REG - Everyman Media Grp - Interim Results
27/09/2023 07:00
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RNS Number : 7384N Everyman Media Group PLC 27 September 2023
27 September 2023
Everyman Media Group PLC
("Everyman" or the "Group")
Interim Results
Trading in line with expectations with financial performance on track for full
year
Everyman Media Group PLC, the independent, premium cinema group, reports its
unaudited interim results for the 26 weeks ended 29 June 2023.
Summary of financial performance
· Revenue of £38.3m (H1 2022: £40.7m)
· Adjusted EBITDA(1) of £5.8m (H1 2022: £7.5m, including
a £0.9m VAT benefit)
· Gross Profit Margin of 65.6% (H1 2022: 62.5%)
· Food & Beverage Spend per Head £10.25 (H1 2022:
£8.96(3))
· Paid-for Average Ticket Price £11.49 (H1 2022:
£11.32(3))
· Cash generated from operating activities £7.2m (H1 2022:
£9.1m)
Strategic and operational progress
· Opened four-screen venues in Salisbury and Northallerton
and a three-screen venue in Plymouth. The Group now operates 41 cinemas and
141 screens.
· Agreed the sale and leaseback of the Crystal Palace
freehold for consideration of £3.9m.
· Continued innovation across the Group's Food &
Beverage offering, focusing on increased choice, investment into technology,
and increased efficiency of service.
Post-period and outlook
· Strong trading performance in July and August, summarised
as follows:
o August YTD Revenue £60.2m (2022: £53.1m)
o August YTD EBITDA £11.0m (2022: £9.8m)
· Agreed a new three-year loan facility of £35m with
Barclays Bank Plc and National Westminster Bank Plc, extendable by a further
two years subject to lender consent. The facility ensures that the Group is
soundly financially structured and well-positioned to take advantage of
opportunities moving forward.
· The Board remains confident that the financial
performance of the Group for the full year ending 28 December 2023 will be in
line with market expectations(2).
(1)Adjusted for pre-opening costs, acquisition expenses, depreciation,
amortization and share based payments.
(2) Current market forecasts for the year ended 28 December 2023 are revenue
of £94.4m and Adjusted EBITDA of £17.2m.
(3) Paid for Average Ticket Price and Food & Beverage Spend per Head
comparatives have been adjusted to reflect the reduction in VAT from 20% to
12.5% until 1 April 2022.
Alex Scrimgeour, Chief Executive of Everyman Media Group PLC, said:
"We are pleased to report that trading continues to be in line with the
Board's expectations, having achieved robust interim results despite this
year's major film titles falling in the second half of 2023.
The recent and resounding Box Office success of Barbie and Oppenheimer drove
exceptional performance throughout July and August, highlighting the value of
high-quality original content. Everyman's strong year to date performance
underpins our confidence in meeting market expectations for the full year,
whilst equally demonstrating that the UK cinema sector is as vibrant as ever.
We remain confident in our prospects as we continue to be supported by a slate
of high-quality second half releases, a carefully expanded estate and new
banking facilities which ensure we are well configured to take advantage of
future opportunities."
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
Harry Pardoe
Alma PR (Financial PR Advisor) Tel: 020 3405 0205
Rebecca Sanders-Hewett
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
Trading in the first half of 2023 was in line with expectations, with revenue
of £38.3m (H1 2022: £40.7m) and EBITDA of £5.8m (H1 2022: £7.5m). H1 2022
included a £0.9m EBITDA benefit from the Temporarily Reduced Rate of VAT,
which ended on 31(st) March 2022.
The timing of major releases in 2022 was weighted towards the first half of
the year, with titles such as The Batman, Belfast and Top Gun: Maverick
playing particularly well to Everyman audiences. The 2023 slate, by contrast,
is weighted towards H2, with Indiana Jones and the Dial of Destiny, Mission
Impossible: Dead Reckoning Part One, Barbie and Oppenheimer arriving
post-period end and contributing to strong July and August trading. At the end
of August 2023, YTD revenue was £60.2m (2022: £53.1m) and EBITDA was £11.0m
(2022: £9.8m).
