TIDMRBG
RNS Number : 1224E
Revolution Bars Group
26 February 2020
26 February 2020
Revolution Bars Group plc (LSE: RBG)
Interim results for the 26 weeks ended 28 December 2019
Like-for-like (2) sales positive, Adjusted(1) EBITDA higher,
debt reduced, on track to meet expectations
Revolution Bars Group plc ("the Group"), a leading UK operator
of 74 premium bars, trading under the Revolution and Revolución de
Cuba brands, today announces its interim results for the 26 weeks
ended 28 December 2019.
Financial highlights
H1 FY20 H1 FY20 H1 FY19 (IAS17) % change
(IAS17)
(IFRS 16) (IAS 17)
----------------
GBP81.2
Total Sales GBP81.2 million million GBP78.5 million +3.5%
---------------- --------------- ---------------- -----------
Like-for-Like(2) Sales +1.2% +1.2% -4.0% -
---------------- --------------- ---------------- -----------
Adjusted(1) EBITDA GBP12.8 million GBP7.6 million GBP6.9 million +10.6%
---------------- --------------- ---------------- -----------
Adjusted(1) Profit
Before Tax GBP2.9 million GBP3.5 million GBP2.9 million +20.5%
---------------- --------------- ---------------- -----------
Adjusted(1) Earnings
Per Share 4.4 pence 4.5 pence 4.2 pence +6.8%
---------------- --------------- ---------------- -----------
Statutory Loss Before GBP(1.6) GBP(3.9) GBP(3.5)
Tax million million million -12.8%
---------------- --------------- ---------------- -----------
Statutory Loss Per
Share (2.9) pence (7.9) pence (6.2) pence -26.6%
---------------- --------------- ---------------- -----------
See note at foot of this highlights statement referring to IFRS
16 and IAS 17. IAS 17 numbers are given for H1 FY20 in order to
allow a like-for-like accounting comparison with H1 FY19.
Key points
-- Like-for-like(2) ("LFL") sales for the period improved by
1.2%. As previously reported, Q1 LFL(2) sales were +0.7%, but
improved to +1.7% in Q2 on the back of a strong performance in the
lead up to Christmas. The four-week festive period(3) saw LFL(2)
sales grow +4.0%, a seventh consecutive year of festive growth.
-- Revolución de Cuba, which has a well-invested and
differentiated offering, achieved strong LFL(2) sales growth of
+5.0%.
-- Revolution's LFL(2) sales were -0.4%, a much-improved trend
on FY19. The recent new and refurbished Revolution bars have
performed well and are proof that the Revolution brand remains
relevant and liked by its customer base.
-- The multiple work-streams referred to in recent results
announcements, many of which are targeted at driving sales, are
gaining good traction, with refurbishments in particular delivering
strong sales uplifts.
-- Adjusted(1) EBITDA (IAS 17) grew +10.6% from GBP6.9 million
to GBP7.6 million, primarily through LFL(2) sales growth, but also
improvements in gross margin and tight cost control.
-- The Group continues to generate strong cash flow and gross
bank debt has reduced by GBP6.0 million over H1 to GBP11.5 million
and is GBP7.0m lower than at the end of H1 FY19.
-- Shortly after the end of the reporting period the Group
exchanged contracts to surrender leases at five loss-making sites
at a cost of GBP3.6m and to re-gear four other leases in exchange
for a small net rent reduction. Together with a further lease
surrender completed in H1, these transactions are anticipated to
deliver annualised cash benefits of GBP1.3 million.
-- H2 has started well with LFL(2) sales at +1.6% and the Board
currently expect to deliver FY20 Adjusted(1) EBITDA (IAS 17) in
line with market expectations(4) .
Rob Pitcher, Chief Executive Officer, said:
"We have continued to make significant progress revitalising the
Revolution brand and further improving the performance of
Revolución de Cuba. Having stabilised the business in FY19, FY20 is
about consolidation and the benefits of the many actions that we
have taken are beginning to be realised.
H2 FY20 has started encouragingly and should we continue on our
current trajectory then the Board is confident the business will be
well-positioned to resume site expansion in FY21."
(1) Adjusted performance measures exclude exceptional items,
share-based payment charges/(credits) and bar opening costs (see
reconciliation table in the Financial Review).
(2) Like-for-like (LFL) sales are defined as total retail sales
from bars that have traded throughout both the current and prior
reporting periods.
(3) 4 weeks to and including New Year's Eve which bridges the 26
week reporting period ended 28 December 2019 by three days.
(4) The Board considers market expectations are best defined by
taking the range of forecasts published by analysts who
consistently follow the Group. The range of adjusted EBITDA (IAS
17) forecasts, as at 25 February 2020, is GBP12.3m - GBP12.4m.
Note on IFRS 16 (accounting for leasing):
In the current period, the Group has adopted the new accounting
standard IFRS 16, which requires the recognition of operating
leases as right-of-use assets and lease liabilities on the balance
sheet. As noted in the FY19 report, the Group has adopted the
modified retrospective approach, as allowed by the standard, and
therefore comparative disclosures have not been restated for IFRS
16. A reconciliation between the two different bases of reporting
is set out in Note 1 to the statements and a pro forma Condensed
Consolidated Statement of Comprehensive Income, restating the
reported numbers as though IFRS 16 had not been adopted, has been
included as an appendix to the notes (last page of this
statement).
Enquiries:
Revolution Bars Group plc 0161 330 3876
Rob Pitcher, CEO
Mike Foster, CFO
Instinctif Partners 020 7457 2020
Matthew Smallwood
Jack Devoy
A presentation for analysts will be held today and the
presentation will be made available on the Group's corporate
website at www.revolutionbarsgroup.com .
Chairman's Statement
Our Business
The Group operates 74 premium bars with a presence throughout
the UK across two high-quality retail brands: Revolution, focused
on young adults; and Revolución de Cuba, which attracts a broader
age range. Most of the Group's sales are derived from drink and
food with some late-night admission receipts driven by
entertainment.
Consistent with the strategy we announced a year ago to focus
both management and capital resources on our existing estate and to
reduce bank debt, I am pleased to report that in the 26 week period
we refurbished seven bars, like-for-like(2) ("LFL") sales
performance has continued to improve, and good progress has been
made on debt reduction. Our underlying business is much stronger
and we are on track to deliver FY20 results in line with market
expectations.
Our results
Sales for the 26-week period of GBP81.2 million (FY19: GBP78.5
million) were up 3.5% on the previous period, driven by recent
initiatives alongside the annualisation of trading from the five
bars opened in the first half of FY19 but offset by the closure of
three poorly performing bars in the current period. LFL(2) sales
were up 1.2% which benefitted from stronger growth in the second
quarter of 1.7%, which included another record trading period over
the four-week Christmas period(3) , the seventh consecutive record
festive trading period.
Revolución de Cuba traded very strongly throughout the period in
terms of LFL (2) sales. Revolution branded venues stemmed the sharp
reduction in LFL (2) sales experienced for much of last year almost
returning to flat sales for the period. Over the past nine months
there has been a steady improvement in the Revolution LFL (2) sales
trend driven by the considerable efforts to rejuvenate the brand.
Actions taken include refurbishments, improved late-night
entertainment experiences, local events during off-peak times, and
changes to the value proposition through extended happy hours.
Adjusted(1) EBITDA, which for many years has been our preferred
KPI, is significantly impacted by the change in reporting resulting
from the implementation of IFRS 16. From next year, when there will
be consistency of reporting, our preferred KPI will become
adjusted(1) EBITDA including rent charges but for this year the
directors believe that business progress is best measured by the
directly comparable IAS 17 pro forma measure of adjusted(1) EBITDA
which increased 10.6% to GBP7.6 million (FY19 H1: GBP6.9 million)
demonstrating the operational leverage of the business.
We are a highly cash generative and profitable business.
Consistent with our strategy announced a year ago, gross bank debt
has been reduced as at the period end to GBP11.5 million, GBP7.0
million lower than at the same point last year and GBP6.0 million
lower than at the end of FY19.
Dividend
The Board is not recommending the payment of an interim dividend
as we focus on investing to revitalise our brands and reducing
debt.
Current trading
The second half has started encouragingly with strong trading on
New Year's Eve. In the eight weeks to 22 February, LFL(2) sales
were up +1.6%.
People
The Group continues to be led by a strong and experienced
executive management team with proven credentials in the industry,
as well as a skilled workforce. The management team has worked
tirelessly across many new initiatives to drive the business
forward while our front-line teams have remained dedicated to
providing brilliant service to customers, particularly over the
huge trading weeks in the run up to the Christmas holidays. I would
like to recognise the commitment and substantial effort of all our
employees and thank them for their dedication and service.
Keith Edelman
Chairman
26 February 2020
(1) Adjusted performance measures exclude exceptional items,
share-based payment charges/(credits) and bar opening costs (see
reconciliation table in the Financial Review).
(2) Like-for-like (LFL) sales are defined as total retail sales
from bars that have traded throughout both the current and prior
reporting periods.
(3) 4 weeks to and including New Year's Eve which bridges the 26
week reporting period ended 28 December 2019 by three days.
Chief Executive's Statement
Continued improvement in like-for-like (2) sales has helped
deliver profit growth for the Group.
Business Review
Following the return to sales growth in the final few weeks of
the last financial year, I am pleased to report that this trend has
strengthened further across the interim reporting period and
enabled us to deliver 10.6% growth in pro forma adjusted (1)
EBITDA. Delivering both sales and profit growth are key milestones
in our ongoing turnaround plan for the business.
