REG - Everyman Media Grp - Half-year Report <Origin Href="QuoteRef">EMANE.L</Origin>
RNS Number : 5105PEveryman Media Group PLC01 September 20171 September 2017
Everyman Media Group PLC
("Everyman" or the "Group")
Interim Results (unaudited) for the six-month period ended 29 June 2017
Highlights
Revenue for the period up 55% to 18.8m (H1 2016: 12.1m)
Adjusted EBITDA up 123% to 3.0m (H1 2016: 1.3m)
One new venue added in the period, expanding the current estate to 21 venues
Committed to a further 9 new venues plus the permanent venue at Kings Cross, and a strong pipeline established for future years, including a new venue in Glasgow to be opened in 2018
Trading since the period end has continued in line with expectations
For further information, please contact:
Everyman Media Group PLC
Crispin Lilly
Tel:020 3145 0500
Cenkos Securities PLC(NOMAD and Broker)
Bobbie Hilliam
Tel: 020 7397 8900
Chairman's Statement
I am pleased to report on the Group's results for first 6 months ended 29 June 2017. Revenue for the half year ended 29 June 2017 was up 55% on the comparative six-month period to 18,830,000 (30 June 2016: 12,128,000, full year to 29 December 2016: 29,554,000).
The first six months to 29 June 2017 saw us open a new venue in Stratford-Upon-Avon. In addition, the Group exchanged contracts on five further sites at York, Liverpool, Newcastle, Glasgow and Borough Market (London) in the period. The temporary one-screen venue at Kings Cross will continue to trade after the opening of the main venue later in 2017.
The Group now operates 21 venues and 58 screens.
Since the period-end, trading has been in line with expectations, continuing a reasonable overall summer in the cinema market
Review of the business
For the 26 weeks ended 29 June 2017, the Group's box office revenue was up 51.9% on the previous period, reflecting favourably compared to a market movement of 10.3%. This resulted in the Group's market share increasing to 1.98% for the period (30 June 2016: 1.46%, 29 December 2016: 1.64%) (Source: Comscore).
With 21 venues and 58 screens now spread increasingly across the country, the Everyman experience continues to be successful in a wide range of towns and cities and remains a trusted and highly regarded brand in the cinema and leisure industry.
Everyman differentiates by focusing on delivering a high-quality offer, through its venues, content, staff and F&B. The Board's long held belief in this model as being the bedrock for significant growth within the UK has been further strengthened in the last six months and our ambitions continue to grow.
With a further 9 committed venues plus the permanent venue at Kings Cross, and a strong pipeline for future years, the Board is committed to further growth of our footprint across the UK.
Openings
During the period, the Group opened a new four-screen venue in Stratford-Upon-Avon in June.
The Group exchanged contracts on five further sites at York, Liverpool, Newcastle, Glasgow and Borough Market (London) since the beginning of 2017. These are in addition to the pre-existing contracts for Kings Cross, Horsham, Durham, Wokingham and Edinburgh.
The temporary one-screen venue at Kings Cross will continue to trade after the opening of the main venue later in 2017. It is delivering excellent Everyman brand- awareness in the area as well as serving (and gaining great affection from) the early residents, both private and corporate, in the developer's transformative Kings Cross Central development.
Financial Overview
As previously stated, revenue for the half year ended 29 June 2017 was up 55% on the comparative six-month period to 18,830,000 (30 June 2016: 12,128,000, full year to 29 December 2016: 29,554,000).
The Group's adjusted operating profit before depreciation, amortisation, pre-opening expenses, exceptional items and share-based payments was 3,010,000 (30 June 2016: 1,348,000, full year to 29 December 2016: 3,954,000). The Group generated a profit for the period of 438,000 (30 June 2016: loss of 670,000, full year to 29 December 2016: profit of 61,000).
The effective tax rate is higher than the standard rate of corporation tax for the six-month period ended 29 June 2017 due to the effect of significant continuing capital expenditure incurred by the Group.
The share-based payment expense for the period was 144,000 (30 June 2016: 104,000, full year to 29 December 2016: 293,000) reflecting share option incentives provided to the Group's senior management and employees.
