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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Everyman Media Group Plc | LSE:EMAN | London | Ordinary Share | GB00BFH55S51 | ORD 10P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 57.50 | 57.00 | 58.00 | 57.50 | 57.50 | 57.50 | 60,048 | 08:00:29 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Business Services, Nec | 78.82M | -3.5M | -0.0384 | -14.97 | 52.43M |
From Apr 2019 to Apr 2024
TIDMEMAN
RNS Number : 2146Z
Everyman Media Group PLC
13 March 2017
Everyman Media Group plc
('Everyman' or the 'Company')
Preliminary results for the year ended 29 December 2016
Highlights
-- Revenue for the year up 45% to GBP29.6m (2015: GBP20.3m) -- Adjusted EBITDA* up 132% to GBP4.0m (2015: GBP1.7m) -- Admissions up 40% on last year to 1.7m (2015:1.2m) -- Four new Everyman cinemas were opened during the year, growing the estate to 20 sites
-- Exchanged agreements for lease on four new venues in Horsham, Durham, Wokingham and Edinburgh during the year
*Adjusted for pre-opening costs, exceptional items and share based payments, further detail of which can be found in note 2 below.
New Debt Facility
The Company can also today announce that it entered into a new debt facility with Barclays plc on 10 March 2017 for up to GBP20 million. The facility is a four year revolving loan facility. The facility provides an additional finance stream, in addition to the Company's existing cash resources, to allow continued expansion of the Company's cinema estate.
13 March 2017
This announcement contains inside information.
Enquiries
Everyman Media Group plc Tel: 020 3145 0510
Crispin Lilly, Chief Executive
Cenkos Securities (NOMAD and Broker) Tel: 020 7397 8927
Bobbie Hilliam/Harry Pardoe
Chairman's Statement
I am pleased to report on the Group's results for the 52 weeks ended 29 December 2016.
With four new venues opening during the year, together with the completion of some significant refurbishments and the full year impact of our 2015 expansion, 2016 marked a step change in the growth of the business. Through revenue growth and improved efficiencies, the business delivered an overall performance ahead of the Board's expectations for the year.
The Group now operates 20 venues, up from 16 at the beginning of 2016. This includes the small, temporary, one screen venue at Kings Cross, which will be replaced by a full three screen venue nearby, at the end of 2017.
Review of the business
Everyman is evolving into a trusted and highly regarded brand in the cinema and leisure industry with 20 venues and 54 screens (as of 29 December 2016).
At the heart of the Everyman experience is our team of enthusiastic employees whose focus on hospitality and customer experience remains our most important differentiator. The Board's long held belief in this model as being the bedrock for significant growth within the UK has been further strengthened in the last twelve months and our ambitions continue to grow.
With a further six committed venues and a strong pipeline for future years, the Board anticipates that our footprint will continue to grow across the UK.
Results
Revenue for the year was up 45.5% on last year to GBP29,554,000 (2015: GBP20,316,000).
The Group's adjusted operating profit before depreciation, amortisation, pre-opening expenses, exceptional items and share-based payments was GBP3,954,000 (2015: GBP1,705,000). This is an adjusted IFRS measure which has been further explained in note 2 and on the face of the Statement of Profit and Loss and Other Comprehensive Income. The Group generated a profit for the year of GBP61,000 (2015: loss of GBP556,000).
The Board does not recommend the payment of a dividend at this stage of the Group's development.
Openings
The Group opened new sites during the year in Bristol (3 screens, May 2016), Harrogate (5 screens, September 2016) and Chelmsford (5 screens, December 2016), as well as our temporary one screen venue in Kings Cross (June 2016).
In addition, the full refurbishment of Barnet was completed in April 2016 and the venue delivered considerable growth through the year, whilst the completion of the main auditorium and foyer works at Muswell Hill were achieved by October 2016. Muswell Hill will see the final phase of its works completed in 2017 with the addition of two further screens to bring it to five in total. In October 2016 we re-opened our Baker Street venue following a complete refurbishment.
The Group exchanged contracts on four further sites at Horsham, Durham, Wokingham and Edinburgh during the year. These are in addition to the pre-existing contracts for Stratford-Upon-Avon and Kings Cross, both of which will open in 2017.
The temporary one screen venue at Kings Cross will trade until shortly before the opening of the main venue late in 2017. It is delivering excellent pre-awareness for the Everyman brand in the area as well as serving (and gaining great affection from) the early residents, both private and corporate, in the developer's transformative Kings Cross Central development.
Marketing activity
Opening night events for 'Absolutely Fabulous: The Movie' and 'Bridget Jones's Baby' as well as other activities such as the 2nd Everyman Music and Film Festival continued our desire to enhance the experience that we offer from time to time.
Staff
Rising from an average of 374 to 600 in 2016, our team of customer-focused employees continues to grow and remains the core of our business. May I thank them all again for their continuing efforts.
Cash flows
Net cash generated from operating activities was GBP5,515,000 (2015: GBP2,959,000). Net cash outflows for the year, before financing, were GBP10,393,000 (2015: GBP16,169,000). This is largely represented by capital expenditure on the expansion of the business through build costs and refurbishment of the above sites.
Cash held at the end of the year was GBP1,566,000 (2015: GBP9,173,000). The cash held will be invested in the continuing development and expansion of the Group's business in 2017.
On 10 March 2017 the Group agreed a new loan facility of GBP20m with Barclays Bank PLC. This replaced the current GBP8m loan facility signed in March 2016.
Pre-opening costs
Pre-opening costs, which have been expensed within administrative expenses, were GBP659,000 (2015: GBP775,000). These costs include expenses which are necessarily incurred in the period prior to a new unit being opened but which are specific to the opening of that unit.
Current Trading
Trading since the year end has been strong. The Directors are therefore pleased to upgrade trading expectations for 2017 and beyond.
Annual General Meeting
The Directors look forward to welcoming shareholders to the Annual General Meeting of the Company which will be held at 10:30am on 11 May 2017 at Everyman Cinema Hampstead, 5 Holly Bush Vale, London NW3 6TX. Formal notice of the meeting and an explanation of the resolutions to be proposed is set out in the annual financial statements.
Future of the Company
Whilst the pipeline for further new venues continues to look strong and encouraging, the opportunities for growth organically are becoming increasingly important for the business. The Directors believe that developing the latter, alongside continued footprint growth, will stand us in good stead to deliver venues that are used and appreciated by communities around the country and to grow the business for our shareholders.
