REG - Everyman Media Grp - Interim Results
28/09/2022 07:00
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RNS Number : 9129A Everyman Media Group PLC 28 September 2022
28 September 2022
Everyman Media Group PLC
("Everyman" or the "Group")
Interim Results
Strong trading with financial performance expected to at least meet market
expectations for full year and beyond
Everyman Media Group PLC, the independent, premium cinema group, reports its
unaudited interim results for the 26 weeks ended 30 June 2022.
Strong financial performance
· Revenue of £40.7m (H1 2021: £7.7m)
· Adjusted EBITDA(1) of £7.5m (H1 2021: £1.4m loss)
· Operating profit of £0.8m (H1 2021: £7.7m loss)
· Cash generated from operating activities £9.1m (H1 2021: £0.3m)
Encouraging strategic and operational progress
· 300,000 additional admissions (1.8m) vs. H1 2019, a 20% increase
· 4.5% market share, +1.5% vs. H1 2019
· Opened five-screen venue in Edinburgh in April 2022
· Bristol and Birmingham venues refurbished, maintaining high standards
and differentiation
Robust financial position
· Net assets at 30 June 2022 £48.2m (H1 2021 £44.7m).
· Cash balance at 30 June 2022 £5.9m (H1 2021: £1.7m).
· Net debt (including cash balance) at 30 June 2022 £8.6m (H1 2021:
£11.8m)
· Significant remaining headroom on facilities at £25.5m (H1 2021:
£26.5m)
Momentum building into the second half
· Opened a four-screen venue in Egham in September 2022
· Durham due to open in November 2022; four further venues confirmed
for 2023
· Four venues refurbished post-period end
· On track to at least meet expectations for the full year
(1)Adjusted for pre-opening costs, acquisition expenses, depreciation,
amortisation, share based payments and costs incurred directly related to
Covid-19 (.) IFRS 16 has been applied.
Alex Scrimgeour, Chief Executive of Everyman Media Group PLC, said:
"The first half of the financial year has been a period of progress on all
fronts, with healthy admissions growth and robust spend per head, suggesting
we are now back on track following the turbulence of recent years. Despite
reduced film output due to the effect of low production during the pandemic,
we've enjoyed three of the ten highest-ever box office releases in the past
twelve months.
Looking ahead, we are optimistic about our prospects. We are confident that
film production is back up to full speed and that the flow of excellent
content will be bigger and better going forward, beginning with an attractive
pipeline of new releases over the remainder of this year and next.
We have started the second half of 2022 in line with expectations and the
outlook for the remainder is promising. The acceleration of our openings
strategy is now well underway and we are excited about the wealth of
opportunities emerging to bolster and supplement the Everyman brand outside of
the core proposition.
Cinema will always be an important part of the fabric of the UK as a place to
be entertained, and has historically remained as such during more difficult
economic conditions and recession. We are confident that our unique brand of
Everyman hospitality remains as relevant as ever."
For further information, please contact:
Everyman Media Group plc Tel: 020 3145 0500
Alex Scrimgeour, Chief Executive
Will Worsdell, Finance Director
Canaccord Genuity Limited (NOMAD and Broker) Tel: 020 7523 8000
Bobbie Hilliam
Georgina McCooke
Alma PR (Financial PR Advisor) Tel: 020 3405 0205
David Ison
Joe Pederzolli
The information communicated in this announcement contains inside information
for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014
as it forms part of United Kingdom domestic law by virtue of the European
Union (Withdrawal) Act 2018 (as amended) ("UK MAR").
About Everyman Media Group PLC:
Everyman is the fourth largest cinema business in the UK by number of venues,
and is a premium, high growth leisure brand. Everyman operates a growing
estate of venues across the UK, with an emphasis on providing first class
cinema and hospitality.
Everyman is redefining cinema. It focuses on venue and experience as key
competitive strengths, with a unique proposition:
· Intimate and atmospheric venues, which become a destination in their
own right
· An emphasis on a strong quality food and drink menu prepared in-house
· A broad range of well-curated programming content, from mainstream
and independent films to theatre and live concert streams, appealing to a
diverse range of audiences
· Motivated and welcoming teams
For more information visit http://investors.everymancinema.com/
(http://investors.everymancinema.com/)
Chief Executive's Statement
The first half of 2022 was very positive for Everyman despite the impact of
the Omicron outbreak at the beginning of the period, with Group revenue of
£40.7m, an increase of £11.8m vs. H1 2019. This was the last comparative
period where the estate was open for a full 26 weeks. We welcomed nearly 1.8m
customers into our venues, an increase of 0.3m vs. H1 2019, with our market
share increasing from 3.0% to 4.5% accordingly. This demonstrates that the
appetite for the Everyman offer remains strong, and is growing.
