REG - Brighton Pier Group - Interim Results
30/09/2024 07:00
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RNS Number : 1593G Brighton Pier Group PLC (The) 30 September 2024
30 September 2024
The Brighton Pier Group PLC
(the "Company" or the "Group")
Unaudited interim results for the 6 month period ended 23 June 2024
The Brighton Pier Group PLC today announces its unaudited results for the 6
month period ended 23 June 2024. On a like-for-like basis (excluding the
impact of the three closed or disposed sites in the Bars division) total
revenues for the Group were £13.9 million (2023: £14.9 million). As
previously reported by the Group, the majority of this £1.0 million
year-on-year shortfall arose from the Pier, where adverse weather conditions
led to lower footfall throughout the period. The remaining three divisions
traded broadly in line with expectations.
Financial highlights
• Total like-for-like revenue in the period was £13.9 million
(2023: £14.9 million).
• Total revenue in the period was £13.9 million (2023: £16.2
million).
• Group EBITDA* was £0.4 million (2023: £1.4 million).
• Group gross margin held at 86% (2023: 86%).
• Profit/(loss) before tax was £0.2 million (2023: £(3.9)
million)
• Basic earnings/(losses) per share were 0.4p (2023: (9.6)p).
• Net cash flow from operations was £1.1 million (2023: £3.2
million).
• Net debt was £7.6 million (24 December 2023: £7.4
million).
* EBITDA is detailed in Note 7 to the financial statements.
Principal developments
• Brighton Palace Pier sales of £6.4 million were down £1.1
million versus last year (2023: £7.5 million), due to wet and windy weather
throughout the first half of the year that forced rolling closures of
higher-margin rides, and a general downturn in domestic tourism in Brighton,
leading to significantly fewer visitors onto the pier.
• The Bars division continues to operate in a challenging
trading environment but has in large part successfully mitigated the severity
of the trading challenges through the closure and disposal of three
loss-making sites in early 2024. As a result, on a like-for-like basis total
sales of £2.6 million (2023: £2.8 million) were down only £0.2 million
versus 2023.
• The Golf division delivered a consistent trading
performance, with total sales of £3.2 million in line with the previous year
(2023: £3.2 million).
• Lightwater Valley saw a 26% increase in visitor numbers
during the period, which was driven primarily by successful marketing
campaigns that targeted key dates. Sales of £1.7 million were 16% ahead of
last year (2023: £1.4 million), with lower average admissions prices through
targeted promotional offers partially offsetting the impact of the resulting
larger number of visitors.
Outlook
• As reported in the 26 July 2024 trading update, adverse
weather conditions in the early months of the year resulted in sales and
earnings at the pier being lower than previously expected.
• Trading in the busier summer months was more encouraging,
with like-for-like sales of £11.5 million for the Group in the 12-week period
ending 15 September 2024, only £0.2 million or 2% behind the equivalent weeks
in 2023 (2023: £11.7 million).
• Total sales at the pier for this period were £6.3 million
(2023: £6.0 million), boosted by the successful introduction of the £1
admission fee for non-residents.
• Despite the performance of the summer trading period, the
pier-led sales and earnings deficit to original expectations from the earlier
months of the year has not been recovered, and the Board's current expectation
is that this shortfall will persist through the remainder of the current
financial year.
• As a consequence, the Group's outlook remains one of caution
in the short-to-medium term. The Board believes that if trading continues in
line with the last few months, full year sales and earnings will be lower than
previously expected for 2024.
Anne Ackord, Chief Executive Officer, said:
"As previously reported, the Group experienced disappointing trading
conditions during the first half of the year.
While a warmer weather spell during August and the successful implementation
of a £1 admission charge on the pier for non-residents offered some respite,
the overall demand across the estate has remained subdued as consumers
continue to closely manage discretionary spend.
Looking forward, the Group is focusing on disciplined cost management, which
will put us in the strongest possible position to capitalise once economic
conditions have improved. We are also actively looking into longer term
options that will reduce the Pier's reliance on good weather."
All Company announcements and news are available at 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
Cavendish Capital Markets Limited (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
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 entertainment business spread across four
divisions:
· Brighton Palace Pier offers a wide range of attractions including
two arcades (with over 300 machines) and nineteen funfair rides, together with
a variety of on-site hospitality and catering facilities.
· 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 division trades 5 sites under a variety of concepts
comprising Embargo República, Lola Lo, Le Fez, and Lowlander. The Group's
bars target a customer base of students' midweek and over-21s at the weekend.