The performance of this year's major summer titles has demonstrated that the
appetite for high-quality, original content is indisputable; our expectation
is that the commercial success of these films will inspire studios to invest
in further new and innovative releases. It is pleasing to note that five of
the fifteen highest-grossing films of all time have been in the last two years
(Spiderman: No Way Home, No Time to Die, Barbie, Top Gun: Maverick and Avatar:
The Way of Water).
Elevating the Everyman experience
Food & Beverage spend per head increased to £10.25 compared to £8.96 in
2022, despite the backdrop of a difficult environment for consumer
discretionary spend. We have continued to focus on giving our customers more
choice, with new sharing dishes, vegan options, quarterly specials and
cocktails. We have also launched a spend incentive for our venue teams,
resulting in a higher proportion of guests ordering and increased
participation (number of items per order).
We continue to invest in technology. Our new website launched in February,
improving user experience and the customer booking journey. Average monthly
visitors since launch have been 940k, an increase of 17.8%, and we have also
made improvements to the booking journey for our members. Our bar and kitchen
screen roll-out was completed in February, helping to improve speed of
service, and functionality for customers to order from their mobile devices is
being piloted in a small number of venues post-period end. In addition,
development is now underway on a new Android and iOS app.
We continue to build the Everyman brand. During the period, we commenced a new
partnership with American Express, who have committed to hosting four
nationwide previews, starting with Asteroid City and Past Lives. American
Express have also sponsored additional events at Everyman Secret Cinema at The
Grove Hotel in Hertfordshire, returning for its third consecutive year.
Our signature partnerships with Jaguar and Green & Black's go from
strength-to-strength. Jaguar sponsored an immersive event for Babylon at our
Crystal Palace venue in January and have continued to support the Screen on
the Canal at Granary Square in London. During the period, Discovery were added
as a new brand partner, and we hosted the UK premiere of Searchlight's
Chevalier, in partnership with Green & Black's.
Our relationship with Apple TV+ continues to grow, with screenings of The
Reluctant Traveller, Prehistoric Planet, Sharper and Tetris.
Continued organic expansion
As at 27 September 2023, Everyman currently has 41 cinemas and 141 screens. We
opened a four-screen venue in Salisbury, a four-screen venue in Northallerton
and a three-screen venue in Plymouth in Q2 2023. These new venues are
currently trading in line with management expectations.
Maintaining a prudent attitude to leverage, the Board is constantly evaluating
new opportunities to grow the Everyman estate. With this in mind, a new
two-screen venue will open in Marlow in Q3 2023. A three-screen venue in Bury
St Edmunds is expected to open in Q1 2024, a four-screen venue in Durham in Q2
2024, a five-screen venue in Cambridge and a three-screen venue in Stratford
(London) in Q3 2024 and a five-screen venue at The Whiteley (Bayswater) in Q4
2024. The pipeline for 2025 is well-developed, with several venues at advanced
stages of negotiation.
New banking facilities
On 17 August 2023, the Group agreed a new three-year loan facility of £35m
with Barclays Bank Plc and National Westminster Bank Plc, extendable by a
further two years subject to lender consent. The new facility replaces the
existing £25m Revolving Credit Facility and £15m Coronavirus Large Business
Interruption Loan Scheme ("CLBILS") held with Barclays Bank Plc and Santander
UK Plc.
The new facility ensures that the Group is soundly financially structured and
well-positioned to take advantage of opportunities moving forward. We were
pleased that there was strong appetite from multiple lenders to work with
Everyman, and that the agreed commercial terms and loan covenants are
materially similar to the previous agreement.
Performance review
The Group uses the key performance indicators of Admissions, Paid-for Average
Ticket Price and Food & Beverage Spend per Head to monitor the progress of
the Group's activities.
