28 September 2022
Everyman Media Group PLC
("Everyman" or the "Group")
Interim Results
Strong trading with financial performance expected to at least meet market expectations for full year and beyond
Everyman Media Group PLC, the independent, premium cinema group, reports its unaudited interim results for the 26 weeks ended 30 June 2022.
Strong financial performance
· Revenue of £40.7m (H1 2021: £7.7m)
· Adjusted EBITDA1 of £7.5m (H1 2021: £1.4m loss)
· Operating profit of £0.8m (H1 2021: £7.7m loss)
· Cash generated from operating activities £9.1m (H1 2021: £0.3m)
Encouraging strategic and operational progress
· 300,000 additional admissions (1.8m) vs. H1 2019, a 20% increase
· 4.5% market share, +1.5% vs. H1 2019
· Opened five-screen venue in Edinburgh in April 2022
· Bristol and Birmingham venues refurbished, maintaining high standards and differentiation
Robust financial position
· Net assets at 30 June 2022 £48.2m (H1 2021 £44.7m).
· Cash balance at 30 June 2022 £5.9m (H1 2021: £1.7m).
· Net debt (including cash balance) at 30 June 2022 £8.6m (H1 2021: £11.8m)
· Significant remaining headroom on facilities at £25.5m (H1 2021: £26.5m)
Momentum building into the second half
· Opened a four-screen venue in Egham in September 2022
· Durham due to open in November 2022; four further venues confirmed for 2023
· Four venues refurbished post-period end
· On track to at least meet expectations for the full year
1Adjusted 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:
"The first half of the financial year has been a period of progress on all fronts, with healthy admissions growth and robust spend per head, suggesting we are now back on track following the turbulence of recent years. Despite reduced film output due to the effect of low production during the pandemic, we've enjoyed three of the ten highest-ever box office releases in the past twelve months.
Looking ahead, we are optimistic about our prospects. We are confident that film production is back up to full speed and that the flow of excellent content will be bigger and better going forward, beginning with an attractive pipeline of new releases over the remainder of this year and next.
We have started the second half of 2022 in line with expectations and the outlook for the remainder is promising. The acceleration of our openings strategy is now well underway and we are excited about the wealth of opportunities emerging to bolster and supplement the Everyman brand outside of the core proposition.
Cinema will always be an important part of the fabric of the UK as a place to be entertained, and has historically remained as such during more difficult economic conditions and recession. We are confident that our unique brand of Everyman hospitality remains as relevant as ever."
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For further information, please contact:
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| Everyman Media Group plc | Tel: 020 3145 0500 |
| Alex Scrimgeour, Chief Executive | |
| Will Worsdell, Finance Director | |
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| Canaccord Genuity Limited (NOMAD and Broker) | Tel: 020 7523 8000 |
| Bobbie Hilliam | |
| Georgina McCooke | |
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| Alma PR (Financial PR Advisor) | Tel: 020 3405 0205 |
| David Ison |
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| Joe Pederzolli | |
The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018 (as amended) ("UK MAR").
About Everyman Media Group PLC:
Everyman is the fourth largest cinema business in the UK by number of venues, and is a premium, high growth leisure brand. Everyman operates a growing estate of venues across the UK, with an emphasis on providing first class cinema and hospitality.
Everyman is redefining cinema. It focuses on venue and experience as key competitive strengths, with a unique proposition:
· Intimate and atmospheric venues, which become a destination in their own right
· An emphasis on a strong quality food and drink menu prepared in-house
· A broad range of well-curated programming content, from mainstream and independent films to theatre and live concert streams, appealing to a diverse range of audiences
· Motivated and welcoming teams
For more information visit http://investors.everymancinema.com/
Chief Executive's Statement
The first half of 2022 was very positive for Everyman despite the impact of the Omicron outbreak at the beginning of the period, with Group revenue of £40.7m, an increase of £11.8m vs. H1 2019. This was the last comparative period where the estate was open for a full 26 weeks. We welcomed nearly 1.8m customers into our venues, an increase of 0.3m vs. H1 2019, with our market share increasing from 3.0% to 4.5% accordingly. This demonstrates that the appetite for the Everyman offer remains strong, and is growing.