Profit growth was achieved through a combination of
like-for-like(2) ("LFL") sales growth, improved gross margins and
tight control of our costs, despite the ongoing structural cost
inflation the sector is facing, to deliver improved profit
conversion. The delivery of our strategic workstreams has been a
primary driver of the strong performance in the reporting period
with both brands displaying positive momentum.
LFL (2) sales for the Group ended the first half up 1.2%, which
is a significant improvement on the previous six months when they
reduced by -2.9% and by -4.0% in the six months before that. This
continued sales momentum demonstrates that both our teams and our
guests are embracing the improvements introduced across the
business.
The Revolution brand has shown real progress improving the LFL
(2) sales trend to -0.4% from -5.6% during the first half of the
last financial year and from -3.4% in the second half. The
revitalisation of the Revolution brand proposition has seen a
positive shift across both guest and financial measures and the
brand is now growing market share amongst our young professional
guest base.
Revolución de Cuba continues to perform strongly with LFL (2)
sales in the first half up +5.0% on last year. Revolución de Cuba
is well positioned, well invested, differentiated in its
marketplace and has benefited from a real focus on the delivery of
our live entertainment offering alongside our customer-centric
service ethos.
For the seventh consecutive year our dedicated sales and
operations teams delivered a record festive trading period with
pre-booked sales up 13.2% driving LFL (2) sales growth of 4.0% for
the four weeks up to 31 December 2019. We continue to invest in our
pre-booked sales capabilities enabling us to benefit from this
rapidly increasing guest trend.
Pro forma adjusted (1) EBITDA was up 10.6% to GBP7.6 million,
which is pleasing when set against a challenging macro-economic and
politically uncertain trading environment for the sector and
specifically 'bricks and mortar high-street businesses', which
continues to be burdened with an ever-increasing cost base
including business rates, an obsolete means of taxation requiring
urgent review.
Our improved financial performance was achieved through growth
in LFL (2) sales of GBP1.0m coupled with 0.2% growth in gross
margins and reductions in operating costs. Operating costs were
lower despite an effective increase of 4.6% in hourly labour rates
as a result of the National Living Wage, National Minimum Wage and
pension increases. Well over half of this increase was mitigated
through labour scheduling and worksmart initiatives to drive
greater productivity. We have also achieved good cost savings on
local marketing activity, cleaning contracts, network
communications, cash collection and card payment charges.
The performance of the three Revolución de Cuba venues opened in
FY19 has been disappointing notwithstanding the longer maturity
profile of our newer brand and against a backdrop of a strong
performance of the brand during the period. We have a very good
track record of Revolución de Cuba openings but each of these three
venues has different challenges pertinent to their locations.
Although trading continues to slowly improve we have decided that,
at this early stage, it is appropriate to take an impairment charge
at implementation and half-year to a total sum of GBP9.5 million on
the assets (including GBP4.9 million right of use asset impairment)
but we still believe that each has the potential to improve trading
and will be working hard to improve performance levels so that the
impairments can potentially start to be reversed.
With both brands seeing good sales momentum, costs remaining
well controlled, many of our workstreams still to deliver their
full potential, and our teams becoming increasingly engaged with
our vision, we remain confident in achieving our full year targets
and that we are building a business with a very exciting
future.
Group strategy
-- Build guest loyalty
-- Drive sustained profit improvement
-- Development of our estate
These three pillars are still the guiding principles of the
Group and are very much driving our long-term decision-making.
Having completed the first year of our three-year turnaround plan
we have moved from a period of stabilisation into a year of
consolidation with the goal of transitioning to a period of
expansion during our next financial year.
The following review will update on the second phase of our
plan, our year of consolidation, and the progress against our
strategic priorities.
Our FY20 strategic priorities
-- Invest in our team
-- Invest in our brand and guest experience
-- Invest in our estate
An ambitious programme across 36 workstreams was initiated at
our interim update last March. We have seen some very pleasing
results from this approach. Nine workstreams have either been
completed or become usual operating procedure and we recently added
a further thirteen new workstreams bringing us to 40 active
workstreams across the Group to constantly evolve our
proposition.
Our Team
One of the key differentiators of Revolution Bars Group is the
commitment and quality of our 3,300-strong team. With the business
in a stronger financial position, we have been able to dedicate
more focus onto what really matters to our team in the absolute
belief that happy teams create happy guests.
During the first half, our site management teams helped to
refresh our company purpose, vision and values to ensure it
reflected our teams and the Group's aspirations. This inclusive
process has helped create a culture where everyone is aligned to
our future direction and how we intend to achieve our goals.
Investing in our Brand and Guest Experience
The creation of the 'Saturday X' and 'Love Saturdays'
entertainment packages for the Revolution brand have achieved
improved Saturday evening sales delivering an average weekly uplift
of GBP2,000 in our larger bars with 'Love Saturdays' delivering
average weekly uplifts of GBP1,200 per bar. This initiative has
been adopted across the estate and is now part of the way we
operate. Our attention will now turn to Fridays with a new
workstream focused on creating a unique Friday experience for our
guests.
The success of 'Project Event Space' has continued to grow with
20,500 guests attending events, such as pug cafés, held across 35
bars over the past 12 months. These differentiated experiences
provide additional reasons to visit our brands in largely off-peak
times thereby diversifying our business away from our traditional
trading patterns.
Improving our digital guest experience and building customer
loyalty are key areas of focus for the Group and this led to the
launch of the Revolution branded app in September 2019. The App has
so far received 230,000 registered customer downloads. The next
phase of development for the App is to have 'order and pay at
table' enabled and this is due to move into a trial phase before a
consideration of wider rollout.
Innovating across all areas of our business is vital to ensure
that we continue our improved sales and profit performance; to aid
this we are about to undertake further customer research building
on what we did in H1 FY19 and aimed at ensuring the Revolution
brand continues to evolve and remain relevant to our demanding
young professional guest base. This work will inform our investment
decisions as we look forward to FY21.
Investing in our estate
During the reporting period, the Group invested GBP1.4 million
refurbishing seven bars. These comprised five Revolution bars and
two Revolución de Cuba bars. Post-refurbishment, these bars have
delivered an overall sales uplift of 5.5%, sufficient to repay the
investment in just over 2 years with a return on investment of 46%.
Six further refurbishments are planned for the second half and
three (all Revolutions) have already been completed at a total cost
of GBP450,000. The initial trading improvements from these bars are
very encouraging.
Shortly after the end of the reporting period, the Group
exchanged contracts to surrender leases at five loss-making sites
at a cost of GBP3.6 million. This brings the total number of lease
surrenders this financial year to six for a cost consideration of
GBP3.9 million that will bring an annualised cash benefit to the
Group of GBP1.3 million. We continue to manage our estate to
optimise value creation for our stakeholders.
During the second half of FY20 we will be refining our new site
strategy and target towns list so that we are well-placed to resume
expansion towards the end of the next financial year, should we be
in a position to do so.
Sector Backdrop
Whilst we are pleased with the continuing improvement in our
trading performance, like many other hospitality businesses, the
macro economic environment remains challenging as a result of the
relentless inflationary cost pressure imposed on our industry. We
support the principal of the National Living Wage, however, the
6.2% increase (effective from April but only announced on 31
December 2019) is significantly bigger than anticipated; this will
cost the business GBP2.0m per annum in terms of our direct
workforce before any mitigating actions and will also result in
cost increases for many other contracted services.
With property overheads rising at least in line with inflation
and in particular business rates having significantly increased in
real terms as a result of property revaluations over a long period,
structural changes to taxation are urgently required, particularly
in relation to employers' national insurance and business rates in
order to restore a fair and balanced trading environment in which
more businesses can develop, invest and prosper.
Current Trading and Outlook
In the first eight weeks of the second half to 22 February 2020,
LFL (2) sales increased by 1.6% consistent with the improved
performance achieved in the second quarter. We expect sales growth
to broadly continue at this level for the remainder of the
financial period, which should deliver pro forma adjusted (1)
EBITDA in line with market expectations and keep us on target to
reduce bank debt net of cash to one times pro forma adjusted (1)
EBITDA by the year end, notwithstanding a payment of GBP3.6m to
complete on the five lease surrenders referred to above under
'Investing in our estate'.
We will continue to innovate and develop our experience-led
events including launching our Revolución de Cuba external events
business. We will further build on our strong competitive
socialising heritage with the addition of a new Vodka masterclass,
whilst also adding 'order and pay at table' to our new app. We will
invest in our estate with the twin objectives of driving LFL (2)
sales whilst creating a more sustainable business and lessening our
impact on the environment.
We remain focused on delivering against our financial goals of
achieving LFL (2) sales growth, improved earnings and reducing bank
debt. This will be achieved through the delivery of our workstreams
and a continued investment into our teams, our brand and guest
experience, and our estate.
I am increasingly excited by the future prospects of the Group
and look forward to leading the team as we transition to the next
phase of our plan.
Rob Pitcher
Chief Executive Officer
26 February 2020
(1) Adjusted performance measures exclude exceptional items,
share-based payment charges/(credits) and bar opening costs (see
reconciliation table in the Financial Review).
(2) Like-for-like (LFL) sales are defined as total retail sales
from bars that have traded throughout both the current and prior
reporting periods.
(3) 4 weeks to and including New Year's Eve which bridges the 26
week reporting period ended 28 December 2019 by three days.
