TIDMPIER
RNS Number : 0105A
Brighton Pier Group PLC (The)
21 March 2017
21 March 2017
The Brighton Pier Group PLC
(the "Company" or the "Group")
Interim results for the half year to 25 December 2016
Commenting on the results, Luke Johnson, Executive Chairman
said:
"This has been a transformational period for the Group.
The acquisition of Brighton Palace Pier has delivered a strong
financial performance for the Group with its first summer trading
period in this half year set of results. I believe there are
exciting opportunities to further develop the Pier business over
the coming years. We continue to make good progress rationalising
the Bars division together with driving operational and financial
improvements across the estate.
We expect trading to continue to be in-line with market
expectations through the seasonally quieter second half as
management executes the Group's strategy.
Our ambition is to become a leading experiential attractions
business in the UK. I believe we now have the correct group
structure and appropriate management team to deliver that
ambition."
All Company announcements and news are available at
www.brightonpiergroup.com
Enquiries:
The Brighton Pier Group PLC Tel: 020 7376 6300
Luke Johnson, Executive Chairman Tel: 020 7016 0700
John Smith, Chief Financial Officer Tel: 020 7376 6300
Panmure Gordon (UK) Limited (Nominated Tel: 020 7886 2500
Adviser and Joint Broker)
Corporate Finance
Andrew Godber / Atholl Tweedie / Duncan
Monteith
Corporate Broking
Charles Leigh-Pemberton
Arden Partner plc (Joint Broker) Tel: 020 7614 5900
Corporate Finance
John Llewellyn-Lloyd / Benjamin Cryer
Investor Relations
Sarah-Jane Woodcock / Charlotte Ridler
About Brighton Pier Group
The Brighton Pier Group PLC (the Group) owns and trades Brighton
Palace Pier together with 14 (2015: 19) premium bars in major towns
and cities across the UK.
Brighton Palace Pier offers a wide range of attractions
including two arcades and over twelve amusement rides, together
with a variety of on-site hospitality and catering facilities. The
attractions, product offering and layout of the Pier are focused on
creating a family-friendly atmosphere that aims to draw a wide
demographic of visitors. The Pier is free to enter, with revenue
generated from the pay-as-you-go purchase of products on the
amusement rides, in the arcades, in the hospitality facilities and
at the retail kiosks.
The bars trade under a variety of concepts including Embargo
Republica, Lola Lo, Sakura, Po Na Na, Fez Club, Lowlander, Smash
and Coalition. The Group predominantly targets a customer base of
sophisticated students midweek and stylish over 21s and
professionals at the weekend. The division focuses on delivering
added value to its customers through premium product ranges, high
quality music and entertainment, and a commitment to exceptional
service standards. The Bars estate is nationwide, incorporating key
university cities and towns that provide a vibrant night-time
economy and the demographics to support premium bars.
Business review
The Group operates as two separate divisions, with Anne Martin
leading the Pier division and Leigh Nicolson leading the Bars
division.
The business review covers the trading results for the 26 weeks
ending 25 December 2016. While the Bars division has a full
comparative in the same period last year, the Pier division was
only acquired on 27 April 2016 and, as a result, has no
comparatives.
Half year results
We are pleased to announce a strong set of results for the 26
weeks to 25 December 2016, which is in line with the trading
outlook published in the Company's results announcement on 30
September 2016.
Sales revenue for the period was up 65% at GBP17.74m (2015:
GBP10.72m), which included, for the first time the benefit of the
busy summer period on the Pier.
Group gross margin during the period has increased by 350 basis
points; which reflects the additional benefit of the new combined
business, in particular the higher margins from the Pier's arcades
and rides, together with further improvements in the Bars division
margin, which was up 80 basis points versus the same period last
year.
Group EBITDA before highlighted items was up 266% at GBP3.51
million (2015: GBP0.96 million). The seasonality of the Pier and
the Bars business means that the Group's EBITDA for the reported
period is first half weighted, representing approximately 69% of
current market expectations for annual EBITDA. This reflects the
key trading months of July, August and September for the Pier, the
new influx of students in September and the Christmas period for
the Bars division.
Profits before tax and highlighted items were up 783% at
GBP2.65m (2015: GBP0.30m).