Paul Wise
Chairman
13 March 2017
Strategic Report
The Directors present their strategic report for the Group for the 52 weeks ended 29 December 2016.
Principal activities and review of the business
The Group is a leading independent cinema group in the UK. The principal activity of the Company is that of a holding company.
Results
The Group made a profit after taxation of GBP61,000 (2015: a loss of GBP556,000).
Further details are shown in the Chairman's Statement and Consolidated Statement of Profit and Loss and Other Comprehensive Income, together with the related notes to the financial statements.
Development of the Group's business
The Everyman offering
The Everyman brand is positioned at the premium end of the UK leisure/cinema market. The Group proposition is based on unique, high quality, intimate venues, usually of a smaller capacity and in relatively central high street locations. Hospitality is our primary focus.
The Group seeks to deliver a premium experience for each customer every time they watch a film at an Everyman venue. This is achieved by combining the strengths of our cinema design with a strong, credible food and drink offer, expansive programming and high levels of customer service.
Everyman shows a range of current and classic films alongside Event Cinema productions. Each venue is fitted with digital projectors, all with high-end digital sound systems.
Growth strategy
The Directors believe the opportunities for more Everyman venues within the UK are significant and this has been reinforced by the success of our new venues over the last two years. The scale of the opportunity is enhanced by the success in towns such as Reigate and Gerrards Cross, as much as the larger city centre venues like Birmingham and Leeds.
New venues can be part of a large traditional developer-led complex, the refurbishment of an old existing traditional cinema or building into small existing spaces in larger structures.
Continuing expansion will be financed from current resources including the new banking arrangement, retained earnings and where appropriate, further financing.
The Group continues to invest in opportunities at existing venues to drive admissions and spends as well as in new sites. In 2016 we reconfigured our Leeds venue to deliver our more successful integrated food and beverage offer whilst enabling us to sublet the restaurant space to Comptoir Libanais.
In October 2016, after signing a new long lease, we re-opened our Baker Street venue in London following a complete refurbishment to our modern Everyman offer, including our sofa seating and an expanded bar area. In addition, the refurbishment of both our Winchester and Reigate venues in 2015 continued to deliver increasing results through 2016. Several further refurbishment opportunities have been identified for 2017, including an overhaul of our Hampstead venue. A programmed plan of maintenance work across the growing estate is in place.
The Group continues to invest in infrastructure and IT in order to improve the overall customer experience.
Growth in admissions will also help us drive greater value from our new screen advertising partnership with Digital Cinema Media. The decision to switch from Pearl & Dean to Digital Cinema Media was made in summer 2016 and the transition completed in December 2016. It is the Board's belief that we will benefit from an increased return per admission with this move as well as having increased flexibility to explore and exploit broader sponsorship opportunities.
Constant review and development of our food and beverage offer and improved use of technology by our teams in venue are expected to drive revenues in this area.
Current estate
The Group currently has venues in the following locations:
Hot Features
Premium
Number
Number of of
Location Screens Seats
Birmingham 3 328
Bristol 3 439
Chelmsford 5 379
Esher 4 324
Gerrards Cross 2 204
Harrogate 5 411
Leeds 5 611
London, Baker
Street 2 118
London, Barnet 5 429
London, Belsize
Park 1 129
London, Canary
Wharf 3 266
London, Hampstead 2 194
London, Islington 1 125
London, Kings
Cross (temporary) 1 28
London, Maida
Vale 2 148
London, Muswell
Hill 3 282
Oxted 1 373
Reigate 2 170
Walton-On-Thames 2 158
Winchester 2 236
54 5,352
---------- -------
Over the course of 2016 the Group conditionally exchanged contracts on a further four new venues in Wokingham (3 screens), Durham (3 screens), Horsham (3 screens) and Edinburgh (5 screens). In 2017 we expect to open Stratford-Upon-Avon (4 screens) and a permanent Kings Cross venue (3 screens).
On 10 March 2017 the Group agreed a GBP20m facility from Barclays Bank PLC to help fund further expansion of our estate. This facility replaced the existing GBP8m facility that was signed in March 2016.
UK cinema market
Market performance
After the blockbuster-laden year of 2015, which saw UK admissions rise to 172.5m, 2016 settled back slightly as expected, with admissions ending up at 168.3m (source: CAA). Gross box office for the UK and Ireland however, remained virtually flat at GBP1.3bn as a result of increasing ticket prices.
The breadth, quality and volume of films remained healthy. Our share in box office revenue in 2016, albeit fuelled by the continued expansion program, rose from 1.12% in 2015 to 1.64% (source: ComScore).
The Directors believe that the cinema market is in a strong position overall and the breadth and quality of film releases will continue to support our growth.
Competition
The UK cinema market continues to be dominated by the three main multiplex players: Cineworld, Odeon and Vue. Cineworld expanded its estate in 2016 by acquiring five sites from Empire Cinemas, including the key Leicester Square venue, in addition to several new builds of its own. The Odeon/UCI group was acquired by Wanda-backed AMC (who also completed the acquisition of the US Carmike chain in 2015 and the Nordic SF Bio group in early 2017).
Of more note to Everyman's business the performance of Picturehouse (a subsidiary of Cineworld) and Curzon. Neither business opened any new venues in 2016.
Key performance indicators
The growth in revenue in the current year reflects the effect of an increase in the number of sites and admissions, an increase in box- office pricing and an improved spend per head on food and beverages.
The Group uses the following key performance indicators, in addition to total revenues, to monitor the progress of the Group's activities:
29 December 31 December
2016 2015
Admissions 1,692,031 1,212,070
Box office spend
per head GBP10.94 GBP10.60
Food and beverage
spend per head GBP5.55 GBP5.35
Both box office spend per head and food and beverage spend per head have increased in line with expectations. The growth in box office spend per head has been diluted by the success of our out of London venues over this period, offering disproportionate growth at a lower ticket price. Likewise, the food and beverage spend is diluted in aggregate by ancillary restaurant revenue (whose revenue without associated admissions represented a decreasing proportion of the total). Furthermore, the Leeds restaurant was closed and the area sublet to Comptoir Libanais in September 2016.