26 weeks 26 weeks
ended ended
29 June 2023 30 June 2022
Admissions 1.6m 1.8m
Paid-for Average Ticket Price* £11.49 £11.32
Food & Beverage Spend per Head* £10.25 £8.96
£10.25
£8.96
*Paid For Average ticket price has been adjusted to reflect the reduction in
VAT from 20% to 12.5% until 1 April 2022.
** Food & Beverage Spend per Head has been adjusted to reflect the
reduction in VAT from 20% to 12.5% across certain items until 1 April 2022.
Admissions
Admissions in H1 2023 were 1.6m, compared to 1.8m in the same period last
year. 2022 admissions were H1 weighted, with titles such as The Batman,
Belfast and Top Gun: Maverick, all of which played particularly well for
Everyman audiences, releasing in the first half of the year.
As previously announced, the slate in H1 2023 did not see as much benefit from
high quality, original content; however, the widely-publicised performance of
Barbie and Oppenheimer, as well as other titles such as Indiana Jones and
Mission: Impossible, has led to a strong start to the second half of the year.
At the end of August 2023, YTD admissions were 2.5m (2022: 2.3m).
Average Ticket Price and Food & Beverage Spend per Head
Spend per Head increased to £10.25 compared to £8.96 in 2022 with last
year's VAT benefit removed, driven by continued investment in our menu and
technology, giving our customers more choice and enabling quicker and more
efficient service to seats.
Paid-for Average Ticket Price increased to £11.49 compared to £11.32 in 2022
with last year's VAT benefit removed. This is pleasing given that the content
in H1 was skewed towards a younger audience, as well as four new venues
opening between H1 2022 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.
Hollywood strike
In line with recent press coverage, we welcome the reported resolution between
the Writers Guild of America and the Alliance of Motion Picture and Television
Producers. Our expectation is that a resolution with the Screen Actors Guild
will follow shortly.
There has been minimal disruption to the film slate in 2023; whilst six titles
have been pushed back to next year, twelve have been added to the slate since
the strikes began. Dune: Part Two is currently the only major release to move
to 2024; however, we now look forward to the recently-announced Taylor Swift:
The Eras Tour on 13(th) October, which achieved the highest-ever single day
pre-sales at AMC in the US.
Outlook
Our optimism for the future continues, with strong second half performance
underpinned by the success of Barbie, Oppenheimer as well as other releases at
the Box Office. Despite the current discretionary spend environment, we have
continued to trade resiliently, highlighting our guests' desire to be
entertained. On a longer term view, we are well-positioned to benefit further
when the consumer market improves. The differentiated, premium Everyman offer
stands us in good stead going forward.
Alex Scrimgeour
Chief Executive
27 September 2023
Finance Director's Statement
26 Weeks Ended 29 June 2023 26 Weeks Ended 30 June 2022
£000 £000
Revenue 38,253 40,718
Gross Profit 25,101 25,462
Gross Profit Margin 65.6% 62.5%
Other Operating Income 322 155
Administrative Expenses (27,038) (24,780)
Operating Profit / (Loss) (1,615) 837
Financial Expenses (2,696) (1,635)
Profit / (Loss) Before Taxation (4,311) (798)
Tax Credit / (Charge) - -
Profit / (Loss) For the Period (4,311) (798)
Adjusted EBITDA* 5,782 7,502
*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 2023 was £38.3m compared to £40.7m in the same period
last year. This was driven by the phasing of admissions, which were weighted
towards H1 in 2022 but towards H2 in 2023. Our three new venues in Salisbury,
Northallerton and Plymouth opened towards the end of the period, and therefore
the Group will begin to see EBITDA contribution from them in the second half
of the year.
Additionally, the comparative period includes a £0.9m benefit from the
Temporarily Reduced Rate of VAT, which was 12.5% until 31 March 2022, after
which the standard rate of VAT resumed.
