REG - Brighton Pier Group - Half-year Report
28/03/2022 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220328:nRSb1490Ga&default-theme=true
RNS Number : 1490G Brighton Pier Group PLC (The) 28 March 2022
28 March 2022
The Brighton Pier Group PLC
(the "Company" or the "Group")
Interim results for the 26 weeks ended 26 December 2021
Very strong first half trading performance
Brighton Pier Group is pleased to announce results for the 26 weeks ended 26
December 2021 which highlight the strength of the business model, with
revenues up by 178% to £22.8 million on the same 2020 period and importantly
up 33% on the same pre-covid period in 2019. This has been driven by the sound
underlying performance in all divisions as well as the successful integration
of Lightwater Valley which is trading above expectations. A consistent gross
margin performance, the reduction in VAT and rates relief has enabled the
Group to make good progress on maximising earnings and paying down debt. Since
the end of the last financial year the Group has reduced net debt by 34%. The
outlook for 2022 is robust. Given these excellent results and a current strong
trading performance, the Board expects profits for the 52 weeks ending June
2022 to be ahead of market expectations.
Financial Highlights
• Reflecting high demand across all divisions revenue
increased to £22.8 million (2020: £8.2 million)
• Group EBITDA was £7.9 million (2020: £1.9 million)
• Gross margins held at 87%
• Benefit from temporary reduced rate of VAT and rates relief
• Profit before tax was £6.6 million (2020: £2.7 million)
• EPS was 14.3p (2020: 7.1p)
• Net debt was down 34% to £8.2 million (2020: £12.5
million)
Operational highlights
• Record summer trading period boosted by pent-up demand and
disposable incomes accrued during lockdown
• Lightwater Valley traded ahead of initial expectations and
is now being positioned for a good summer with investment in new food and
beverage outlets and rides
• Brighton Pier delivered another consistent performance - new
EPOS technology installed to better capture customer data going forward
• Bar portfolio has been optimised for growth and traded ahead
of expectations
• Good performance from the Golf portfolio with the two
recently integrated sites meeting ROI targets
Outlook for FY 2022
• Trading ahead of market expectations for the year
• UK family entertainment market in a growth phase buoyed by
an increasing preference for "staycations"
• Ability to mitigate inflationary cost pressures in the most
part through targeted price increases and operational improvements
• Primary focus on organic growth and on looking at
opportunities to add golf sites and exploit the potential of Lightwater Valley
Anne Ackord, Chief Executive Officer, said:
"These excellent results show the popularity and cash generative nature of our
diversified portfolio of entertainment businesses.
The underlying trend for the first half is well above 2019 levels - a more
meaningful comparison due to the pandemic. The period has also been boosted
further by one off VAT and rates benefits. These factors combined have
resulted in the Group trading ahead of market expectations.
Looking forward, we expect the sales trends to continue, benefiting also from
the opportunistic Lightwater Valley acquisition. We believe our asset-backed
Group is well placed to record an excellent result for the full-year and
beyond."
For all investors Anne Ackord (CEO) and John Smith (CFO) will be giving a
presentation on the HY results Tuesday 29 March at 2.00p.m. via Investor Meet
Company, to register please click on the following link:
https://www.investormeetcompany.com/brighton-pier-group-plc-the/register-investor
All Company announcements and news are available at www.brightonpiergroup.com
(http://www.brightonpiergroup.com)
Enquiries:
The Brighton Pier Group PLC Tel: 020 7376 6300
Luke Johnson, Chairman Tel: 020 7016 0700
Anne Ackord, Chief Executive Officer Tel: 01273 609 361
John Smith, Chief Financial Officer Tel: 020 7376 6300
Cenkos Securities plc (Nominated Adviser and Broker)
Stephen Keys (Corporate Finance) Tel: 020 7 (Tel:0207) 397 8926
Callum Davidson (Corporate Finance) Tel: 020 7397 8923
Michael Johnson (Sales) Tel: 020 7397 1933
Novella (Financial PR) Tel: 020 3151 7008
Tim Robertson
Claire de Groot
Fergus Young
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
About The Brighton Pier Group PLC
The Brighton Pier Group PLC, is a UK family-led entertainment business spread
across four divisions:
· Brighton Palace Pier offers a wide range of attractions including
two arcades (with over 300 machines) and eighteen funfair rides, together with
a variety of on-site hospitality and catering facilities. According to Visit
Britain, it was the fifth most popular free attraction in the UK prior to the
pandemic, with over 4.9 million visitors in 2019, making it the UK's most
visited landmark outside of London.