Consolidated statement of profit and loss and other comprehensive income for the year ended 29 December 2016
Year ended Year ended
29 December 31 December
2016 2015
GBP000 GBP000
Revenue 29,554 20,316
Cost of Sales (11,830) (8,526)
Gross profit 17,724 11,790
Other operating income 167 -
Administrative expenses (17,324) (12,548)
Operating profit/(loss) 567 (758)
Financial
income 11 74
Financial
expenses (38) (50)
------------ ------------
Net financing (expense)/income (27) 24
Profit/(loss) before
taxation 540 (734)
Income tax (expense)/credit (479) 178
Profit/(loss) for
the year 61 (556)
Other comprehensive income
for the year - -
------------ ------------
Total comprehensive income/(loss)
for the year 61 (556)
Total comprehensive income/(loss)
attributable to equity holders
of the Company 61 (556)
------------ ------------
Basic earnings/(loss) per
share (pence) 0.10 (1.08)
------------ ------------
Diluted earnings/(loss)
per share (pence) 0.10 (1.08)
------------ ------------
All amounts relate to continuing
activities.
Non-GAAP measure: adjusted
profit from operations
Adjusted profit from
operations 3,954 1,705
Before:
Depreciation and
amortisation (2,435) (1,387)
Acquisition
expenses - (286)
Pre-opening expenses (659) (775)
Share-based payment
expense (293) (15)
------------ ------------
Operating profit/(loss) 567 (758)
------------------------------------- ------------ ------------
Consolidated balance sheet at 29 December 2016
29 December 31 December 31 December
2016 2015 2014
Restated Restated
(note (note
22) 22)
GBP000 GBP000 GBP000
Assets
Non-current
assets
Property, plant
and equipment 35,603 22,344 10,819
Intangible
assets 8,256 8,073 782
Trade and other -
receivables 199 -
------------ ------------ ------------
44,058 30,417 11,601
------------ ------------ ------------
Current assets
Inventories 245 227 91
Trade and other
receivables 1,596 2,825 2,020
Cash and cash
equivalents 1,566 9,173 6,363
------------ ------------ ------------
3,407 12,225 8,474
------------ ------------ ------------
Total assets 47,465 42,642 20,075
------------ ------------ ------------
Current liabilities
Other interest-bearing
loans and borrowings 24 - 76
Trade and other
payables 6,575 5,680 3,801
Current corporation
tax liabilities - - 52
------------ ------------ ------------
6,599 5,680 3,929
------------ ------------ ------------
Non-current liabilities
Other interest-bearing
loans and borrowings 3,000 - 193
Other payables 3,397 3,098 2,244
Other financial
liabilities - 157 203
Provisions 1,430 1,501 -
Deferred tax liabilities 775 296 354
------------ ------------ ------------
8,602 5,052 2,994
------------ ------------ ------------
Total liabilities 15,201 10,732 6,923
------------ ------------ ------------
Net assets 32,264 31,910 13,152
------------ ------------ ------------
Equity attributable to
owners of the Company
Share capital 5,982 5,982 3,629
Share premium 22,720 22,720 5,774
Merger reserve 11,152 11,152 11,152
Retained
earnings (7,590) (7,944) (7,403)
------------ ------------ ------------
Total equity 32,264 31,910 13,152
------------ ------------ ------------
The balance sheet has been restated to reclassify the lease incentive liability of GBP3,098,000 at 31 December 2015 and GBP2,244,000 at 31 December 2014 from current to non-current liabilities (see note 22).
Consolidated statement of changes in equity for the year ended 29 December 2016
Share Share Merger Retained Total
capital premium reserve earnings equity
GBP000 GBP000 GBP000 GBP000 GBP000
Balance at 1 January
2015 3,629 5,774 11,152 (7,403) 13,152
-------- -------- -------- --------- -------
Loss for
the year - - - (556) (556)
-------- -------- -------- --------- -------
Total comprehensive
loss for the year - - - (556) (556)
-------- -------- -------- --------- -------
Shares issued in the
period 2,353 17,647 - - 20,000
Share issue
expenses - (701) - - (701)
Share-based payments - - - 15 15
-------- -------- -------- --------- -------
Total transactions
with owners of the
parent 2,353 16,946 - 15 19,314
-------- -------- -------- --------- -------
Balance at 31 December
2015 5,982 22,720 11,152 (7,944) 31,910
-------- -------- -------- --------- -------
Balance at 1 January
2016 5,982 22,720 11,152 (7,944) 31,910
-------- -------- -------- --------- -------
Profit for
the year - - - 61 61
-------- -------- -------- --------- -------
Total comprehensive
income for the year - - - 61 61
-------- -------- -------- --------- -------
Share-based payments - - - 293 293
-------- -------- -------- --------- -------
Total transactions
with owners of the
parent - - - 293 293
-------- -------- -------- --------- -------
Balance at 29 December
2016 5,982 22,720 11,152 (7,590) 32,264
-------- -------- -------- --------- -------
Consolidated cash flow statement for the year ended 29 December 2016
29 December 31 December
2016 2015
GBP000 GBP000
Cash flows from operating
activities
Operating profit/(loss) for
the period 567 (758)
Adjustments
for:
Depreciation and
amortisation 2,435 1,387
Loss on disposal of property,
plant and equipment 66 -
Equity-settled share-based
payment expenses 293 15
---------------- ------------
3,361 644
Increase in inventories (18) (136)
Decrease/(increase) in trade
and other receivables 1,030 (154)
Decrease in provisions (71) -
Increase in trade and other
payables 1,198 2,554
---------------- ------------
5,500 2,908
Corporation tax
refunded 15 51
---------------- ------------
Net cash generated from operating
activities 5,515 2,959
---------------- ------------
Cash flows from investing
activities
Acquisition as business combination - (7,100)
Acquisition of property,
plant and equipment (18,965) (11,452)
Proceeds from sale of property,
plant and equipment 3,274 -
Acquisition of
intangibles (228) -
Refund/(deposit) on long-leasehold
property - (650)
Interest
received 11 74
Net cash used in investing
activities (15,908) (19,128)
---------------- ------------
Cash flows from financing
activities
Proceeds from the issuance
of ordinary shares - 19,391
Share issue
expenses - (93)
Proceeds from
bank borrowings 3,000 -
Repayment of derivative financial
instruments (176) (269)
Interest
paid (38) (50)
Net cash generated from financing
activities 2,786 18,979
---------------- ------------
Net (decrease)/increase in
cash and cash equivalents (7,607) 2,810
Cash and cash equivalents
at the beginning of the period 9,173 6,363
Cash and cash equivalents
at the end of the period 1,566 9,173
Notes to the financial statements
1 General Information
Everyman Media Group PLC and its subsidiaries (together, 'the Group') are engaged in the ownership and management of cinemas in the United Kingdom. Everyman Media Group PLC (the Company) is a public company limited by shares domiciled and incorporated in England and Wales (registered number 08684079). The address of its registered office is Studio 4, 2 Downshire Hill, London NW3 1NR.