· Lightwater Valley Family Adventure Park, a leading North
Yorkshire attraction, is focused on family days out. Set within 175 acres of
landscaped parkland, the 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.
Operational review
The period opened with the closure of three sites in the Bars division -
Manchester, Cambridge and Brighton. As of the date of this report, the
disposal of Cambridge and Brighton have been completed, resulting in £2.2
million of non-cash gains relating to the derecognition of the associated
lease liabilities. The disposal of Manchester, which will result in further
non-cash gains of circa £2.4 million, is expected to conclude before the end
of the year. These non-cash gains have been recognised as highlighted items in
the Consolidated Statement of Comprehensive Income.
From the May 2024 bank holiday weekend, the pier introduced a £1 admissions
charge (with an exemption for Brighton residents living in the BN postcode
area). The charge was initially applied at weekends only through the month of
June, then daily from July onwards. A press campaign communicating the Group's
rationale for the introduction of the charge was launched in the weeks leading
up to the May bank holiday weekend, the reception from which was highly
positive. As of 15 September 2024, the total net revenue generated from
charging for admissions was £0.6 million, with the average percentage of
visitors paying since its introduction at 61%.
Revenue from conferences and events continue to be a growth area on the pier
and divisional management are seeking ways to further enhance the offering for
guests.
At Lightwater Valley, guests to the park were able to enjoy a variety of new
rides and attractions for the 2024 season, including a new Jeep Safari ride, a
revamped indoor soft play area, a Rocket rollercoaster and a variety of
one-off special event weekends featuring popular children's mascots.
Financial review and KPIs
Total Group revenue for the period was £13.9 million (2023: £16.2 million).
Revenue split by division:
• Pier
division
£6.4 million (2023: £7.5 million)
• Golf
division
£3.2 million (2023: £3.2 million)
• Bars
division
£2.6 million (2023: £4.1 million)
• Lightwater
Valley
£1.7 million (2023: £1.4 million)
Total Group EBITDA for the period was £0.4 million (2023: £1.4 million).
EBITDA split by division:
• Pier
division
£(0.4) million (2023: £0.5 million)
• Golf
division
£1.3 million (2023: £1.4 million)
• Bars
division
£0.4 million (2023: £0.4 million)
• Lightwater
Valley
£(0.2) million (2023: £(0.3) million)
• Group
overhead
£(0.7) million (2023: £(0.6) million)
Group gross margin was held at 86% (2023: 86%).
Highlighted items totalling £1.9 million of net gains/(charges) (2023:
£(3.0) million) were recognised during the period. These reflect:
• £2.2 million - derecognition of lease liabilities held for
sale, upon disposal of the Cambridge and Brighton sites in the Bars division;
and
• £(0.3) million - site closure costs in relation to
Cambridge, Brighton and Manchester in the Bars division.
Group profit/(loss) on ordinary activities before tax was £0.2 million (2023:
£(3.9) million).
Group profit/(loss) on ordinary activities after tax was £0.2 million (2023:
£(3.6) million).
In summary, for the 6 month period ended 23 June 2024:
•
Revenue
£13.9 million (2023: £16.2 million)
• Operating
profit/(loss)
£0.9 million (2023: £(3.2) million)
• Group
EBITDA
£0.4 million (2023: £1.4 million)
• Operating loss excluding highlighted
items*
£(1.0) million (2023: £(0.3) million)
• Operating
profit/(loss)
£0.9 million (2023: £(3.2) million)
• Loss before tax excluding highlighted
items*
£(1.7) million (2023: £(1.0) million)
• Profit/(loss) before
tax
£0.2 million (2023: £(3.9) million)
• Profit/(loss) after tax for the
period
£0.2 million (2023: £(3.6) million)
• Net debt at the end of the
period
£7.6 million (24 Dec 2023: £7.4 million)
• Basic losses per share excluding highlighted
items*
(4.4)p (2023: (1.7)p)
• Basic earnings/(losses) per
share
0.4p (2023: (9.6)p)
• Diluted losses per share excluding highlighted
items*
(4.4)p (2023: (1.7)p)
• Diluted earnings/(losses) per
share
0.4p (2023: (9.6)p)
* Highlighted items are detailed in Note 4 to the financial statements.
Cash flow and balance sheet
The Group generated net cash flow from operations of £1.1 million (2023:
£3.2 million), after interest and tax payments.
Capital expenditure in the period totalled £0.6 million (2023: £0.4 million)
across the Group.