A number of titles performed particularly well in the period. Chief among them was Top Gun: Maverick at the end of May, a long-anticipated sequel to the 1986 original which has now grossed over £80m at the UK Box Office, with Everyman receiving a 5.8% market share to date. Other strong titles included The Batman in March and Doctor Strange in the Multiverse of Madness in May. Post-period end, NT Live: Prima Facie became our most successful Event Cinema ever, with Everyman taking an incredible 18.2% market share and the highest number of national admissions. For Where the Crawdads Sing, we took four of the top five venues nationally, and a 10.9% market share.
Building our team
In the period, we have bolstered our committed and enthusiastic team to over 1,200, including key hires in Procurement and Finance as well as local venue managers to support our growth ambitions.
Will Worsdell joined the Board as Finance Director in June, having formerly held senior Finance roles at several leisure and hospitality businesses, including Head of Commercial Finance at Côte Brasserie, and will support the Group as we continue to grow.
Baroness Ruby McGregor-Smith joined the Board as a Non-Executive Director post-period end on 20 September 2022. Ruby brings a wealth of experience to Everyman, having formerly been the Chief Executive of Mitie Group Plc, a strategic outsourcing company. Amongst other roles, Ruby is the Chair of MindGym Plc, the President of the British Chambers of Commerce and has also been a non-executive board member at the Department for Culture, Media and Sport and the Department for Education.
Enhancing the Everyman experience
We also continue to innovate on the core Everyman offer. In H1 2022 we added a series of multi-venue streaming events in partnership with AppleTV+, bringing exclusive programming to Everyman audiences across the country, including a high profile Q&A with actor Gary Oldman. We put on a strong events calendar, with - amongst others - opening parties held for both Downton Abbey: A New Era and Elvis and charity screenings to support those displaced by the war in Ukraine. We also branched out into immersive cinema, with events held for Nightmare Alley in January and, post-period end, for See How They Run. Such events elevate the Everyman experience further, and once again lead the exhibition circuit into more ambitious territory.
Post-period end, "Summer in the City" has seen Everyman pop-ups return to Screen on the Canal at Granary Square, London, The Secret Garden at The Grove Hotel, Hertfordshire, and, for the first time, to the iconic courtyard at Somerset House. These open-air venues have brought the magic of film and the Everyman brand to thousands of people over the July to September period.
Our food and beverage offer continues to evolve. With a focus on giving our customers more choice, we have added new vegan items and sharing dishes to our menus. An estate-wide rollout of new handheld devices has enabled our customers to order from their seats more seamlessly and efficiently, and we are seeing the impact of this on average spends.
Growing the estate
As at 28 September 2022, Everyman currently has 38 cinemas and 129 screens. We opened a new five-screen venue in Edinburgh on 2 April and, most recently, a new four-screen venue in Egham on 23 September.
Demonstrating our continued confidence in Everyman's prospects, our roll-out pipeline continues, with a new venue due to open in Durham in November 2022. The pipeline for 2023 is well-developed, with four further venues confirmed and another two nearing exchange.
The Board is constantly evaluating new opportunities to grow the Everyman estate, be that a new build, the conversion of an existing building or the acquisition of other cinemas, the key consideration always being that any new venue meets the Board's investment criteria. The Company is not currently actively evaluating the acquisition of any portfolio of cinemas.
To maintain our high standards and differentiation against the market we have continued to invest in our existing estate and, in the year to 28 September 2022, have fully refurbished our venues in Bristol, Birmingham, Canary Wharf, Esher and Hampstead.
Performance Review
The Group uses the key performance indicators of Admissions, Box Office Average Ticket Price and Food & Beverage Spend per Head to monitor the progress of the Group's activities.
| | 26 weeks ended 30 June 2022 (26 weeks open) | 26 weeks ended 1 July 2021 (6 weeks open) | 26 weeks ended 4 July 2019 (26 weeks open)
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| Admissions | 1,771,064 | 284,245 | 1,475,425 | |
| Box Office Average Ticket Price* | £11.09 | £11.18 | £11.27 | |
| £8.96 | £8.88 | £6.95 |
*Average ticket price has been adjusted to reflect the reduction in VAT from 20% to 12.5% in H1 2022 (until 1 April 2022) and from 20% to 5% in H1 2021.