Basic earnings per share (with highlighted items added back)
were 8.2p, up 6.3p on the previous period (2015: 1.9p).
In summary, for the 26 week period ended 25 December 2016:
(compared to the equivalent 26 week period ended 27 December
2015)
-- Sales: GBP17.74m (2015: GBP10.72m)
-- Company EBITDA before highlighted items: GBP3.51m (2015: GBP0.96m)
-- Company EBITDA after highlighted items: GBP3.22m(2015: GBP0.94m)
-- Operating profit before highlighted items: GBP2.81m (2015: GBP0.37m)
-- Operating profit after highlighted items: GBP2.11m (2015: GBP0.34m)
-- Profit before tax and highlighted items: GBP2.65m (2015: GBP0.30m)
-- Profit before tax and after highlighted items: GBP1.94m (2015: loss of GBP0.28m)
-- Net debt at the end of the period of GBP7.96m (2015: GBP0.2m)
-- Basic earnings per share (with highlighted items added back): 8.2p (2015: 1.9p)
-- Basic earnings per share: 6.0p (2015: 1.8p)
-- Diluted earnings per share (with highlighted items added back): 7.9p (2015: 1.9p)
-- Diluted earnings per share: 5.8p (2015: loss of 1.8p)
Developments on the Pier
The Pier has now completed its first full summer under new
ownership. We are pleased to report that trading has been in line
with expectations announced at the time of the acquisition and that
integration into the Group was completed much quicker than
expected.
In September 2016, we reported on the new soft play trial in the
Glitter Bar, the new take away fish and chip shop on the Pier head,
and the launch of the new website.
The success of the soft play trial has given us confidence to
launch the largest soft play area in Brighton, with the creation of
a new 'Palace Play' in the Dome, totalling 231m(2) with a capacity
for 140 children. There will also be a new café in the Dome,
providing an area for parents and friends to relax whilst the
children play. The soft play and café opened in March 2017, both
will provide a leisure space to enjoy all year round.
The new take away fish and chip shop opened in June 2016 and has
been a great success, repaying its investment by the end of the
first summer of trading.
The new website has been a strong tool in driving online sales
of wristbands and has helped to offset some of the negative effects
caused by the disruption of train services over much of the summer.
The quick and easy train service into Brighton from London is a
major benefit to all businesses in Brighton, as well as the wider
population, a resolution to this dispute is urgently needed.
In December, we launched our first Christmas market on the Pier.
Incorporating 20 stalls, it provided a reason to visit during the
Pier's winter season. The additional footfall created by the market
benefited the restaurants, arcades and rides during what would be
otherwise a quiet period. Our plan next year is to develop the
market further and consider whether there may be other similar
events we could add to the Pier's calendar during the quieter
months.
As always, the months between September and March are an
opportunity to catch up on general maintenance and embark on new
projects ready for the busy period from Easter onwards. This year
has been no exception; the dive survey and annual survey were both
completed, resulting in no additional maintenance needs other than
the budgeted requirements, so allowing us to commence a number of
new projects. The first of these involved the move and replacement
of the 'Dolphin Derby', a game that is a big favourite on the Pier
but is now 25 years old. At the end of February, the brand new
'Dolphin Derby was installed in its new location next to the 'Wild
River Ride'. This move makes way for the new 'i-220' children's
ride, (which opened in March) and for the improvements planned for
Horatio's Bar. The 'i-220' will elevate visitors skywards, offering
scenic views of the seafront, however unlike its namesake (the
'i360'), the new 'i-220' ride will take visitors to a less-dizzying
height of eight metres.
Looking further ahead, ambitious plans are now underway to
create more capacity within the Palm Court restaurant and in
Victoria's Bar, both inside and outside. These changes are intended
to improve the surroundings and provide more flexible space for
conferences, functions, and weddings on the Pier, as well as extra
seating during the busy summer months. At the same time, we are
also developing plans for Horatio's Bar, utilising the broader
Group's expertise of bar management. These exciting developments
will start in October and November of this calendar year, and
impact trading from 2018.