Total bank debt at the end of the period was £11.4 million (24 December 2023:
£11.4 million), split between a term loan of £6.9 million (24 December 2023:
£6.9 million) and drawdowns on a £5.0 million revolving credit facility of
£4.5 million (24 December 2023: £4.5 million).
At the period end, cash and cash equivalents were £3.8 million (24 December
2023: £4.0 million).
Consequently, net debt at the period end stood at £7.6 million (24 December
2023: £7.4 million). The Directors continue to take a cautious approach to
net debt levels for the Group.
The Group currently has additional headroom on its revolving credit facility
of £0.5 million, giving total cash availability to the Group of £4.3 million
as at the period end.
Details of the Group's banking covenants can be found on page 90 of the
December 2023 Annual Report.
Trading for the 12 weeks to the 15 September 2024
Total sales for the 12-week period to 15 September 2024 were £11.5 million,
down £0.8 million versus the previous year (2023: £12.3 million). On a
like-for-like basis, total sales were down £0.2 million or 2% versus 2023
(2023: £11.7 million). A warmer spell during August benefited trading at the
pier and Lightwater Valley with the opposite effect for the Bars and Golf
divisions. However, the majority of this period was characterised by a
continuation of the inclement weather seen throughout the earlier months of
the year, leading to softer overall trading for the Group.
Sales at the pier were boosted by the introduction of the £1 admission fee
for non-residents, which generated total net sales for the 12-week period of
£0.4 million. Total sales for the pier were £6.3 million, up £0.3 million
versus 2023 (2023: £6.0 million).
Lightwater Valley traded broadly in line with 2023, where a stronger
performance during key weeks in August was not sufficient to offset shortfalls
during key weeks in July and September. Total sales were £2.6 million, down
£0.1 million versus 2023 (2023: £2.7 million).
In the Golf division, total sales of £1.5 million were £0.2 million lower
than the previous year (2023: £1.7 million), with fewer visitors across the
estate particularly during August.
The wider issues in the late-night sector remain problematic for the Bars
division. While total sales of £1.1 million were down £0.2 million versus
last year on a like-for-like basis (2023: £1.3 million), the disposal of
three loss-making sites in early 2024 improved overall profitability for the
division.
Outlook and strategy
The Group continues to navigate a challenging trading environment. Payroll
increases resulting from the uplift in National Minimum Wage, high energy and
other input costs, unreliable summer weather and weakness in discretionary
spending have collectively put significant pressure on all the Group's sites.
In response, the Group has and is continuing to focus on reducing the
operational cost base.
Consumer confidence may be further affected by uncertainty over upcoming UK
taxation changes, which are due to be announced on 30 October 2024. While the
Group is yet unable to accurately assess the impact of any potential changes,
the outcome of these has the potential to impact both the Group and its
customers in the coming year.
As ever, poor weather in the key summer months continues to have a
disproportionate impact on the overall annual trading performance of the Group
and is a key contributor to the disappointing results presented in this
report. However, there is no guarantee of a reversion to more prolonged spells
of warmer, dryer weather and as a consequence, the Group remains cautious in
the short to medium term.
The implementation of the £1 admission charge at the end of May 2024 has the
potential to generate significant benefits for the pier going forwards. The
Group now has a database of local residents that applied for a Resident's Card
(granting them continued free entry onto the pier throughout the year) that
provides the opportunity for more targeted year-round marketing and special
events. The Group intends to continue to charge for admission over the rest of
this year and into 2025. Since this charge was only introduced from May 2024,
and was only applied daily from July 2024, this should lead to like-for-like
revenue upside in 2025.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the 6 month period ended 23 June 2024
Unaudited Unaudited Audited
6 months ended 6 months ended 12 months ended
23 June 25 June 24 December
2024 2023 2023
Notes £'000 £'000 £'000
Revenue 13,914 16,204 34,761
Cost of sales (1,948) (2,340) (4,907)
Gross profit 11,966 13,864 29,854
Operating expenses - excluding highlighted items (12,936) (14,143) (28,822)
Highlighted items 4 1,857 (2,958) (8,222)
Total operating expenses (11,079) (17,101) (37,044)
Other operating income 11 21 44
Operating (loss)/profit - excluding highlighted items (959) (258) 1,076
Highlighted items 4 1,857 (2,958) (8,222)
Operating profit/(loss) 898 (3,216) (7,146)
Finance income 13 68 80
Finance cost (737) (782) (1,752)
Loss before tax - excluding highlighted items (1,683) (972) (596)
Highlighted items 4 1,857 (2,958) (8,222)
Profit/(loss) on ordinary activities before taxation 174 (3,930) (8,818)
Tax (charge)/credit on ordinary activities 5 (23) 333 1,282
Profit/(loss) after tax for the period 151 (3,597) (7,536)
Earnings/(losses) per share - basic 6 0.4 (9.6) (20.2)
Adjusted losses per share - basic* 6 (4.4) (1.7) (1.7)
Earnings/(losses) per share - diluted 6 0.4 (9.6) (20.2)
Adjusted losses per share - diluted* 6 (4.4) (1.7) (1.7)
* Adjusted basic and diluted earnings/(losses) per share are calculated based
on the profit for the period adjusted for highlighted items.
