TIDMEMAN
RNS Number : 6740M
Everyman Media Group PLC
23 September 2021
23 September 2021
Everyman Media Group PLC
("Everyman" or the "Group")
Interim Results
Growing trading momentum; positive outlook with pipeline of
committed new sites
Everyman Media Group PLC, the independent, premium cinema group,
reports its unaudited interim results for the 26 weeks ended 1 July
2021, and provides an update on trading post-period end.
Highlights
Building momentum in admissions
-- Admissions between re-opening on 17 May and the period end
were ahead of management expectations, at 66% of 2019 levels
-- Since capacity restrictions were lifted on 21 July,
admissions growth has risen to 80% of 2019 levels (as at 16
September), despite being against a particularly strong comparative
film slate
-- Very strong film slate in Q4 expected to drive further admissions growth
Performance indicators encouraging since reopening (1)
-- Average ticket price has increased by 5% due to ticket type
mix and modest inflation-related increases
-- Average food and beverage ('F&B') spend of GBP8.88, up
37% on the same period last year, driven by roll out of hand-held
ordering units and kitchen upgrades
Quality estate with new site roll-out recommenced
-- Current estate of 35 sites and 117 screens, as at 23
September 2021, with all fully open since 17 May 2021 (except
Belsize Park closed for refurbishment)
-- Committed pipeline for 2021/22 of 6 new venues, with Borough
Market due to open in December 2021
Significant liquidity headroom and positive EBITDA
re-established
-- Significant remaining headroom with bank net debt at the half
year of GBP11.9m (H1 2020: GBP4.3m, full year to 31 December 2020:
GBP8.7m)
-- Cash balance of GBP1.7m as at 1 July 2021 (H1 2020: GBP5.7m,
full year to 31 December 2020: GBP0.3m), demonstrating continued
careful cash management. Since the period end GBP0.5m of RCF has
been repaid, undrawn facility of GBP27m remains (H1 2019
GBP19m)
-- Returned to profit and cash generation on re-opening, which has continued each month since
Performance review for the 26 weeks ended 1 July 2021
-- Revenue of GBP7.7m (H1 2020: GBP15.0m), impacted by Covid-19
related temporary closure for the first 20 weeks of 2021, venues
re-opened 17 May but with social distancing rules
-- Adjusted EBITDA(2) loss of GBP1.4m (H1 2020: GBP0.5m profit),
significantly impacted by the closures
-- Operating loss of GBP7.7m (H1 2020: GBP12.3m loss)
(1) The average ticket price has been adjusted to remove the
benefit of VAT being 5% in the period compared with 20% in H1 2020.
The unadjusted average ticket price was GBP12.77. The spend per
head has been adjusted to remove Deliveroo income and the impact of
VAT being 5% on certain items in the period compared with 20% in H1
2020. The unadjusted spend per head was GBP12.82. These adjustments
have been made to provide a like for like comparison with H1
2020
(2) Adjusted for pre-opening costs, acquisition expenses,
depreciation, amortisation, share based payments and costs incurred
directly related to Covid-19 (.) IFRS 16 has been applied.
Alex Scrimgeour, Chief Executive of Everyman Media Group PLC,
said:
"Whilst the reporting period was challenging, with our venues
closed for 20 weeks, the actions we took at the start of the
pandemic and throughout have ensured we are now in a strong
position to take advantage of the recovery.
We have been encouraged with trading since re-opening on 17 May
and are looking forward to a strong film slate in the last quarter
of 2021. It has been a pleasure to welcome back our staff and see
our customers enjoying all the aspects of the great night out that
Everyman delivers. Our customers and in particular our members
remain highly engaged, demonstrating that we have maintained
exceptional brand loyalty throughout the period by keeping a
constant dialogue with them.