2 Basis of preparation and accounting policies
The Group financial statements have been prepared and approved by the Directors in accordance with International Financial Reporting Standards as adopted by the EU ("Adopted IFRSs"). The Company has elected to prepare its parent company financial statements in accordance with FRS101.
The financial statements are prepared on the historical cost basis except that the following assets and liabilities are stated at their fair value: derivative financial instruments, financial instruments classified as fair value through the profit or loss or as available-for-sale.
The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these group financial statements.
Going concern
The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for 12 months from the date of signing these accounts. Thus they continue to adopt a going concern basis in preparing the annual financial statements. In adopting a going concern basis for preparing the financial statements, the Directors have considered the business activities, the principal risks and uncertainties, the financial position of the Group, its cash flows, liquidity position and borrowing facilities, as well as the Groups objectives, policies and processes for managing capital.
At the year end the Group was able to meet its day-to-day working capital requirements and funding of new site purchases through its bank loan facility and ongoing trading activities.
The loan facility is subject to three covenants: the ratio of adjusted EBITDAR (pre-rent EBITDA) to net finance charges, adjusted EBITDA to net debt and minimum net tangible asset requirements. The Group's forecasts and projections show that the Group is able to operate within the level of its current facility for at least 12 months from the approval date of the financial statements, including meeting requirements for planned refurbishments and openings and compliance with the bank facility covenants.
The Group therefore continues to adopt a going concern basis for the presentation of the financial statements.
Use of non-GAAP profit and loss measures
The Group believes that along with operating profit, the 'adjusted profit from operations' provides additional guidance to the statutory measures of the performance of the business during the financial year.
Adjusted profit from operations is calculated by adding back depreciation, amortisation, and certain non-recurring or non cash items. Adjusted profit is an internal measure used by management as they believe it better reflects the underlying performance of the Group.
Basis of consolidation
Where the Group has power, either directly or indirectly, to govern the financial and operating policies of an entity so as to have the ability to affect the amount of the investor returns and has exposure or rights to variable returns from its involvement with the investee, it is classified as a subsidiary. The balance sheet at 29 December 2016 incorporates the results of all subsidiaries of the Group for all years and periods, as set out in the basis of preparation.
Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are eliminated. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.
Merger reserve
On 29 October 2013 the Company became the new holding company for the Group. This was put into effect through a share-for- share exchange of one ordinary share of 10 pence in Everyman Media Group PLC for one ordinary share of 10 pence in Everyman Media Holdings Limited (previously, Everyman Media Group Limited), the previous holding company for the Group. The value of one share in the Company was equivalent to the value of one share in Everyman Media Holdings Limited.
The accounting treatment for group reorganisations is presented under the scope of IFRS3. The introduction of the new holding company was accounted for as a capital reorganisation using the principles of reverse acquisition accounting under IFRS3. Therefore, the consolidated financial statements are presented as if Everyman Media Group PLC has always been the holding company for the Group. The Company was incorporated on 10 September 2013.
The use of merger accounting principles has resulted in a balance in Group capital and reserves which has been classified as a merger reserve and included in the Group's shareholders' funds.
The consolidated financial statements include the results of the Company and all its subsidiary undertakings made up to the same accounting date.
The Company recognised the value of its investment in Everyman Media Holdings Limited at fair value based on the initial share placing price on admission to AIM. As permitted by s612 of the Companies Act 2006, the amount attributable to share premium was transferred to the merger reserve. The investment in the Company is recorded at fair value.
Revenue recognition
Revenue for the Group is measured at the fair value of the consideration received or receivable. The Group recognises revenue for services provided when the amount of revenue can be reliably measured and it is probable that future economic benefits will flow to the entity.
The Group's revenues from film and entertainment activities are recognised on completion of the showing of the relevant film. The Group's revenues for food and beverages are recognised at the point of sale. The Group's other revenues, which include commissions, are recognised when all performance conditions have been satisfied.
All advanced booking fees and similar income which are received in advance of the related performance are classified as deferred revenue and shown as a liability until completion of the performance.
Goodwill
Goodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to cash-generating units and is not amortised but is tested annually for impairment. Goodwill represents the excess of the costs of a business combination over the total acquisition date fair values of the identifiable assets, liabilities and contingent liabilities acquired. Goodwill is capitalised as an intangible asset. Costs incurred in a business combination are expensed as incurred with the exception that for business combinations completed prior to 1 January 2010, cost comprised the fair value of assets given, liabilities assumed and equity instruments issued, plus any direct costs of acquisition.
The recoverable amount of an asset or cash-generating unit (CGU) is the greater of its value-in-use and its fair value less costs to sell. In assessing value-in-use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the CGU). The goodwill acquired in a business combination, for the purpose of impairment testing, is allocated to CGUs. Subject to an operating segment ceiling test, for the purposes of goodwill impairment testing, CGUs to which goodwill has been allocated are aggregated so that the level at which impairment is tested reflects the lowest level at which goodwill is monitored for internal reporting purposes. Goodwill acquired in a business combination is allocated to groups of CGUs that are expected to benefit from the synergies of the combination.
An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognised in the profit and loss. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the units, and then to reduce the carrying amounts of the other assets in the unit/group of units on a pro-rata basis.
Intangible assets
Interests in property-based leases acquired in a business combination are recognised at fair value at the acquisition date. Amortisation is calculated on a straight-line basis to allocate the cost of property-based leases across the term of the relevant leasehold interest.
Amortisation on assets under construction does not commence until they are complete and available for use.