· The Golf division (which trades as Paradise Island Adventure
Golf) operates eight indoor mini-golf sites at high footfall retail and
leisure centres.
· The bars trade under a variety of concepts including Embargo
República, Lola Lo, Le Fez, Lowlander and Coalition. The Group's Bars
division targets a customer base of sophisticated students' midweek and
stylish over-21s and professionals at the weekend.
· Lightwater Valley theme park, a leading North Yorkshire
attraction, which is focused on family days out. Set within 175 acres of
landscaped parkland, the theme park operates a variety of attractions
including rides, amusements, crazy golf, children's outdoor and indoor play,
entertainment shows, together with numerous food, drink and retail outlets.
Business Review
Introduction
The Group performed better than expected for the 26 weeks ended 26 December
2021 (2020: 26 weeks ended 27 December 2020) with the restrictions from the
pandemic being less extensive than in the prior period and, when the
businesses were able to trade, they performed well and benefitted from pent-up
consumer demand. Consequently, the Group delivered substantial increases in
both sales and profitability.
The strategy of the Group remains focused on capitalising on the potential of
its diversified portfolio of leisure and family entertainment assets in the
UK. The Board believe there is significant organic growth potential across the
portfolio in particular from the Golf division and the recently acquired
Lightwater Valley theme park. Alongside maximizing the opportunities in the
existing business, the Group continues to pursue earnings enhancing strategic
acquisitions which are synergistic, scalable, and fit with the Company's
expertise.
Operational review
Whilst COVID restrictions prevented the Bars division from reopening until 20
July 2021 and some restrictions were reintroduced in December 2021 due to the
emergence of the Omicron variant, the Group has otherwise been fully open
throughout the period and able to trade mostly unhindered.
The latter 13-week period of summer trading to the end of September 2021,
represents about 73% of the sales for the 26 weeks and is therefore a crucial
trading period for the Group. The warmer summer weather, school vacations, a
record August bank holiday weekend, and the addition of Lightwater Valley all
contributed to the Group's sales during this first half.
This key 13-week trading period was boosted by pent-up consumer demand and
higher levels of disposable income that consumers accrued during lockdown,
together with a significant increase in people choosing domestic holidays. In
addition, the temporarily reduced rate of VAT and rates relief by way of
Government support enabled the Group to make good progress repaying debt taken
on during the height of the pandemic. Collectively, these factors provided a
unique opportunity for the business to maximise revenue and earnings as it
re-opened.
The trading results demonstrate the real potential of the Group's four
divisions, including Lightwater Valley where trading has significantly
exceeded initial expectations.
The Group successfully completed the full integration of Lightwater Valley in
the first few months of this period. During the quieter winter months, the
Group also completed the installation of a new EPOS system which will improve
the ability to manage pricing and provide more detailed reporting on the
different activities in the park.
In September 2021, the Bars division concluded its disposal program by
disposing of its one remaining marginal site (Smash in Reading). This disposal
resulted in a gain of £0.7 million realised upon the extinguishment of lease
liabilities. No further contingent liabilities have arisen from the disposal.
Financial review and KPI's
Total Group revenue for the period was up 178% at £22.8 million (2020: £8.2
million) and up 33% on the same pre-COVID period in 2019 (2019: £17.3m).
Revenue split by division:
• Pier
division
£9.2 million (2020: £5.8 million)
• Golf
division
£3.7 million (2020: £1.7 million)
• Bars
division
£6.0 million (2020: £0.7 million)
• Lightwater
Valley
£3.9 million (2020: £nil)
On a divisional basis and comparing with the pre-COVID like for like period in
2019:
• Brighton Palace Pier like for like sales were up 15% on 2019
• Golf division like for like sales were up 33% on 2019
• Bars division like for like sales (for only 23 weeks as the
division was only able to re-open from the end of July 2021) were up 27% on
2019
Group gross margin for the period continued in line at 87% (2020: 87%)
reflecting the high-margin nature of all four divisions - and this despite the
numerous ongoing supply and cost challenges that have appeared in the economy
over the period.