Despite some challenges remaining ahead, we are confident in our
business model and that customers will continue to return to
Everyman in ever increasing numbers over time. We have had
significant support from all our key stakeholders for which we are
very grateful. We remain confident in the Everyman brand and our
ability to navigate out of recovery and back to growth. "
For further information, please contact:
Everyman Media Group plc Tel: 020 3145 0500
Alex Scrimgeour, Chief Executive
Elizabeth Lake, Chief Financial Officer
Canaccord Genuity Limited (NOMAD and Tel: 020 7523 8000
Broker)
Bobbie Hilliam
Richard Andrews
Georgina McCooke
Alma PR (Financial PR Advisor) Tel: 020 3405 0205
Susie Hudson
Joe Pederzolli
Harriet Jackson
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
The first half of 2021 was a challenging period due to the
continued impact of the pandemic and the resulting restrictions to
trading. That said, we were delighted to open our doors again from
17 May, with all restrictions removed from 21 July onwards.
Since 17 May, attendance has been growing steadily, and we have
seen numerous titles generating excitement; from Nomadland and
Black Widow to A Quiet Place Part II. In line with Everyman's
commitment to innovative and unique programming, during the period
we also held a live nationwide stream of a performance from
Celeste, followed by a screening of her film, Celeste: On with the
show. Additionally, we are pleased to be building a reputation for
hosting significant film premiers with partners such as Amazon
Prime, Jaguar, Universal Film and Lionsgate amongst others.
I have now been with Everyman for just over eight months and am
very pleased to say my time with the business has cemented
everything I believed about it before joining. We have an excellent
brand, a unique offering and significant scope for expansion.
Returning and building our team
During the period we have welcomed back our staff, most of whom
were on furlough until the end of April, and it has been a pleasure
to witness their commitment to providing excellent service to all
our customers. I would like to thank all our staff for the loyalty
and dedication they have shown through some very difficult
times.
Maggie Todd joined the Board as an independent non-executive
Director on 15 July, having been Vice President of Communications
at Disney working in both Europe and LA, and brings with her a
wealth of experience working with Disney and its associated
brands.
Enhancing the Everyman experience
We have used the period of closure to our advantage in terms of
a programme of minor kitchen upgrades and relatively small
refurbishments. Kitchen upgrades have been made in 22 venues, with
ordering, payment and kitchen technology upgrades in all 35 venues.
We have successful lunched a new seafood range with additions to
the offering including the shrimp burger and tempura prawns.
Already we are seeing the benefits from this investment in both
spend per head and customer feedback.
Extending the estate
We currently have an estate of 35 sites and 117 screens, as at
23 September 2021. All have been fully open since 17 May 2021,
except Belsize Park which has been closed for refurbishment, and is
re-opening at the end of September 2021.
Demonstrating our confidence in Everyman's prospects, we have
now returned to building our roll-out pipeline, with a committed
pipeline for 2021/22 of 6 new venues and a further single new venue
in 2023. The first of these to open will be Borough Market
(London), due to open in December 2021.
Performance Review
The Group uses the key performance indicators of Admissions, Box
office average ticket and Food & beverage spend per head in
addition to total revenue, to monitor the progress of the Group's
activities.
For clarity, we have also shown the indicators for the full
period, despite the fact that the figures have been impacted by the
closure of our venues for much of the period.
26 weeks 26 weeks Year
ended ended ended
1 July 2021 2 July 2020 31 December
2020
(6 weeks open) (11 weeks
open)
Admissions -66% 284,245 828,945 1,197,248
Box office average ticket +5% GBP11.18* GBP10.61 GBP11.90
Food & beverage spend +37% GBP8.88** GBP6.49 GBP7.89
per head
*Average ticket price has been adjusted to reflect the reduction
in VAT from 20% to 5% when compared to H1 2020.
**Spend per head has been adjusted to reflect the reduction in
VAT from 20% to 5% across certain items and to remove Deliveroo
income to enable like for like comparison with H1 2020.
