six months to 30 June fell 8% year-on-year to £21.1m as it blamed “headwinds” in the casual dining market and the uncertainty of Brexit for the drop.
Over the last 18 months it has made significant changes to the structure of the group including finance and operational team enhancement.