Highlighted items totalling £0.8 million of gains (2020: £2.4 million of
gains) were recognised during the period. These gains arise from;
• £0.7 million - gain on extinguishment of lease liabilities
following the disposal of Smash in Reading, and
• £0.1 million - gain from the derecognition of other lease
liabilities during the period.
Group profit on ordinary activities before tax was up 150% at £6.6 million
(2020: £2.7 million).
Group profit on ordinary activities after tax was up 96% at £5.3 million
(2020: £2.7 million) - there being no tax payable in the prior period due to
utilisation of losses which occurred during lockdown.
In summary, for the 26-week period ended 26 December 2021 (compared to the
equivalent 26-week period ended 27 December 2020):
•
Revenue:
£22.8 million (2020: £8.2 million)
• Operating profit:
£7.2 million (2020: £3.1 million)
• Group EBITDA excluding highlighted items
*:
£7.9 million (2020: £2.0 million)
• Group EBITDA:
£7.9 million (2020: £1.9 million)
• Operating profit excluding highlighted items:
£6.4 million (2020: £0.8 million)
• Profit before tax and excluding highlighted items:
£5.8
million (2020: £0.2 million)
• Profit before tax:
£6.6 million (2020: £2.7 million)
• Profit after
tax:
£5.3 million (2020: £2.7 million)
• Net debt at the end of the period:
£8.2 million (2020: £12.5 million)
• Basic earnings per share (excluding highlighted
items):
12.6p (2020: 0.6p)
• Basic earnings per share:
14.3p (2020: 7.1p)
• Diluted earnings per share (excluding highlighted items):
12.5p
(2020: 0.6p)
• Diluted earnings per share:
14.3p (2020: 7.1p)
* Highlighted items are detailed in note 4 to the financial statements and
relate to gains arising on the extinguishment of lease liabilities following
site disposals (less costs) in the current and prior periods.
The Group's key performance indicators remain centred on organic growth
coupled with continued expansion to drive revenues, EBITDA and earnings
growth.
The Board is pleased to report growth in revenue, EBITDA and earnings during
this period with profit after tax and earnings per share for the 26-week
period - up 96% and 101% respectively and Group EBITDA up 316%.
EBITDA split by division shows all divisions trading strongly:
• Pier
division
£2.4 million (2020: £0.8 million)
• Golf
division
£2.2 million (2020: £1.6 million**)
• Bars
division
£1.9 million (2020: £0.0 million**)
• Lightwater
Valley
£1.8 million (2020: £nil)
• Group overhead
costs
£(0.5) million (2020: £(0.4) million)
** 2020 EBITDA includes business interruption insurance receipts of £0.9
million in the Golf division and £0.5 million in the Bars division.
Lightwater Valley Theme Park (the Group's latest acquisition in June 2021)
follows on from the acquisitions of Paradise Island Adventure Golf in December
2017 and of Brighton Palace Pier (including freehold) in April 2016. These
leisure/entertainment assets capitalise on the core skills of the Group and
have all proven to be profitable additions. Paradise Island and Lightwater
Valley both offer good growth opportunities in new mini-golf sites as they
become available and development and expansion of the offer at Lightwater
Valley within its substantial 175 acre park.
Group profit before tax for the period was £6.6 million (2020: £2.7
million).
Cash flow and balance sheet
The Group generated net cash flow of £7.2 million (2020: £2.0 million) from
operations (after interest and tax payments), all of which was available for
investment or the repayment of debt.
In this period there was minimal capital expenditure totalling only £0.1
million (2020: £nil) across the Group, with focus on successful re-opening of
the businesses and capitalising on the opportunities at Lightwater Valley.
In September 2021, the Group paid £1.3 million to settle the deferred
consideration and working capital for the purchase of Lightwater Valley
Attractions Limited. These payments were as agreed in the sale and purchase
contract and were detailed in the June 2021 Group Annual Report.
During the period, the Group made net debt repayments of £4.9 million (2020:
£0.1 million), which includes full repayment of the £3.6 million revolving
credit facility used to acquire Lightwater Valley together with a total of
£1.3 million scheduled repayments on the Group's principal term loan and its
Coronavirus Business Interruption Loans.
