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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 0.0% 82.00 80.00 84.00 84.50 82.00 82.00 20,638 08:00:18
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Travel & Leisure 65.0 2.3 2.5 33.5 75

Everyman Media Group PLC Interim Results

30/09/2020 7:00am

UK Regulatory (RNS & others)


Everyman Media (LSE:EMAN)
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TIDMEMAN

RNS Number : 5105A

Everyman Media Group PLC

30 September 2020

30 September 2020

Everyman Media Group PLC

("Everyman" or the "Group")

Interim Results

Strong start to the year, well managed response to Covid-19

Everyman Media Group PLC, the independent, premium cinema group reports its unaudited interim results for the 26 weeks ended 2 July 2020.

Highlights:

-- Revenue of GBP15.0m (H1 2019: GBP28.9m), impacted by Covid-19 related closures beginning from 17 March 2020

   --    Adjusted EBITDA(1) of GBP0.5m (H1 2019: GBP6.6m) 
   --    Operating loss of GBP12.3m (H1 2019: GBP1.6m profit) 

-- Moved rapidly to implement contingency plans in March, protecting the business and its financial position

-- Liquidity secured through low net debt, GBP20m of undrawn RCF and equity raise of GBP17.5m together with adjustments to covenants

   --    Cash balance of GBP5.7m (H1 2019: GBP1.9m) 

-- Significant remaining headroom with Bank net debt at the half year of GBP4.2m (H1 2019: GBP9.1m)

-- Current estate of 35 sites and 117 screens, as at 29 September 2020, with all fully open since 21 August

   --    Trading and KPIs were tracking in line with expectations until lockdown 

Current Trading and Outlook:

   --    Began phased reopening of venues from 4 July, with all venues opened by 21 August 

-- Opened new venue on King's Road, Chelsea, on 24 July and Lincoln on 21 August, both of which have performed strong enough to place in the top half of our portfolio

   --    Following reopening, performance indicators have been encouraging: 

o Admissions at c. 40% level of same period in 2019

o Average food and beverage ('F&B') spend of GBP10.55, up 41% on the same period last year

-- The release of Tenet in August demonstrated continued demand for great content in a cinema setting, with Everyman achieving a 10% market share, and UK Box Office for the film in line with other similar releases pre-Covid-19

   --    Committed pipeline for 2021/22 of 8 new venues, down from 11 previously expected 

-- Cash balance of GBP1.6m as at 29 August 2020, demonstrating continued careful cash management. Since the half year GBP3m of RCF has been repaid, undrawn facility of GBP23m remains (H1 2019 GBP19m)

(1) Adjusted for pre-opening costs, acquisition expenses, depreciation, amortisation, share based payments and costs incurred directly related to Covid-19 (.) IFRS 16 has been applied.

Paul Wise, Executive Chairman of Everyman Media Group PLC, said:

"We had a very strong start to the year with good revenue growth, illustrating that our model was gaining further traction. Covid-19 has halted that growth abruptly. Our sole subsequent challenge was to make swift, prudent adjustments to prepare for the current environment. Our amazing teams have been loyal, understanding, and supportive. Our dialogue with customers has reinforced our faith that we have exceptional brand loyalty and goodwill.

"Despite of the challenging current environment, we retain our confidence in people's appetite to be entertained. And that film accounts for a large proportion of that appetite. People are fundamentally sociable, and we remain confident that, when it is appropriate, people worldwide will return to cinema, and specifically to Everyman.

"We are confident in the Everyman brand, and importantly our ability to navigate whatever challenges the next twelve months may pose."