Financial Review
Summary
-- Sales GBP81.2 million (FY19: GBP78.5 million), up +3.5%
-- Like-for-like(2) ("LFL") sales up +1.2% (FY19: down -4.0%)
-- Adjusted(1) EBITDA GBP12.8 million (IAS 17 FY20: GBP7.6
million, FY19: GBP6.9 million), up 10.6%
-- Adjusted(1) profit before tax GBP2.9 million (IAS 17 FY20:
GBP3.5 million, FY19: GBP2.9 million)
-- Adjusted(1) earnings per share 4.4 pence (IAS 17 FY20: 4.5 pence, FY19: 4.2 pence)
-- Statutory loss before tax GBP1.6 million (IAS 17 FY20: loss
GBP3.9 million, FY19: loss GBP3.5 million)
-- Statutory loss per share of 2.9 pence (IAS 17 FY20: loss per
share of 7.9 pence, FY19: loss per share of 6.2 pence)
-- Gross bank debt reduced to GBP11.5 million (FY19 interim:
GBP18.5 million, FY19 year-end: GBP17.5 million)
Basis of preparation
Consistent with previous reporting periods, the Group operates a
weekly accounting calendar and as each accounting period refers
only to complete accounting weeks, the period under review reflects
the results of the 26 weeks to 28 December 2019 (FY19: 26 weeks
ended 29 December 2018).
As signposted in our financial statements at the last year end,
IFRS 16 became effective in the current reporting period. As
permitted by the standard, the Group has adopted the modified
retrospective approach to implementation and therefore only the
current year's results (FY20) are reported under IFRS 16; the
comparative disclosures have not been restated and continue to be
shown on an IAS 17 basis. Given that IFRS 16 materially impacts the
presentation of several of the Group's KPIs, a pro forma income
statement and supporting notes are presented as an appendix to this
statement to show how the results would have been presented under
IAS 17. The Board considers that this is necessary for the FY20
reporting period only in order to show true comparability against
the prior year. Note 1 provides a reconciliation of the two
measures, and the pro forma profit statement referred to above also
reconciles the differences in approach. There have been no other
changes to accounting policies implemented in the period under
review.
The directors have consistently relied upon adjusted(1) EBITDA
as their preferred alternative performance measure as they believe
it provides a better representation of underlying performance as it
excludes the effect of exceptional items, share-based payment
charges/(credits) that are non-cash and have been subject to
significant swings unrelated to trading performance in recent
periods, and bar opening costs that are influenced by the number
and timing of new bar openings. None of the above referenced items
directly relate to the underlying trading performance of the Group.
However, adjusted(1) EBITDA is also significantly impacted by IFRS
16. From next year, when both periods reported will be treated
consistently, the preferred alternative performance measure will
become adjusted(1) EBITDA including rent charges. In the current
reporting period, because of changes to the basis of the rent
charge, it is not appropriate to simply deduct rent from
adjusted(1) EBITDA to derive a figure comparable with last year's
IAS 17 reported number due to different accounting treatments for
rent free periods and onerous lease provisions. Therefore, the
directors continue to rely (for the FY20 reporting period only) on
the pro forma measure of adjusted(1) EBITDA as being their
preferred measure of underlying business performance.
Trading performance
Sales for the 26 weeks ended 28 December 2019 rose by 3.5% to
GBP81.2 million (FY19: GBP78.5 million). LFL(2) sales over the same
period improved by 1.2%.
Operating loss (IAS 17) was GBP3.5 million (FY19: Operating loss
GBP3.1 million), and on a post IFRS 16 basis operating profit was
GBP1.0 million (as a result of the exclusion of rent charges, as
well as differences in impairment charges and different treatment
of onerous lease provisions and rent free periods). This measure
was significantly impacted in both the current and comparative
reporting period by exceptional items as detailed below:
Exceptional items
Exceptional items, by virtue of their size, incidence or nature,
are disclosed separately in order to allow a better understanding
of the underlying trading performance of the Group. Exceptional
charges in the period amounted to GBP4.4 million (FY19: GBP5.2
million) and comprised the following:
(Unaudited) (Unaudited) Audited
26 weeks 26 weeks 52 weeks
ended 28 ended ended
December 29 December 29 June
2019 2018 2019
GBP'000 GBP'000 GBP'000
------------------------------- ------------ ------------- ----------
Impairment of property, plant
and equipment 1,755 3,532 5,215
Impairment of right-of-use
assets 2,997 - -
Onerous lease charges - 1,673 1,912
Gain on disposal (575) - -
Bar closures 200 - -
Total exceptional items 4,377 5,205 7,127
------------------------------- ------------ ------------- ----------
Following the implementation of IFRS 16, impairment reviews
continue to be conducted on a Cash Generating Unit ("CGU") basis
but the asset value being tested now includes the lease
right-of-use asset associated with each bar alongside the property,
plant and equipment. As a result of the impairment reviews, the net
book value of property, plant and equipment was written down at 17
of the Group's bars, of which eight were small amounts of
additional capital spend at bars fully impaired previously, and
nine had been partially impaired previously. Three bars opened in
FY19 are being impaired due to significant under-performance
relative to expectations. The right-of-use assets write-down
relates to nine bars of which the most significant element relates
to the FY19 openings referred to above. The directors consider that
these bars are unlikely to attain trading levels and generate
sufficient cash flows in the foreseeable future to justify their
original carrying values.
Following the adoption of IFRS 16, which requires the carrying
value of the right-of-use asset to be assessed at each balance
sheet date, it is no longer appropriate to hold onerous lease
provisions and accordingly all existing provisions have been
incorporated as part of the opening adjustments for IFRS 16
implementation. Onerous lease obligations are now recognised by way
of impairment of the relevant CGU right-of-use asset.
During the half-year, the Group closed three bars (Swansea,
Liverpool Wood Street, and Macclesfield). The Swansea lease was
sub-let shortly after closure, the Liverpool Wood Street lease is
being surrendered as part of the deal with Aprirose to surrender
five leases announced shortly after the end of the reporting
period, and the Macclesfield lease was surrendered during the
period. Legal, agents fees, and associated venue close-down costs
have been classified as exceptional due to their nature and that
the Group has not closed any venues since its inception (IFRS 16).
These costs have been charged against the onerous lease provision
under IAS 17.
An exceptional gain on disposal occurred with the surrender of
the Macclesfield lease and removal of its IFRS 16 lease liability;
this is net of a surrender premium paid to the landlord.
Adjusted (1) EBITDA
A reconciliation between the reported operating profit/(loss)
and the Director's preferred key performance measure of adjusted(1)
EBITDA is set out below:
(Unaudited) (Unaudited) Audited
26 weeks 26 weeks 52 weeks
ended ended ended
28 December 29 December 29 June
2019 2018 2019
IFRS 16 IAS 17 IAS 17
Reconciliation of Non-GAAP
measure GBP'000 GBP'000 GBP'000
Operating profit/(loss) 992 (3,079) (4,716)
Exceptional items 4,377 5,205 7,127
Share-based payment credit/(charge) 94 (44) (64)
Non-recurring new bar opening
costs - 1,242 1,484
---------------------------------------- ------------- ------------- ----------
Adjusted operating profit 5,463 3,324 3,831
Finance expense (2,568) (403) (858)
---------------------------------------- ------------- ------------- ----------
Adjusted profit before
tax 2,895 2,921 2,973
Depreciation 7,325 3,589 7,230
Amortisation - - -
Finance expense 2,568 403 858
---------------------------------------- ------------- ------------- ----------
Adjusted EBITDA 12,788 6,913 11,061
---------------------------------------- ------------- ------------- ----------
Pro forma adjusted(1) EBITDA for the current period was GBP7.6
million (FY19: GBP6.9 million) - see final page for further
details.
The table below shows how pro forma adjusted(1) EBITDA has
changed in the constituent parts of the estate.
Pro forma adjusted (1) EBITDA by estate segmentation
Number (Unaudited) (Unaudited) Audited
of venues 26 weeks 26 weeks 52 weeks
ended 28 ended 29 ended 29
December December June
2019 2018 2019
IAS 17 IAS 17 IAS 17
GBP'000 GBP'000 GBP'000
Like-for-like (2) venue
EBITDA 68 12,232 11,425 20,012
Venues opened in prior
period (FY19) 5 458 279 504
Venues closed in current
period (FY20) 3 (179) (200) (855)
-------------------------- ----------- ------------ ------------ ----------
Pro forma adjusted (1)
EBITDA from venues 76 12,511 11,504 19,661
Central support costs (4,862) (4,591) (8,600)
-------------------------- ----------- ------------ ------------ ----------
Pro forma adjusted (1)
EBITDA 7,649 6,913 11,061
-------------------------- ----------- ------------ ------------ ----------
The above figures are on an IAS 17 basis; on an IFRS 16 basis,
adjusted EBITDA (1) was GBP12.8 million. The difference between the
two measurements predominantly relates to rental charges.
The principal reason for the increase in pro forma adjusted (1)
EBITDA, as shown in the table above, is the growth in LFL (2) sales
of GBP1.0m coupled with 0.2% growth in gross margins and reductions
in operating costs.
The GBP0.2m increase in pro forma adjusted (1) EBITDA at venues
opened in FY19 is below expectations due to poor performance of the
three Revolución de Cuba venues, as referred to in the Chief
Executive's review.
The three venues reported as closed, are as described in the
section on Exceptional items above.