**Spend per head has been adjusted to reflect the reduction in VAT from 20% to 12.5% across certain items in H1 2022 (until 1 April 2022), and from 20% to 5% in H1 2021. Deliveroo income has also been removed to enable like for like comparison with H1 2019.
Admissions
Admissions continued to gather positive momentum in the first half of 2022. Comparison to the same period in 2021 is challenging due to government-mandated closure of all venues until 17th May last year. However, admissions increased by 20% vs. the first half of 2019, driven by organic growth and the opening of nine new venues in the intervening period.
On a non-VAT adjusted basis, Box Office revenue increased by 22% vs. the first half of 2019 and Everyman was the only national operator in growth, with the broader UK cinema industry experiencing a 20% decline. This shows that appetite for the Everyman experience continues to grow and that customers are returning to our cinemas in greater numbers.
Average Ticket Price and Spend per Head
With the VAT benefit removed, Spend per Head increased by 28.9% when compared to the same period in 2019, driven by continued investment in our menu and technology, giving our customers more choice and enabling quicker and more efficient service to seats.
The fall in average ticket price, whilst modest at 1.5%, has been driven by the opening of nine new venues between H1 2019 and the end of the period. With some exceptions, new venues open in lower pricing tiers, which can temporarily reduce average ticket price until those venues mature. Since H1 2019 we have also opened more venues outside of London, where ticket prices are typically lower.
Outlook
We continue to be optimistic about the future. As we move through the second half, with encouraging admissions levels to date and a strong film slate anticipated in Q4, we remain on track to at least meet expectations for the full year. The economic backdrop at present is characterised by uncertainty, but we believe our premium, differentiated offering and strong balance sheet stand us in good stead.
We remain confident in our offering and our ability to continue to grow sales, innovate and expand, and look forward to welcoming more and more customers to an Everyman over time.
Alex Scrimgeour
Chief Executive
28 September 2022
Finance Director's Statement
| | 26 Weeks Ended 30 June 2022 | 26 Weeks Ended 1 July 2021 | 26 Weeks Ended 4 July 2019 |
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| £000 | £000 | £000 |
| Revenue | 40,718 | 7,652 | 28,924 |
| Gross Profit | 25,462 | 4,752 | 17,848 |
| Gross Profit Margin | 62.5% | 62.1% | 61.7% |
| Government Support | 155 | 3,233 | - |
| Administrative Expenses | (24,780) | (16,143) | (16,250) |
| Operating Profit / (Loss) | 837 | (7,658) | 1,598 |
| Financial Expenses | (1,635) | (1,528) | (1,153) |
| Profit / (Loss) Before Taxation | (798) | (9,186) | 445 |
| Tax Credit / (Charge) | - | 132 | 115 |
| Profit / (Loss) For the Period | (798) | (9,054) | 560 |
| | | | |
| Adjusted EBITDA* | 7,502 | (1,407) | 6,631 |
*Adjusted EBITDA refers to Operating Profit adjusted for the removal of depreciation, amortisation, profit / loss on disposal of fixed assets, pe-opening expenses, lease termination costs, impairment charges and share-based payment expenses.
Revenue and Operating Profit
Group revenue in H1 2022 was £40.7m compared to £7.7m in the same period last year and £28.9m in the first six months of 2019, due to the upward trajectory of admissions and the opening of nine new venues between H1 2019 and the end of the period.
Additionally, in July 2020 the Chancellor introduced a temporary reduced rate of VAT for the hospitality sector, from which Everyman was able to benefit. In H1 2022 the reduced rate of VAT was 12.5%, until 31 March 2022, at which point the standard rate of VAT resumed. For the entirety of H1 2021 the reduced rate of VAT was 5%.