Total bank debt at the end of the period was £15.5 million (2020: £16.7
million), comprising a £11.4 million term loan and two Coronavirus Business
Interruption Loans totalling £4.1 million.
At the period end, cash and cash equivalents were £7.3 million (2020: £4.2
million).
Net debt at the period end stood at £8.2 million (2020: £12.5 million). The
Directors continue to take a cautious approach to net debt levels for the
Group.
Since the end of the last financial year, the net debt of the business has
reduced by £4.9 million from £13.1 million as at 27 June 2021 to £8.2
million as at 26 December 2021.
The Group currently has an undrawn revolving credit facility of £1.75
million, giving total cash availability to the Group of £9.0 million as at
the period end.
On 16 March the Group signed a 1 year extension to its term loan and revolving
credit facilities, which were due to expire in December 2022. The facilities
will now expire on 5 December 2023.
Details of the Group's banking covenants can be found on p88 of the June 2021
Annual Report.
Outlook
These results demonstrate the underlying strength of the Group's diverse
portfolio of assets and this positive trend is expected to continue through
the seasonally quieter second half.
The success of the vaccination programme and the relaxation of restrictions is
expected to benefit the family leisure and entertainment sectors over the
coming months as consumer confidence returns.
Accelerating cost inflation across the UK is likely to translate into further
cost increases over the coming months. Whilst this is an unwelcome change to
the business environment, the Group believes it will be able to mitigate these
inflationary cost pressures in the most part through targeted price increases
and by operational improvements.
Preparations at the Pier and at Lightwater Valley for Easter and the early
summer trading periods are well advanced.
'Staycationing' is expected to continue to benefit our businesses this summer
as is the gradual increase of inbound tourism to the Pier as travellers return
to the UK.
Lightwater Valley is introducing a raft of new initiatives under a "New for
22" campaign, which includes an updated food and beverage offer (with fish
& chips and health food options), a new Lightwater Dragon mascot, new
rides, a new hall of mirrors, a new games arcade, a new outdoor play area,
school and educational packages, and a new Brown's Wood Discovery Trail.
The Bars division started the second half well with New Year's sales 9% up on
2019 (i.e. pre-pandemic) levels despite the emergence of the Omicron variant
in the final weeks of December 2021. We continue to see returning students and
young professionals enjoying their nights out in much the same way as they did
before the closures. Focus continues to be on quality products, exceptional
service and varied entertainment. The Group believes reduced competition in
many towns and cities (as a result of permanent business closures following
the pandemic) will continue to benefit the business.
The Golf division intends to further capitalise on the success of its new
sites at Rushden Lakes and Plymouth Drakes Circus as it actively seeks new
sites to add to its current estate.
In light of these strong half year results and robust current trading
performance detailed above, the Board expects profits for the 52 weeks ending
June 2022 to be ahead of market expectations.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Unaudited Unaudited Audited
26 weeks 26 weeks 52 weeks
ended ended ended
26 December 27 December 27 June
2021 2020 1 2021
Notes £'000 £'000 £'000
Revenue 22,784 8,199 13,541
Cost of sales (2,988) (1,092) (1,781)
Gross profit 19,796 7,107 11,760
Operating expenses - excluding highlighted items (13,427) (7,809) (15,064)
Highlighted items 4 804 2,421 2,746
Total operating expenses (12,623) (5,388) (12,318)
Other operating income - 1,400 5,693
Operating profit - excluding highlighted items 6,369 698 2,389
Highlighted items 4 804 2,421 2,746
Operating profit 7,173 3,119 5,135
Finance income 24 16 24
Finance cost (551) (479) (961)
Profit before tax and highlighted items 5,842 235 1,452
Highlighted items 4 804 2,421 2,746
Profit on ordinary activities before taxation 6,646 2,656 4,198
Taxation on ordinary activities 5 (1,309) - 81
Profit for the period 5,337 2,656 4,279
Earnings per share - Basic* 6 14.3 7.1 11.5
Adjusted earnings per share - Basic** 6 12.6 0.6 5.7
Earnings per share - Diluted 6 14.3 7.1 11.5
Adjusted earnings per share - Diluted** 6 12.5 0.6 5.7
* 2021 basic weighted average number of shares in issue was 37.29m (Dec
2020: 37.29m)
** Adjusted basic and diluted earnings per share are calculated based on the
profit for the period adjusted for highlighted items
No other comprehensive income was earned during the period (2020: £nil).