It is important to note that Admissions between re-opening on 17
May and the period end were ahead of management expectations, at
66% of 2019 levels.
Average ticket price has increased by 5%, due to ticket type mix
and modest inflation-related increases.
Adjusted spend per head has grown by 37% due to the roll out of
hand-held ordering devices and kitchen upgrades.
Trading post-period end and Outlook
Since full reopening on 21 July, we have been very encouraged by
a strong recovery in admission levels, with interest generated
across all venues and excellent customer feedback. Admission levels
since the 21(st) July have reached 80% of 2019 levels up to 16(th)
September, exceeding management expectations and signalling the
sustained consumer demand for a premium cinema experience.
Highlights since re-opening have included the Everyman 'Summer
Love' film festival at King's Cross, the Everyman Music Film
Festival and an international screening of Cinderella.
We anticipate that the strong slate expected in Q4, including
the new Bond film, together with further innovative programming,
will drive further growth in this figure.
We look to the future with optimism. Whilst challenges remain
ahead, the Group has coped robustly thus far and is in a good
position to return to growth. We have a healthy balance sheet, new
openings in the pipeline, have proven the strength of our offering
and taken a very pleasing share of the UK box office across a
variety of titles. We look forward to welcoming more and more
customers to an Everyman over time.
Alex Scrimgeour
Chief Executive
23 September 2020
Chief Financial Officer's Statement
Revenue and Operating Profit
The first half of 2021 was severely impacted by the
government-mandated closure of all venues from the beginning of the
period until 17 May 2021.
As a result, revenue for the period was down 49% on the same
period last year to GBP7.6m (2 July 2020: GBP15.0m, full year to 31
December 2020: GBP24.2m). All venues were closed for 20 weeks in
this period, in H1 2020 they were closed for 15 weeks, with the
first two months of 2020 showing year on year growth of 47% due to
the exceptional film slate.
The reported gross profit margin was 62% in the period, slightly
ahead of the prior year due to the temporary reduction in VAT,
offset by a reduction in high margin advertising and sponsorship
revenue.
Included within other operating income of GBP3.7m is government
support through the Job Retention Scheme (JRS) of GBP2.8m and the
Business Support Grants (BSG) of GBP0.9m.
The Group's adjusted operating loss before depreciation,
amortisation, pre-opening expenses, other exceptional Covid-19
related costs and revenue, and share-based payments was GBP1.4m (2
July 2020: GBP0.5m profit, full year to 31 December 2020: GBP1.1m
loss).
Operating expenses were GBP16.1m (H1 2020 GBP24.9m). The expense
has reduced significantly because the H1 2020 expenses included the
following costs directly attributable to Covid-19:
GBP'000
Asset impairment 5,635
Costs associated with exiting
future venues 1,382
Total 7,017
In addition, overheads are lower in H1 2021 due to savings in
payroll, property and other administration costs (GBP2.2m). These
savings are partly offset by an increase in Share Based Payments of
GBP0.5m due to the issue of share options to senior management, and
depreciation (GBP0.1m).
The Board has reviewed the impairment review completed for the
year ended 31 December 2021 and has concluded that whilst
management estimates have improved, there is still sufficient
uncertainty to keep the provision at the same level of GBP5.6m and
the Board will review again in December 2021 when more data will be
available since re-opening.
Everyman has also taken advantage of the extension to the
amendment to IFRS16 Covid-19 related rent concessions. Where the
rent concession is a direct consequence of the Covid-19 pandemic,
the revised consideration for the lease is substantially the same
or less, the reduction affects only payments originally due on or
before 30 June 2022 and there were no other substantive changes to
the lease then the concessions can be credited to the profit and
loss rather than a lease modification. This has resulted in a
one-off credit of GBP411k in the period.
During the 26 week period, the business benefited from a number
of areas of government support. Job Retention Scheme (JRS) income
was GBP2.8m, Business Support Grants of GBP0.9m, rates savings of
GBP0.6m and VAT benefits of GBP0.8m.