Software assets acquired by the Group are stated at cost less accumulated amortisation and impairment losses. Amortisation is provided on all software assets so as to write off their carrying value over the expected useful economic lives. The estimated useful lives are as follows:
Leasehold interest - straight line on cost over the remaining life of the lease
Software assets - 5 years
Property, plant and equipment
Items of property, plant and equipment are recognised at cost less accumulated depreciation and accumulated impairment losses. As well as the purchase price, cost includes directly attributable costs.
Depreciation on assets under construction does not commence until they are complete and available for use. These assets represent 'fit-outs'.
Depreciation is provided on all other leasehold improvements and all other items of property, plant and equipment so as to write off their carrying value over the expected useful economic lives. The estimated useful lives are as follows:
Leasehold improvements - straight line on cost over the remaining life of the lease Plant and machinery - 4 to 10 years Fixtures and fittings - 4 to 10 years
Depreciation methods, useful lives and residual values are reviewed at each balance sheet date.
Impairment (excluding inventories)
A financial asset not carried at fair value through the profit and loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably.
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset's original effective interest rate. Interest on the impaired asset continues to be recognised through the unwinding of the discount. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through the profit and loss.
Inventories
Inventories are valued at the lower of cost and net realisable value. The cost incurred in bringing each product to its present location and condition is accounted for as follows:
Food and beverages - purchase cost on a first-in, first-out basis. Projection stock - purchase cost on a first-in, first-out basis.
Net realisable value is the estimated selling price in the ordinary course of business.
Trade and other receivables
These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise through rental deposits and the provision of services to customers (e.g. trade receivables) but also incorporate other types of contractual monetary assets. They are initially recognised at fair value plus transactions costs that are directly attributable to their acquisition or issue and are subsequently carried at amortised cost using the effective interest rate method, less provision for any impairment.
Impairment provisions are recognised when there is objective evidence (such as significant financial difficulties on the part of the counterparty or default or significant delay in payment) that the Group will be unable to collect all of the amounts due under the terms receivable, the amount of such a provision being the difference between the net carrying amount and the present value of the future expected cash flows associated with the impaired receivable.
Provisions
A provision is recognised in the balance sheet when the Group has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects risks specific to the liability.
Cash and cash equivalents
Cash and cash equivalents comprise cash.
Financial liabilities
Non-derivative financial liabilities are recognised initially at fair value less attributable transaction costs and subsequently measured at amortised cost using the effective interest method.
Derivative financial instruments
The Group's interest-rate swap was classified as a financial liability at fair value through the profit and loss account. Derivative financial instruments within the scope of IAS39 are classified as financial assets or liabilities at fair-value through the profit and loss. Changes to fair value are made through the profit and loss. All derivative financial instruments are recognised initially at fair value. The subsequent measurement of derivative financial instruments is also at fair value. Financial assets at fair value through the profit and loss are carried in the balance sheet at fair value with net changes in fair value recognised in finance costs in the profit and loss.
Fair value hierarchy
All financial instruments measured at fair value must be classified into one of the levels below:
- Level 1: Quoted prices, in active markets
- Level 2: Level 1 quoted prices are not allowable but fair value is based on observable market data.
- Level 3: Inputs that are not based on observable market data.
Share capital
Financial instruments issued by the Group are treated as equity only to the extent that they do not meet the definition of a financial liability. The Group's ordinary shares are classified as equity instruments.
Leased assets
Where substantially all of the risks and rewards incidental to ownership are not transferred to the Group (an 'operating lease'), the total rentals payable under the lease are charged to the consolidated profit and loss on a straight line basis over the lease term. The aggregate benefit of lease incentives is recognised as a reduction of the rental expense over the lease term.
Taxation
Tax on the profit and loss for the year comprises current and deferred tax. Tax is recognised in the profit and loss except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity. Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.
Deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability in the consolidated balance sheet differs from its tax base, except for differences arising on:
- The initial recognition of goodwill.
- The initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction affects neither accounting or taxable profit.
- Investments in subsidiaries and jointly controlled entities where the Group is able to control the timing of the reversal of the difference and it is probable that the difference will not reverse in the foreseeable future.
Recognition of deferred tax assets is restricted to those instances where it is probable that taxable profit will be available against which the difference can be utilised.
The amount of the asset or liability is determined using tax rates that have been enacted or substantively enacted by the reporting date and are expected to apply when the deferred tax liabilities or assets are settled or recovered. Deferred tax balances are not discounted.
Deferred tax assets and liabilities are offset when the Group has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority on either:
- The same taxable group company; or
- Different company entities which intend either to settle current tax assets and liabilities on a net basis or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax assets and liabilities are expected to be settled or recovered.
Operating segments
The Board considers that the Group's project activity constitutes one reporting segment, as defined under IFRS8. Operationally, cinemas and restaurants are managed separately but these are reported together as one unit as they have similar characteristics that they can be expected to have essentially the same future prospects.
The total profit measures are operating profit and profit for the year, both disclosed on the face of the consolidated profit and loss. No differences exist between the basis of preparation of the performance measures used by management and the figures used in the Group financial information.
All of the revenues generated relate to cinema tickets, sale of food and beverages and ancillary income, an analysis of which appears in the notes below. All revenues are wholly generated within the UK. Accordingly there are no additional disclosures provided to the financial information.
Pre-opening expenses
Property rentals and other related overhead expenses incurred prior to a new site opening are expensed to the profit and loss in the year that they are incurred. Similarly, the costs of training new staff during the pre-opening phase are expensed as incurred. These expenses are included within administrative expenses.
Exceptional items of expense
Exceptional items of expense are administrative costs which are large or unusual in nature and are not expected to recur on a regular basis.
Employee benefits
Defined contribution plans
A defined contribution plan is a post-employment benefit plan under which the company pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the profit an loss in the periods during which services are rendered by employees.
Share-based payments
Certain employees (including Directors and senior executives) of the Group receive remuneration in the form of share-based payment transactions, whereby employees render services as consideration for equity instruments ('equity-settled transactions'). The cost of share-based payments is recharged by the Company to subsidiary undertakings in proportion to the services recognised.
The cost of equity-settled transactions with employees is measured by reference to the fair value at the date on which they are granted. The fair value is determined by using an appropriate pricing model.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance and/or service conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award ('the vesting date'). The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Group's best estimate of the number of equity instruments that will ultimately vest. The profit or loss charge or credit for a period represents the movement in cumulative expense recognised as at the beginning and end of that period.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition, which are treated as vesting irrespective of whether or not the market condition is satisfied, provided that all other performance and/or service conditions are satisfied. The dilutive effect of outstanding options is reflected as additional share dilution in the computation of earnings per share.