Gross Profit Margin increased to 65.6% (H1 2022: 62.5%) as a result of the
increase in Food & Beverage Spend per Head to £10.25 (H1 2022: £8.96)
growing the mix of Food & Beverage revenue, which carries a higher margin
than Film. We also saw increases in Private Hire, Events and Partnerships
income, all of which contributed to an improvement in overall Gross Profit
Margin.
Administrative Expenses increased to £27.0m (H1 2022: £24.8m). This was
driven by the increase in the number of venues from 37 at the end of the end
of H1 2022 to 41 at the end of H1 2023 contributing to an increase in the
Group's fixed cost base, depreciation, and associated pre-opening expenses.
The Group's largest cost increase was Labour, a £0.6m increase vs. H1 2022,
due to a 9.7% increase in the National Living Wage in April 2023 driving pay
increases for our teams, and the aforementioned new openings.
Utilities costs were £1.1m during the period (H1 2022: £0.9m), increasing in
line with the growing estate. On 21 July 2023, the Group signed new agreements
with SSE and Crown to fix our Electricity and Gas costs for one year, from
1(st) November 2023. Whilst the agreed rates are in line with management
forecasts, the shorter-term fix is to allow the Utilities market to settle
further prior to seeking a longer-term agreement during 2024.
Net finance costs
The Group's net bank interest payable was £1m in H1 2023, a £0.6m increase
on the same period last year. This is as a result of an increase in the base
rate to 5% at the end of H1 2023 (H1 2022: 1.25%), as well as an increase in
gross debt to £22.75m (H1 2022: £14.5m) to finance the Group's continued
expansion.
The Group's finance charge in H1 2022 was £1.6m (H1 2021 £1.4m) and
represents interest charges relating to the unwinding of the IFRS 16 lease
liability during the period.
Share based payments
The share-based payment expense for the period was £0.6m (H1 2022: £0.8m)
reflecting share option incentives provided to the Group's management and
employees.
Cash flows
Cash held at the end of the period was £1.7m (H1 2022: £5.9m).
Net cash generated in operating activities was £7.2m (H1 2022: £9.1m). The
net cash outflow for the period was £2.0m (H1 2022: £1.7m inflow). This is
largely represented by investing cash flow of £8.5m (H1 2022: £7.5m)
relating to build costs for new venues, infrastructure and new systems to
support the growing business.
Following the agreement of our new banking facilities on 17 August 2023, the
Group has access to a £35m facility of which £22.75m 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 four-screen venue in Salisbury, a
four-screen venue in Northallerton and a three-screen venue in Plymouth. The
Group is due to open a new two-screen venue in Marlow in Q3 2023. We are on
track to open at least five further venues in 2024, with several potential
venues at advanced stages of negotiation for 2025 and beyond.
Capital investment during the period was £12.1m (H1 2022: £6.8m) and
landlord contributions were £2.8m (H1 2022: £1.3m). As a result, net capital
investment was £9.3m (H1 2022: £5.5m). Of this, £8.3m was on new venues (H1
2022: £4.3m). Residual capital expenditure related to infrastructure and head
office costs to support the continued growth of the business.
Sale and Leaseback of Crystal Palace Venue
On 16(th) January 2023 the Group completed the sale and leaseback of its
freehold at 25 Church Road, London SE19 2TE for consideration of £3.9m. The
property was held on the Balance Sheet at 29(th) December 2022 as an Asset
Held for Sale, at a net book value of £3.2m. Under the rules of IFRS 16, and
because the Group has replaced a freehold with a right-of-use asset, the gain
on disposal has been capped at £0.1m.
Net Debt
Net debt at the end of the period was £21.3m. This was driven by a lower cash
balance at the end of the period, primarily due to payments to contractors on
the three new venues opened during May and June. At the end of August 2023,
net debt had fallen to £17.9m.