A number of titles performed particularly well in the period. Chief among them
was Top Gun: Maverick at the end of May, a long-anticipated sequel to the 1986
original which has now grossed over £80m at the UK Box Office, with Everyman
receiving a 5.8% market share to date. Other strong titles included The Batman
in March and Doctor Strange in the Multiverse of Madness in May. Post-period
end, NT Live: Prima Facie became our most successful Event Cinema ever, with
Everyman taking an incredible 18.2% market share and the highest number of
national admissions. For Where the Crawdads Sing, we took four of the top five
venues nationally, and a 10.9% market share.
Building our team
In the period, we have bolstered our committed and enthusiastic team to over
1,200, including key hires in Procurement and Finance as well as local venue
managers to support our growth ambitions.
Will Worsdell joined the Board as Finance Director in June, having formerly
held senior Finance roles at several leisure and hospitality businesses,
including Head of Commercial Finance at Côte Brasserie, and will support the
Group as we continue to grow.
Baroness Ruby McGregor-Smith joined the Board as a Non-Executive Director
post-period end on 20 September 2022. Ruby brings a wealth of experience to
Everyman, having formerly been the Chief Executive of Mitie Group Plc, a
strategic outsourcing company. Amongst other roles, Ruby is the Chair of
MindGym Plc, the President of the British Chambers of Commerce and has also
been a non-executive board member at the Department for Culture, Media and
Sport and the Department for Education.
Enhancing the Everyman experience
We also continue to innovate on the core Everyman offer. In H1 2022 we added a
series of multi-venue streaming events in partnership with AppleTV+, bringing
exclusive programming to Everyman audiences across the country, including a
high profile Q&A with actor Gary Oldman. We put on a strong events
calendar, with - amongst others - opening parties held for both Downton Abbey:
A New Era and Elvis and charity screenings to support those displaced by the
war in Ukraine. We also branched out into immersive cinema, with events held
for Nightmare Alley in January and, post-period end, for See How They Run.
Such events elevate the Everyman experience further, and once again lead the
exhibition circuit into more ambitious territory.
Post-period end, "Summer in the City" has seen Everyman pop-ups return to
Screen on the Canal at Granary Square, London, The Secret Garden at The Grove
Hotel, Hertfordshire, and, for the first time, to the iconic courtyard at
Somerset House. These open-air venues have brought the magic of film and the
Everyman brand to thousands of people over the July to September period.
Our food and beverage offer continues to evolve. With a focus on giving our
customers more choice, we have added new vegan items and sharing dishes to our
menus. An estate-wide rollout of new handheld devices has enabled our
customers to order from their seats more seamlessly and efficiently, and we
are seeing the impact of this on average spends.
Growing the estate
As at 28 September 2022, Everyman currently has 38 cinemas and 129 screens. We
opened a new five-screen venue in Edinburgh on 2 April and, most recently, a
new four-screen venue in Egham on 23 September.
Demonstrating our continued confidence in Everyman's prospects, our roll-out
pipeline continues, with a new venue due to open in Durham in November 2022.
The pipeline for 2023 is well-developed, with four further venues confirmed
and another two nearing exchange.
The Board is constantly evaluating new opportunities to grow the Everyman
estate, be that a new build, the conversion of an existing building or the
acquisition of other cinemas, the key consideration always being that any new
venue meets the Board's investment criteria. The Company is not currently
actively evaluating the acquisition of any portfolio of cinemas.
To maintain our high standards and differentiation against the market we have
continued to invest in our existing estate and, in the year to 28 September
2022, have fully refurbished our venues in Bristol, Birmingham, Canary Wharf,
Esher and Hampstead.
Performance Review
The Group uses the key performance indicators of Admissions, Box Office
Average Ticket Price and Food & Beverage Spend per Head to monitor the
progress of the Group's activities.