The table below shows revenue adjusted for the removal of the VAT benefit in each relevant period.
| | 26 Weeks Ended 30 June 2022 | 26 Weeks Ended 1 July 2021 | 26 Weeks Ended 4 July 2019 |
| | £000 | £000 | £000 |
| VAT-adjusted Revenue | 39,788 | 6,830 | 28,924 |
| Box Office | 19,645 | 3,178 | 16,629 |
| Food & Beverage | 16,358 | 2,524 | 10,261 |
| Other | 3,785 | 1,128 | 2,034 |
The temporary reduced rate of VAT resulted in a £0.9m revenue benefit in H1 2022 and a £0.8m revenue benefit in H1 2021.
With the VAT benefit removed, like-for-like Box Office and Food & Beverage revenue increased by 2.1% vs. the same period in 2019.
Gross Profit Margin in H1 2022 was 62.5%, or 61.7% with the aforementioned VAT benefit removed. This is consistent with prior years.
We received significantly less government support in the period, the only contribution being £0.2m in the form of the Omicron Hospitality and Leisure Grant. In 2021 we received £2.8m from the Coronavirus Job Retention Scheme and £0.9m in the form of Coronavirus Business Support Grants.
Administrative Expenses increased from £16.3m in H1 2019 to £24.8m in H1 2022. This is commensurate with the increase in venues: 28 were open at the end of H1 2019 and 37 at the end of H1 2022. Our largest cost increase was Labour (a £4m increase vs. H1 2019), driven by the aforementioned new openings, a larger Head Office team to support the growing business and an 21% increase in National Living Wage from the beginning of H1 2019 to the end of H1 2022 driving pay increases for our teams.
Utilities costs were £0.9m during the period (H1 2019: £0.6m), increasing in line with the growing estate. A significant proportion of utilities contracts are fixed until October 2023.
Net finance costs
The Group's net bank interest payable was £288k in H1 2022, a £38k increase on the same period last year, as a result of the higher base rate and increased loan commitment fees due to the £10m extension of the facility in March 2021.
The Group's finance charge in H1 2022 was £1.4m (H1 2021 £1.3m) and is interest charges relating to the unwinding of the IFRS 16 lease liability in the period.
Share based payments
The share-based payment expense for the period was £784k (H1 2021: £1,129k) reflecting share option incentives provided to the Group's management and employees.
Cash flows
Net cash generated in operating activities was £9.1m (H1 2021: £0.3m; year ended 30 December 2021: £12.2m). The net cash inflow for the period was £1.7m (H1 2021: £1.3m; year ended 30 December 2021: £3.8m). This is largely represented by capital expenditure of £7.5m relating to build costs for new venues, existing venue refurbishment and new systems to support the growing business.
Cash held at the end of the period was £5.9m (1 July 2021: £1.7m, 30 December 2021: £4.2m). The cash held will be invested in the continuing development and expansion of the Group's business.
The Group has access to a £40m facility of which £14.5m was drawn at the end of the period.
The Board does not recommend the payment of a dividend at this stage of the Group's development.
Capital Expenditure
During the period, the Group opened a new five-screen venue in Edinburgh, on 2 April 2022. Post-period end, the Group opened a new four-screen venue in Egham, on 23 September 2022. We are on track to open a four-screen venue in Durham in November 2022, and six further venues in 2023.
The Group continues to invest in its existing estate to maintain high standards and differentiation against the wider market. During the period we refurbished our venues in Bristol and Birmingham and, post-period end, in Canary Wharf, Esher and Hampstead.
Capital investment during the period was £6.7m, of which £5.6m was on venues. The remainder related to infrastructure and head office costs to support the continued growth of the business. Key projects during the period included new handheld devices and kitchen screens in venues, to improve the speed, efficiency and accuracy of our food & beverage offer to customers.