Will Worsdell
Finance Director
27 September 2023
Consolidated statement of profit and loss and other comprehensive income for
the period ended 29 June 2023 (unaudited)
26 weeks ended 26 weeks ended Year
ended
29 June 30 June 29 December
2023 2022 2022
Note £000 £000 £000
Revenue 3 38,253 40,718 78,817
Cost of Sales (13,152) (15,256) (28,338)
Gross profit 25,101 25,462 50,479
Other Operating Income 322 155 622
Administrative expenses (27,038) (24,780) (50,699)
Operating profit/(loss) (1,615) 837 402
Financial expenses (2,696) (1,635) (3,906)
Profit/(Loss) before taxation (4,311) (798) (3,504)
Tax credit/(charge) 4 - - -
Total comprehensive profit/(loss) for the period (4,311) (798) (3,504)
Basic loss per share (pence) 5 (4.73) (0.88) (3.84)
Diluted loss per share (pence) 5 (4.73) (0.88) (3.84)
All amounts relate to continuing activities.
Non-GAAP measure: adjusted EBITDA
Adjusted EBITDA 5,782 7,502 14,527
Before:
Depreciation and amortisation (6,328) (5,671) (11,725)
Exceptional items (39) (215) (234)
Disposal of property, plant and equipment 149 - (434)
Pre-opening expenses (588) 5 (195)
Share-based payment expense (591) (784) (1,537)
Operating profit/(loss) (1,615) 837 402
Consolidated balance sheet at 29 June 2023 (unaudited)
Registered in England and Wales
08684079
29 June 30 June 29 December
2023 2022 2022
£000 £000 £000
Assets
Non-current assets
Property, plant and equipment 99,784 84,923 90,067
Right-of-use assets 61,841 59,449 58,920
Intangible assets 9,231 9,283 9,312
Trade and other receivables 173 173 173
171,029 153,828 158,472
Asset held for sale - - 3,219
171,029 153,828 161,691
Current assets
Inventories 757 662 690
Trade and other receivables 7,113 3,877 5,840
Cash and cash equivalents 1,702 5,903 3,701
9,572 10,442 10,231
Total assets 180,601 164,270 171,922
Liabilities
Current liabilities
Other interest-bearing loans and borrowings 248 252 247
Trade and other payables 20,636 17,133 15,571
Lease liabilities 2,511 2,985 3,014
23,395 20,370 18,832
Non-current liabilities
Other interest-bearing loans and borrowings 22,750 14,500 22,000
Other provisions 1,362 1,066 1,362
Lease liabilities 90,545 80,112 83,459
114,657 95,678 106,821
Total liabilities 138,052 116,048 125,653
Net assets 42,549 48,222 46,269
Equity attributable to owners of the Company
Share capital 9,118 9,118 9,118
Share premium 57,112 57,112 57,112
Merger reserve 11,152 11,152 11,152
Other reserve 83 83 83
Retained earnings (34,916) (29,243) (31,196)
Total equity 42,549 48,222 46,269
Consolidated statement of changes in equity for the period ended 29 June 2023
(unaudited)
Share Share Merger Other Retained Total
capital Premium reserve Reserve earnings equity
£000 £000 £000 £000 £000 £000
Balance at 29 December 2022 9,118 57,112 11,152 83 (31,196) 46,269
Loss for the period - - - - (4,311) (4,311)
Share-based payments - - - - 591 591
Total transactions with owners of the parent - - - - (3,720) (3,720)
Balance at 29 June 2023 9,118 57,112 11,152 83 (34,916) 42,549
Balance at 30 December 2021 9,117 57,097 11,152 83 (29,229) 48,220
Loss for the year - - - - (3,504) (3,504)
Shares issued in the period 1 15 - - - 16
Share- based payments - - - - 1,537 1,537
Total transactions with owners of the parent 1 15 - - 1,537 1,537
Balance at 29 December 2022 9,118 57,112 11,152 83 (31,196) 46,269
Consolidated cash flow statement for the period ended 29 June 2023 (unaudited)
29 June 30 June 29 December
2023 2022 2022
Note £000 £000 £000
Cash flows from operating activities
(Loss) for the period (4,311) (798) (3,504)
Adjustments for:
Financial expenses 2,696 1,635 3,906
Operating profit / (loss) (1,615) 837 402