26 weeks 26 weeks 26 weeks
ended ended ended
30 June 2022 1 July 2021 4 July 2019
(26 weeks open) (6 weeks open) (26 weeks open)
Admissions 1,771,064 284,245 1,475,425
Box Office Average Ticket Price* £11.09 £11.18 £11.27
Food & Beverage Spend per Head* £8.96 £8.88 £6.95
£8.96
£8.88
£6.95
*Average ticket price has been adjusted to reflect the reduction in VAT from
20% to 12.5% in H1 2022 (until 1 April 2022) and from 20% to 5% in H1 2021.
**Spend per head has been adjusted to reflect the reduction in VAT from 20% to
12.5% across certain items in H1 2022 (until 1 April 2022), and from 20% to 5%
in H1 2021. Deliveroo income has also been removed to enable like for like
comparison with H1 2019.
Admissions
Admissions continued to gather positive momentum in the first half of 2022.
Comparison to the same period in 2021 is challenging due to
government-mandated closure of all venues until 17(th) May last year. However,
admissions increased by 20% vs. the first half of 2019, driven by organic
growth and the opening of nine new venues in the intervening period.
On a non-VAT adjusted basis, Box Office revenue increased by 22% vs. the first
half of 2019 and Everyman was the only national operator in growth, with the
broader UK cinema industry experiencing a 20% decline. This shows that
appetite for the Everyman experience continues to grow and that customers are
returning to our cinemas in greater numbers.
Average Ticket Price and Spend per Head
With the VAT benefit removed, Spend per Head increased by 28.9% when compared
to the same period in 2019, driven by continued investment in our menu and
technology, giving our customers more choice and enabling quicker and more
efficient service to seats.
The fall in average ticket price, whilst modest at 1.5%, has been driven by
the opening of nine new venues between H1 2019 and the end of the period. With
some exceptions, new venues open in lower pricing tiers, which can temporarily
reduce average ticket price until those venues mature. Since H1 2019 we have
also opened more venues outside of London, where ticket prices are typically
lower.
Outlook
We continue to be optimistic about the future. As we move through the second
half, with encouraging admissions levels to date and a strong film slate
anticipated in Q4, we remain on track to at least meet expectations for the
full year. The economic backdrop at present is characterised by uncertainty,
but we believe our premium, differentiated offering and strong balance sheet
stand us in good stead.
We remain confident in our offering and our ability to continue to grow sales,
innovate and expand, and look forward to welcoming more and more customers to
an Everyman over time.
Alex Scrimgeour
Chief Executive
28 September 2022
Finance Director's Statement
26 Weeks Ended 30 June 2022 26 Weeks Ended 1 July 2021 26 Weeks Ended 4 July 2019
£000 £000 £000
Revenue 40,718 7,652 28,924
Gross Profit 25,462 4,752 17,848
Gross Profit Margin 62.5% 62.1% 61.7%
Government Support 155 3,233 -
Administrative Expenses (24,780) (16,143) (16,250)
Operating Profit / (Loss) 837 (7,658) 1,598
Financial Expenses (1,635) (1,528) (1,153)
Profit / (Loss) Before Taxation (798) (9,186) 445
Tax Credit / (Charge) - 132 115
Profit / (Loss) For the Period (798) (9,054) 560
Adjusted EBITDA* 7,502 (1,407) 6,631
*Adjusted EBITDA refers to Operating Profit adjusted for the removal of
depreciation, amortisation, profit / loss on disposal of fixed assets,
pe-opening expenses, lease termination costs, impairment charges and
share-based payment expenses.
Revenue and Operating Profit
Group revenue in H1 2022 was £40.7m compared to £7.7m in the same period
last year and £28.9m in the first six months of 2019, due to the upward
trajectory of admissions and the opening of nine new venues between H1 2019
and the end of the period.
Additionally, in July 2020 the Chancellor introduced a temporary reduced rate
of VAT for the hospitality sector, from which Everyman was able to benefit. In
H1 2022 the reduced rate of VAT was 12.5%, until 31 March 2022, at which point
the standard rate of VAT resumed. For the entirety of H1 2021 the reduced rate
of VAT was 5%.
The table below shows revenue adjusted for the removal of the VAT benefit in
each relevant period.