The increased pro forma adjusted (1) EBITDA from venues is
offset by an increase in central support costs as a result of
increased performance activities across the estate to drive sales.
However, as a percentage of sales, central support costs have
marginally reduced to 5.9% sales, from 6.0% last year.
Capital expenditure
The Group spent GBP2.9 million on capital expenditure during the
period (FY19: GBP8.3 million). This was incurred entirely on the
existing estate, comprising venue refurbishments, building
renovation works, equipment replacement and IT investment. GBP5.7
million of the prior period expenditure related to new
openings.
Operating cash flow and net debt
The Group continued to be cash generative in the period with a
net cash inflow from operating activities of GBP15.5 million (FY19:
GBP6.9 million). However, it should be noted that the different
presentation under IFRS 16 improves the reported number as a result
of removing rent charges. On an IAS 17 comparable basis, net cash
flow from operating activities was GBP9.8 million, GBP2.9 million
higher than last year with free cash flow after capex of GBP6.9
million (FY19 (GBP1.4 million)).
At the end of the period, the Group had bank borrowings of
GBP11.5 million (FY19: GBP18.5 million), all relating to drawings
on its committed revolving credit facility. The credit facility
runs to December 2021 with available credit varying between
GBP21.0m and GBP18.0m. At the period end, cash and cash equivalents
were GBP3.1 million (FY19: GBP3.7 million) and therefore bank
borrowings net of cash was GBP8.4 million (FY19: GBP14.8
million).
Loss per share
Basic loss per share was 2.9 pence (FY20: IAS 17 loss 7.9 pence
and FY19: loss 6.2 pence) as a result of significant exceptional
charges in both periods. Adjusted(1) basic earnings per share for
the period was 4.4 pence (FY20: IAS 17 earnings of 4.5 pence, and
FY19: earnings of 4.2 pence).
Dividend
Consistent with its previously announced strategy to use the
Group's cash flow to prioritise investment in the existing estate
and to reduce bank debt, t he Board has not declared an interim
dividend and does not expect to declare a full year dividend (FY19
interim dividend: nil pence).
Post balance sheet event
On 14 January 2020, contracts were exchanged with the landlord
of nine of the Group's properties to surrender five loss-making
leases at a cost of GBP3.6m, and to re-gear the other four leases
with a small net reduction in the passing rent and extension of the
leases to a 25-year term (which is considered to represent fair
market value). Completion on the five lease surrender sites is
expected to take place just prior to the rent quarter day of March
2020 on payment of GBP3.35 million with a further payment due of
GBP0.29 million in June 2020. The surrendered leases had an
unexpired term of just under 13 years; three of the properties were
not trading and the other two ceased trading shortly after exchange
of the surrender agreement. The net effect of these transactions is
expected to improve the Group's ongoing full year operational cash
flows by c. GBP1.2 million per annum
Responsibility statement of the directors in respect of the
half-yearly financial report
We confirm that to the best of our knowledge:
-- the condensed consolidated interim financial statements has
been prepared in accordance with IAS 34 Interim Financial Reporting
as adopted by the EU, and
-- the interim management report includes a fair review of the
information required by:
(a)DTR 4.2.7R of the Disclosure Guidance and Transparency Rules,
being an indication of important events that have occurred during
the first 26 weeks of the financial year and their impact on the
condensed set of financial statements; and a description of the
principal risks and uncertainties for the remaining 26 weeks of the
year; and
(b)DTR 4.2.8R of the Disclosure Guidance and Transparency Rules,
being related party transactions that have taken place in the first
26 weeks of the current financial year and that have materially
affected the financial position or performance of the entity during
that period; and any changes in the related party transactions
described in the last annual report that could do so.
There have been no changes to the directors of Revolution Bars
Group plc to those listed in the Group's 2019 Annual Report and
Financial Statements. A list of current directors is maintained on
the Group's website: www.revolutionbarsgroup.com.
Mike Foster
Chief Financial Officer
26 February 2020
(1) Adjusted performance measures exclude exceptional items,
share-based payment charges/(credits) and bar opening costs (see
reconciliation table in the Financial Review).
(2) Like-for-like (LFL) sales are defined as total retail sales
from bars that have traded throughout both the current and prior
reporting periods.
(3) 4 weeks to and including New Year's Eve which bridges the 26
week reporting period ended 28 December 2019 by three days.
.
Revolution Bars Group plc
Condensed Consolidated Statement of Comprehensive Income
for the 26 weeks ended 28 December 2019
Unaudited Unaudited Audited
26 weeks 26 weeks 52 weeks
ended ended ended
28 December 29 December 29 June
2019 2018 2019
IFRS 16 IAS 17 IAS 17
Note GBP'000 GBP'000 GBP'000
---------------------------------- ---- ---- ---- ----- --------------- --------------- ----------
Revenue 81,229 78,472 151,404
Cost of sales (19,428) (18,966) (36,643)
---------------------------------------------------- ----- --------------- --------------- ----------
Gross profit 61,801 59,506 114,761
---------------------------------------------------- ----- --------------- --------------- ----------
Operating expenses
- operating expenses, excluding
exceptional items (56,432) (57,380) (112,350)
- exceptional items 4 (4,377) (5,205) (7,127)
---------------------------------------------------- ----- --------------- --------------- ----------
Total operating expenses (60,809) (62,585) (119,477)
---------------------------------------------------- ----- --------------- --------------- ----------
Operating profit/(loss) 992 (3,079) (4,716)
Finance expense 5 (2,568) (403) (858)
---------------------------------------------------- ----- --------------- --------------- ----------
Loss before taxation (1,576) (3,482) (5,574)
Tax 6 109 393 352
---------------------------------------------------- ----- --------------- --------------- ----------
Loss and total comprehensive
income for the period (1,467) (3,089) (5,222)
---------------------------------------------------- ----- --------------- --------------- ----------
(Loss) per share
Basic and diluted (pence) 8 (2.9p) (6.2p) (10.4p)
----------------------------------- -------- ---- ----- --------------- --------------- ----------
Non-GAAP alternative performance
measure
Operating profit/(loss) 992 (3,079) (4,716)
Exceptional items 4 4,377 5,205 7,127
Charge/(credit) arising from
long-term incentive plans 7 94 (44) (64)
Bar opening costs - 1,242 1,484
----------------------------------- -------- ---- ----- --------------- --------------- ----------
Adjusted operating profit 5,463 3,324 3,831
Finance expense (2,568) (403) (858)
----------------------------------- -------- ---- ----- --------------- --------------- ----------
Adjusted profit before tax 2,895 2,921 2,973
----------------------------------- -------- ---- ----- --------------- --------------- ----------
Depreciation 7,325 3,589 7,230
Amortisation - - -
Finance expense 2,568 403 858
----------------------------------- -------- ---- ----- --------------- --------------- ----------
Adjusted EBITDA 12,788 6,913 11,061
----------------------------------- -------- ---- ----- --------------- --------------- ----------
IFRS 16 was adopted on 30 June 2019 without restating prior year
figures as permitted by the standard. As a result, the primary
statements are shown on an IFRS 16 basis for the 26 weeks ended 28
December 2019 and on an IAS 17 basis for the 26 weeks ended 29
December 2018 and 52 weeks ended 29 June 2019. Note 1 provides a
reconciliation of the two measures.
Revolution Bars Group plc
Condensed Consolidated Statement of Financial Position
at 28 December 2019
Unaudited Unaudited Audited
26 weeks 26 weeks 52 weeks
ended 28 ended 29 ended 29
December December June
2019 2018 2019
IFRS 16 IAS 17 IAS 17
GBP'000 GBP'000 GBP'000
--------------------------------------- ---------- ---------- ----------
Assets
Non-current assets
Intangible assets 9 - 9
Right-of-use assets 89,762 - -
Property, plant and equipment 50,708 61,365 59,325
Deferred tax asset 316 - -
--------------------------------------- ---------- ---------- ----------
140,795 61,365 59,334
--------------------------------------- ---------- ---------- ----------
Current assets
Inventories 4,303 4,696 4,086
Trade and other receivables 7,513 9,828 12,276
Tax receivable - 265 51
Cash and cash equivalents 3,116 3,656 2,627
---------------------------------------- ---------- ---------- ----------
14,932 18,445 19,040
--------------------------------------- ---------- ---------- ----------
Total assets 155,727 79,810 78,374
---------------------------------------- ---------- ---------- ----------
Liabilities
Current liabilities
Lease liabilities (7,113) - -
Provisions - (1,184) (1,269)
Trade and other payables (25,186) (23,206) (24,901)
(32,299) (24,390) (26,170)
--------------------------------------- ---------- ---------- ----------
Non-current liabilities
Interest-bearing loans and borrowings (11,500) (18,500) (17,500)
Deferred tax liability - (297) (413)
Provisions (1,883) (9,869) (9,687)
Lease liabilities (112,214) - -
Rent-free creditor - (3,177) (3,184)
---------------------------------------- ---------- ---------- ----------
(125,597) (31,843) (30,784)
--------------------------------------- ---------- ---------- ----------
Total liabilities (157,896) (56,233) (56,954)
---------------------------------------- ---------- ---------- ----------
Net (liabilities)/assets (2,169) 23,577 21,420
---------------------------------------- ---------- ---------- ----------
Equity attributable to equity
holders of the Parent
Share capital 50 50 50
Merger reserve 11,645 11,645 11,645
Retained earnings (13,864) 11,882 9,725
---------------------------------------- ---------- ---------- ----------
Total (deficit)/equity (2,169) 23,577 21,420
---------------------------------------- ---------- ---------- ----------
IFRS 16 was adopted on 30 June 2019 without restating prior year
figures as permitted by the standard. As a result, the primary
statements are shown on an IFRS 16 basis for the 26 weeks ended 28
December 2019 and on an IAS 17 basis for the 26 weeks ended 29
December 2018 and 52 weeks ended 29 June 2019. Note 1 provides a
reconciliation of the two measures.