Finally, on 1 July 2016 we reported the plan to bring back the
Palace to the Brighton Pier name, restoring it back to its original
name - 'Brighton Palace Pier'. A competition was held to design the
new sign for the Pier, and our chosen winner was Lucy Williams, a
local Brighton resident. Her design creates an archway of the word
Brighton to reflect the Pier dome, with the remaining words 'Palace
Pier' on the facade of the building. Work is underway to construct
the first of these three new signs.
Developments in the Bars division
In September 2016, we reported on the division's continued focus
on reducing operating costs, improving gross margins, reviewing the
potential disposal of marginal and unprofitable sites (where the
opportunity arises), and the launch of 'Smash', a new venue within
the Group's Reading Sakura venue. Progress continues to be made in
these areas during the period.
Gross margin has improved by 80 basis points against the same
period last year. These improvements have occurred despite cost
increases, which have been filtering through from the weak pound.
Focus has been on regular reviews of competitor pricing, targeting
customers into more profitable products, and supplier support.
Labour and controllable costs continue to be tightly managed, with
unprofitable nights being closed and underperforming or marginal
venues being disposed. Six sites have been disposed of since June
2016.
The street level bar of Reading Sakura was redeveloped and
reopened at the end of May 2016 as Smash. The bar trades during
post-work hours and in the evening with a menu that includes
fresh-dough pizza and craft beer. In addition, the venue provides
activity areas for customers to enjoy games of ping pong with
friends and to watch major sporting events on large screens. Smash
continues to trade ahead of management expectations and we are
actively looking at other potential rebrands of locations within
our estate.
In December 2016, we started a programme to install new EPOS,
all sites have now been fully installed. This upgrade provides
integrated chip and pin, which massively reduces the risk of
defalcation, as well as improved end of day routines that allow the
General Manager to spend less time on back office duties and more
time driving sales and improving the customer experience. The new
software and hardware simplify the connectivity of new apps,
improve speed of service and reduce annual maintenance costs.
During the period, the Bars division undertook a rebuild of the
Eclectic websites. This was completed at the end of February,
improving online bookings, mobile functionality and creating a
single content management system for all the brands.
At the end of January 2017, Manchester Lola Lo underwent an
upgrade to develop and modernise its offering, with the addition of
media screens, a dedicated 'Master Class' bar and changed seating
areas. The new media screens enable the venue to display major
sporting and other events throughout the venue. A similar upgrade
is planned for Cambridge Lola Lo in the coming months.
Bars disposals
The Group has continued to rationalise its estate, disposing of
some of the smaller marginal sites together with any
underperforming sites.
Sheffield
This unit was assigned on 8 July 2016. All costs associated with
this venue were provided for in prior periods.
Brighton Dirty Blonde
A surrender of the lease was agreed on 23 November 2016 at no
cost to the Group. No residual risk remains on this site.
Lincoln Lola Lo
The lease for this business was held in a separate company. This
company was sold on 23 November 2016 for a nominal sum. No residual
risk remains to the Group from the disposal of this company.
Edinburgh Lola Lo
After the period end, this venue was sub-let to an existing
Scottish operator on 31 January 2017. This lease expires on 6 June
2021.
Brighton Lola Lo
The lease for this business was held in a separate company. This
company was sold on 13 March 2017 for a nominal sum. No residual
risk remains to the Group from the disposal of this company.
Oxford Lola Lo
After the period end, this venue was assigned to another
operator on 17 March 2017. This lease expires on 9 February
2021.
Manchester Sakura
This site remains closed. The landlord is in the process of
making repairs to fix the water ingress from the railway track
above the venue. No rent or rates are currently being paid on this
closed site. We will seek to dispose of this site once the repairs
are complete.
These sites together make up GBP834k of the sales shortfall
versus the same period last year. The trading loss from all of the
above disposed sites in the period was GBP135k. The write-offs
associated with the disposals - include goodwill and fixed asset
impairments, legal and other costs - less any proceeds - totalled
GBP706k. These costs are included in highlighted items (see note
5).
Cash flow and balance sheet
Cash flow generated from operations (after interest and tax
payments) available for investment was GBP1.7m (2015: GBP0.9m).
We invested GBP0.4m in capital expenditure (2015: GBP0.2m),
which has been spent on the new takeaway fish and chip unit, the
trial soft play area and new arcade machines on the Pier, with the
balance spent on venue improvement in the Bars estate.