26 Weeks Ended 30 June 2022 26 Weeks Ended 1 July 2021 26 Weeks Ended 4 July 2019
£000 £000 £000
VAT-adjusted Revenue 39,788 6,830 28,924
Box Office 19,645 3,178 16,629
Food & Beverage 16,358 2,524 10,261
Other 3,785 1,128 2,034
The temporary reduced rate of VAT resulted in a £0.9m revenue benefit in H1
2022 and a £0.8m revenue benefit in H1 2021.
With the VAT benefit removed, like-for-like Box Office and Food & Beverage
revenue increased by 2.1% vs. the same period in 2019.
Gross Profit Margin in H1 2022 was 62.5%, or 61.7% with the aforementioned VAT
benefit removed. This is consistent with prior years.
We received significantly less government support in the period, the only
contribution being £0.2m in the form of the Omicron Hospitality and Leisure
Grant. In 2021 we received £2.8m from the Coronavirus Job Retention Scheme
and £0.9m in the form of Coronavirus Business Support Grants.
Administrative Expenses increased from £16.3m in H1 2019 to £24.8m in H1
2022. This is commensurate with the increase in venues: 28 were open at the
end of H1 2019 and 37 at the end of H1 2022. Our largest cost increase was
Labour (a £4m increase vs. H1 2019), driven by the aforementioned new
openings, a larger Head Office team to support the growing business and an 21%
increase in National Living Wage from the beginning of H1 2019 to the end of
H1 2022 driving pay increases for our teams.
Utilities costs were £0.9m during the period (H1 2019: £0.6m), increasing in
line with the growing estate. A significant proportion of utilities contracts
are fixed until October 2023.
Net finance costs
The Group's net bank interest payable was £288k in H1 2022, a £38k increase
on the same period last year, as a result of the higher base rate and
increased loan commitment fees due to the £10m extension of the facility in
March 2021.
The Group's finance charge in H1 2022 was £1.4m (H1 2021 £1.3m) and is
interest charges relating to the unwinding of the IFRS 16 lease liability in
the period.
Share based payments
The share-based payment expense for the period was £784k (H1
2021: £1,129k) reflecting share option incentives provided to the Group's
management and employees.
Cash flows
Net cash generated in operating activities was £9.1m (H1 2021: £0.3m; year
ended 30 December 2021: £12.2m). The net cash inflow for the period was
£1.7m (H1 2021: £1.3m; year ended 30 December 2021: £3.8m). This is
largely represented by capital expenditure of £7.5m relating to build costs
for new venues, existing venue refurbishment and new systems to support the
growing business.
Cash held at the end of the period was £5.9m (1 July 2021: £1.7m, 30
December 2021: £4.2m). The cash held will be invested in the continuing
development and expansion of the Group's business.
The Group has access to a £40m facility of which £14.5m was drawn at the end
of the period.
The Board does not recommend the payment of a dividend at this stage of the
Group's development.
Capital Expenditure
During the period, the Group opened a new five-screen venue in Edinburgh, on 2
April 2022. Post-period end, the Group opened a new four-screen venue in
Egham, on 23 September 2022. We are on track to open a four-screen venue in
Durham in November 2022, and six further venues in 2023.
The Group continues to invest in its existing estate to maintain high
standards and differentiation against the wider market. During the period we
refurbished our venues in Bristol and Birmingham and, post-period end, in
Canary Wharf, Esher and Hampstead.
Capital investment during the period was £6.7m, of which £5.6m was on
venues. The remainder related to infrastructure and head office costs to
support the continued growth of the business. Key projects during the period
included new handheld devices and kitchen screens in venues, to improve the
speed, efficiency and accuracy of our food & beverage offer to customers.
Will Worsdell
Finance Director
28 September 2022
26 weeks ended 26 weeks ended Year
ended
30 June 1 July 30 December
2022 2021 2021
Note £000 £000 £000
Revenue 3 40,718 7,652 49,027
Cost of Sales (15,256) (2,900) (18,129)
Gross profit 25,462 4,752 30,898
Covid-19 government support 155 3,733 3,800
Impairment of goodwill, property, plant and machinery - - 2,504
Administrative expenses (24,780) (16,143) (39,363)
Operating profit/(loss) 837 (7,658) (2,161)
Financial expenses (1,635) (1,528) (3,255)
Profit/(Loss) before taxation (798) (9,186) (5,416)
Tax credit/(charge) 4 - 132 (14)
Profit/(Loss) for the period (798) (9,054) (5,430)
Other comprehensive income for the period - - 69
Total comprehensive profit/(loss) for the period (798) (9,054) (5,361)
Basic loss per share (pence) 5 (0.88) (9.99) (5.96)
Diluted loss per share (pence) 5 (0.88) (9.99) (5.96)
All amounts relate to continuing activities.