Net finance costs
The Group's net bank interest payable was GBP88k in H1 2021 in
line with H1 2020.
The Group's non-cash finance charge in H1 2021 was GBP1.3m (H1
2020 GBP1.2m) and is interest charges relating to the unwinding of
the IFRS 16 lease liability in the period.
Loss before Taxation
The Group generated a loss for the period of GBP8.9m (2 July
2020 GBP11.7m, full year to 31 December 2020 GBP20.5m).
Taxation
The effective tax rate is lower than the standard rate of
corporation tax for the six-month period ended 1 July 2021 due to
the effect of deferred tax arising from the valuation of share
options (both exercised and unexercised).
Share based payments
The share-based payment expense for the period was GBP1.1m (1
July 2020: GBP0.6m, full year to 31 December 2020: GBP0.7m)
reflecting share option incentives provided to the Group's
management and employees. The higher charge in H1 2021 arises
primarily due to the growth share scheme put in place for Alex
Scrimgeour, CEO.
Cash flows
Cash flow continued to be significantly impacted by the Lockdown
which resulted in no sales activity from 1 January 2021 to 16 May
2021. Management continued to focus on a robust approach to cash
management during this period, with all suppliers and landlords
contacted again to reduce costs and or/extend payments terms,
having been contacted previously in 2020 when the first lockdown
was implemented.
Net cash generated from operating activities was GBP0.3m (2 July
2020 cash outflow: GBP4.4m, full year to 31 December 2020 cash
outflow: GBP5.4m).
Net cash outflows for the period, before financing, were GBP0.3m
(1 July 2020: GBP4.4m outflow, full year to 31 December 2020:
GBP5.4m). Capex additions in the period were significantly lower
than H1 2020 at GBP1.1m (H1 2020: GBP6.4m). At the start of the
pandemic, all new venue projects were either deferred or exited
where possible to conserve cash, hence the lower level of
investment in H1 2021.
Cash held at the end of the period was GBP1.7m (2 July 2020:
GBP5.7m, 31 December 2020: GBP0.3m). The Group has access to a
GBP40m facility of which GBP13.5m was drawn by the end of the
period.
Since the period end a further GBP0.5m of the RCF has been
repaid, bringing the amount drawn down to GBP13m.
Elizabeth Lake
CFO
23 September 2021
Consolidated statement of profit and loss and other
comprehensive income for the period ended 1 July 2021
(unaudited)
Six-month Six-month Year
period period ended ended
ended
1 July 2 July 31 December
2021 2020 2020
Note GBP000 GBP000 GBP000
Revenue 4 7,652 15,006 24,224
Cost of Sales (2,900) (5,727) (9,147)
---------- -------------- ------------
Gross profit 4,752 9,279 15,077
---------- -------------- ------------
Covid-19 government support 3,733 3,327 6,062
Impairment of goodwill, property,
plant and machinery - (5,635) (5,635)
Administrative expenses (16,143) (19,241) (34,764)
---------- -------------- ------------
Operating loss (7,658) (12,270) (19,260)
---------- -------------- ------------
Financial expenses (1,528) (1,480) (2,911)
---------- -------------- ------------
Loss before taxation (9,186) (13,750) (22,171)
Tax credit 5 132 2,031 1,693
---------- -------------- ------------
Loss for the period (9,054) (11,719) (20,478)
Other comprehensive loss for the
period - (26) (7)
---------- -------------- ------------
Total comprehensive loss for the
period (9,054) (11,745) (20,485)
---------- -------------- ------------
Basic loss per share (pence) 6 (9.99) (18.86) (23.99)
---------- -------------- ------------
Diluted loss per share (pence) 6 (9.99) (18.86) (23.99)
---------- -------------- ------------
All amounts relate to continuing
activities.
