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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September 23, 2021 01:59 ET (05:59 GMT)

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