Depreciation and amortisation 6,328 5,671 11,725
Gains on derecognition of lease contract - (99) (99)
Loss/(gain) on disposal of property, plant and equipment (149) - 434
Equity-settled share-based payment expenses 591 784 1,537
5,155 7,193 13,999
Changes in working capital
Decrease/(increase) in inventories (67) 48 21
Decrease/(increase) in trade and other receivables (1,273) 1,026 (187)
Increase/(decrease) in trade and other payables 3,349 1,108 (1,658)
Decrease in provisions - (242) (378)
Net cash generated from operating activities 7,164 9,133 11,797
Cash flows from investing activities
Proceeds from freehold sale 3,900 - -
Acquisition of property, plant and equipment (12,148) (6,839) (18,884)
Acquisition of intangible assets (300) (654) (1,058)
Net cash used in investing activities (8,548) (7,493) (19,942)
Cash flows from financing activities
Proceeds from the issuance of ordinary shares - 17 16
Proceeds from bank borrowings 750 2,000 9,500
Repayment of bank borrowings - - -
Lease payments - interest (1,645) (1,386) (2,851)
Lease payments - capital (1,549) (1,620) (3,210)
Landlord capital contributions 2,826 1,300 5,005
Interest paid (997) (288) (854)
Net cash generated/(used in) from financing activities (615) 23 7,606
Cash and cash equivalents at the beginning of the period 3,701 4,240 4,240
Net increase / (decrease) in cash and cash equivalents (1,999) 1,663 (539)
Cash and cash equivalents at the end of the period 1,702 5,903 3,701
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
29 June 2023 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 29 December 2022.
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 2022. 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 £35m revolving credit facility ("RCF") held
with Barclays Bank Plc and National Westminster Bank Plc. This facility was
agreed on 17 August 2023 and is repayable on or before 17 August 2026, and can
be extended for up to two further years, subject to lender consent.
As at 29 June 2023 the Group had drawn £22.75m of its previous £25m RCF and
£15m Coronavirus Large Business Interruption Loan Scheme ("CLBILS") held with
Barclays Bank Plc and Santander Plc, had accrued interest of £0.2m and held
cash of £1.7m. The net debt position was £21.3m, with the undrawn facility
at £17.25m. Management note that net debt was higher than run-rate due to the
opening of three new venues in May and June 2023 and a correspondingly lower
cash balance, and that net debt has fallen to c. £17.9m at the end of August
2023.
The new RCF has leverage and fixed charge cover covenants. 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 2023 levels and include
realistic assumptions around wage increases and inflation. Utilities contracts
have been fixed for a year from 1(st) November 2023 and rates achieved on both
gas and electricity are in line with management expectations and forecasts.
In light of this, the Board consider it appropriate to adopt the going concern
basis of accounting in preparing the financial statements.
3 Revenue 26 weeks ended 26 weeks ended Year ended 29
29 June 30 June December
2023 2022 2022
£000 £000 £000
Film and entertainment 17,644 20,234 39,764
Food and beverages 16,085 16,699 32,250
Other income 4,524 3,785 6,803
38,253 40,718 78,817
Revenue
26 weeks ended
26 weeks ended
Year ended 29
29 June
30 June
December
2023
2022
2022
£000
£000
£000
Film and entertainment
17,644
20,234
39,764
Food and beverages
16,085
16,699
32,250
Other income
4,524
3,785
6,803
38,253
40,718
78,817
In the 26-week period ended 29 June 2023, £0.3m Other Operating Income was
received (H1 2022: £0.2m). This consisted mainly of landlord compensation
payments.