Non-GAAP measure: adjusted profit from
operations
Adjusted profit/(loss) from operations (1,407) 539 (1,091)
Before:
Depreciation and amortisation (5,248) (5,159) (10,502)
Disposal of property, plant and equipment (8) (100) (862)
Pre-opening expenses (12) (266) (419)
Costs related to COVID 19* (265) - (255)
Lease termination costs - (1,382) (625)
COVID-19 related rent concessions 411 376 813
Impairment of fixed assets - (5,635) (5,635)
Share-based payment expense (1,129) (630) (671)
Option-based social security - (13) (13)
---------- -------------- ------------
Operating (loss)/profit (7,658) (12,270) (19,260)
----------------------------------------------------- ---------- -------------- ------------
*Includes legal and professional, HR and other one-off expenses
incurred as a result of the pandemic
Consolidated balance sheet at 1 July 2021 (unaudited)
Registered in
England and Wales
08684079
2 July 31 December
1 July 2020
2021 Restated* 2020
Note GBP000 GBP000 GBP000
Assets
Non-current assets
Property, plant and equipment 78,825 82,399 81,565
Right-of-use assets 54,368 56,733 55,446
Intangible assets 9,188 9,090 9,140
Deferred tax assets 145 617 63
Trade and other receivables 265 173 173
--------- ------------------- -------------
142,791 149,012 146,387
--------- ------------------- -------------
Current assets
Inventories 470 420 381
Trade and other receivables 2,928 3,685 2,645
Cash and cash equivalents 1,665 5,660 328
--------- ------------------- -------------
5,063 9,765 3,354
--------- ------------------- -------------
Total assets 147,854 158,777 149,741
--------- ------------------- -------------
Liabilities
Current liabilities
Other interest-bearing loans
and borrowings 48 56 43
Trade and other payables 11,832 9,332 9,476
Lease liabilities 3,057 5,076 2,641
Corporation tax liabilities - 215 -
--------- ------------------- -------------
14,937 14,679 12,160
--------- ------------------- -------------
Non-current liabilities
Other interest-bearing loans
and borrowings 13,500 10,000 9,000
Other payables 8 - -
Other provisions 1,010 1,027 1,035
Lease liabilities 73,556 72,199 75,367
88,074 83,226 85,402
--------- ------------------- -------------
Total liabilities 103,011 97,905 97,562
--------- ------------------- -------------
Net assets 44,843 60,872 52,179
--------- ------------------- -------------
Equity attributable to owners
of the Company
Share capital 9,223 9,110 9,110
Share premium 57,064 57,038 57,038
Merger reserve 11,152 11,152 11,152
Forex reserve (6) 1 (6)
Retained earnings (32,590) (16,429) (25,115)
--------- ------------------- -------------
Total equity 44,843 60,872 52,179
--------- ------------------- -------------
*See note 2 for details regarding the restatement
Consolidated statement of changes in equity for the period ended
1 July 2021 (unaudited)
Share Share Merger Forex Retained Total
capital Premium reserve Reserve earnings equity
Note GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Balance at 2 January
2020 - r estated* 7,352 41,920 11,152 1 (5,221) 55,204
Loss for the period - - - - (11,719) (11,719)
Retranslation of foreign
currency denominated
subsidiaries - - - - (26) (26)
Shares issued in the
period 1,758 15,813 - - - 17,571
Share issue expenses - (695) - - (695)
Share-based payments - - - - 630 630
Tax on share-based payments - - - - (93) (93)
-------- -------- --------- -------- ----------- ---------
Total transactions with
owners of the parent 1,758 15,118 - - 537 17,413
-------- -------- --------- -------- ----------- ---------
Balance at 2 July 2020
- restated* 9,110 57,038 11,152 1 (16,429) 60,872
-------- -------- --------- -------- ----------- ---------
Balance at 3 July 2020 9,110 57,038 11,152 1 (16,429) 60,872
Loss for the period - - - - (8,759) (8,759)