INTERIM CONDENSED CONSOLIDATED BALANCE SHEET
As at As at As at
26 December 27 December 27 June
2021 2020 2021
£'000 £'000 £'000
Non current assets
Intangible assets 10,428 9,428 10,457
Property, plant & equipment 28,347 25,161 29,008
Right-of-use assets 23,330 16,682 23,191
Net investment in finance leases - 698 635
Other receivables due in more than one year 115 276 209
62,220 52,245 63,500
Current assets
Inventories 712 520 731
Trade and other receivables 1,345 1,587 4,002
Income tax receivable - - 5
Cash and cash equivalents 7,256 4,246 7,080
9,313 6,353 11,818
TOTAL ASSETS 71,533 58,598 75,318
EQUITY
Issued share capital 9,322 9,322 9,322
Share Premium 15,993 15,993 15,993
Merger reserve (1,111) (1,111) (1,111)
Other reserve 452 452 452
Retained deficit (44) (7,004) (5,381)
Equity attributable to equity shareholders of the parent 24,612 17,652 19,275
TOTAL EQUITY 24,612 17,652 19,275
LIABILITIES
Current liabilities
Trade and other payables 4,296 3,716 8,321
Other financial liabilities - current 14,533 2,214 5,913
Lease liabilities - current 2,135 2,105 2,090
Income tax payable 1,007 - -
21,971 8,035 16,324
Non-Current liabilities
Other financial liabilities - non-current 914 14,490 14,456
Lease liabilities - non-current 23,197 18,421 24,683
Deferred tax liability 524 - 265
Other payables due in more than one year 315 - 315
24,950 32,911 39,719
TOTAL LIABILITIES 46,921 40,946 56,043
TOTAL EQUITY AND LIABILITIES 71,533 58,598 75,318
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Issued share capital Share Premium Other reserves Merger reserve Retained (deficit)/ Total shareholders' equity
earnings
£'000 £'000 £'000 £'000 £'000 £'000
At 28 June 2021 9,322 15,993 452 (1,111) (5,381) 19,275
Profit for the period - - - - 5,337 5,337
As at 26 December 2021 9,322 15,993 452 (1,111) (44) 24,612
Issued share capital Share Premium Other reserves Merger reserve Retained (deficit)/ earnings Total shareholders' equity
£'000 £'000 £'000 £'000 £'000 £'000
At 29 June 2020 9,322 15,993 452 (1,111) (9,660) 14,996
Profit for the period - - - - 2,656 2,656
As at 27 December 2020 9,322 15,993 452 (1,111) (7,004) 17,652
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
26 weeks to 26 weeks to 52 weeks to
26 December 27 December 27 June
2021 2020 2021
£'000 £'000 £'000
Operating activities
Profit before tax 6,646 2,656 4,198
Net finance costs 527 463 937
Amortisation of intangible assets 36 39 80
Depreciation of property, plant and equipment 755 625 1,218
Depreciation of right-of-use assets 697 625 1,414
Impairment of net investment in finance lease - - 47
Gain on derecognition of lease liabilities due to disposal (669) (1,896) (1,838)
Gain on derecognition of lease liabilities due to waivers & concessions (135) (565) (1,334)
Profit on disposal of property, plant and equipment and assets held for sale - (1) -
(Increase)/decrease in provisions and deferred tax 258 - (21)
Decrease/(increase) in inventories 19 42 (59)
Decrease/(increase) in trade and other receivables 2,757 447 (1,738)
(Decrease)/increase in trade and other payables (3,115) (253) 2,985
Interest paid on borrowings (216) (150) (320)
Interest paid on lease liabilities (335) (28) (641)
Interest received 24 7 6
Income tax paid - (52) (52)
Net cash flow from operating activities 7,249 1,959 4,882
Investing activities
Purchase of property, plant and equipment, and intangible assets (99) (36) (258)
Acquisition of business, net of cash acquired (254) - (2,251)
Settlement of deferred consideration (1,000) - -
Proceeds from disposal of property, plant and equipment - 11 11
Net cash flows used in investing activities (1,353) (25) (2,498)
Financing activities
Proceeds from borrowings - - 3,634
Repayment of borrowings (4,922) (85) (1,291)
Principal paid on lease liabilities (798) (252) (296)
Net cash flows (used in)/generated from financing activities (5,720) (337) 2,047
Net increase in cash and cash equivalents 176 1,597 4,431
Cash and cash equivalents at beginning of period 7,080 2,649 2,649
Cash and cash equivalents at period end date 7,256 4,246 7,080
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. GENERAL INFORMATION
The Brighton Pier Group PLC (registered number 08687172) is a public limited
company incorporated and domiciled in England and Wales. The Company's
ordinary shares are traded on AIM. Its registered address is 36 Drury Lane,
London, WC2B 5RR. The Company is the immediate and ultimate parent of the
"Group".