Revolution Bars Group plc
Condensed Consolidated Statement of Changes in Equity
for the 26 weeks ended 28 December 2019
Reserves
--------- ----------
Share Merger Retained Total
capital reserve earnings (deficit)/equity
GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------ ------------- --------- ---------- ------------------
At 30 June 2018 50 11,645 16,665 28,360
Loss and total comprehensive
expense for period - - (3,089) (3,089)
Credits arising from long-term
incentive plans - - (44) (44)
Dividends paid - - (1,650) (1,650)
------------------------------------- ------------- --------- ---------- ------------------
At 29 December 2018 50 11,645 11,882 23,577
Loss and total comprehensive
expense for period - - (2,133) (2,133)
Credits arising from long-term
incentive plans - - (24) (24)
Dividends paid - - - -
------------------------------------ ------------- --------- ---------- ------------------
At 29 June 2019 50 11,645 9,725 21,420
Impact of change in accounting
policy (Note 1) - - (22,785) (22,785)
Tax impact of change in accounting
policy - - 569 569
------------------------------------- ------------- --------- ---------- ------------------
Adjusted balance at 29 June
2019 50 11,645 (12,491) (796)
Loss and total comprehensive
expense for period - - (1,467) (1,467)
Charge arising from long-term
incentive plans - - 94 94
At 28 December 2019 50 11,645 (13,864) (2,169)
------------------------------------- ------------- --------- ---------- ------------------
IFRS 16 was adopted on 30 June 2019, without restating prior
year figures as permitted by the standard. As a result, the primary
statements are shown on an IFRS 16 basis for the 26 weeks ended 28
December 2019 and on an IAS 17 basis for the 26 weeks ended 29
December 2018 and 52 weeks ended 29 June 2019. Note 1 provides a
reconciliation of the two measures.
Revolution Bars Group plc
Consolidated Statement of Cash Flow
for the 26 weeks ended 28 December 2019
Unaudited Unaudited Audited
26 weeks 26 weeks 52 weeks
ended ended ended
28 December 29 December 29 June
2019 2018 2019
IFRS 16 IAS 17 IAS 17
Note GBP'000 GBP'000 GBP'000
------------------------------------ ------ ------------- ------------- ----------
Cash flow from operating
activities
Loss after tax from operations (1,576) (3,089) (5,574)
Adjustments for:
Net finance costs 2,568 403 858
Depreciation of property,
plant and equipment 7,325 3,589 7,230
Impairment of property, plant
and equipment 4,752 3,532 5,215
Amortisation of intangibles - - -
Gain on disposal (575) - -
Tax (credit)/charge (109) (393) 352
Charge/(credit) arising from
long-term incentive plans 94 (44) (68)
---------------------------------------------- ------------- ------------- ----------
Operating cash flow before
movement in working capital 12,479 3,998 8,013
---------------------------------------------- ------------- ------------- ----------
Increase in inventories (217) (804) (193)
Decrease/(increase) in trade
and other receivables 4,764 1,646 (802)
(Decrease)/increase in trade
and other payables (1,542) 992 2,375
Increase in provisions - 1,080 979
15,484 6,912 10,372
Tax refunded 51 - 214
---------------------------------------------- ------------- ------------- ----------
Net cash flow generated from
operating activities 15,535 6,912 10,586
---------------------------------------------- ------------- ------------- ----------
Cash flow from investing
activities
Purchase of intangible assets - - (9)
Purchase of property, plant
and equipment (2,919) (8,291) (11,575)
Net cash flow used in investing
activities (2,919) (8,291) (11,584)
---------------------------------------------- ------------- ------------- ----------
Cash flow from financing
activities
Equity dividend paid - (1,650) (1,650)
Interest paid (361) (340) (750)
Principal elements of lease
payments (5,766) - -
(Repayment)/drawdown of borrowings (6,000) 3,000 2,000
---------------------------------------------- ------------- ------------- ----------
Net cash flow (used)/generated
from financing activities (12,127) 1,010 (400)
---------------------------------------------- ------------- ------------- ----------
Net increase/(decrease) in
cash and cash equivalents 489 (369) (1,398)
Opening cash and cash equivalents 2,627 4,025 4,025
---------------------------------------------- ------------- ------------- ----------
Closing cash and cash equivalents 3,116 3,656 2,627
---------------------------------------------- ------------- ------------- ----------
IFRS 16 was adopted on 30 June 2019 without restating prior year
figures as permitted by the standard. As a result, the primary
statements are shown on an IFRS 16 basis for the 26 weeks ended 28
December 2019 and on an IAS 17 basis for the 26 weeks ended 29
December 2018 and 52 weeks ended 29 June 2019. Note 1 provides a
reconciliation of the two measures.
Notes to the Half-yearly Financial Report
1. General information and basis of preparation
General information
Revolution Bars Group plc (the 'Company') is a company
incorporated and domiciled in the United Kingdom. Its Registered
Office is at 21 Old Street, Ashton-under-Lyne, OL6 6LA, United
Kingdom. The Company's shares are listed on the London Stock
Exchange.
This half-yearly Financial Report is an interim management
report as required by DTR 4.2.3 of the Disclosure Guidance and
Transparency Rules of the UK Financial Conduct Authority (the
'FCA').
These condensed consolidated interim financial statements as at
and for the 26 weeks ended 28 December 2019 comprises the Company
and its subsidiaries (together referred to as the 'Group').
Basis of preparation
The annual financial statements of the Group are prepared in
accordance with International Financial Reporting Standards (IFRSs)
as adopted by the European Union.
The condensed consolidated interim financial statements of the
Group for the 26 weeks ended 28 December 2019 have been prepared in
accordance with IAS 34 Interim Financial Reporting as adopted by
the EU. The condensed consolidated interim 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 financial statements for the 52 weeks ended 29 June
2019.
As required by the Disclosure Guidance and Transparency Rules of
the FCA, the condensed set of financial statements has been
prepared applying the accounting policies and presentation that
were applied in the preparation of the company's published
consolidated financial statements for the 52 weeks ended 29 June
2019, with the exception of IFRS 16 that was adopted from 30 June
2019, the effect of which is set out in a separate section further
down this note.
The comparative figures for the 52 weeks ended 29 June 2019 are
extracted from the Company's statutory accounts for that period.
Those accounts have been reported on by the Company's auditor,
filed with the Registrar of Companies and are available on request
from the Company's Registered Office or to download from
www.revolutionbarsgroup.com . The auditor's report on those
accounts was unqualified, did not include a reference to any
matters to which the auditor drew attention by way of emphasis
without qualifying their report and did not contain any statement
under sections 498 (2) or (3) of the Companies Act 2006.
Going concern
The Directors have reviewed the Group's trading forecasts. These
forecasts demonstrate that the Group has adequate financial
resources, including its revolving credit facility, with available
credit varying between GBP21.0m and GBP18.0m committed until
December 2021, to continue in operational existence for the
foreseeable future.
The Group is forecast to remain compliant with the terms of the
revolving credit facility, including financial covenants that are
tested quarterly. The Directors expect to utilise the revolving
credit facility for cash flow management and general business
purposes as required.
Accounting policies
The results for the interim reporting period have been reviewed,
not audited, and are prepared on the basis of the accounting
policies set out in the Group's 2019 Annual Report and Financial
Statements, except as described below.
New standards and interpretations effective as of 30 June 2019
are listed below:
-- Annual improvements to IFRS Standards 2015-2017 Cycle;
-- Amendments to IFRS 9 Financial instruments, on prepayment
features with negative compensation;
-- Amendments to IAS 28 Investments in associates, on long term
interests in associates and joint ventures;
-- Amendments to IAS 19 Employee benefits on plan amendment, curtailment or settlement;
-- IFRIC 23 Uncertainty over Income Tax Treatments; and
-- IFRS 16 Leases.
Except for the adoption of IFRS 16, the above standards and
interpretations have not required any changes to the Group's
accounting policies or materially impacted the financial position
or performance of the Group.
Amended accounting policies
IFRS 16 Leases
The Group adopted IFRS 16 with effect from 30 June 2019. The
group applied the standard using the modified retrospective
approach and thus comparative information has not been restated and
is presented, as previously reported, under IAS 17.
The new standard results in all property and vehicle leases
being recognised on the Statement of Financial Position as, from a
lessee perspective, there is no longer any distinction between
operating and finance leases. Under IFRS 16, an asset, based on the
right to use a leased item over a long-term period and a financial
liability to pay rentals are recognised. The only exceptions are
short-term and low-value leases.
As at 30 June 2019, the Group sub-let two properties, being
partial elements of properties. Under IFRS 16, lessor accounting
remains largely unchanged, with lessors continuing to account for
leases as either operating or finance leases, depending on whether
the lease transfers substantially all the risk and rewards
incidental to ownership of the underlying asset, and whether the
present value of the sublease payments amount to at least
substantially all of the fair value of the underlying asset, which
in this case is the head-leases.