Retranslation of foreign
currency - - - (7) 26 19
Tax on share based payments - - - - 6 6
Share- based expenses - - - - 41 41
Total transactions with
owners of the parent - - - - 47 47
-------- -------- --------- -------- ----------- ---------
Balance at 31 December
2020 9,110 57,038 11,152 (6) (25,115) 52,179
-------- -------- --------- -------- ----------- ---------
Practical Expedient
adjustment 417 417
-------- --------
Balance at 1 January
2021 9,110 57,038 11,152 (6) (24,698) 52,596
-------- -------- --------- -------- ----------- ---------
Loss for the period - - - - (9,054) (8,892)
Retranslation of foreign
currency denominated
subsidiaries - - - - 33 33
Shares issued in the
period 113 26 - - - 139
Share issue expenses - - - - - -
Share-based payments - - - - 1,129 1,129
Tax on share-based payments - - - - - -
Total transactions with
owners of the parent 113 26 - - 1,129 1,268
-------- -------- --------- -------- ----------- ---------
Balance at 1 July 2021 9,223 57,064 11,152 (6) (32,590) 44,843
-------- -------- --------- -------- ----------- ---------
*See note 2 for details regarding the restatement
Consolidated cash flow statement for the period ended 1 July
2021 (unaudited)
1 July 2 31 December
July
2021 2020 2020
Note GBP000 GBP000 GBP000
Cash flows from operating activities
(Loss) for the period (9,054) (11,719) (20,478)
Adjustments for:
Financial expenses 1,528 1,480 2,911
Income tax credit 5 (132) (2,031) (1,693)
--------- ---------- ----------------
Operating loss (7,658) (12,270) (19,260)
--------- ---------- ----------------
Depreciation and amortisation 5,248 5,159 10,502
Impairment of goodwill, property,
plant and equipment and right-of-use
assets - 5,635 5,635
Loss on disposal of property, plant
and equipment 8 830 862
Transfer of property, plant and equipment - - -
to profit and loss
Rent concessions (411) (376) (813)
Equity-settled share-based payment
expenses 1,129 537 671
--------- ---------- ----------------
(1,684) (485) (2,403)
Changes in working capital
Decrease/(increase) in inventories (89) 87 126
Decrease/(increase) in trade and
other receivables (49) 777 1,818
(Decrease)/increase in trade and
other payables 2,124 (4,798) (4,935)
--------- ---------- ----------------
Net cash (used in) generated from
operating activities 302 (4,419) (5,394)
Cash flows from investing activities
Acquisition of property, plant and
equipment (777) (6,143) (8,074)
Acquisition of intangible assets (277) (271) (470)
Net cash used in investing activities (1,054) (6,414) (8,544)
--------- ---------- ----------------
Cash flows from financing activities
Proceeds from the issuance of ordinary
shares 50 16,876 16,876
Proceeds from bank borrowings 6,000 6,000 10,000
Repayment of bank borrowings (1,500) (10,000) (15,000)
Lease payments - interest (1,257) (284) (2,493)
Lease payments - capital (956) (116) (473)
Landlord capital contributions - - 1,625
Capitalised finance expenses - - 17
Loan arrangement fees - - (136)
Interest paid (248) (228) (378)
--------- ---------- ----------------
Net cash generated from financing
activities 2,089 12,248 10,038
--------- ---------- ----------------
Exchange (loss)/gain on cash and
cash equivalents - (26) (43)
Cash and cash equivalents at the
beginning of the period 328 4,271 4,271
Net increase/(decrease) in cash and
cash equivalents 1,337 1,389 (3,943)
Cash and cash equivalents at the
end of the period 1,665 5,660 328
--------- ---------- ----------------
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 02 July 2021 have been prepared using accounting
policies consistent with UK adopted International Financial Reporting
Standards (IFRSs) in conformity with the requirements of the
Companies Act 2006. 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 31 December 2020.
