TIDMEMAN
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 GBP38.3m (H1 2022: GBP40.7m)
-- Adjusted EBITDA(1) of GBP5.8m (H1 2022: GBP7.5m, including a GBP0.9m VAT benefit)
-- Gross Profit Margin of 65.6% (H1 2022: 62.5%)
-- Food & Beverage Spend per Head GBP10.25 (H1 2022: GBP8.96(3) )
-- Paid-for Average Ticket Price GBP11.49 (H1 2022: GBP11.32(3) )
-- Cash generated from operating activities GBP7.2m (H1 2022: GBP9.1m)
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 GBP3.9m.
-- 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 GBP60.2m (2022: GBP53.1m)
o August YTD EBITDA GBP11.0m (2022: GBP9.8m)
-- Agreed a new three-year loan facility of GBP35m 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 GBP94.4m and Adjusted EBITDA of GBP17.2m.
(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 Tel: 020 7523 8000
and Broker)
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/
Chief Executive's Statement
Trading in the first half of 2023 was in line with expectations,
with revenue of GBP38.3m (H1 2022: GBP40.7m) and EBITDA of GBP5.8m
(H1 2022: GBP7.5m). H1 2022 included a GBP0.9m 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 GBP60.2m (2022: GBP53.1m) and EBITDA
was GBP11.0m (2022: GBP9.8m).
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 GBP10.25
compared to GBP8.96 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 GBP35m 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 GBP25m Revolving
Credit Facility and GBP15m 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 GBP11.49 GBP11.32
Price*
Food & Beverage Spend GBP10.25 GBP8.96
per Head*
*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 GBP10.25 compared to GBP8.96 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 GBP11.49 compared to
GBP11.32 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 26 Weeks
Ended 29 Ended 30
June 2023 June 2022
GBP000 GBP000
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 GBP38.3m compared to GBP40.7m 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 GBP0.9m 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
GBP10.25 (H1 2022: GBP8.96) 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 GBP27.0m (H1 2022:
GBP24.8m). 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 GBP0.6m 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 GBP1.1m during the period (H1 2022:
GBP0.9m), 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 GBP1m in H1 2023, a
GBP0.6m 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 GBP22.75m (H1
2022: GBP14.5m) to finance the Group's continued expansion.
The Group's finance charge in H1 2022 was GBP1.6m (H1 2021
GBP1.4m) 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 GBP0.6m (H1
2022: GBP0.8m) reflecting share option incentives provided to the
Group's management and employees.
Cash flows
Cash held at the end of the period was GBP1.7m (H1 2022:
GBP5.9m).
Net cash generated in operating activities was GBP7.2m (H1 2022:
GBP9.1m). The net cash outflow for the period was GBP2.0m (H1 2022:
GBP1.7m inflow). This is largely represented by investing cash flow
of GBP8.5m (H1 2022: GBP7.5m) 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 GBP35m facility of which
GBP22.75m 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 GBP12.1m (H1 2022:
GBP6.8m) and landlord contributions were GBP2.8m (H1 2022:
GBP1.3m). As a result, net capital investment was GBP9.3m (H1 2022:
GBP5.5m). Of this, GBP8.3m was on new venues (H1 2022: GBP4.3m).
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 GBP3.9m. 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 GBP3.2m. 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 GBP0.1m.
Net Debt
Net debt at the end of the period was GBP21.3m. 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
GBP17.9m.
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 26 weeks Year
ended ended ended
29 June 30 June 29 December
2023 2022 2022
Note GBP000 GBP000 GBP000
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
GBP000 GBP000 GBP000
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
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
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 GBP000 GBP000 GBP000
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 GBP35m 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 GBP22.75m of its previous
GBP25m RCF and GBP15m Coronavirus Large Business Interruption Loan
Scheme ("CLBILS") held with Barclays Bank Plc and Santander Plc,
had accrued interest of GBP0.2m and held cash of GBP1.7m. The net
debt position was GBP21.3m, with the undrawn facility at GBP17.25m.
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. GBP17.9m
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 26 weeks Year ended
ended ended 29
29 June 30 June December
2023 2022 2022
GBP000 GBP000 GBP000
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, GBP0.3m Other
Operating Income was received (H1 2022: GBP0.2m). This consisted
mainly of landlord compensation payments.
4 Taxation 26 weeks 26 weeks Year ended
ended ended 29
29 June 30 June December
2023 2022 2022
GBP000 GBP000 GBP000
Current tax - - -
Adjustments in prior years - - -
-------------------- ---------- ------------
- - -
Deferred tax (credit)/expense
Origination and reversal of temporary - (18) -
differences
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 26 weeks 26 weeks Year ended
tax rate ended ended 29
29 June 30 June December
2023 2022 2022
GBP000 GBP000 GBP000
(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 - (433) -
recognised
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 - (4) -
intrinsic value
Adjustment in respect of previous periods - 18 -
-------------------- ---------- ------------
Total tax (credit)/charge - - -
-------------------- ---------- ------------
5 Earnings per 26 weeks 26 weeks Year
share ended ended ended
29 June 30 June 29
December
2023 2022 2022
GBP000 GBP000 GBP000
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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END
IR SELFMMEDSEDU
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