Cash Flows
Net cash generated from operating activities was 3,759,000 (30 June 2016: 1,940,000 used in operating activities, full year to 29 December 2016: 5,515,000 generated). Net cash outflows for the year, before financing, were 2,180,000 (30 June 2016: 7,443,000, full year to 29 December 2016: 10,393,000). This is largely represented by capital expenditure on the expansion of the business through build costs and refurbishment of sites.
Cash held at the end of the period was 1,221,000 (30 June 2016: 1,692,000, 29 December 2016: 1,566,000). The cash held will be invested in the continuing
development and expansion of the Group's business.
During the period the Group entered into a new debt facility with Barclays Bank PLC to replace the existing 8m facility. The new facility is a 20m four-year revolving loan facility. The facility provides an additional finance stream, in addition to the Group's existing cash resources, to allow continued expansion of the Group's cinema estate. A total 5m drawdown had taken place as at 29 June 2017.
The Board does not recommend the payment of a dividend at this stage of the Group's development.
Current Trading
Trading since the period end has been in line with expectations, continuing a reasonable overall summer in the cinema market.
Paul Wise
Chairman
1 September 2017
Consolidated statement of comprehensive income for the six-month period ended 29 June 2017 (unaudited)
Six-month period
Six-month period
Year Ended
ended 29 June
ended 30 June
29 December
2017
2016
2016
Note
000
000
000
Revenue
3
18,830
12,128
29,554
Cost of Sales
(7,268)
(4,722)
(11,830)
Gross profit
11,562
7,406
17,724
Other operating income
45
-
167
Administrative expenses
(10,828)
(7,673)
(17,324)
Operating profit/(loss)
779
(267)
567
Non-GAAP measure: adjusted profit from operations
3,010
1,348
3,954
(before depreciation and amortisation, acquisition, pre-opening & share-based payment expenses)
Depreciation and amortisation
(1,750)
(1,230)
(2,435)
Pre-opening expenses
(337)
(281)
(659)
Share-based payment expense
(144)
(104)
(293)
Profit / (loss) from operations
779
(267)
567
Financial income
4
10
11
Financial expenses
-
(38)
(38)
Profit / (loss) before taxation
4
783
(295)
540
Income tax (expense)/credit
(345)
(375)
(479)
Profit/(loss) for the period
438
(670)
61
Total comprehensive income/(loss) attributable to equity holders of the Company
438
(670)
61
Basic loss per share (pence)
5
0.73
(1.12)
0.10
Diluted loss per share (pence)
5
0.71
(1.12)
0.10
All amounts relate to continuing activities.
Consolidated statement of financial position at 29 June 2017 (unaudited)
29 June
30 June
29 December
2017
2016
2016
000
000
000
Assets
Non-current assets
Property, plant and equipment
39,864
28,268
35,603
Intangible assets
8,398
8,040
8,256
Trade and other receivables
199
199
199
48,461
36,507
44,058
Current assets
Inventories
242
223
245
Trade and other receivables
2,274
1,763
1,596
Cash and cash equivalents
1,221
1,692
1,566
3,737
3,678
3,407
Total assets
52,198
40,185
47,465
Current liabilities
Other interest-bearing loans and borrowings
9
-
24
Trade and other payables
6,422
3,337
6,575
6,431
3,337
6,599
Non-current liabilities
Other interest-bearing loans and borrowings
5,000
-
3,000
Other payables
5,343
3,397
3,397
Provisions
1,395
1,436
1,430
Deferred tax liabilities
607
671
775
12,345
5,504
8,602
Total liabilities
18,776
8,841
15,201
Net Assets
33,422
31,344
32,264
Equity
Equity attributable to owners of the Company
Share capital
5,989
5,982
5,982
Share premium
22,773
22,720
22,720
Merger reserve
11,152
11,152
11,152
Retained deficit
(6,492)
(8,510)
(7,590)
Total equity
33,422
31,344
32,264
Consolidated statement of changes in equity for the six-month period ended 29 June 2017 (unaudited)
Share
Share
Merger
Retained
Total
capital
premium
reserve
deficit
equity
000
000
000
000
000
Balance at 1 January 2016
5,982