During the period, debt repayments were made of GBP1.1m (2015:
GBP1.9m). The Group had GBP11.6m (2015: nil) drawn on a 5 year term
facility and a GBP1m revolving credit facility which was undrawn at
the period end (2015: GBP1.3m). The Group continues to trade
comfortably within its covenants.
At the period end, the cash and cash equivalents were GBP3.4m
(2015: GBP1.4m). Net cash inflow in the period was GBP0.3m (2015:
GBP0.4m). Net debt at the period end stood at GBP.8.0m (2015:
GBP0.2m) due to the new debt facilities secured for the
transformative acquisition of the Pier.
Outlook
Trading for the first half is in line with market expectations
and we expect this trend to continue through the seasonally quieter
second half as management executes the Group's strategy.
INTERIM CONDENSED CONSOLIDATED INCOME STATEMENT
Unaudited Unaudited Audited
26 weeks to 26 weeks to 52 weeks to
25 December 27 December 26 June
Notes 2016 2015 2016
GBP'000 GBP'000 GBP'000
Revenue 17,739 10,723 22,592
Cost of sales (3,181) (2,277) (4,365)
------------ ------------ ------------
Gross profit 14,558 8,446 18,227
Operating expenses - excluding highlighted items (11,744) (8,080) (17,151)
Operating expenses - highlighted items 5 (706) (25) (873)
------------------------------------------------------------- ------ ------------ ------------ ------------
Total operating expenses (12,450) (8,105) (18,024)
Operating profit - before highlighted items 2,814 366 1,076
Highlighted items - operating expenses 5 (706) (25) (873)
------------------------------------------------------------- ------ ------------ ------------ ------------
Operating profit 2,108 341 203
Finance revenue 1 - -
Finance cost (167) (65) (156)
Profit before tax and highlighted items 2,648 301 920
Highlighted items 5 (706) (25) (873)
------------------------------------------------------------- ------ ------------ ------------ ------------
Profit on ordinary activities before taxation 1,942 276 47
Taxation 6 (34) - (143)
------------ ------------ ------------
Profit/(loss) and total comprehensive income for the period 1,908 276 (96)
------------ ------------ ------------
Earnings/(loss) per share - basic 7 6.0p 1.8p (0.5)p
Adjusted* earnings per share - basic 7 8.2p 1.9p 4.2p
Earnings/(loss) per share - diluted 7 5.8p 1.8p (0.5)p
Adjusted* earnings per share - diluted 7 7.9p 1.9p 4.1p
*adjusted basic and diluted earnings per share are calculated using the profit for the period
adjusted for highlighted items (note 5).
No other comprehensive income was earned during the period.
interi CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
As at As at As at 26
25 December 27 December June
2016 2015 2016
GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Intangible assets 4,122 4,309 4,375
Property, plant & equipment 22,007 4,154 22,796
26,129 8,463 27,171
------------- ------------- ----------
Current assets
Inventories 651 414 666
Trade and other receivables 1,115 1,171 1,879
Cash and cash equivalents 3,354 1,413 3,064
Assets held for sale 278 - -
5,398 2,998 5,609
------------- ------------- ----------
TOTAL ASSETS 31,527 11,461 32,780
------------- ------------- ----------
EQUITY
Issued share capital 7,941 4,056 7,920
Share premium 13,219 8,918 13,187
Merger reserve (1,575) (1,575) (1,575)
Other reserve 210 155 180
Retained earnings (4,138) (5,674) (6,046)
Equity attributable to equity
shareholders of the parent 15,657 5,880 13,666
------------- ------------- ----------
TOTAL EQUITY 15,657 5,880 13,666
------------- ------------- ----------
LIABILITIES
Current liabilities
Trade and other payables 4,078 3,388 6,129
Other financial liabilities 1,202 - 1,200
Income tax payable 177 - 143
Provisions 305 249 448
5,762 3,637 7,920
------------- ------------- ----------
Non-current liabilities
Other financial liabilities 10,102 1,580 11,184
Other payables 6 - 10
Provisions - 364 -
10,108 1,944 11,194
------------- ------------- ----------
TOTAL LIABILITIES 15,870 5,581 19,114
------------- ------------- ----------
TOTAL EQUITY AND LIABILITIES 31,572 11,461 32,780
------------- ------------- ----------