2024 basic weighted average number of shares in issue was 37.29m (2023:
37.29m).
2024 diluted weighted average number of shares in issue was 37.29m (2023:
37.57m).
No other comprehensive income was earned during the period (2023: £nil).
INTERIM CONDENSED CONSOLIDATED BALANCE SHEET
At 23 June At 25 June At 24 December
2024 2023 2023
£'000 £'000 £'000
Non-current assets
Intangible assets 8,221 8,480 8,222
Property, plant & equipment 25,989 27,464 26,083
Right-of-use assets 18,448 22,878 18,761
Deferred tax asset 993 - 1,016
53,651 58,822 54,082
Current assets
Inventories 959 1,046 868
Trade and other receivables 1,966 3,288 1,783
Deferred tax assets - 333 -
Income tax receivable 45 - 42
Cash and cash equivalents 3,769 6,191 3,952
6,739 10,858 6,645
TOTAL ASSETS 60,390 69,680 60,727
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 (6,488) (2,700) (6,639)
Equity attributable to equity shareholders of the parent 18,168 21,956 18,017
TOTAL EQUITY 18,168 21,956 18,017
LIABILITIES
Current liabilities
Trade and other payables 6,398 8,189 4,419
Other financial liabilities 690 485 690
Lease liabilities 1,865 2,154 1,793
Income tax payable - 987 -
Provisions - 119 -
Liabilities held for sale 2,431 - 4,600
11,384 11,934 11,502
Non-current liabilities
Other financial liabilities 10,710 10,400 10,710
Lease liabilities 19,918 24,617 20,288
Deferred tax liability - 512 -
Other payables 210 261 210
30,838 35,790 31,208
TOTAL LIABILITIES 42,222 47,724 42,710
TOTAL EQUITY AND LIABILITIES 60,390 69,680 60,727
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
23 June 25 June 24 December
2024 2023 2023
£'000 £'000 £'000
Operating activities
Profit/(loss) before tax 174 (3,930) (8,818)
Net finance costs 724 714 1,672
Amortisation of intangible assets 50 31 83
Depreciation of property, plant and equipment 669 750 1,380
Depreciation of right-of-use assets 683 866 1,674
Gain on derecognition of lease liabilities held for sale due to disposal (2,169) - -
Gain on derecognition of lease liabilities due to waivers & concessions - - (6)
Gain on disposal of property, plant and equipment - - (107)
Impairment of goodwill - 1,070 1,326
Impairment of property, plant and equipment - 303 957
Impairment of right-of-use assets - 1,585 3,044
Impairment of assets held for sale - - 3,014
Decrease in provisions - - (119)
Increase in inventories (91) (231) (53)
(Increase)/decrease in trade and other receivables (183) (1,453) 52
Increase in trade and other payables 1,979 4,229 462
Interest paid on borrowings (439) (411) (816)
Interest paid on lease liabilities (298) (371) (735)
Interest received 13 68 80
Income tax paid (3) - (1,275)
Net cash inflow from operating activities 1,109 3,220 1,815
Investing activities
Purchase of property, plant and equipment and intangible assets (624) (415) (829)
Proceeds from disposal of property, plant and equipment - 95 107
Net cash outflow used in investing activities (624) (320) (722)
Financing activities
Proceeds from borrowings - - 4,500
Repayment of borrowings - (442) (4,467)
Arrangement fees paid - - (116)
Principal paid on lease liabilities (668) (475) (1,266)
Net cash outflow used in financing activities (668) (917) (1,349)
Net (decrease)/increase in cash and cash equivalents (183) 1,983 (256)
Cash and cash equivalents at beginning of period 3,952 4,208 4,208
Cash and cash equivalents at end of period 3,769 6,191 3,952
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Unaudited Issued share capital Share premium Other reserves Merger reserve Retained Total shareholders' equity
deficit
£'000 £'000 £'000 £'000 £'000 £'000
At 24 December 2023 9,322 15,993 452 (1,111) (6,639) 18,017
Profit for the period - - - - 151 151
At 23 June 2024 9,322 15,993 452 (1,111) (6,488) 18,168
Unaudited Issued share capital Share premium Other reserves Merger reserve Retained Total shareholders'
earnings/ equity
(deficit)
£'000 £'000 £'000 £'000 £'000 £'000
At 25 December 2022 9,322 15,993 452 (1,111) 897 25,553
Loss for the period - - - - (3,597) (3,597)
At 25 June 2023 9,322 15,993 452 (1,111) (2,700) 21,956
Audited Issued share capital Share premium Other reserves Merger reserve Retained Total shareholders' equity
(deficit)/