The Brighton Pier Group PLC owns and operates Brighton Palace Pier, one of the
leading tourist attractions in the UK. The Group is also a leading operator of
eight premium bars nationwide, eight indoor mini-golf sites and Lightwater
Valley theme park in North Yorkshire.
The principal accounting policies adopted by the Group are set out in Note 2.
2. ACCOUNTING POLICIES
The financial information for the 26-week periods ended 26 December 2021 and
27 December 2020 does not constitute statutory accounts for the purposes of
section 435 of the Companies Act 2006 and has not been audited. The Group's
latest statutory financial statements were for the 52 weeks ended 27 June 2021
and these have been filed with the Registrar of Companies.
Information that has been extracted from the 28 June 2020 accounts is from the
audited accounts included in the annual report, published in November 2020, on
which the auditor gave an unmodified opinion and did not include a statement
under section 498 (2) or (3) of the Companies Act 2006. A copy of these
accounts can be found on the Group's website, www.brightonpiergroup.com.
The interim condensed consolidated financial statements for the 26 weeks ended
26 December 2021 have been prepared in accordance with the AIM Rules issued by
the London Stock Exchange. They do not include all the information and
disclosures required in the annual financial statements and should be read in
conjunction with the Group's annual financial statements as at 27 June 2021,
which were prepared using IFRS, in accordance with The International
Accounting Standards and European Public Limited-Liability Company (Amendment
etc.) (EU Exit) Regulations 2019.
The accounting policies used in preparation of the financial information for
the six months ended 26 December 2021 are the same accounting policies applied
to the Group's financial statements for the 52 weeks ended 27 June 2021. These
policies were disclosed in the 2021 Annual Report and are in accordance with
IFRS as set out in The International Accounting Standards and European Public
Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2019.
NOTES to the INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
3. SEGMENTAL INFORMATION
Management has determined the operating segments based on the reports reviewed
by the Chief Operating Decision Maker ("CODM") comprising the Board of
Directors. During the 26 week period ended 26 December 2021, there have been
no changes from prior periods in the measurement methods used to determine
operating segments and reported segment profit or loss.
The segmental information is split on the basis of those same profit centres -
however, management report only the contents of the consolidated statement of
comprehensive income and therefore no balance sheet information is provided on
a segmental basis in the following tables.