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY
Retained Total
Issued share earnings/ shareholders'
capital Share premium Other reserves Merger reserve (deficit) equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------- --------------- -------------- ---------------- --------------- --------------- ---------------
At 28 June 2015 3,231 8,093 130 (1,575) (5,950) 3,929
Profit for the
period - - - - 276 276
---------------- --------------- -------------- ---------------- --------------- --------------- ---------------
Transactions
with owners:
Issue of share
capital 825 825 - - - 1,650
Share-based
payments
charge - - 25 - - 25
At 27 December
2015 4,056 8,918 155 (1,575) (5,674) 5,880
---------------- --------------- -------------- ---------------- --------------- --------------- ---------------
Retained Total
Issued share earnings/ shareholders'
capital Share premium Other reserves Merger reserve (deficit) equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------- ---------------- -------------- --------------- --------------- --------------- ---------------
At 26 June 2016 7,920 13,187 180 (1,575) (6,046) 13,666
Profit for the
period - - - - 1,908 1,908
---------------- ---------------- -------------- --------------- --------------- --------------- ---------------
Transactions
with owners:
Issue of share
capital 21 32 - - - 53
Share-based
payments
charge - - 30 - - 30
At 25 December
2016 7,941 13,219 210 (1,575) (4,138) 15,657
---------------- ---------------- -------------- --------------- --------------- --------------- ---------------
INTERIM CONDENSED CONSOLIDATED CASH FLOW STATEMENT
Unaudited Unaudited Audited
26 weeks to 26 weeks to 52 weeks to
25 December 27 December 26 June
2016 2015 2016
GBP'000 GBP'000 GBP'000
Operating activities
Profit before tax 1,942 276 47
Net finance costs 166 65 156
Depreciation of property, plant and equipment 665 570 1,178
Write-off of goodwill on closed sites 273 - -
Write-off of property plant and equipment at closed sites 148 - -
Loss on disposal of property, plant and equipment 81 - 259
Gain on bargain purchase - - (312)
Share-based payment expense 30 25 50
Decrease/(increase) in inventories 15 (19) 26
Decrease in trade and other receivables 764 30 394
(Decrease)/increase in trade and other payables (2,086) (3) 456
Decrease in provisions (143) - (290)
Interest paid (116) (63) (87)
Net cash flow from operating activities 1,739 881 1,877
------------ ------------ ------------
Investing activities
Purchase of property, plant and equipment, and intangible assets (410) (185) (1,237)
Acquisition of business - - (17,038)
Proceeds from disposal of property, plant and equipment 13 - -
Net cash flows used in investing activities (397) (185) (18,275)
------------ ------------ ------------
Financing activities
Proceeds from borrowings - 11,880
Repayment of borrowings (1,100) (1,900) (3,163)
Proceeds from issue of shares 53 1,650 10,150
Share issue costs recognised directly in equity - - (367)
Capital element on finance lease rental payments (5) (9) (14)
Net cash flows used in financing activities (1,052) (259) 18,486
------------ ------------ ------------
Net increase in cash and cash equivalents 290 437 2,088
Cash and cash equivalents at beginning of period 3,064 976 976
Cash and cash equivalents at period end date 3,354 1,413 3,064
============ ============ ============
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
1. General Information
The Brighton Pier Group PLC (formerly Eclectic Bar Group Plc) is
a public limited company incorporated and domiciled in England and
Wales. The Company's ordinary shares are traded on the Alternative
Investment Market. Its registered address is 36 Drury Lane, London,
WC2B 5RR. Both the immediate and ultimate Parent of the Group is
The Brighton Pier Group PLC.
The Brighton Pier Group PLC owns and operates Brighton Pier, one
of the leading tourist attractions in the UK. The Group is also a
leading operator of 14 premium bars trading in major towns and
cities across the UK.
The principal accounting policies adopted by the Group are set
out in Note 2.