Non-GAAP measure: adjusted EBITDA
Adjusted EBITDA 7,502 (1,407) 8,281
Before:
Depreciation and amortisation (5,671) (5,248) (11,727)
Exceptional items (215) - -
Costs related to Covid 19 - (265) -
Covid 19 related rent concessions - 411 -
Disposal of property, plant and equipment - (8) -
Pre-opening expenses 5 (12) (147)
Impairment of fixed assets - - 2,504
Share-based payment expense (784) (1,129) (1,072)
Operating profit/(loss) 837 (7,658) (2,161)
Consolidated balance sheet at 30 June 2022 (unaudited)
Registered in England and Wales
08684079
30 June *Restated 1 July 30 December
2022 2021 2021
£000 £000 £000
Assets
Non-current assets
Property, plant and equipment 84,923 78,825 81,848
Right-of-use assets 59,449 55,261 58,593
Intangible assets 9,283 9,188 8,906
Deferred tax assets - 145 -
Trade and other receivables 173 265 177
153,828 143,684 149,524
Current assets
Inventories 662 470 711
Trade and other receivables 3,877 2,944 5,649
Cash and cash equivalents 5,903 1,665 4,240
10,442 5,079 10,600
Total assets 164,270 148,763 160,124
Liabilities
Current liabilities
Other interest-bearing loans and borrowings 252 48 119
Other provisions - - 393
Trade and other payables 17,133 11,822 15,994
Lease liabilities 2,985 2,981 2,633
20,370 14,851 19,139
Non-current liabilities
Other interest-bearing loans and borrowings 14,500 13,500 12,500
Other payables - 8 -
Other provisions 1,066 1,010 1,118
Lease liabilities 80,112 74,724 79,147
95,678 89,242 92,765
Total liabilities 116,048 104,093 111,904
Net assets 48,222 44,670 48,220
Equity attributable to owners of the Company
Share capital 9,118 9,223 9,117
Share premium 57,112 57,064 57,097
Merger reserve 11,152 11,152 11,152
Other reserve 83 (6) 83
Retained earnings (29,243) (32,763) (29,229)
Total equity 48,222 44,670 48,220
*see Note 2 for details of restatement
Consolidated statement of changes in equity for the period ended 30 June 2022
(unaudited)
Share Share Merger Other Retained Total
capital Premium reserve Reserve earnings equity
£000 £000 £000 £000 £000 £000
Balance at 31 December 2021 9,117 57,097 11,152 83 (29,229) 48,220
Loss for the period - - - - (798) (798)
Shares issued in the period 1 15 - - - 16
Share-based payments - - - - 784 784
Total transactions with owners of the parent 1 15 - - 784 800
Balance at 30 June 2022 9,118 57,112 11,152 83 (29,243) 48,222
Balance at 1 January 2021 *restated 9,110 57,038 11,152 (6) (24,871) 52,423
Loss for the period - - - - (9,054) (9,054)
Retranslation of foreign currency - - - - 33 33
Shares issued in the period 113 26 - - - 139
Share- based payments - - - - 1,129 1,129
Total transactions with owners of the parent 113 26 - - 1,129 1,268
Balance at 1 July 2021 9,223 57,064 11,152 (6) (32,763) 44,670
*see Note 2 for details of restatement
Consolidated cash flow statement for the period ended 30 June 2022 (unaudited)
30 June 1 July 30 December
2022 2021 2021
Note £000 £000 £000
Cash flows from operating activities
(Loss) for the period (798) (9,054) (5,430)
Adjustments for:
Financial expenses 1,635 1,528 3,255
Income tax credit 4 - (132) 14
Operating loss 837 (7,658) (2,161)
Depreciation and amortisation 5,671 5,248 11,727
Impairment of goodwill, property, plant and equipment and right-of-use assets - - (2,504)
Gains on derecognition of lease contract (99) - -
Loss on disposal of property, plant and equipment - 8 488
Rent concessions - (411) (701)
Equity-settled share-based payment expenses 784 1,129 1,072
7,193 (1,684) 7,921
Changes in working capital
Decrease/(increase) in inventories 48 (89) (326)
Decrease/(increase) in trade and other receivables 1,026 (49) (2,844)
Increase in trade and other payables 1,108 2,124 7,067
(Decrease)/increase in provisions (242) - 384
Net cash / (used in) generated from operating activities 9,133 302 12,202
Cash flows from investing activities
Acquisition of property, plant and equipment (6,839) (777) (7,391)
Acquisition of intangible assets (654) (277) (422)
Net cash used in investing activities (7,493) (1,054) (7,813)
