Tasty, a prominent U.K. restaurant operator, experienced a significant decline in its shares following the announcement of a widened pretax loss for the first half of fiscal 2023. The company also warned that profitability will continue to be impacted by inflationary pressures in the second half of the year.
At 0703 GMT on Wednesday, Tasty’s shares were down by 21% or 0.5 pence, reaching a low of 1.85 pence.
During the six-month period ending on June 25, Tasty reported a pretax loss of £6.2 million ($7.5 million), compared to a loss of £2.7 million during the same period last year. The loss can be primarily attributed to an increase in operating expenses, rising from £2.8 million to £5.2 million.
Although revenue saw a slight increase from £21.5 million to £21.7 million, the overall performance of the company in the second quarter remained flat compared to the previous year. Tasty acknowledged that the decline in delivery sales was expected, as customer habits shifted towards dining in again.
Looking ahead to the second half of the fiscal year, Tasty anticipates further challenges due to the cost of living crisis and potential interest rate increases, which are expected to impact revenue. Additionally, inflationary pressure will continue to affect profitability.
Despite these obstacles, Tasty remains committed to navigating these difficult times and exploring opportunities for growth in the industry.