Will Worsdell
Finance Director
28 September 2022
| | | | | | 26 weeks ended | 26 weeks ended | Year ended |
| | | | | | 30 June | 1 July | 30 December |
| | | | | | 2022 | 2021 | 2021 |
| | | | | Note | £000 | £000 | £000 |
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| | | |
| Revenue | 3 | 40,718 | 7,652 | 49,027 | |||
| Cost of Sales |
| (15,256) | (2,900) | (18,129) | |||
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| Gross profit |
| 25,462 | 4,752 | 30,898 | |||
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| | |
| Covid-19 government support |
| 155 | 3,733 | 3,800 | |||
| Impairment of goodwill, property, plant and machinery |
| - | - | 2,504 | |||
| Administrative expenses |
| (24,780) | (16,143) | (39,363) | |||
| | | | |
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| | |
| Operating profit/(loss) |
| 837 | (7,658) | (2,161) | |||
| | | | |
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| | |
| Financial expenses |
| (1,635) | (1,528) | (3,255) | |||
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| Profit/(Loss) before taxation |
| (798) | (9,186) | (5,416) | |||
| Tax credit/(charge) | 4 | - | 132 | (14) | |||
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| Profit/(Loss) for the period |
| (798) | (9,054) | (5,430) | |||
| | | | |
|
| | |
| Other comprehensive income for the period
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| -
| - | 69 | |||
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| | |
| Total comprehensive profit/(loss) for the period |
| (798) | (9,054) | (5,361) | |||
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| Basic loss per share (pence) | 5 | (0.88) | (9.99) | (5.96) | |||
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| Diluted loss per share (pence) | 5 | (0.88) | (9.99) | (5.96) | |||
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| All amounts relate to continuing activities. | | | | | |||
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| Non-GAAP measure: adjusted EBITDA | | | | ||||
| | | | | | | | |
| Adjusted EBITDA | 7,502 | (1,407) | 8,281 | ||||
| Before: | | |
| | | ||
| Depreciation and amortisation | | (5,671) | (5,248) | (11,727) | |||
| Exceptional items | | (215) | - | - | |||
| Costs related to Covid 19 | | - | (265) | - | |||
| Covid 19 related rent concessions | | - | 411 | - | |||
| Disposal of property, plant and equipment | | - | (8) | - | |||
| Pre-opening expenses | 5 | (12) | (147) | ||||
| Impairment of fixed assets | - | - | 2,504 | ||||
| Share-based payment expense | (784) | (1,129) | (1,072) | ||||
| Operating profit/(loss) | 837 | (7,658) | (2,161) | ||||
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Consolidated balance sheet at 30 June 2022 (unaudited)
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| Registered in England and Wales 08684079 | |
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| | | | | | 30 June | *Restated 1 July | 30 December | |
| | | | | | 2022 | 2021 | 2021 | |
| | | | |
| £000 | £000 | £000 | |
| | | | |
| | | | |
| Assets |
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| Non-current assets |
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| Property, plant and equipment
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| 84,923 | 78,825 | 81,848 | ||||
| Right-of-use assets |
| 59,449 | 55,261 | 58,593 | ||||
| Intangible assets |
| 9,283 | 9,188 | 8,906 | ||||
| Deferred tax assets |
| - | 145 | - | ||||
| Trade and other receivables |
| 173 | 265 | 177 | ||||
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| 153,828 | 143,684 | 149,524 | ||||
| Current assets |
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| | | ||||
| Inventories |
| 662 | 470 | 711 | ||||
| Trade and other receivables |
| 3,877 | 2,944 | 5,649 | ||||
| Cash and cash equivalents |
| 5,903 | 1,665 | 4,240 | ||||
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| 10,442 | 5,079 | 10,600 | ||||
| Total assets |
| 164,270 | 148,763 | 160,124 | ||||
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| Liabilities |
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| Current liabilities |
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| Other interest-bearing loans and borrowings |
| 252 | 48 | 119 | ||||
| Other provisions |
| - | - | 393 | ||||
| Trade and other payables |
| 17,133 | 11,822 | 15,994 | ||||
| Lease liabilities |
| 2,985 | 2,981 | 2,633 | ||||
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| 20,370 | 14,851 | 19,139 | ||||
| Non-current liabilities |
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| Other interest-bearing loans and borrowings |
| 14,500 | 13,500 | 12,500 | ||||
| Other payables |
| - | 8 | - | ||||
| Other provisions |
| 1,066 | 1,010 | 1,118 | ||||
| Lease liabilities |