The Group leases both properties and vehicles, which under IAS
17 were classified as a series of operating lease contracts with
payments made (net of any incentives received from the lessor)
charged to profit or loss as arising over the period of the lease.
From 30 June 2019, under IFRS 16, leases are recognised as a
right-of-use asset with a corresponding lease liability from the
date at which the leased asset becomes available for use by the
Group. Each lease payment is allocated between the liability and a
finance cost. The finance cost is charged to profit or loss over
the lease period using the effective interest method. The
right-of-use asset is depreciated over the shorter of the asset's
useful life and the determined lease term, which is the shorter of
the remaining lease term and first opportunity to break the lease,
on a straight-line basis.
In applying IFRS 16 for the first time, the Group has used the
following practical expedients permitted by the standard:
-- In determining whether existing contracts meet the definition
of a lease, the Group has not reassessed those contracts previously
identified as leases and has not applied the standard to those
contracts not previously identified as leases;
-- Short-term leases (leases of less than 12 months) and leases
with less than 12 months remaining as at the date of adoption of
the new standard are not within the scope of IFRS 16;
-- Leases for which the asset is of low value (IT equipment and
small items of office equipment) are not within the scope of IFRS
16;
-- The use of a single discount rate to its portfolio of leases
with reasonably similar characteristics.
On adoption of IFRS 16, the Group recognised lease liabilities
in relation to leases previously classified as 'operating leases'
under the principles of IAS 17 Leases. For all leases, these
liabilities were measured at the present value of the remaining
lease payments, discounted using the Group's weighted average
incremental borrowing rate as of 30 June 2019, which was 3.91%.
This was deemed appropriate given that the Group's leases have
reasonably similar characteristics. The rate was determined as the
borrowing rate under the current Revolving Credit Facility with
appropriate adjustments made to reflect the increased term and
amount of borrowing required for a similar lease portfolio, as well
as changes to risk rating.
IFRS 16 defines the lease term as the non-cancellable period of
a lease together with the options to extend or terminate a lease if
the lessee is reasonably certain to exercise that option. Where a
lease includes the option for the Group to terminate a lease term
early, the Group makes a judgement as to whether it is reasonably
certain that the lease termination option will be taken. This
predominantly takes into the account the length of time remaining
before the option is exercisable, current trading performance,
future trading forecasts, and the level and type of future capital
investment. The current average remaining lease length of the
Group's leases, as at the date of adoption of IFRS 16, was 14 years
as profiled below:
Remaining lease length Proportion
------------------------ -----------
< 5 years 10%
5 - 10 years 23%
10 - 15 years 27%
> 15 years 40%
------------------------- -----------
The associated right-of-use assets were measured using the
approach set out in IFRS 16.C8(b)(ii), whereby right-of-use assets
are equal to the lease liabilities adjusted by the amount of any
prepaid or accrued lease payments, including unamortised lease
incentives such as rent free periods, onerous lease provisions, and
an estimate of the dismantling, removal and restoration costs
required under the terms of the lease. Under IFRS 16, the
right-of-use assets are tested for impairment in accordance with
IAS 36 'Impairment of Assets'. This replaces the previous
requirement to recognise a provision for onerous leases. An
impairment assessment of the cash generating unit ("CGU") assets
was performed on transition at 30 June 2019 with an initial
impairment of GBP23.8 million charged through opening reserves.
In the condensed consolidated cash flow statement, depreciation
of the right-of-use-asset is included in operating activities and
the repayment of lease liabilities is included in financing
activities whereas under IAS 17 operating lease rental payments
were included in operating activities. The impact on the
consolidated cash flow statement is an increase in cash inflow from
operations of GBP5.8 million and a decrease in the cash outflow
from financing activities of GBP5.8 million.
The effect of the accounting policy change on the condensed
consolidated statement of financial position at implementation on
30 June 2019 was:
As at 29 IFRS 16 As at 30
June 2019 adjustments June 2019
GBP'000 GBP'000 GBP'000
---------------------------------- ----------- ------------- -----------
Assets
Property, plant and equipment 59,325 (6,193) 53,132
Right-of-use assets - 96,496 96,496
Prepayments 8,412 (2,403) 6,009
Deferred tax asset - 569 569
Change in total assets 88,469
----------------------------------- ----------- ------------- -----------
Liabilities
Lease liabilities - Current - 7,113 7,113
Lease liabilities - Non-current - 116,499 116,499
Onerous lease provision 10,556 (10,556) -
Dilapidations provision 400 1,483 1,883
Accruals 6,796 (441) 6,355
Rent-free creditor - Current
(within accruals) 229 (229) -
Rent-free creditor - Non-current 3,184 (3,184) -
----------------------------------- ----------- ------------- -----------
Change in total liabilities 110,685
----------------------------------- ----------- ------------- -----------
Retained earnings 9,725 (22,785) (13,062)
Retained earnings - deferred
tax - 569 569
Change in equity (22,216)
----------------------------------- ----------- ------------- -----------
The adoption of IFRS 16 reduced opening retained earnings as at
30 June 2019 by GBP22.8 million. This principally represents the
initial impairment review upon adoption of GBP23.8 million. As part
of this impairment testing, the net book value of property, plant
and equipment at ten of the Group's bars was written down on
implementation, and 28 of the right-of-use assets were also written
down.
The table below presents a reconciliation from operating lease
commitments disclosed at 29 June 2019 to lease liabilities
recognised at 30 June 2019.
GBP'000
-------------------------------------------- ---------
Operating lease commitments disclosed at
29 June 2019 182,123
Break-clause dates(1) (3,572)
Increased rent-reviews(2) 1,090
Exclusion of service charges(3) (10,293)
Effect of discounting(4) (45,736)
--------------------------------------------- ---------
Lease liabilities recognised as at 30 June
2019 123,612
--------------------------------------------- ---------
Of which are:
Current lease liabilities 7,113
Non-current lease liabilities 116,499
Lease liabilities recognised as at 30 June
2019 123,612
--------------------------------------------- ---------
(1) The operating lease commitments were calculated using the
lease-end termination date, whereas the IFRS 16 calculations
include judgements where an earlier lease break date has been
used;
(2) A number of outstanding rent-reviews have been finalised
since the end of FY19; these were not included in the operating
lease commitments disclosed at 29 June 2019;
(3) The Group policy was previously to include contractual
service charges in the operating lease commitments figure; these
are excluded from IFRS 16;
(4) Previously, disclosures of lease commitments were
undiscounted whilst under IFRS 16 lease commitments are discounted
based on the Group's incremental borrowing rate.
The tables below show the split of the total right-of-use assets
and liabilities following the adoption of IFRS 16, as well as the
movement of each over the interim reporting period.
Leasehold
Property Vehicles Total
GBP'000 GBP'000 GBP'000
------------------------------ ---------- --------- ---------
Right-of-use Assets
30 June 2019 96,098 398 96,496
Depreciation of right-of-use
assets (3,648) (89) (3,737)
Impairment of right-of-use
assets (2,997) - (2,997)
28 December 2019 89,453 309 89,762
------------------------------- ---------- --------- ---------
Lease liabilities
30 June 2019 123,213 399 123,612
Lease surrenders (726) - (726)
Interest expense related
to lease liabilities 2,200 7 2,207
Repayment of lease liabilities (5,673) (93) (5,766)
28 December 2019 119,014 313 119,327
--------------------------------- -------- ----- --------
During the 26 weeks ended 28 December 2019, the application of
IFRS 16 resulted in increased adjusted EBITDA, as reported in the
Consolidated Statement of Comprehensive Income, of GBP5.1 million
in comparison to treatment under IAS 17. There was an increase to
operating profit of GBP4.5 million. The differences have arisen as
operating lease payments under IAS 17 were replaced by a
depreciation charge on right-of-use assets, and adjustments to
impairment, onerous lease provisions, rent free periods and
dilapidation provisions. Profit before taxation therefore increased
by a total of GBP2.4 million with the inclusion of GBP2.2 million
of finance costs under the new standard.
The table below reconciles operating profit between IAS 17 and
the new standard, IFRS 16.
GBP'000
------------------------------------------------------- --------
Add: Operating lease costs under IAS 17 5,766
Less: Adjustment to onerous lease provision (627)
------------------------------------------------------- --------
Impact on adjusted EBITDA for the 26 weeks ended
28 December 2019 5,139
------------------------------------------------------- --------
Less: Depreciation of right-of-use assets for
leases previously recognised as operating leases
under IAS 17 (3,738)
Add: Depreciation charge reversed for assets
impaired on transition 140
Add: Impact of impairment reviews 3,713
Less: Onerous lease provision reversal (1,461)
Add: Exceptional gain on disposal reclassification 726
Impact on operating profit for the 26 weeks ended
28 December 2019 4,519
------------------------------------------------------- --------
Less: Finance costs associated with lease liabilities
for leases previously recognised as operating
leases under IAS 17 (2,207)
Add: Onerous lease interest not incurred 40
Impact on profit before taxation for the 26 weeks
ended 28 December 2019 2,352
------------------------------------------------------- --------
2. Significant accounting policies
The accounting policies adopted in the preparation of the
interim condensed consolidated financial statements are consistent
with those followed in the preparation of the Group's annual
financial statements for the 52 weeks ended 29 June 2019 with the
exception of IFRS 16, as noted above. These accounting policies are
all expected to be applied for the 52 weeks to 27 June 2020.