2. accounting policies
The financial information for the six months ended 25 December
2016 and 27 December 2015 does not constitute statutory accounts
for the purposes of S435 of the Companies Act 2006 and has not been
audited. The Group's latest statutory financial statements were for
the year ended 26 June 2016 and these have been filed with the
Registrar of Companies.
Information that has been extracted from the June 2016 accounts
is from the audited accounts included in the annual report,
published in November 2016, on which auditors gave an unmodified
opinion and did not include a statement under section 498 (2) or
(3) of the Companies Act 2006. A copy of these accounts can be
found on the Group's website, www.brightonpiergroup.com.
The interim condensed consolidated financial statements for the
six months ended 25 December 2016 have been prepared in accordance
with the AIM Rules issued by the London Stock Exchange.
The interim condensed consolidated financial statements do not
include all the information and disclosures required in the annual
financial statements and should be read in conjunction with the
Group's annual financial statements as at 26 June 2016, which were
prepared in accordance with IFRS as adopted by the European
Union.
The accounting policies used in preparation of financial
information for the six months ended 26 December 2016 are the same
accounting policies applied to the Group's financial statements for
the year ended 26 June 2016. These policies were disclosed in the
2016 annual report, and are in accordance with International
Financial Reporting Standards as adopted by the European Union.
3. GOING CONCERN
After reviewing the Group's performance, future forecasted
performance and cash flows, as well as its ability to draw down on
its facilities and the covenant requirements of those facilities,
and after considering the key risks and uncertainties set out on
pages 10-11 of the annual report, the Directors consider that the
Group has sufficient resources to continue in operational existence
for the foreseeable future. For this reason, they continue to adopt
the going concern basis in preparing the Group's financial
statements.
4. SEGMENTAL INFORMATION
Management has determined the operating segments based on the
reports reviewed by the Chief Operating Decision Maker ("CODM")
comprising the Board of Directors. During the 26 week period to 25
December 2016, there have been no changes from prior periods in the
measurement methods used to determine operating segments and
reported segment profit or loss.
The segmental information is split on the basis of those same
profit centres - however, management report only the contents of
the consolidated statement of comprehensive income and therefore no
balance sheet information is provided on a segmental basis in the
following tables. During the 26 week period ended 27 December 2015
the Group consisted of only the Owned Bars operating segment,
meaning that comparative information for this period has not been
included below.
26 week period ended Owned Brighton Total Overhead December
25 December 2016 Bars Pier segments 2016 consolidated
total
(26 weeks) (26 weeks)
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------------- ---------------- ------------- ---------- --------- -------------------
Revenue 9,319 8,420 17,739 - 17,739
Cost of sales (1,918) (1,263) (3,181) - (3,181)
----------------------------- ---------------- ------------- ---------- --------- -------------------
Gross profit 7,401 7,157 14,558 - 14,558
Gross profit % 79% 85% 82% 82%
Administrative expenses
(excluding depreciation) (6,294) (4,408) (10,702) (377) (11,079)
Highlighted items (706) (706)
Depreciation (665) (665)
Net finance cost (166) (166)
Profit/(loss) before
tax 1,107 2,749 3,856 (1,914) 1,942
Income tax - (34) (34) - (34)
----------------------------- ---------------- ------------- ---------- --------- -------------------
Profit/(loss) after
tax 1,107 2,715 3,822 (1,914) 1,908
EBITDA (before highlighted
items) 1,107 2,749 3,856 (347) 3,509
EBITDA (after highlighted
items) 1,107 2,749 3,856 (632) 3,224
----------------------------- ---------------- ------------- ---------- --------- -------------------
4. SEGMENTAL INFORMATION (continued)
June 2016
52 week period ended 26 Owned Brighton Total consolidated
June 2016 Bars Pier segments Overhead total
(26 weeks) (9 weeks)
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------- ------------------ ---------------------- ----------------- --------- -------------------------------
Revenue 19,751 2,841 22,592 - 22,592
Cost of sales (3,927) (438) (4,365) - (4,365)
--------------------------- ------------------ ---------------------- ----------------- --------- -------------------------------