22,720
11,152
(7,944)
31,910
Loss for the period
-
-
-
(670)
(670)
Total comprehensive income/(loss) for the period
-
-
-
(670)
(670)
Share-based payments
-
-
-
104
104
Total transactions with owners of the parent
-
-
-
104
104
Balance at 30 June 2016
5,982
22,720
11,152
(8,510)
31,344
Balance at 1 July 2016
5,982
22,720
11,152
(8,510)
31,344
Profit for the period
-
-
-
731
731
Total comprehensive income for the period
-
-
-
731
731
Share-based payments
-
-
-
189
189
Total transactions with owners of the parent
-
-
-
189
189
Balance at 29 December 2016
5,982
22,720
11,152
(7,590)
32,264
Balance at 30 December 2016
5,982
22,720
11,152
(7,590)
32,264
Profit for the period
-
-
-
438
438
Total comprehensive income for the period
-
-
-
438
438
Deferred tax on share-based payments
-
-
-
516
516
Shares issued in the period
7
53
-
-
60
Share-based payments
-
-
-
144
144
Total transactions with owners of the parent
7
53
-
660
720
Balance at 29 June 2017
5,989
22,773
11,152
(6,492)
33,422
Consolidated statement of cash flows for the six-month period ended 29 June 2017 (unaudited)
29 June
30 June
29 December
2017
2016
2016
000
000
000
Cash flows from operating activities
Profit/(loss) for the period
438
(670)
61
Adjusted for:
Financial income
(4)
(10)
(11)
Financial expenses
-
38
38
Income tax expense
345
375
479
Operating profit/(loss)
779
(267)
567
Depreciation and amortisation
1,750
1,229
2,435
Loss on disposal of property, plant and equipment
-
-
66
Lease incentives
86
-
-
Market rent provisions
(35)
-
(71)
Equity-settled share-based payment expenses
144
104
293
2,724
1,066
3,290
(Increase)/decrease in inventories
3
4
(18)
(Increase)/decrease in trade and other receivables
(678)
(745)
1,030
Increase/(decrease) in trade and other payables
1,710
(2,265)
1,198
Cash generated from/(used in) operating activities
3,759
(1,940)
5,500
Corporation tax refunded
-
-
15
Net cash generated from/(used in) operating activities
3,759
(1,940)
5,515
Cash flows from investing activities
Acquisition of property, plant and equipment
(5,757)
(7,121)
(19,154)
Proceeds from sale of property, plant and equipment
-
-
3,463
Acquisition of intangibles
(186)
1
(228)
Refund on long leasehold property
-
1,607
-
Interest received
4
10
11
Net cash used in investing activities
(5,939)
(5,503)
(15,908)
Cash flows from financing activities
Proceeds from the issuance of ordinary shares
60
-
-
Proceeds from bank borrowings
2,000
-
3,000
Repayment of derivative financial instruments
-
-
(176)
Interest paid
(225)
(38)
(38)
Net cash (used in)/generated from financing activities
1,835
(38)
2,786
Net (decrease) in cash and cash equivalents
(345)
(7,481)
(7,607)
Cash and cash equivalents at the beginning of the period
1,566
9,173
9,173
Cash and cash equivalents at the end of the period
1,221
1,692
1,566
Notes to the interim financial statements
1 General Information
Everyman Media Group PLC and its subsidiaries (together, 'the Group') are engaged in the ownership and management of cinemas in the United Kingdom. Everyman Media Group PLC (the Company) is a public company limited by shares domiciled and incorporated in England and Wales (registered number 08684079). The address of its registered office is Studio 4, 2 Downshire Hill, London NW3 1NR.
2 Basis of preparation
These condensed interim financial statements of the Group for the period ended 29 June 2017 (the Period) have been prepared using accounting policies consistent with International Financial Reporting Standards (IFRSs) as adopted by the European Union. The same accounting policies, presentation and methods of computation are followed in the condensed set of financial statements as applied in the Group's latest audited financial statements for the year ended 29 December 2016. Amendments made to IFRSs since 29 June 2017 have not had a material effect on the Group's results or financial position for the period.