3 Adoption of new and revised Standards
Amendments to IFRSs that are mandatorily effective for the current year
The following new standards and interpretations to existing standards have been published and are mandatory for the Group's future accounting. The application of the amendments has had no material impact on the disclosures or the amounts recognised in the Group's consolidated financial statements.
- IAS16 and IAS38 (amendments): Clarification of acceptable methods of depreciation and amortisation
- IAS1 (disclosure initiative): The amendments are on presentation of the financial statements and should not require any significant change to current practice bur should facilitate improved reporting
New and revised IFRSs in issue but not yet effective
The following Adopted IFRSs have been issued but have not been applied (by the Group) in these financial statements:
- IFRS9: Financial instruments (effective date 1 January 2018)
- IFRS15: Revenue from contracts with customers (effective date 1 January 2018)
- IFRS16: Leases (effective date to be confirmed)
- IFRS2 (amendments): Classification and measurement of share-based payment transactions (effective date to be confirmed)
- IAS12 (amendments): Recognition of deferred tax assets for unrealised losses(effective date to be confirmed).
The Directors do not expect that the adoption of the Standards listed above will have a material impact on the financial statements of the Group in future periods, except that IFRS16 will impact both the measurement and disclosures. IFRS15 may have an impact on revenue recognition and related disclosures. Beyond the information above, it is not practicable to provide a reasonable estimate of the effect of IFRS16 and IFRS 15 until a detailed review has been completed.
4 Critical accounting estimates
In the application of the Group's accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other facts that are considered to be relevant. Actual results may differ from these estimates.
These estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities are addressed below.
Impairment of intangible assets
Determining whether intangible assets are impaired requires an estimate of the fair value of the cash-generating units less costs to sell. The determination of a fair value and of suitable selling costs require a level of estimation. In situations where this is lower than the book value of the net assets of the cash generating unit, a value-in-use calculation will need to be performed. The value-in-use calculation requires the entity to estimate the future cash flows expected to arise from the cash-generating unit and a suitable discount rate in order to calculate present value. Details of the impairment accounting policies are set out in the above notes.
Impairment of tangible assets
Determining whether tangible assets are impaired requires an assessment at each reporting date to determine whether there is objective evidence that it is impaired. A tangible asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset which has a negative impact on the estimated future cash flows of that asset. In situations where there are impairment indicators, an impairment loss will be recognised as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset's original effective interest rate. The value-in-use calculation requires the entity to estimate the future cash flows expected to arise from the cash-generating unit and a suitable discount rate in order to calculate present value.
5 Revenue
Year ended Year ended
29 December 31 December
2016 2015
GBP000 GBP000
Film and entertainment 18,505 12,844
Food and beverages 9,384 6,486
Other income 1,665 986
------------ ------------
29,554 20,316
------------ ------------
6 Profit/(loss) before taxation
Profit/(loss) before taxation is stated after charging:
Year ended Year ended
29 December 31 December
2016 2015
GBP000s GBP000s
Depreciation of tangible
assets 2,390 1,367
Operating lease rentals 2,154 1,378
Share-based payments 293 15
Acquisition expenses - 286
7 Employee costs including Directors
29 December 31 December
2016 2015
GBP000 GBP000
Wages and
salaries 7,074 5,446
Social security
costs 463 345
Pension
costs 46 41
Share-based payments 293 15
Other staff
benefits 10 6
7,886 5,853
------------ ------------
8 Average number of employees
The average number of persons employed by the Group (including Directors) during the year, analysed by category, was as follows:
29 December 31 December
2016 2015
Number Number
Management 85 65
Operations 515 309
600 374
------------ ------------
9 Directors' remuneration
The remuneration of the Directors, who are the key management personnel of the Group, is set out below in aggregate for each of the categories specified in IAS24 Related Party Disclosures:
Year ended Year ended
29 December 31 December
2016 2015
GBP000 GBP000
Salaries/fees 418 392
Bonuses 116 101
Other benefits 9 6
Pension contributions 18 19
------------- ------------
561 518
Share-based payments 168 87
------------- ------------
729 605
------------- ------------
Information regarding the highest-paid
Director is as follows:
Salaries/fees 164 164
Bonuses 74 74
Other benefits 4 -
Pension contributions 14 16
------------- ------------
256 254
Share-based payments 49 32
------------- ------------
305 286
------------- ------------
10 Auditors remuneration
29 December 31 December
2016 2015
GBP000 GBP000
Fees payable to the Company's
auditor for:
Audit of the Company's
financial statements 8 12
Audit of the subsidiary
undertakings of the Company 50 42
Tax compliance services
to the Group 80 22
Other services 29 20
167 96
------------ ------------
Fees payable to KPMG LLP and their associates for audit and non-audit services to the Group are stated on a consolidated basis and are applicable to the year ended 29 December 2016. Fees in the comparative period were paid to the previous auditor BDO LLP.
The Group's policy on the use of the external auditor for non-audit services is to ensure that any work undertaken does not impair the auditor's independence. We have considered the auditor's independence and we continue to believe that KPMG LLP is independent within the meaning of all UK regulatory and professional requirements and the objectivity of the audit engagement partner and audit staff are not impaired.