earnings
£'000 £'000 £'000 £'000 £'000 £'000
At 25 December 2022 9,322 15,993 452 (1,111) 897 25,553
Loss for the period - - - - (7,536) (7,536)
At 24 December 2023 9,322 15,993 452 (1,111) (6,639) 18,017
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 also operates five premium
bars, eight indoor mini-golf sites and Lightwater Valley Family Adventure 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 6 month periods ended 23 June 2024 and 25
June 2023 does not constitute statutory accounts for the purposes of section
435 of the Companies Act 2006. The financial information for the 6 month
period ended 23 June 2024 has not been audited. The Group's latest audited
statutory financial statements were for the 12 month period ended 24 December
2023 and these have been filed with the Registrar of Companies.
Information that has been extracted from the 24 December 2023 accounts is from
the audited accounts included in the annual report, published in May 2024, 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 6 month period
ended 23 June 2024 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 24 December
2023, which were prepared in accordance with UK-adopted International
Accounting Standards ('IASs') in conformity with the requirements of the
Companies Act 2006.
The accounting policies used in preparation of the financial information for
the 6 month period ended 23 June 2024 are the same accounting policies applied
to the Group's financial statements for the 12 month period ended 24 December
2023. These policies were disclosed in the 2023 Annual Report.
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 6 month period ended 25 June 2023, the Group changed its
measurement method of reported segment profit or loss, with depreciation
charges on property, plant and equipment and right-of-use assets, amortisation
charges on intangible assets and net finance costs arising on lease
liabilities now allocated between the relevant operating segments, having
previously been grouped within head office costs.
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.
6 month period ended Brighton Golf Bars Lightwater Total segments Head office costs June 2024 consolidated total
23 June 2024 Palace Pier Valley
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Revenue 6,430 3,176 2,637 1,671 13,914 - 13,914
Cost of sales (1,172) (46) (498) (232) (1,948) - (1,948)
Gross profit 5,258 3,130 2,139 1,439 11,966 - 11,966
Gross profit % 82% 99% 81% 86% 86% - 86%
Operating expenses (excluding depreciation and (5,669) (1,803) (1,776) (1,593) (10,841) (693) (11,534)
amortisation)
Other income - - - - - 11 11
EBITDA (411) 1,327 363 (154) 1,125 (682) 443
Depreciation and amortisation (excluding right-of-use assets) (242) (187) (124) (166) (719) - (719)
Depreciation of right of use assets (3) (443) (170) (47) (663) (20) (683)
Operating (loss)/profit (656) 697 69 (367) (257) (702) (959)
(excluding highlighted items)
Highlighted items - - 1,857 - 1,857 - 1,857
Operating (loss)/profit (656) 697 1,926 (367) 1,600 (702) 898
Net finance cost (excluding interest on lease liabilities) - - - - - (426) (426)
Net finance cost arising on lease liabilities - (132) (69) (96) (297) (1) (298)
(Loss)/profit before tax (656) 565 1,857 (463) 1,303 (1,129) 174
Income tax charge - - - - - (23) (23)
(Loss)/profit after tax (656) 565 1,857 (463) 1,303 (1,152) 151
NOTES to the INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
3. SEGMENTAL INFORMATION (continued)
6 month period ended Brighton Golf Bars Lightwater Total segments Head office costs June 2023 consolidated total
25 June 2023 Palace Pier Valley
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Revenue 7,507 3,147 4,105 1,445 16,204 - 16,204
Cost of sales (1,353) (57) (762) (168) (2,340) - (2,340)
Gross profit 6,154 3,090 3,343 1,277 13,864 - 13,864
Gross profit % 82% 98% 81% 88% 86% - 86%
Operating expenses (excluding depreciation and amortisation) (5,639) (1,678) (2,966) (1,574) (11,857) (639) (12,496)
Other income - - - - - 21 21
EBITDA 515 1,412 377 (297) 2,007 (618) 1,389
Depreciation and amortisation (excluding right-of-use assets) (222) (219) (181) (159) (781) - (781)