Leases
Where the Company is a lessee, a right-of-use asset and lease
liability are recognised at the outset of the lease. The lease
liability is initially measured at the present value of lease
payments remaining under the terms of the lease, taking account of
the likelihood of lease extension or break options being exercised.
The lease liability is subsequently adjusted to reflect imputed
interest, payments made to the lessor and any modifications to the
lease. The right-of-use asset is initially measured at cost, which
comprises the amount of the lease liability, any lease payments
made at or before the commencement date adjusted by the amount of
any prepaid or accrued lease payments, less any lease incentives
received, adding any initial direct costs incurred by the Group and
an estimate of any costs expected to be incurred at the end of the
lease to dismantle or restore the asset, and less any onerous lease
provision. The right-of-use asset is subsequently depreciated in
accordance with the Group's accounting policy on property, plant
and equipment. The amount charged to the income statement comprises
the depreciation of the right-of-use asset and the imputed interest
on the lease liability.
Items impacting Alternative Performance Measures
Exceptional items
Items that are unusual or infrequent in nature and material in
size are disclosed separately in the income statement. The separate
reporting of these items helps provide a more accurate indication
of the Group's underlying business performance, which the Directors
believe would otherwise be distorted. Exceptional items typically
include impairments of property, plant and equipment, bar closure
costs, lease surrender costs and provisions for onerous leases,
significant contract termination costs including costs associated
with making changes to the Executive team and corporate Mergers and
Acquisitions activity.
Share based payments
Charges/(credits) relating to share-based payment arrangements,
while not treated as an exceptional item, are adjusted for when
arriving at adjusted EBITDA on the basis that such amounts are
non-cash, can be material and often fluctuate significantly from
period to period, dependent on factors unrelated to the Group's
underlying trading performance.
Bar opening costs
Bar opening costs refer to revenue costs incurred in preparing
new bars for opening and include all costs incurred before opening
and preparing for launch, even if the bars do not open in the
reporting period. These costs are excluded from the calculation of
adjusted EBITDA in order to provide a better indication of the
Group's underlying business performance, which would otherwise be
distorted due to the irregular nature of the expenditure.
3. Key Risks
The directors believe that the principal risks and uncertainties
faced by the business are as set out below. Occurrence of any of
these risks or a combination of them may significantly impact the
achievement of the Group's strategic goals and impact financial
performance;
-- Dependence on trading performance of key sites
-- Availability of good sites for new venues
-- Consumer demand
-- Discounting and competitor activity
-- Health and safety management
-- Leasehold rental market increases
-- Supplier concentration
-- National Living Wage legislation
The Group's Board notes that whilst the immediate uncertainties
surrounding Brexit have been removed, a level of uncertainty will
remain until negotiations around trading arrangements are
concluded. The Group's supplies of food and drink are sourced
through wholesalers who have provided assurances that they have
taken all reasonable steps to safeguard supplies. However, Brexit
may ultimately impact consumer prosperity and disposable income,
which may adversely affect demand for the Group's services.
The key risks are consistent with those detailed on pages 20 and
21 of the annual financial statements for the 52 weeks ended 29
June 2019 where further information is given.
4. Exceptional items
Exceptional items, by virtue of their size, incidence or nature,
are disclosed separately in order to allow a better understanding
of the underlying trading performance of the Group. Exceptional
charges comprised the following:
Unaudited Unaudited Audited
26 weeks 26 weeks 52 weeks
ended ended ended
28 December 29 December 29 June
2019 2018 2019
IFRS 16 IAS 17 IAS 17
GBP'000 GBP'000 GBP'000
----------------------------------- ------------- ------------- ----------
Impairment of property, plant
and equipment 1,755 3,532 5,215
Impairment of right-of-use
assets 2,997 - -
Bar closures and lease surrenders 200 - -
Gain on disposal (575) - -
Onerous lease charges - 1,673 1,912
Total exceptional items 4,377 5,205 7,127
-------------------------------------- ------------- ------------- ----------
Following implementation of IFRS 16, impairment reviews continue
to be conducted on a Cash Generating Unit ("CGU") basis, which now
also includes the lease right-of-use assets. As a result of
impairment testing, the net book value of property, plant and
equipment at 16 bars was written down of which eight bars included
right-of-use asset write-downs. At all but three of these bars,
assets had been previously impaired. The impairments arose due to
poor trading performance and the director's consideration that
trading at these bars is unlikely to recover in the foreseeable
future to a level that would justify their current book value.
Following the adoption of IFRS 16, which requires the carrying
value of the right-of-use asset to be assessed at each balance
sheet date, it is no longer necessary to hold onerous lease
provisions and accordingly all existing provisions have been
incorporated as part of the opening adjustments to accommodate IFRS
16 implementation. Thereafter, any onerous lease obligations are
recognised as impairments of the relevant CGU assets.
During the period, the Group closed three bars (Liverpool Wood
Street, Swansea and Macclesfield) and surrendered the lease for
Macclesfield. The surrender premium and associated legal costs,
together with the costs of closing the venues, have been classified
as exceptional.
An exceptional gain on disposal occurred in respect of the
surrender of the Macclesfield lease as a result of extinguishing
the IFRS 16 lease liability net of a surrender premium paid to the
landlord.
5. Finance cost
Unaudited Unaudited Audited
26 weeks 26 weeks 52 weeks
ended 28 ended ended
December 29 December 29 June
2019 2018 2019
IFRS 16 IAS 17 IAS 17
GBP'000 GBP'000 GBP'000
-------------------------------------- ---------- ------------- ----------
Interest payable on bank loans
and overdrafts 361 340 750
Interest on onerous lease provisions - 63 108
Finance costs on lease liabilities 2,207 - -
Total finance costs 2,568 403 858
---------------------------------------- ---------- ------------- ----------
6. Taxation
The taxation charge for the 26 weeks ended 28 December 2019 has
been calculated by applying an estimated effective tax rate for the
52 weeks ending 27 June 2020. After including exceptional items and
share based payment charges/(credits), the effective rate of tax
credit on the loss before taxation for the 26 weeks ended 28
December 2019 was 43.0% (FY19: 11.3%). The increased rate has
arisen due to implementation of IFRS 16 and the creation of a
deferred tax asset at transition.
7. Share-based payments
Unaudited Unaudited Audited
26 weeks 26 weeks 52 weeks
ended ended ended 29
28 December 29 December June
2019 2018 2019
IFRS 16 IAS 17 IAS 17
GBP'000 GBP'000 GBP'000
-------------------------------- ------------- ------------- ----------
Charge/(Credit) in the period 120 (38) 60
Credit relating to forfeitures
in period (26) (6) (124)
Total 94 (44) (64)
----------------------------------- ------------- ------------- ----------
The Group currently operates an employee share incentive scheme,
namely The Revolution Bars Group Share Plan. Awards under the
scheme comprise:
-- a Nominal Cost Option ("NCO") granted to acquire ordinary
shares in the Company at an option price of 0.1 pence per share;
and
-- a linked, tax-favoured Company Share Option ("CSOP") granted
under Part II of The Revolution Bars Group Share Plan to acquire a
number of ordinary shares in the Company. The option price is set
at the market value of the shares at the time of the award.
8. (Loss)/earnings per share
The calculation of loss per ordinary share is based on the
results for the period, as set out below:
Unaudited
26 weeks Unaudited Audited
ended 26 weeks 52 weeks
28 December ended 29 ended 29
2019 December June
IFRS 2018 2019
16 IAS 17 IAS 17
GBP'000 GBP'000 GBP'000
------------------------------------- ------------- ---------- ----------
Loss for the period (GBP'000) (1,467) (3,089) (5,222)
Weighted average number of shares
- basic and diluted ('000) 50,029 50,029 50,029
Basic and diluted loss per ordinary
share (pence) (2.9) (6.2) (10.4)
-------------------------------------- ------------- ---------- ----------
Loss for the period was significantly impacted by exceptional
costs.
A calculation of adjusted earnings per ordinary share is set out
below:
Unaudited Unaudited Audited
26 weeks 26 weeks 52 weeks
ended 28 ended 29 ended 29
December December June
2019 2018 2019
IFRS 16 IAS 17 IAS 17
GBP'000 GBP'000 GBP'000
------------------------------------- ---------- ---------- ----------
(Loss) on ordinary activities
before taxation (1,576) (3,482) (5,574)
Exceptional items 4,377 5,205 7,127
Share-based payments 94 (44) (64)
Bar opening costs - 1,242 1,484
Adjusted profit on ordinary
activities before taxation 2,895 2,921 2,973
Taxation on ordinary activities 109 393 352
Taxation on exceptional items
and bar opening costs (793) (1,225) (1,636)
------------------------------------- ---------- ---------- ----------
Adjusted profit of ordinary
activities after taxation 2,211 2,089 1,689
Basic and diluted number of
shares ('000) 50,029 50,029 50,029
------------------------------------- ---------- ---------- ----------
Adjusted basic and diluted earnings
per ordinary share (pence) 4.4 4.2 3.4
------------------------------------- ---------- ---------- ----------
9. Dividends
No dividend in respect of the interim reporting period is being
declared. No interim or final dividend was declared in respect of
the 52 weeks ended 29 June 2019.
10. Capital Commitments
There were GBPnil capital commitments as at 28 December 2019 (at
29 June 2019: GBPnil).
11. Post balance sheet events
On 14 January 2020, Revolution Bars Limited, a fully owned
subsidiary of the Company, exchanged contracts with the landlord of
nine of its properties to surrender the leases of five loss-making
properties, and to re-gear the leases of the other four properties.