| 80,112 | 74,724 | 79,147 | ||||
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| 95,678 | 89,242 | 92,765 | ||||
| Total liabilities |
| 116,048 | 104,093 | 111,904 | ||||
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| Net assets |
| 48,222 | 44,670 | 48,220 | ||||
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| Equity attributable to owners of the Company |
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| Share capital |
| 9,118 | 9,223 | 9,117 | ||||
| Share premium |
| 57,112 | 57,064 | 57,097 | ||||
| Merger reserve |
| 11,152 | 11,152 | 11,152 | ||||
| Other reserve |
| 83 | (6) | 83 | ||||
| Retained earnings |
| (29,243) | (32,763) | (29,229) | ||||
| Total equity |
| 48,222 | 44,670 | 48,220 | ||||
*see Note 2 for details of restatement
Consolidated statement of changes in equity for the period ended 30 June 2022 (unaudited)
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Share |
Share |
Merger |
Other |
Retained |
Total | |
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| capital | Premium | reserve | Reserve | earnings | equity | |
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| £000 | £000 | £000 | £000 | £000 | £000 | |
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| Balance at 31 December 2021 |
| 9,117 | 57,097 | 11,152 | 83 | (29,229) | 48,220 | |||
| Loss for the period |
| - | - | - | - | (798) | (798) | |||
| Shares issued in the period |
| 1 | 15 | - | - | - | 16 | |||
| Share-based payments |
| - | - | - | - | 784 | 784 | |||
| Total transactions with owners of the parent |
| 1 | 15 | - | - | 784 | 800 | |||
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| Balance at 30 June 2022 |
| 9,118 | 57,112 | 11,152 | 83 | (29,243) | 48,222 | |||
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| Balance at 1 January 2021 *restated |
| 9,110 | 57,038 | 11,152 | (6) | (24,871) | 52,423 | |||
| Loss for the period |
| - | - | - | - | (9,054) | (9,054) | |||
| Retranslation of foreign currency
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| - | - | - | - | 33 | 33 | |||
| Shares issued in the period |
| 113 | 26 | - | - | - | 139 | |||
| Share- based payments |
| - | - | - | - | 1,129 | 1,129 | |||
| Total transactions with owners of the parent |
| 113 | 26 | - | - | 1,129 | 1,268 | |||
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| Balance at 1 July 2021 |
| 9,223 | 57,064 | 11,152 | (6) | (32,763) | 44,670 | |||
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*see Note 2 for details of restatement
Consolidated cash flow statement for the period ended 30 June 2022 (unaudited)
| | | | | | 30 June | 1 July | 30 December |
| | | | | | 2022 | 2021 | 2021 |
| | | | | Note | £000 | £000 | £000 |
| Cash flows from operating activities |
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| (Loss) for the period |
| (798) | (9,054) | (5,430) | |||
| Adjustments for: |
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| Financial expenses |
| 1,635 | 1,528 | 3,255 | |||
| Income tax credit | 4 | - | (132) | 14 | |||
| Operating loss |
| 837 | (7,658) | (2,161) | |||
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| Depreciation and amortisation |
| 5,671 | 5,248 | 11,727 | |||
| Impairment of goodwill, property, plant and equipment and right-of-use assets |
| - | - | (2,504) | |||
| Gains on derecognition of lease contract |
| (99) | - | - | |||
| Loss on disposal of property, plant and equipment |
| - | 8 | 488 | |||
| Rent concessions |
| - | (411) | (701) | |||
| Equity-settled share-based payment expenses |
| 784 | 1,129 | 1,072 | |||
| |
| 7,193 | (1,684) | 7,921 | |||
| Changes in working capital |
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| Decrease/(increase) in inventories |
| 48 | (89) | (326) | |||
| Decrease/(increase) in trade and other receivables |
| 1,026 | (49) | (2,844) | |||
| Increase in trade and other payables |
| 1,108 | 2,124 | 7,067 | |||
| (Decrease)/increase in provisions |
| (242) | - | 384 | |||
| Net cash / (used in) generated from operating activities |
| 9,133 | 302 | 12,202 | |||
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| Cash flows from investing activities |
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| | | |||
| Acquisition of property, plant and equipment |
| (6,839) | (777) | (7,391) | |||
| Acquisition of intangible assets |
| (654) | (277) | (422) | |||
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| Net cash used in investing activities |
| (7,493) | (1,054) | (7,813) | |||
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| Cash flows from financing activities |
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| Proceeds from the issuance of ordinary shares |
| 17 | 50 | 20 | |||
| Proceeds from the exercise of share options |
| - | - | 66 | |||
| Proceeds from bank borrowings |