Depreciation of right of use assets (3) (430) (363) (51) (847) (19) (866)
Operating profit/(loss) 290 763 (167) (507) 379 (637) (258)
(excluding highlighted items)
Highlighted items - - (1,888) (1,070) (2,958) - (2,958)
Operating profit/(loss) 290 763 (2,055) (1,577) (2,579) (637) (3,216)
Net finance cost (excluding interest on lease liabilities) - - - - - (343) (343)
Net finance cost arising on lease liabilities - (138) (143) (88) (369) (2) (371)
Profit/(loss) before tax 290 625 (2,198) (1,665) (2,948) (982) (3,930)
Income tax credit - - - - - 333 333
Profit/(loss) after tax 290 625 (2,198) (1,665) (2,948) (649) (3,597)
4. HIGHLIGHTED ITEMS
6 months to 6 months to
23 June 2024 25 June 2023
£'000 £'000
Gain on derecognition of lease liabilities held for sale (2,205) -
Net finance cost arising on lease liabilities held for sale 37 -
Other site closure costs 311 -
Impairment of goodwill - 1,070
Impairment of property, plant and equipment - 303
Impairment of right-of-use assets - 1,585
Total highlighted (gains)/charges (1,857) 2,958
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.
6 month period ended 23 June 2024
In December 2023, the Group took the decision to dispose of three loss-making
sites in the Bars division: Manchester, Cambridge and Brighton. The lease
liabilities associated with these sites were classified as held for sale as at
24 December 2023. As at 23 June 2024, the disposal of Cambridge and Brighton
was completed, resulting in gains arising from the disposal of the associated
lease liabilities of £2,205,000.
Other costs relating to these three sites have been shown within highlighted
items, in order to aid comparability of underlying trading between reporting
periods. In the 6 month period ended 23 June 2024, these costs totalled
£348,000, split between net finance costs arising on the lease liabilities
for the sites of £37,000, and other site closure costs of £311,000.
6 month period ended 25 June 2023
The Group performed an impairment test in June 2023, resulting in total
impairments applied of £2,958,000, split between goodwill (£1,070,000),
property, plant and equipment (£303,000) and right-of-use assets
(£1,585,000).
5. TAXATION
The tax charge of £23,000 (2023: tax credit of £0.3 million) has been
calculated by reference to the expected effective current and deferred tax
rates for the 12 month period ended 29 December 2024 applied against the loss
before tax for the 6 month period ended 23 June 2024. The full year effective
tax charge on the underlying trading loss is estimated to be £1.0 million (12
months ended 24 December 2023: tax credit of £1.3 million).
6. EARNINGS/(LOSSES) PER SHARE
The weighted average number of shares in the period was:
6 months to 6 months to
23 June 2024 25 June 2023
Thousands of shares Thousands of shares
Ordinary shares 37,286 37,286
Weighted average number of shares - basic 37,286 37,286
Dilutive effect on ordinary shares from share options - 286
Weighted average number of shares - diluted 37,286 37,572
Basic and diluted earnings/(losses) per share are calculated by dividing the
profit/(loss) for the period into the weighted average number of shares for
the period. In order to provide a measure of underlying performance,
management have chosen to present an adjusted profit/(loss) 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.
6 months to 6 months to
23 June 2024 25 June 2023
Earnings/(losses) per share from profit/(loss) for the period
Basic (pence) 0.4 (9.6)
Diluted (pence) 0.4 (9.6)
Adjusted losses per share from loss for the period
Basic (pence) (4.4) (1.7)
Diluted (pence) (4.4) (1.7)
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
7. RECONCILIATION TO EBITDA
Group profit/(loss) before tax for the period can be reconciled to Group
EBITDA as follows:
6 months to 6 months to
23 June 2024 25 June 2023
EBITDA Reconciliation
Profit/(loss) before tax for the period 174 (3,930)
Add back:
Depreciation of property, plant and equipment 669 750
Depreciation of right-of-use-assets 683 866
Amortisation of intangible assets 50 31
Net finance costs 724 714
Highlighted items (1,857) 2,958
Group EBITDA 443 1,389
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