The lease re-gears were effective on exchange with a small net
reduction in the passing rent and extension of the leases to a
25-year term (which is considered to represent fair market value).
Completion on the five lease surrenders is expected to take place
just prior to the rent quarter day of March 2020. Completion of the
surrenders requires payment of GBP3.35 million with a further
payment due of GBP0.29 million in June 2020. The surrendered leases
had an unexpired term of just less than 13 years; three of the
properties were not trading and the other two ceased trading
shortly after exchange of the surrender agreement. The net effect
of these transactions is expected to improve the Group's ongoing
full year operational cash flows by c. GBP1.2 million per
annum.
Independent review report to Revolution Bars Group plc
Report on the Condensed Consolidated Interim Financial
Statements
Our conclusion
We have reviewed Revolution Bars Group plc's Condensed
Consolidated Interim Financial Statements (the "interim financial
statements") in the Interim results for the 26 weeks ended 28
December 2019 of Revolution Bars Group plc for the 26 week period
ended 28 December 2019. Based on our review, nothing has come to
our attention that causes us to believe that the interim financial
statements are not prepared, in all material respects, in
accordance with International Accounting Standard 34, 'Interim
Financial Reporting', as adopted by the European Union and the
Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority.
What we have reviewed
The interim financial statements comprise:
-- the Condensed Consolidated Statement of Financial Position as at 28 December 2019;
-- the Condensed Consolidated Statement of Comprehensive Income for the period then ended;
-- the Consolidated Statement of Cash Flow for the period then ended;
-- the Condensed Consolidated Statement of Changes in Equity for the period then ended; and
-- the explanatory notes to the interim financial statements.
The interim financial statements included in the Interim results
for the 26 weeks ended 28 December 2019 have been prepared in
accordance with International Accounting Standard 34, 'Interim
Financial Reporting', as adopted by the European Union and the
Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority.
As disclosed in note 1 to the interim financial statements, the
financial reporting framework that has been applied in the
preparation of the full annual financial statements of the Group is
applicable law and International Financial Reporting Standards
(IFRSs) as adopted by the European Union.
Responsibilities for the interim financial statements and the
review
Our responsibilities and those of the directors
The Interim results for the 26 weeks ended 28 December 2019,
including the interim financial statements, is the responsibility
of, and has been approved by, the directors. The directors are
responsible for preparing the Interim results for the 26 weeks
ended 28 December 2019 in accordance with the Disclosure Guidance
and Transparency Rules sourcebook of the United Kingdom's Financial
Conduct Authority.
Our responsibility is to express a conclusion on the interim
financial statements in the Interim results for the 26 weeks ended
28 December 2019 based on our review. This report, including the
conclusion, has been prepared for and only for the company for the
purpose of complying with the Disclosure Guidance and Transparency
Rules sourcebook of the United Kingdom's Financial Conduct
Authority and for no other purpose. We do not, in giving this
conclusion, accept or assume responsibility for any other purpose
or to any other person to whom this report is shown or into whose
hands it may come save where expressly agreed by our prior consent
in writing.
What a review of interim financial statements involves
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, 'Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity' issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures.
A review is substantially less in scope than an audit conducted
in accordance with International Standards on Auditing (UK) and,
consequently, does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit opinion.
We have read the other information contained in the Interim
results for the 26 weeks ended 28 December 2019 and considered
whether it contains any apparent misstatements or material
inconsistencies with the information in the interim financial
statements.
PricewaterhouseCoopers LLP
Chartered Accountants
Manchester
26 February 2020
Pro forma Consolidated Statement of Comprehensive Income -
Non-IFRS 16 Basis
The re-presented Statement of Comprehensive Income set out below
does not form part of the condensed consolidated interim financial
statements for the 26 weeks to 28 December 2019. It is included to
provide an understanding of the underlying performance for the 26
weeks to 28 December 2019, given that IFRS 16 Leases has been
adopted for the current period without restatement of the
comparative period. The re-presented statement consists of:
-- The reported Statement of Comprehensive Income for the current period ;
-- A pro forma Statement of Comprehensive Income for the current
period assuming IFRS 16 had not been adopted; and
-- The reported Statement of Comprehensive Income for the prior half-year period.
The pro forma Statement of Comprehensive Income for the current
period is an estimation of the results for the period when applying
the previous accounting standard for leases, IAS 17 Leases and the
resulting impact on onerous lease provisions and impairment of
assets.
Unaudited Unaudited Unaudited
26 weeks 26 weeks 26 weeks
ended 28 ended 28 ended
December December 29 December
2019 Impact 2019 2018
IFRS 16 of IFRS IAS 17 IAS 17
Reported 16 Pro forma Reported
GBP'000 GBP'000 GBP'000 GBP'000
--------------------------------------- --------------- ---------- --------------- ---------------
Revenue 81,229 - 81,229 78,472
Cost of sales (19,428) - (19,428) (18,966)
--------------------------------------- --------------- ---------- --------------- ---------------
Gross profit 61,801 - 61,801 59,506
--------------------------------------- --------------- ---------- --------------- ---------------
Operating expenses
- operating expenses, excluding
exceptional items (56,432) (1,542) (57,974) (57,380)
- exceptional items (4,377) (2,977) (7,354) (5,205)
--------------------------------------- --------------- ---------- --------------- ---------------
Total operating expenses (60,809) (4,519) (65,328) (62,585)
--------------------------------------- --------------- ---------- --------------- ---------------
Operating profit/(loss) 992 (4,519) (3,527) (3,079)
Finance expense (2,568) 2,167 (401) (403)
--------------------------------------- --------------- ---------- --------------- ---------------
Loss before taxation (1,576) (2,352) (3,928) (3,482)
Tax 109 2 111 393
--------------------------------------- --------------- ---------- --------------- ---------------
Loss and total comprehensive
income for the period (1,467) (2,350) (3,817) (3,089)
--------------------------------------- --------------- ---------- --------------- ---------------
(Loss) per share
* Basic and diluted (pence) (2.9p) (7.9p) (6.2p)
* Adjusted (pence) 4.4p 4.5p 4.2p
--------------------------------------- --------------- ---------- --------------- ---------------
Non-GAAP alternative performance
measure
Operating profit/(loss) 992 (4,519) (3,527) (3,079)
Exceptional items 4,377 2,977 7,354 5,205
Credit arising from long-term
incentive plans 94 - 94 (44)
Bar opening costs - - - 1,242
--------------------------------------- --------------- ---------- --------------- ---------------
Adjusted operating profit 5,463 (1,542) 3,921 3,324
Finance expense (2,568) 2,167 (401) (403)
--------------------------------------- --------------- ---------- --------------- ---------------
Adjusted profit before tax 2,895 625 3,520 2,921
--------------------------------------- --------------- ---------- --------------- ---------------
Depreciation 7,325 (3,597) 3,728 3,589
Amortisation - - -
Finance expense 2,568 (2,167) 401 403
--------------------------------------- --------------- ---------- --------------- ---------------
Adjusted EBITDA 12,788 (5,139) 7,649 6,913
--------------------------------------- --------------- ---------- --------------- ---------------
The pro forma Statement of Comprehensive Income has been
prepared using the reported results for the current period and
replacing the accounting entries related to IFRS 16 Leases, on
adoption and during the period, with an estimate of the accounting
entries that would have arisen when applying IAS 17 Leases. The
effective tax rate has been assumed to be unaltered by this change.
Impairment assumptions have been re-geared for an IAS 17
perspective, and the onerous lease provision movement has been
included.
The pro forma Statement of Comprehensive Income for the current
period has been prepared by making adjustments to the reported
Statement of Comprehensive Income for the current period to:
-- Increase of GBP1.5 million in operating expenditure
Impact of
IFRS 16
GBP'000
-------------------------------------------------- ----------
Rental expenditure incurred (5,766)
Net utilisation of onerous lease movement 626
IFRS 16 depreciation reversal 3,738
Depreciation charge reversed for assets impaired
on transition (140)
Total increase in operating expenses (1,542)
---------------------------------------------------- ----------
-- Increase of GBP3.0 million in exceptional items
Impact of
IFRS 16
GBP'000
--------------------------------------- ----------
IFRS 16 impairment reversal 4,752
IFRS 16 gain on disposal reversal (726)
IAS 17 impairment incurred (8,465)
Reclassification of exceptional items 351
Net onerous lease movement 1,111
Total increase in exceptional items (2,977)
----------------------------------------- ----------
-- Reduction of GBP2.2 million in finance expense
Impact of
IFRS 16
GBP'000
----------------------------------- ----------
IFRS 16 finance cost reversal 2,207
Onerous lease interest incurred (40)
Total decrease in finance expense 2,167
------------------------------------- ----------
Exceptional items are comprised of:
Unaudited Unaudited Unaudited
26 weeks 26 weeks 26 weeks
ended ended ended
28 December 28 December 29 December
2019 2019 2018
IFRS 16 IAS 17 IAS 17
GBP'000 GBP'000 GBP'000
----------------------------------- ------------- ------------- -------------
Impairment of property, plant
and equipment 1,755 8,465 3,532
Impairment of right-of-use
assets 2,997 - -
Bar closures and lease surrenders 200 - -
Gain on disposal (575) - -
Onerous lease (credit)/charge - (1,111) 1,673
Total exceptional items 4,377 7,354 5,205
-------------------------------------- ------------- ------------- -------------
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR UVOURRVUUUUR
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