Cash flows from financing activities
Proceeds from the issuance of ordinary shares 17 50 20
Proceeds from the exercise of share options - - 66
Proceeds from bank borrowings 2,000 6,000 6,000
Repayment of bank borrowings - (1,500) (2,500)
Lease payments - interest (1,386) (1,257) (2,587)
Lease payments - capital (1,620) (956) (1,526)
Landlord capital contributions 1,300 - 500
Interest paid (288) (248) (519)
Net cash generated/(used in) from financing activities 23 2,089 (546)
Exchange gain on cash and cash equivalents - - 69
Cash and cash equivalents at the beginning of the period 4,240 328 328
Net increase in cash and cash equivalents 1,663 1,337 3,843
Cash and cash equivalents at the end of the period 5,903 1,665 4,240
Notes to the 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 and accounting policies
These condensed interim financial statements of the Group for the period ended
30 June 2022 have been prepared using accounting policies consistent with UK
adopted International Accounting Standards. 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 30 December 2021.
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 30 December 2021. The auditor's
opinion on these financial statements 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.
Going Concern
As part of the adoption of the going concern basis, Everyman continues to
consider the uncertainty caused by the macroeconomic environment. The Group's
financing arrangements include a £30m rolling credit facility (RCF), and a
government-backed Coronavirus Large Business Interruption Loan Scheme
("CLBILS") of £10m, both repayable on or before 15 January 2024. As at 30
June 2022 the Group had drawn £14.5m of this facility and had cash of £5.9m,
therefore the net debt position was £8.6m, with the undrawn facility at
£25.5m.
The facility has leverage and fixed cover charge covenants, and previous
liquidity and EBITDA covenants ended on 31 May 2022. The Board has reviewed
forecast scenarios and is confident that the business can continue to operate
with sufficient headroom. These forecasts consider scenarios in which there is
no further growth in admissions beyond 2022 levels and include realistic
assumptions around wage increases and inflation. Utilities contracts are fixed
until October 2023 for the majority of venues.
In light of this, the Board consider it appropriate to adopt the going concern
basis of accounting in preparing the financial statements.
Restatement of accounting for leases
Restatement of prior year reported numbers As previously reported Restatement 1 Restatement 2 Restated 1 July
1July 2021 2021
£'000 £'000 £'000 £'000
Balance Sheet
Right-of-use assets 54,368 893 - 55,261
Current Lease liabilities (3,057) 50 26 (2,981)
Non-current Lease liabilities (73,556) (1,168) - (74,724)
Trade and other payables (11,832) 10 - (11,822)
Trade and other receivables 2,928 16 - 2,944
Retained earnings (32,590) (199) 26 (32,763)
Net Assets and Total Equity 44,843 (199) 26 44,670
Restatement 1
The previously reported results have been restated in respect of two leases as
follows:
Canary Wharf
An assumption was made that rent would increase from March 2020, however, this
was not the case. As a result, the opening lease liability and right of use
asset required amendment, as the discounted cashflows were greater than
actually payable.
Correcting this led to a reduction in the right of use asset of £223,000 with
a corresponding decrease in the lease liability of £344,000 and increase in
retained earnings of £160,000. This also gave rise to a decrease in
depreciation charge of £45,000 and decrease in finance charge of £24,000. An
adjustment to the gain on concession was made to reduce the gain by £21,000.
Chelmsford
Implicit in the lease is a contractual 2.5% compound increase in rent every 5
years. This meets the definition of an in-substance fixed payment and so
should be accounted for when discounting the future cash flows upon
recognition of the lease.