26 week period ended 26 December 2021 Brighton Pier Golf Bars Lightwater Valley Total segments Overhead December 2021 consolidated total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Revenue 9,169 3,719 6,044 3,852 22,784 - 22,784
Cost of sales (1,365) (54) (1,100) (469) (2,988) - (2,988)
Gross profit 7,804 3,665 4,944 3,383 19,796 - 19,796
Gross profit % 85% 99% 82% 88% 87% - 87%
Operating expenses (excluding depreciation and amortisation) (5,396) (1,414) (3,029) (1,593) (11,432) (507) (11,939)
Divisional earnings/(loss) 2,408 2,251 1,915 1,790 8,364 (507) 7,857
Highlighted items 804 804
Depreciation and amortisation (excluding right-of-use assets) (791) (791)
Depreciation of right of use assets (697) (697)
Net finance cost (excluding interest on lease liabilities) (192) (192)
Net finance cost arising on lease liabilities (335) (335)
Profit/(loss) before tax 2,408 2,251 1,915 1,790 8,364 (1,718) 6,646
Income tax (1,309) (1,309)
Profit/(loss) after tax 2,408 2,251 1,915 1,790 8,364 (3,027) 5,337
EBITDA (excluding highlighted items) 2,408 2,251 1,915 1,790 8,364 (507) 7,857
EBITDA 2,408 2,251 1,915 1,790 8,364 (507) 7,857
NOTES to the INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
3. SEGMENTAL INFORMATION (continued)
26 week period ended 26 December 2020 2 Brighton Pier Golf Bars Total segments Overhead December 2020 consolidated total
£'000 £'000 £'000 £'000 £'000 £'000
Revenue 5,811 1,660 728 8,199 - 8,199
Cost of sales (852) (11) (229) (1,092) - (1,092)
Gross profit 4,959 1,649 499 7,107 - 7,107
Gross profit % 85% 99% 69% 87% - 87%
Operating expenses (excluding depreciation and amortisation) (4,141) (1,040) (955) (6,136) (383) (6,519)
Other income - 900 500 1,400 - 1,400
Divisional earnings/(loss) 818 1,509 44 2,371 (383) 1,988
Highlighted items 2,421 2,421
Depreciation and amortisation (excluding right-of-use assets) (664) (664)
Depreciation of right of use assets (625) (625)
Net finance cost (excluding interest on lease liabilities) (135) (135)
Net finance cost arising on lease liabilities (329) (329)
Profit before tax 818 1,509 44 2,371 285 2,656
Income tax - - - - - -
Profit after tax 818 1,509 44 2,371 285 2,656
EBITDA (excluding highlighted items) 818 1,509 44 2,371 (383) 1,988
EBITDA 818 1,509 44 2,371 (423) 1,948
4. HIGHLIGHTED ITEMS
26 weeks to 26 weeks to 52 weeks to
26 December 27 December 27 June
2021 2020 2 2021
£'000 £'000 £'000
Acquisition and pre-opening costs
Acquisition costs - - 254
Restructuring costs - - 66
Impairment, closure and legal costs
Gain on derecognition of lease liabilities for continuing sites using:
- IFRS 9 derecognition criteria (97) (413) (590)
- IFRS 16 practical expedient (38) (152) (744)
Gain on derecognition of lease liabilities for disposed sites (669) (1,896) (1,838)
Other disposal costs - 40 106
Total (804) (2,421) (2,746)
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
4. HIGHLIGHTED ITEMS (continued)
The above items have been highlighted in order to provide users of the
financial statements visibility of non-comparable costs included in the
Consolidated Statement of Comprehensive Income for this period.
The onset of the COVID-19 pandemic prompted the IASB to issue a practical
expedient to provide relief for lessees from lease modification accounting for
rent concessions related to COVID-19. The practical expedient allows entities
to recognise the value of any agreed rent concessions in the Statement of
Comprehensive Income rather than adjusting the underlying right-of-use asset
and lease liability. The Group has recognised total credits of £38,000 (2020:
£152,000) within highlighted items in the Statement of Comprehensive Income
for the period ended 26 December 2021.
The practical expedient can only be used for rent concessions covering the
period to 30 June 2022. In some instances, the Group has agreed temporary
lease variations that extend beyond this date. These variations amount, in
substance, to forgiveness of rent payable without materially changing the
present value of total cash outflows over the life of the lease. In such
circumstances, the Group de-recognises the appropriate portion of its total
liability in accordance with the provisions of IFRS 9: Financial Instruments.
The value of these extended waivers is recognised in the Statement of
Comprehensive Income. The Group has recognised total credits of £97,000
(2020: £413,000) within highlighted items in the Statement of Comprehensive
Income during the period ended 26 December 2021.
Lease liabilities of £669,000 were extinguished during the period as a result
of the disposal of the Reading Smash site. The right-of-use asset relating to
this site was impaired to £nil during the period ended 28 June 2020 and was
included in highlighted items for that period.
In the prior period, £1,896,000 were extinguished during the period as a
result of the disposal of sites in Bath, Cambridge and Wimbledon. The
right-of-use assets relating to these sites were impaired to £nil during the
period ended 28 June 2020 and were included in highlighted items for that
period.