Gross profit 15,824 2,403 18,227 - 18,227
Gross profit % 80% 85% 81% 81%
Administrative expenses
(excluding depreciation) (13,595) (1,723) (15,318) (655) (15,973)
Highlighted items (873) (873)
Depreciation (1,178) (1,178)
Net finance cost (156) (156)
Profit/(loss) before tax 2,229 680 2,909 (2,862) 47
Income tax - (143) (143) - (143)
--------------------------- ------------------ ---------------------- ----------------- --------- -------------------------------
Profit/(loss) after tax 2,229 537 2,766 (2,862) (96)
EBITDA (before highlighted
items) 2,277 680 2,957 (653) 2,304
EBITDA (after highlighted
items) 2,277 680 2,957 (1,526) 1,431
--------------------------- ------------------ ---------------------- ----------------- --------- -------------------------------
5. HIGHLIGHTED ITEMS
26 weeks 26 weeks 52 weeks
ended ended ended
25 December 27 December 26 June
2016 2015 2016
GBP'000 GBP'000 GBP'000
-------------------------------------------------- ------------ ------------ ---------
Acquisition, pre-opening and restructuring costs
Acquisition costs - - 900
Gain on bargain purchase - - (312)
Site pre-opening costs - - 285
- - 873
Restructuring, closure and legal costs
Restructuring costs - 7 -
Other closure costs and legal costs 706 18 -
706 25 -
-------------------------------------------------- ------------ ------------ ---------
Total 706 25 873
The above items have been highlighted to give a better
understanding of non-comparable costs included in the consolidated
income statement for this period.
Other closure costs and legal costs include GBP421,000 of
goodwill and fixed asset write-offs as a result of the closure of
various sites during the period. These non-cash items are excluded
from EBITDA.
6. TAX
The tax charge has been calculated by reference to the expected
effective current and deferred tax rates for the full financial
year to 25 June 2017 applied against the profit before tax for the
period ended 25 December 2016. The full year effective tax charge
on the underlying trading profit is estimated to be 6.4%.
7. EARNINGS PER SHARE
The weighted average number of shares in the period was:
26 weeks to 26 weeks to 52 weeks to
25 December 2016 27 December 2015 26 June 2016
Thousands of shares Thousands of shares Thousands of shares
Ordinary shares 31,762 16,223 31,677
Basic shares 31,703 15,715 18,495
---------------------------------------------- -------------------- ---------------------- --------------------
Dilutive effect on ordinary shares from share
options 1,319 49 260
Diluted shares 33,022 15,764 18,755
---------------------------------------------- -------------------- ---------------------- --------------------
Basic and diluted earnings per share are calculated by dividing
the profit for the period into the weighted average number of
shares for the year. In order to provide a measure of underlying
performance, management have chosen to present an adjusted profit
for the period, which excludes items that may distort
comparability. Such items arise from events or transactions that
fall within the ordinary activities of the Group but which
management believes should be separately identified to help explain
underlying performance.
During the 26 week period ended 25 December 2016 the Group
issued 85,170 ordinary shares following the exercise of vested
share options by employees.
26 weeks to 26 weeks to 52 weeks to
25 December 2016 27 December 2015 26 June 2016
Earnings/(loss) per share from profit/(loss) for the period
Basic (pence) 6.0 1.8 (0.5)
Diluted (pence) 5.8 1.8 (0.5)
------------------------------------------------------------- ----------------- ----------------- -------------
Adjusted earnings per share from profit for the period
Basic (pence) 8.2 1.9 4.2
Diluted (pence) 7.9 1.9 4.1
------------------------------------------------------------- ----------------- ----------------- -------------
8. RECONCILIATION TO EBITDA
Group profit before tax can be reconciled to Group EBITDA as
follows:
26 weeks to 26 weeks to 52 weeks to
25 December 2016 27 December 2015 28 June 2016
GBP'000 GBP'000 GBP'000
-------------------------------------- ----------------- ----------------- -------------
Profit before tax for the year 1,942 276 47
Add back depreciation 665 570 1,178
Add back net interest paid 166 65 156
Add back share-based payment charge 30 25 50
Add back highlighted items 706 25 873
-------------------------------------- ----------------- ----------------- -------------
Group EBITDA
before highlighted items 3,509 961 2,304
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BBLLLDXFXBBE
(END) Dow Jones Newswires
March 21, 2017 03:01 ET (07:01 GMT)
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