11 Exceptional items of expenditure
29 December 31 December
2016 2015
GBP000s GBP000s
Acquisition
expenses - 286
- 286
--------------------------- ------------
12 Financial Income
29 December 31 December
2016 2015
GBP000s GBP000s
Interest
Receivable 11 28
Fair value gain on derivative financial
instruments - 46
11 74
------------ ------------
13 Financial Expense
29 December 31 December
2016 2015
GBP000s GBP000s
Interest on bank loans and
overdrafts 19 50
Fair value losses on derivative
financial instruments 19 -
38 50
------------ ------------
14 Income Tax
Year ended Year ended
29 December 31 December
2016 2015
GBP000s GBP000s
Income tax expense
Current tax - -
Deferred tax expense/(credit)
Adjustments in respect of prior
years (394) -
Origination and reversal of temporary
differences 803 (178)
Effect of other differences 70 -
Total tax expense/(credit) 479 (178)
------------ ------------
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 profit/(loss) for the period are as follows:
Reconciliation of effective tax
rate Year ended Year ended
29 December 31 December
2016 2015
GBP000 GBP000
Profit/(loss) before taxation 540 (734)
Applied corporation tax rates: 20.00% 20.25%
------------ ------------
Tax at the UK corporation tax rate
of 20.00%/20.25% 108 (149)
Expenses not deductible for tax
purpose 695 160
Adjustments in respect of prior
years (394) -
Effect of other differences 70 (189)
------------ ------------
Total tax expense/(credit) 479 (178)
------------ ------------
Reductions in the UK corporation tax rate from 23% to 21% (effective from 1 April 2014) and 20% (effective from 1 April 2015) were substantively enacted on 2 July 2013. Further reductions to 19% (effective from 1 April 2017) and to 18% (effective 1 April 2020) were substantively enacted on 26 October 2015. Accordingly, the Company's profits for this accounting period are subject to tax at a rate of 20% (2015: 20.25%). An additional reduction to 17% (effective from 1 April 2020) was announced in the Budget on 16 March 2016.
15 Earnings/(loss) per share
Year ended Year ended
29 December 31 December
2016 2015
GBP000 GBP000
Profit/(loss) used in
calculating basic and
diluted earnings/(loss)
per share 61 (556)
Number of shares
Weighted average number
of shares for the purpose
of basic earnings/(loss)
per share 59,820 51,376
------------ ------------
Weighted average number
of shares for the purpose
of diluted earnings/(loss)
per share 60,310 51,376
------------ ------------
Basic earnings/(loss)
per share (pence) 0.10 (1.08)
------------ ------------
Diluted earnings/(loss)
per share (pence) 0.10 (1.08)
------------ ------------
Basic earnings/(loss) per share amounts are calculated by dividing net profit/(loss) for the year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year.
Where the Group has incurred a loss in a year, the diluted earnings per share is the same as the basic earnings per share as the loss has an anti-dilutive effect. The dilutive loss per share for 2015 is therefore the same as the basic loss per share for the period and the diluted weighted average of shares is the same as the basic weighted average number of shares. The actual diluted weighted average number of shares for 2015 before disregarding due to anti-dilutive effect was 52,250,741.
The Company has 5,248,329 potentially issuable shares (2015: 4,853,329), plus 130,000 granted immediately after the year end, all of which relate to the potential dilution from both the Group's 'A' shares and share options issued to the Directors and certain employees and contractors, under the Group's incentive arrangements.
16 Property, plant and equipment
Plant Fixtures Assets
Leasehold & & under
improvements machinery fittings construction Total
GBP000 GBP000 GBP000 GBP000 GBP000
Cost
At 1 January
2015 7,560 1,613 3,204 2,445 14,822
Acquired in
the year 7,620 1,258 1,335 1,239 11,452
Transfer on
completion 2,207 - - (2,207) -
Business acquisition - 1,185 255 - 1,440
------------- ---------- --------- ------------- ---------
At 31 December
2015 17,387 4,056 4,794 1,477 27,714
Acquired in
the year 15,217 1,982 1,708 58 18,965
Disposals (3,308) - (189) - (3,497)
Transfer on
completion 1,106 - - (1,106) -
------------- ---------- --------- ------------- ---------
At 29 December
2016 30,402 6,038 6,313 429 43,182
------------- ---------- --------- ------------- ---------
Depreciation
At 1 January
2015 991 711 2,301 - 4,003
Charge for
the year 673 455 239 - 1,367
------------- ---------- --------- ------------- ---------
At 31 December
2015 1,664 1,166 2,540 - 5,370
Charge for
the year 1,263 764 363 - 2,390
On disposals (8) - (173) - (181)
------------- ---------- --------- ------------- ---------
At 29 December
2016 2,919 1,930 2,730 - 7,579
------------- ---------- --------- ------------- ---------
Net book value
At 29 December
2016 27,483 4,108 3,583 429 35,603
------------- ---------- --------- ------------- ---------
At 31 December
2015 15,723 2,890 2,254 1,477 22,344
------------- ---------- --------- ------------- ---------
At 31 December
2014 6,569 902 903 2,445 10,819
------------- ---------- --------- ------------- ---------
The Group entered into a sale and leaseback arrangement with Six Guys LLP on 10 May 2016. The sale was on a no gain, no loss basis.
The Group held no assets under finance leases as at 29 December 2016 (31 December 2015: GBPnil).
The Group sub-let a small portion of one of its cinema sites that was previously used as a restaurant to Comptoir Libanais on 5 November 2016. This has not been treated as investment property under IAS40 guidance that the area is insignificant.
17 Intangible assets
Leasehold Software
Goodwill Interests Assets Total
GBP000 GBP000 GBP000 GBP000
Cost
At 1 January
2015 782 - - 782
Business acquired 6,637 674 - 7,311
Acquired in
the year - - - -
--------- ---------- --------- -------
At 31 December
2015 7,419 674 - 8,093
--------- ---------- --------- -------
Acquired in
the year - - 228 228
--------- ---------- --------- -------
At 29 December
2016 7,419 674 228 8,321
--------- ---------- --------- -------
Amortisation and impairment
At 1 January
2015 - - - -
Charge for the
year - 20 - 20
--------- ---------- --------- -------
At 31 December
2015 - 20 - 20
Charge for the
year - 35 10 45
--------- ---------- --------- -------
At 29 December
2016 - 55 10 65
--------- ---------- --------- -------
Net book value
At 29 December
2016 7,419 619 218 8,256
--------- ---------- --------- -------
At 31 December
2015 7,419 654 - 8,073
--------- ---------- --------- -------
At 31 December
2014 782 - - 782
--------- ---------- --------- -------
Value in use calculations are performed annually and at each reporting date for each cash-generating unit (CGU) which represents each site acquired. Value-in-use was calculated as the net present value of the projected risk-adjusted post-tax cash flows plus a terminal value of the CGU. A pre-tax discount rate was applied to calculate the net present value of pre-tax cash flows.