5. TAXATION
The tax charge has been calculated by reference to the expected effective
current and deferred tax rates for the 52 week period to the 26 June 2022
applied against the profit before tax for the period ended 26 December 2021.
The full year effective tax charge on the underlying trading profit is
estimated to be £1.3 million (2020: £nil).
Deferred tax liabilities have increased as a result of fixed asset timing
differences, the utilisation of all available carried forward losses from
prior periods and an increase in the tax rate used to calculate the liability.
6. EARNINGS PER SHARE
The weighted average number of shares in the period was:
26 weeks to 26 weeks to 52 weeks to
26 December 2021 27 December 2020 27 June
2021
Thousands of shares Thousands of shares Thousands of shares
Ordinary shares 37,286 37,286 37,286
Weighted average number of shares - basic 37,286 37,286 37,286
Dilutive effect on ordinary shares from share options 58 - -
Weighted average number of shares - diluted 37,334 37,286 37,286
Basic and diluted earnings per share are calculated by dividing the profit for
the period into the weighted average number of shares for the year. In order
to provide a measure of underlying performance, management have chosen to
present an adjusted profit for the period, which excludes items that may
distort comparability. Such items arise from events or transactions that fall
within the ordinary activities of the Group but which management believes
should be separately identified to help explain underlying performance.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
6. EARNINGS PER SHARE (continued)
26 weeks to 26 weeks to 52 weeks to
26 December 2021 27 December 2020 27 June
2021
Earnings per share from profit for the period
Basic (pence) 14.3 7.1 11.5
Diluted (pence) 14.3 7.1 11.5
Adjusted earnings per share from profit for the period 3
Basic (pence) 12.6 0.6 5.7
Diluted (pence) 12.5 0.6 5.7
7. RECONCILIATION TO EBITDA
Group profit before tax can be reconciled to Group EBITDA as follows:
26 weeks to 26 weeks to 52 weeks to
EBITDA Reconciliation 26 December 2021 27 December 4 27 June 2021
2020
Profit before tax for the year 6,646 2,656 4,198
Add back depreciation (property plant and equipment) 755 625 1,218
Add back depreciation (right-of-use-assets) 697 625 1,414
Add back amortisation 36 39 80
Add back finance costs 527 464 937
Add back highlighted items (804) (2,421) (2,746)
Group EBITDA excluding highlighted items 7,857 1,988 5,101
Highlighted items 804 2,421 2,746
Remove gains arising on lease liability derecognition (804) (2,461) (3,172)
(see note 4)
Group EBITDA 7,857 1,948 4,675
8. EVENTS AFTER THE REPORTING PERIOD
On 16 March the Group signed a one year extension to its term loan and
revolving credit facilities, which were due to expire in December 2022. The
facilities will now expire on 5 December 2023.
1 The results for the 26 week period ended 27 December 2020 have been
adjusted to reflect the reclassification of gains arising from the
derecognition of lease liabilities as a result of COVID-19-related concessions
from landlords. Gains of £565,000 are now included within highlighted items,
rather than within operating expenses and is consistent with the final
reporting in the Annual Accounts for the full year dated 27 June 2021. This
adjustment has no impact on the profit for the period.
2 Comparative period figures have been adjusted to reflect the
reclassification of gains from COVID-19-related rent concessions as a
highlighted item. Previously these had been included within operating expenses
and as such were allocated on a divisional basis.
3 The comparative period Adjusted EPS has been amended to reflect the
reclassification to highlighted items of gains of £565,000 arising from
COVID-19 related rent concessions.
4 The comparative period Group EBITDA has been adjusted to reflect the
reclassifications cited above as well as the removal of gains arising on lease
liability derecognition, as these are non-cash items.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR BDLFLLXLZBBZRecent news on Brighton Pier
See all newsREG - Brighton Pier Group - Block listing Interim Review
AnnouncementREG - Brighton Pier Group - Holding(s) in Company
AnnouncementREG - Brighton Pier Group - Change of Name of Nomad and Broker
AnnouncementREG - Brighton Pier Group - Block listing Interim Review
AnnouncementREG - Brighton Pier Group - Interim Results
Announcement