| 2,000 | 6,000 | 6,000 | |||
| Repayment of bank borrowings |
| - | (1,500) | (2,500) | |||
| Lease payments - interest |
| (1,386) | (1,257) | (2,587) | |||
| Lease payments - capital |
| (1,620) | (956) | (1,526) | |||
| Landlord capital contributions |
| 1,300 | - | 500 | |||
| Interest paid |
| (288) | (248) | (519) | |||
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| Net cash generated/(used in) from financing activities |
| 23 | 2,089 | (546) | |||
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| Exchange gain on cash and cash equivalents |
| - | - | 69 | |||
| Cash and cash equivalents at the beginning of the period |
| 4,240 | 328 | 328 | |||
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| Net increase in cash and cash equivalents
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| 1,663 | 1,337 | 3,843 | |||
| Cash and cash equivalents at the end of the period |
| 5,903 | 1,665 | 4,240 | |||
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Notes to the financial statements
| 1 | General information | | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| 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. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| 2 | Basis of preparation and accounting policies | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| These condensed interim financial statements of the Group for the period ended 30 June 2022 have been prepared using accounting policies consistent with UK adopted International Accounting Standards. The same accounting policies, presentation and methods of computation are followed in the condensed set of financial statements as applied in the Group's latest audited financial statements for the year ended 30 December 2021. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| 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". | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| 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 30 December 2021. The auditor's opinion on these financial statements was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under s498(2) or s498(3) of the Companies Act 2006.
Going Concern
As part of the adoption of the going concern basis, Everyman continues to consider the uncertainty caused by the macroeconomic environment. The Group's financing arrangements include a £30m rolling credit facility (RCF), and a government-backed Coronavirus Large Business Interruption Loan Scheme ("CLBILS") of £10m, both repayable on or before 15 January 2024. As at 30 June 2022 the Group had drawn £14.5m of this facility and had cash of £5.9m, therefore the net debt position was £8.6m, with the undrawn facility at £25.5m.
The facility has leverage and fixed cover charge covenants, and previous liquidity and EBITDA covenants ended on 31 May 2022. The Board has reviewed forecast scenarios and is confident that the business can continue to operate with sufficient headroom. These forecasts consider scenarios in which there is no further growth in admissions beyond 2022 levels and include realistic assumptions around wage increases and inflation. Utilities contracts are fixed until October 2023 for the majority of venues.
In light of this, the Board consider it appropriate to adopt the going concern basis of accounting in preparing the financial statements.
Restatement of accounting for leases
Restatement 1
The previously reported results have been restated in respect of two leases as follows:
Canary Wharf An assumption was made that rent would increase from March 2020, however, this was not the case. As a result, the opening lease liability and right of use asset required amendment, as the discounted cashflows were greater than actually payable.
Correcting this led to a reduction in the right of use asset of £223,000 with a corresponding decrease in the lease liability of £344,000 and increase in retained earnings of £160,000. This also gave rise to a decrease in depreciation charge of £45,000 and decrease in finance charge of £24,000. An adjustment to the gain on concession was made to reduce the gain by £21,000.
Chelmsford Implicit in the lease is a contractual 2.5% compound increase in rent every 5 years. This meets the definition of an in-substance fixed payment and so should be accounted for when discounting the future cash flows upon recognition of the lease.
Accounting for this amendment has led to an increase in right of use asset of £1,174,000 with a corresponding increase of £1,462,000 to the lease liability and a decrease in retained earnings of £197,000. This also gave rise to an increase in depreciation charge of £103,000 and an increase in finance charge of £107,000.
The net impact of both adjustments in Restatement 1 is a reduction in Group profit across 2019 and 2020 of £199,000.