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 31 December 2020. 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.
Restatement of accounting for leases
Restatement of prior As previously Restatement Restatement Restated 2
year reported numbers reported 1 2 July 2020
2 July 2020
GBP'000 GBP'000 GBP'000 GBP'000
-------------- ------------ ------------ -----------
Group Statement of
Changes in Equity -
Profit for the period (11,745) (11,745)
Balance Sheet
Right-of-use assets 57,125 (1,023) 631 56,733
Current Lease liabilities (5,041) (35) - (5,076)
Other provisions - - (1,027) (1,027)
Lease liabilities (73,304) 1,105 - (72,199)
Retained earnings (16,080) 46 (395) (16,429)
-------------- ------------ ------------ -----------
Net Assets and Total
Equity 61,221 46 (395) 60,872
-------------- ------------ ------------ -----------
Restatement 1
For the Kings Cross venue, a length of lease of 25 years had
been used to calculate the transition to IFRS16 on 2 January
2019. The length of the lease is 15 years and therefore the right
of use asset,
lease liability, depreciation and finance charge have been recalculated
to correct the figures from 1 January 2019 when IFRS16 was adopted.
The result was a reduction in the right of use asset of GBP1,023,000
and a corresponding reduction in the lease liability of GBP1,070,000.
This also gave rise to an increase in the depreciation charge
within administrative expenses of GBP36,000 and a reduction in
the finance charge of GBP82,000. Therefore, the net impact was
an increase in profit of GBP46,000 in 2019. This restatement
was reported in the 31 December 2020 financial statements.
Restatement 2
Under the terms of the Group's leases an estimated dilapidations
provision should have been accounted for to recognise the potential
future liability at the point of signing the leases. Correcting
for this omission has given rise to a prior year adjustment.
There are two elements to the provision. For leases where there
is a strip out clause, the cost of stripping out at the end of
the lease has been estimated and discounted using the appropriate
risk-free rate of 1.03%.
This has given rise to an adjustment in the balance sheet as
at 2 July 2020 of GBP631,000 to create the provision with the
corresponding debit going to Right of use assets. In addition,
the Group has a number of full repairing leases and a provision
of GBP395,000 has been made for those venues in the balance sheet
as at 2 July 2020, with the debit going to retained earnings.
The overall restatement in the balance sheet as at 2 July 2020
is shown above. This restatement was reported in the 31 December
2020 financial statements.
Going Concern
As part of the adoption of the going concern basis, Everyman
continues to consider the uncertainty caused by the Covid-19
pandemic. The Group's financing arrangements include a GBP25m
rolling credit facility (RCF), and a government backed Coronavirus
Large Business Interruption Loan Scheme ("CLIBILS") RCF of GBP15m,
both repayable on or before 15 January 2024. As at 1 July 2021
the Group had drawn GBP13.5m of this facility and had cash of
GBP1.7m, therefore the net debt position (including bank interest
payable) was GBP11.9m, with the undrawn facility at GBP28.1m.
The facility has a liquidity and EBITDA covenant both of which
have significant headroom and will be reviewed again in May 2022.
The Board has reviewed forecast scenarios and believes the business
can operate with sufficient headroom.
The Boards latest forecasts are based on a scenario where the
business remains open and assumes reduced admissions around 80%
of pre-pandemic levels. In this scenario the Group maintains
significant headroom in it's banking facilities.
The Board has also considered a severe but plausible downside
scenario where all venues are required to close for 2 months
during Autumn/Winter 2021 as part of a circuit break to contain
a resurgence of the virus or its variants. Under this scenario
the Group forecast continued compliance with banking covenants
and sufficient liquidity.
Therefore the Board consider it appropriate to adopt the going
concern basis of accounting in preparing the financial statements.