4 Taxation 26 weeks ended 26 weeks ended Year ended 29
29 June 30 June December
2023 2022 2022
£000 £000 £000
Current tax - - -
Adjustments in prior years - - -
- - -
Deferred tax (credit)/expense
Origination and reversal of temporary differences - (18) -
Adjustments in respect of prior years - 18 -
Effect of tax rate change - - -
Deferred tax not previously recognised - - -
Total tax (credit)/charge - - -
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 29
29 June 30 June December
2023 2022 2022
£000 £000 £000
(Loss) before taxation (4,311) (798) (3,504)
Tax at the UK corporation effective tax rate of 23.5% (H1 2022: 19%) (1,013) (152) (666)
Permanent differences (expenses not deductible for tax purposes) 662 463 840
Deferred tax not previously recognised - (433) -
Impact of difference in overseas tax rates - 1 -
De-recognition of losses 351 - 32
Other short term timing differences - 3 -
Effect of change in expected future statutory rates on deferred tax - 104 (206)
Impact of a drop in share-based payments intrinsic value - (4) -
Adjustment in respect of previous periods - 18 -
Total tax (credit)/charge - - -
5 Earnings per share 26 weeks ended 26 weeks ended Year
ended
29 June 30 June 29
December
2023 2022 2022
£000 £000 £000
Profit/(Loss) used in calculating basic and diluted earnings per share (4,311) (798) (3,504)
Number of shares (000's)
Weighted average number of shares for the purpose of basic earnings per share 91,178 91,177 91,178
Number of shares (000's)
Weighted average number of shares for the purpose of diluted earnings per 91,178 91,177 91,178
share
Basic earnings per share (pence) (4.73) (0.88) (3.84)
Diluted earnings per share (pence) (4.73) (0.88) (3.84)
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 7.8m potentially issuable shares (H1 2022: 6.9m) 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 29
29 June
30 June
December
2023
2022
2022
£000
£000
£000
Current tax
-
-
-
Adjustments in prior years
-
-
-
-
-
-
Deferred tax (credit)/expense
Origination and reversal of temporary differences
-
(18)
-
Adjustments in respect of prior years
-
18
-
Effect of tax rate change
-
-
-
Deferred tax not previously recognised
-
-
-
Total tax (credit)/charge
-
-
-
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 29
29 June
30 June
December
2023
2022
2022
£000
£000
£000
(Loss) before taxation
(4,311)
(798)
(3,504)
Tax at the UK corporation effective tax rate of 23.5% (H1 2022: 19%)
(1,013)
(152)
(666)
Permanent differences (expenses not deductible for tax purposes)
662
463
840
Deferred tax not previously recognised
-
(433)
-
Impact of difference in overseas tax rates
-
1
-
De-recognition of losses
351
-
32
Other short term timing differences
-
3
-
Effect of change in expected future statutory rates on deferred tax
-
104
(206)
Impact of a drop in share-based payments intrinsic value
-
(4)
-
Adjustment in respect of previous periods
-
18
-
Total tax (credit)/charge
-
-
-
5
Earnings per share
26 weeks ended
26 weeks ended
Year
ended
29 June
30 June
29
December
2023
2022
2022
£000
£000
£000
Profit/(Loss) used in calculating basic and diluted earnings per share
(4,311)
(798)
(3,504)
Number of shares (000's)
Weighted average number of shares for the purpose of basic earnings per share
91,178
91,177
91,178
Number of shares (000's)
Weighted average number of shares for the purpose of diluted earnings per
share
91,178
91,177
91,178
Basic earnings per share (pence)
(4.73)
(0.88)
(3.84)
Diluted earnings per share (pence)
(4.73)
(0.88)
(3.84)
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 7.8m potentially issuable shares (H1 2022: 6.9m) 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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