Accounting for this amendment has led to an increase in right of use asset of
£1,174,000 with a corresponding increase of £1,462,000 to the lease
liability and a decrease in retained earnings of £197,000. This also gave
rise to an increase in depreciation charge of £103,000 and an increase in
finance charge of £107,000.
The net impact of both adjustments in Restatement 1 is a reduction in Group
profit across 2019 and 2020 of £199,000.
Restatement 2
After finalisation of the prior period financial statements there was a change
to the Practical Expedient for rental concessions to include those effecting
lease payments up to 30 June 2022. The original practical expedient was
limited to arrangements that impacted rent payments up to 30 June 2021. This
meant that some concessions that had previously been treated as modifications
could now be accounted for using the Practical Expedient.
Accounting for the relevant concessions using the practical expedient gave
rise to a decrease in the group lease liability of £26,000.
Gain on concessions was increased by £26,000, which is the net impact to
Group profit in 2020 for Restatement 2.
3 Revenue 26 weeks ended 26 weeks ended Year ended 30
30 June 1 July December
2022 2021 2021
£000 £000 £000
Film and entertainment 20,234 3,631 25,150
Food and beverages 16,699 3,643 20,360
Other income 3,785 378 3,517
40,718 7,652 49,027
Restatement 1
The previously reported results have been restated in respect of two leases as
follows:
Canary Wharf
An assumption was made that rent would increase from March 2020, however, this
was not the case. As a result, the opening lease liability and right of use
asset required amendment, as the discounted cashflows were greater than
actually payable.
Correcting this led to a reduction in the right of use asset of £223,000 with
a corresponding decrease in the lease liability of £344,000 and increase in
retained earnings of £160,000. This also gave rise to a decrease in
depreciation charge of £45,000 and decrease in finance charge of £24,000. An
adjustment to the gain on concession was made to reduce the gain by £21,000.
Chelmsford
Implicit in the lease is a contractual 2.5% compound increase in rent every 5
years. This meets the definition of an in-substance fixed payment and so
should be accounted for when discounting the future cash flows upon
recognition of the lease.
Accounting for this amendment has led to an increase in right of use asset of
£1,174,000 with a corresponding increase of £1,462,000 to the lease
liability and a decrease in retained earnings of £197,000. This also gave
rise to an increase in depreciation charge of £103,000 and an increase in
finance charge of £107,000.
The net impact of both adjustments in Restatement 1 is a reduction in Group
profit across 2019 and 2020 of £199,000.
Restatement 2
After finalisation of the prior period financial statements there was a change
to the Practical Expedient for rental concessions to include those effecting
lease payments up to 30 June 2022. The original practical expedient was
limited to arrangements that impacted rent payments up to 30 June 2021. This
meant that some concessions that had previously been treated as modifications
could now be accounted for using the Practical Expedient.
Accounting for the relevant concessions using the practical expedient gave
rise to a decrease in the group lease liability of £26,000.
Gain on concessions was increased by £26,000, which is the net impact to
Group profit in 2020 for Restatement 2.
3
Revenue
26 weeks ended
26 weeks ended
Year ended 30
30 June
1 July
December
2022
2021
2021
£000
£000
£000
Film and entertainment
20,234
3,631
25,150
Food and beverages
16,699
3,643
20,360
Other income
3,785
378
3,517
40,718
7,652
49,027
In the 26-week period ended 30 June 2022, £0.2m Other Operating Income was
received (H1 2021: £3.7m). This consisted of Omicron Hospitality &
Leisure Grant.