Restatement 2
After finalisation of the prior period financial statements there was a change to the Practical Expedient for rental concessions to include those effecting lease payments up to 30 June 2022. The original practical expedient was limited to arrangements that impacted rent payments up to 30 June 2021. This meant that some concessions that had previously been treated as modifications could now be accounted for using the Practical Expedient.
Accounting for the relevant concessions using the practical expedient gave rise to a decrease in the group lease liability of £26,000.
Gain on concessions was increased by £26,000, which is the net impact to Group profit in 2020 for Restatement 2. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Revenue | | | | 26 weeks ended | 26 weeks ended | Year ended 30 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| | | | | | 30 June | 1 July | December | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| | | | | | 2022 | 2021 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| | | | | | £000 | £000 | £000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Film and entertainment | | 20,234 | 3,631 | 25,150 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Food and beverages | | 16,699 | 3,643 | 20,360 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Other income | | 3,785 | 378 | 3,517 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| | | | | | 40,718 | 7,652 | 49,027 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In the 26-week period ended 30 June 2022, £0.2m Other Operating Income was received (H1 2021: £3.7m). This consisted of Omicron Hospitality & Leisure Grant.
| Taxation | | | | 26 weeks ended | 26 weeks ended | Year ended 30 | ||
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| | | | | | 30 June | 1 July | December | |
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| | | | | | 2022 | 2021 | 2021 | |
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| | | | | | £000 | £000 | £000 | |
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| Current tax | | | | - | - | - | ||
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| Adjustments in prior years | | - | - | - | ||||
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| | | | | | - | - | - | |
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| Deferred tax (credit)/expense | |
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| Origination and reversal of temporary differences | (18) | 104 | 416 | |||||
| Adjustments in respect of prior years | 18 | 25 | (101) | |||||
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| Effect of tax rate change | - | (261) | (301) | |||||
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| Deferred tax not previously recognised | - | - | - | |||||
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| Total tax (credit)/charge | - | (132) | 14 | |||||
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| 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: | ||||||||
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| Reconciliation of effective tax rate | | 26 weeks ended | 26 weeks ended | Year ended 30 | ||||
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| | | | | | 30 June | 2 July | December | |
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| | | | | | 2022 | 2021 | 2021 | |
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| | | | | | £000 | £000 | £000 | |
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| (Loss) before taxation | | (798) | (9,186) | (5,416) | ||||
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| Tax at the UK corporation tax rate of 19% | (152) | (1,745) | (1,029) | |||||
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| Permanent differences (expenses not deductible for tax purposes) | 463 | 422 | 750 | |||||
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| Deferred tax not previously recognised | | (433) | - | - | ||||
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| Impact of difference in overseas tax rates | 1 | - | 1 | |||||
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| De-recognition of losses | - | 1,885 | 605 | |||||
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| Other short term timing differences | 3 | 31 | - | |||||
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| Effect of change in expected future statutory rates on deferred tax | 104 | (261) | (217) | |||||
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| Impact of a drop in share-based payments intrinsic value | (4) | (489) | 5 | |||||
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| Adjustment in respect of previous periods | 18 | 25 | (101) | |||||
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| Total tax (credit)/charge | - | (132) | 14 | |||||
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| 5 | Earnings per share | | | | 26 weeks ended | 26 weeks ended | Year ended | ||
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| | | | | | 30 June | 1 July | 30 December | |
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| | | | | | 2022 | 2021 | 2021 | |
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| | | | | | £000 | £000 | £000 | |
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| Profit/(Loss) used in calculating basic and diluted earnings per share | (798) | (9,054) | (5,430) | |||||
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| Number of shares (000's) | |
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| Weighted average number of shares for the purpose of basic earnings per share | 91,177 | 90,597 | 91,129 | |||||
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| Number of shares (000's) | |
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| Weighted average number of shares for the purpose of diluted earnings per share | 91,177 | 90,597 | 91,129 | |||||
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| Basic earnings per share (pence) | | (0.88) | (9.99) | (5.96) | ||||
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| Diluted earnings per share (pence) | | (0.88) | (9.99) | (5.96) | ||||
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| 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. | ||||||||
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| The Company has 6.9m potentially issuable shares (H1 2021: 7.5m) 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. | ||||||||
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