Goodwill and indefinite-life intangible assets considered significant in comparison to the Group's total carrying amount of such assets have been allocated to CGUs or groups of CGUs as follows:
29 December 31 December
2016 2015
GBP000 GBP000
Baker Street 103 103
Barnet 1,309 1,309
Belsize
Park 67 67
Esher 2,804 2,804
Gerrards
Cross 1,309 1,309
Islington 86 86
Muswell
Hill 1,215 1,215
Oxted 102 102
Reigate 113 113
Walton-On-Thames 94 94
Winchester 217 217
------------ ------------
7,419 7,419
The recoverable amount of each CGU has been calculated with reference to its value-in-use. The key assumptions of this calculation are shown below:
29 December 31 December
2016 2015
Sales and cost growth (over
a 5 year period) 3% 3%
Discount rate (the Group's
adjusted weighted average
cost of capital) 9.5% 9.5%
Terminal value 8 x EBITDA 8 x EBITDA
Number of years projected 5 years 5 years
There have been no impairments indicated in the year to 29 December 2016 (2015: GBPnil). The projected sales growth was based upon the Group's latest forecasts at the time of review and is in line with the average growth rate for the industry within the United Kingdom. The key assumptions in the cash flow pertain to revenue growth. Management have determined that growth based on industry average growth rates and actuals achieved historically are the best indication of growth going forward. There have been no significant changes made to the key assumptions used above for reviews conducted subsequently. The Group has maintained the level of its weighted average cost of capital at 9.5%. The Directors are confident that the Group is largely immune from the effects of Brexit and the impact on the wider economic environment. Additionally the Group believes that there has been no significant impact on the structure of the Company that should result in a changed weighted average cost of capital. Management has performed sensitivity testing on all inputs to the model and noted no highly sensitive variables.
All of the goodwill brought forward was allocated to certain of the Group's cinema sites in existence at 31 December 2010 as well as goodwill and leasehold interests acquired in the year to 31 December 2015 from the acquisition of four cinema sites through a business combination.
18 Trade and other receivables
29 December 31 December
2016 2015
GBP000 GBP000
Included in current assets 1,596 2,825
Included in non-current
assets 199 -
------------ ------------
1,795 2,825
Trade and other receivables 521 211
Other debtors 474 1,857
Prepayments and accrued
income 800 757
------------ ------------
1,795 2,825
------------ ------------
There were no receivables that were considered to be impaired. There is no significant difference between the fair value of the other receivables and the values stated above. Other debtors include deposits paid in respect of long-term leases. All other amounts are due for payment within one year. No interest is charged on inter-company loans and the loans are repayable on demand.
19 Trade and other payables
29 December 31 December 31 December
2016 2015 2014
Restated Restated
(note
(note 22) 22)
GBP000 GBP000 GBP000
Included within current
liabilities 6,575 5,680 3,801
Included within non-current
liabilities 3,397 3,098 2,244
------------ ------------ ------------
9,972 8,778 6,045
------------ ------------ ------------
Trade creditors 545 589 1,721
Social security and
other taxation 615 320 345
Other creditors 34 - -
Accrued expenses 3,858 4,001 862
Lease incentives 3,611 3,248 2,395
Deferred income 1,309 620 722
------------ ------------ ------------
9,972 8,778 6,045
------------ ------------ ------------
Included within lease incentives is GBP3,397,000 (2015: 3,098,000, 2014: 2,244,000) expected to be settled in more than 12 months.
20 Events after the balance sheet date
On 10 March 2017, the Company confirmed a new loan facility with Barclays for the sum of GBP20million. This facility incorporates the original GBP8million agreed in 2016. The Directors have assessed their ability to operate within the requirements of this new facility as stated in the going concern accounting policy (note 2).
21 Related-party transactions
In the year to 29 December 2016 the Group engaged services from entities related to the Directors and key management personnel of GBP370,000 (2015: GBP58,192) comprising consultancy services of GBP58,000 (2015: GBPnil), office rental of GBP55,000 (2015: GBP52,836) and venue rental of GBP257,000 (2015: GBP5,356). There were no other related-party transactions. There are no key management personnel other than the Directors.
An amount is included within 'other benefits' attributable to Directors for notional interest calculated at a rate of 4% per annum on the amounts of uncalled share capital due to Everyman Media Holdings Limited due in respect of these shares. The amounts attributable are A Kaye GBP2,211 and P Wise GBP2,211.
The Company charged an amount of GBP293,000 (2015: GBPnil) to Everyman Media Limited in respect of the share option charge incurred by the Company, GBP766,000 (2015: GBP317,000) in respect of rentals of four cinema sites acquired in 2015 and GBP130,000 (2015: GBPnil) in respect of interest on bank loan funds provided.
The Group's commitment to new leases is set out in the above notes. Within the total of GBP22,130,100 is an amount of GBP4,647,000 relating to Stratford-Upon-Avon. The landlord of the site is Blue Coast Stratford LLP, which is a related party.
22 Adjustment to prior period
In the comparative periods the total lease incentives balance was recognised as a current liability. As leases expire after more than one year, the liability not pertaining to the subsequent year's release has been classified as a non-current liability. GBP3,098,000 as at 31 December 2015 and GBP2,244,000 at 31 December 2014 are included within non-current 'other payables' (previously within current 'trade and other payables'). This adjustment does not affect the net assets as at 31 December 2015 or 31 December 2014, or the profit and loss for the years then ended.
31 December 31 December
2015 2015
As reported Adjustment Restated
Trade and other payables GBP000s GBP000s GBP000s
Included in current
liabilities 8,778 (3,098) 5,680
Included in non-current
liabilities - 3,098 3,098
8,778 - 8,778
------------ ----------- ------------
Trade creditors 589 - 589
Social security and
other taxation 320 - 320
Accrued expenses 4,001 - 4,001
Lease incentives 3,248 - 3,248
Deferred income 620 - 620
8,778 - 8,778
------------ ----------- ------------
31 December 31 December
2014 2014
As reported Adjustment Restated
Trade and other payables GBP000s GBP000s GBP000s
Included in current
liabilities 6,045 (2,244) 3,801
Included in non-current
liabilities - 2,244 2,244
6,045 - 6,045
------------ ----------- ------------
Trade creditors 1,721 - 1,721
Social security and
other taxation 345 - 345
Accrued expenses 862 - 862
Lease incentives 2,395 - 2,395
Deferred income 722 - 722
6,045 - 6,045
------------ ----------- ------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR ZMGMFMZDGNZZ
(END) Dow Jones Newswires
March 13, 2017 03:01 ET (07:01 GMT)
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