4 Taxation 26 weeks ended 26 weeks ended Year ended 30
30 June 1 July December
2022 2021 2021
£000 £000 £000
Current tax - - -
Adjustments in prior years - - -
- - -
Deferred tax (credit)/expense
Origination and reversal of temporary differences (18) 104 416
Adjustments in respect of prior years 18 25 (101)
Effect of tax rate change - (261) (301)
Deferred tax not previously recognised - - -
Total tax (credit)/charge - (132) 14
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
loss for the period are as follows:
Reconciliation of effective tax rate 26 weeks ended 26 weeks ended Year ended 30
30 June 2 July December
2022 2021 2021
£000 £000 £000
(Loss) before taxation (798) (9,186) (5,416)
Tax at the UK corporation tax rate of 19% (152) (1,745) (1,029)
Permanent differences (expenses not deductible for tax purposes) 463 422 750
Deferred tax not previously recognised (433) - -
Impact of difference in overseas tax rates 1 - 1
De-recognition of losses - 1,885 605
Other short term timing differences 3 31 -
Effect of change in expected future statutory rates on deferred tax 104 (261) (217)
Impact of a drop in share-based payments intrinsic value (4) (489) 5
Adjustment in respect of previous periods 18 25 (101)
Total tax (credit)/charge - (132) 14
5 Earnings per share 26 weeks ended 26 weeks ended Year
ended
30 June 1 July 30
December
2022 2021 2021
£000 £000 £000
Profit/(Loss) used in calculating basic and diluted earnings per share (798) (9,054) (5,430)
Number of shares (000's)
Weighted average number of shares for the purpose of basic earnings per share 91,177 90,597 91,129
Number of shares (000's)
Weighted average number of shares for the purpose of diluted earnings per 91,177 90,597 91,129
share
Basic earnings per share (pence) (0.88) (9.99) (5.96)
Diluted earnings per share (pence) (0.88) (9.99) (5.96)
Basic earnings per share amounts are calculated by dividing net profit/(loss)
for the period attributable to Ordinary equity holders of the parent by the
weighted average number of Ordinary shares outstanding during the year.
The Company has 6.9m potentially issuable shares (H1 2021: 7.5m) all of which
relate to the potential dilution from the Group's share options issued to the
Directors and certain employees and contractors, under the Group's incentive
arrangements. In the current period these options are anti-dilutive as they
would reduce the loss per share and so haven't been included in the diluted
earnings per share.
Taxation
26 weeks ended
26 weeks ended
Year ended 30
30 June
1 July
December
2022
2021
2021
£000
£000
£000
Current tax
-
-
-
Adjustments in prior years
-
-
-
-
-
-
Deferred tax (credit)/expense
Origination and reversal of temporary differences
(18)
104
416
Adjustments in respect of prior years
18
25
(101)
Effect of tax rate change
-
(261)
(301)
Deferred tax not previously recognised
-
-
-
Total tax (credit)/charge
-
(132)
14
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
loss for the period are as follows:
Reconciliation of effective tax rate
26 weeks ended
26 weeks ended
Year ended 30
30 June
2 July
December
2022
2021
2021
£000
£000
£000
(Loss) before taxation
(798)
(9,186)
(5,416)
Tax at the UK corporation tax rate of 19%
(152)
(1,745)
(1,029)
Permanent differences (expenses not deductible for tax purposes)
463
422
750
Deferred tax not previously recognised
(433)
-
-
Impact of difference in overseas tax rates
1
-
1
De-recognition of losses
-
1,885
605
Other short term timing differences
3
31
-
Effect of change in expected future statutory rates on deferred tax
104
(261)
(217)
Impact of a drop in share-based payments intrinsic value
(4)
(489)
5
Adjustment in respect of previous periods
18
25
(101)
Total tax (credit)/charge
-
(132)
14
5
Earnings per share
26 weeks ended
26 weeks ended
Year
ended
30 June
1 July
30
December
2022
2021
2021
£000
£000
£000
Profit/(Loss) used in calculating basic and diluted earnings per share
(798)
(9,054)
(5,430)
Number of shares (000's)
Weighted average number of shares for the purpose of basic earnings per share
91,177
90,597
91,129
Number of shares (000's)
Weighted average number of shares for the purpose of diluted earnings per
share
91,177
90,597
91,129
Basic earnings per share (pence)
(0.88)
(9.99)
(5.96)
Diluted earnings per share (pence)
(0.88)
(9.99)
(5.96)
Basic earnings per share amounts are calculated by dividing net profit/(loss)
for the period attributable to Ordinary equity holders of the parent by the
weighted average number of Ordinary shares outstanding during the year.
The Company has 6.9m potentially issuable shares (H1 2021: 7.5m) all of which
relate to the potential dilution from the Group's share options issued to the
Directors and certain employees and contractors, under the Group's incentive
arrangements. In the current period these options are anti-dilutive as they
would reduce the loss per share and so haven't been included in the diluted
earnings per share.
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