The financial statements presented in this report have been prepared in accordance with IFRSs applicable to interim periods. However, as permitted, this interim report has been prepared in accordance with the AIM Rules for Companies and does not seek to comply with IAS34 "Interim Financial Reporting".
These condensed interim financial statements have not been audited, do not include all of the information required for full annual financial statements and should be read in conjunction with the Group's statutory consolidated annual financial statements for the year ended 29 December 2016. The auditors' opinion on these Statutory Accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under s498(2) or s498(3) of the Companies Act 2006.
3 Revenue
Six-month period
Six-month period
Year ended
ended 29 June
ended 30 June
29 December
2017
2016
2016
000
000
000
Film and entertainment
11,718
7,714
18,505
Food and beverages
6,078
3,752
9,384
Other income
1,034
662
1,665
18,830
12,128
29,554
4 Income Tax
Six-month period
Six-month period
Year ended
ended 29 June
ended 30 June
29 December
2017
2016
2016
000
000
000
Deferred tax (credit)/expense
-
-
-
Origination and reversal of temporary differences
(170)
375
803
Adjustments in respect of prior years
515
-
(394)
Effect of other differences
-
-
70
Total tax charge
345
375
479
The reasons for the difference between the actual tax charge for the period and the standard rate of corporation tax in the United Kingdom applied to the profit/(loss) for the period are as follows:
Six-month period
Six-month period
Year ended
ended 29 June
ended 30 June
29 December
2017
2016
2016
000
000
000
Profit/(loss) before taxation
783
(295)
540
Applied corporation tax rates:
19.25%
20.00%
20.00%
Tax at the UK corporation tax rate of 19.25%/20.00%
151
(59)
108
Expenses not deductible for tax purposes
51
58
695
Brought forward losses utilised in current year
(381)
-
-
Adjustments in respect of prior years
515
-
(394)
Effect of other differences
9
22
70
Total tax expense
345
375
479
Reductions in the UK corporation tax rate from 23% to 21% (effective from 1 April 2014) and 20% (effective from 1 April 2015) were substantively enacted on 2 July 2013. Further reductions to 19% (effective from 1 April 2017) and to 18% (effective 1 April 2020) were substantively enacted on 26 October 2015. An additional reduction to 17% (effective from 1 April 2020) was announced in the Budget on 16 March 2016. Accordingly, the Group's profits for this accounting period are subject to tax at a rate of 19% (2016: 20%).
5 Earnings/(loss) per share
Six-month period
Six-month period
Year ended
ended 29 June
ended 30 June
29 December
2017
2016
2016
000
000
000
Profit/(loss) used in calculating basic and diluted earnings/(loss) per share
438
(670)
61
Number of shares (000's)
Weighted average number of shares for the purpose of basic loss per share
59,843
59,820
58,820
Number of shares (000's)
Weighted average number of shares for the purpose of diluted loss per share
61,421
59,820
60,353
Basic earnings/(loss) per share (pence)
0.73
(1.12)
0.10
Diluted earnings/(loss) per share (pence)
0.71
(1.12)
0.10
Basic earnings/(loss) per share amounts are calculated by dividing net profit/(loss) for the year attributable to Ordinary equity holders of the parent by the weighted average number of Ordinary shares outstanding during the year.
Where the Group has incurred a loss in a year, the diluted earnings per share is the same as the basic earnings per share as the loss has an anti-dilutive effect. The dilutive loss per share for the period ended 30 June 2016 is therefore the same as the basic loss per share for the year and the diluted weighted average of shares is the same as the basic weighted average number of shares. The actual diluted weighted average number of shares for the year ended 30 June 2016 before disregarding due to anti-dilutive effect was 59,886,000.
The Company has 4,094,000 potentially issuable shares (2016: 4,846,000, plus 130,000 granted immediately after the year-end), all of which relate to the potential dilution from both the Group's 'A' shares and share options issued to the Directors and certain employees and contractors, under the Group's incentive arrangements
This information is provided by RNSThe company news service from the London Stock ExchangeENDIR LLFERTDILVID
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