Wildwood owner Tasty's shares drop 20 per cent on profit dive

 
Alys Key
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Tasty still believes the Wildwood brand has broad appeal (Source: Edwardx )

The owner of Wildwood and Dim T restaurant brands has said its profits will be significantly diminished for the first half this year, sending its share price plummeting.

Shares in London-listed Tasty Plc dropped more than 20 per cent in early trading after the group announced, and were 14 per cent down at the time of writing, at 43p.

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Shares were already low after the price tumbled 30 per cent in March, following the company's 2016 results.

The company said it expects to report just £200,000 of profit after tax for the 26 weeks to 2 July, down from £1.2m in the same time last year, despite a rise in revenue from £21.8m to £24.4m.

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Trading across the 65 restaurants was below management's expectations, but directors said they remained confident in the Wildwood brand. Four new Wildwood restaurants opened during the period.

Though the group said it had undertaken a review of the estate and would be closing some loss-making sites, the expected improvements were not likely to impact performance in the current year.

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