3
4 Revenue Six-month Six-month
period period Year
ended
ended ended 31
1 July 2 July December
2021 2020 2020
GBP000 GBP000 GBP000
Film and entertainment 3,631 8,792 13,565
Food and beverages 3,643 5,381 9,447
Other income 378 833 1,212
--------------- --------------- --------------
7,652 15,006 24,224
--------------- --------------- --------------
In addition, other operating income was received, furlough
income (GBP2.8m) and income from business support grants
(GBP0.9m).
5 Taxation Six-month Six-month
period period Year ended
ended ended 31
1 July 2 July December
2021 2020 2020
GBP000 GBP000 GBP000
Current tax - (67) -
Adjustments in prior years - (9) (180)
---------- ---------- -------------
- 58 (180)
Deferred tax (credit)/expense
Origination and reversal of temporary
differences 104 (3,341) (2,156)
Adjustments in respect of prior
years 25 1,131 432
Effect of tax rate change (261) - 211
Deferred tax not previously recognised - 121 -
---------- ---------- -------------
Total tax (credit)/charge (132) (2,031) (1,693)
---------- ---------- -------------
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 Six-month Six-month Year ended
tax rate period period
ended ended 31 December
1 July 2 July
2021 2020 2020
GBP000 GBP000 GBP000
(Loss) before taxation (9,186) (13,750) (22,171)
Tax at the UK corporation tax rate
of 19% (1,745) (2,565) (4,212)
Permanent differences (expenses
not deductible for tax purposes) 422 165 1,104
Deferred tax not previously
recognised - 1,266 33
Impact of difference in overseas
tax rates - - 71
De-recognition of losses 1,885 - 700
Other short term timing differences 31 (1,163) -
Effect of change in expected future
statutory rates on deferred tax (261) 266 211
Impact of a drop in share-based
payments intrinsic value (489) - 150
Other - - (3)
Adjustment in respect of previous
periods 25 - 253
---------- ---------- -------------
Total tax (credit) (132) (2,031) (1,693)
---------- ---------- -------------
A reduction to 17% (effective 1 April 2020) was substantially
enacted on 6 September 2016. In March 2020, this was reversed
so 19% was used from December 2020 onwards.
6 Earnings per Six-month Six-month
share period period Year
ended
ended ended 31
1 July 1 July December
2021 2020 2020
GBP000 GBP000 GBP000
(Loss) used in calculating basic
and diluted earnings per share (9,054) (11,719) (20,478)
Number of shares (000's)
Weighted average number of shares
for the purpose of basic earnings
per share 90,597 62,131 85,372
---------- ---------- -------------
Number of shares (000's)
Weighted average number of shares
for the purpose of diluted earnings
per share 90,597 63,234 85,372
---------- ---------- -------------
Basic earnings per share
(pence) (9.99) (18.86) (23.99)
---------- ---------- -------------
Diluted earnings per share
(pence) (9.99) (18.86) (23.99)
---------- ---------- -------------
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 7.5m potentially issuable shares (H1 2020:
5.5m) all of which relate to the potential dilution from
the Group's share options issued to the Directors and
certain employees and contractors, under the Group's incentive
arrangements. In the current period these options are
anti-dilutive as they would reduce the loss per share
and so haven't been included in the diluted earnings per
share.
7 IFRS 16 Covid-19 Related Rent concessions Amendment
Implementation of IFRS16 Leases accounting standard
in the period
The Group has adopted the amendment to IFRS 16 that provides
an optional practical expedient for lessees from assessing
whether a rent concession related to Covid-19 is a lease
modification. Where the rent concession is a direct consequence
of the Covid-19 pandemic, the revised consideration for
the lease is substantially the same or less, the reduction
affects only payments originally due on or before 30 June
2022 and there were no other substantive changes to the
lease then the concessions can be credited to the profit
and loss rather than a lease modification.
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END
IR SEFFMEEFSELU
(END) Dow Jones Newswires
September 23, 2021 01:59 ET (05:59 GMT)
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