 
For further information, please contact: 
Everyman Media Group plc                   Tel: 020 3145 0500 
Paul Wise, Executive Chairman 
Elizabeth Lake, Chief Financial Officer 
 
Canaccord Genuity Limited (NOMAD and       Tel: 020 7523 8000 
 Broker) 
Bobbie Hilliam 
Richard Andrews 
Georgina McCooke 
 
Alma PR (Financial PR Advisor)             Tel: 020 3405 0205 
Rebecca Sanders-Hewett 
Susie Hudson 
Harriet Jackson 
 

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

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/

Executive Chairman's Statement

We entered 2020 with great optimism after an excellent 2019 and our strategy continued to deliver good profitable growth together with a strong pipeline of new venues. Then, with the onset of the pandemic, Everyman moved to face an unprecedented challenge, as did the entire cinema industry. Following a strong start to the year, where we generated revenue growth of 47% year-on-year in the first two months and added 0.55 percentage points to our market share, we closed our venues to guests as required in the middle of March. Further information on our response to this exceptional set of circumstances is laid out below.

Since period end we commenced re-opening our venues in phases over a six week period following a demand-based approach, and as confidence in the film release calendar improved. As of 21 August, all 35 of our venues have been fully operational.

Whilst trading was inevitably soft in the early stages of reopening, when there were still no major films released, attendance was encouraging, and Everyman venues were already performing ahead of the general market. More recently, the release of Tenet, a film by Director Christopher Nolan, has driven attendance and is on course to deliver a very encouraging GBP16-GBP18m nationally, only slightly below our pre-Covid expectations. For Everyman specifically, our performance far outstripped the market and we delivered over twice our expected share for the film at 9.7%.

Covid-19 Response

Swift implementation of contingency plans

Our key priority throughout the pandemic period has, and continues to be, the health of our staff and our customers. We also focused on ensuring that the business was kept in the strongest possible position to resume trading when allowed, and to deliver growth again in the future.

As previously communicated, following guidance provided by the UK government on 16 March 2020, the Board took the decision to close its venues to guests until further notice the following day.

Throughout the closure period a skeleton central team worked hard to implement new infrastructure across the business to ensure when restrictions were lifted we would be able to re-open seamlessly, safely, and to continue to offer customers a special Everyman experience. This included changes to IT software to enforce social distancing between bookings, new staff rota protocols to protect our staff in 'bubbles', effective ongoing use of the Government's Job Retention Scheme and the purchasing and implementation of safeguarding equipment such as sanitising stations and masks.

Cost management

During this unprecedented period of business interruption, we focused on reducing costs wherever possible, including Director salary cuts, and we continue to ensure operating expenses are kept to a minimum on an ongoing basis. We also postponed site refurbishments and other capital expenditure projects. Through these initiatives we successfully reduced the Group's operating costs by 40% (excluding payroll).

All but 18 of our staff were furloughed by April and the Government supported 80% of wages up to a maximum of GBP2,500 per month for people who had been in place since the end of February.

Further government support was received in terms of rates relief, the VAT cut and the Retail, Hospitality and Leisure Business Grant. We are grateful to for the support received thus far and have used it in the spirit it was intended, to protect our business and safeguard its future.

Property costs are the second largest overhead in the business and Everyman has been in discussion with all of its landlords throughout the period to agree variations to lease agreements. Concessions have been agreed on over 60% of the estate, and further discussions are still ongoing. I would like to thank our landlords for their constructive support and partnership approach.

We have agreed with landlords to delay a number of new site openings and, in a few cases, to exit existing Agreements for Lease. These actions have significantly reduced the Group's future capital commitments. The Company has incurred exceptional costs from exiting some of these Agreements amounting to GBP1.4m, but the Directors believe, in the current climate, a prudent approach to new openings is in the Company's best interests. We therefore now have a pipeline for 2021/22 of 8 new venues compared with the 11 previously expected.

Strengthening our financial position

On 8 April we raised GBP17.5m gross through an accelerated bookbuild in order to further strengthen the Group's balance sheet, protect its venues against an extended closure period, to ensure prudent levels of debt and to allow the Group to re-engage with its expansion and investment programme in due course. The Placing was oversubscribed, and I would like to take this opportunity to again sincerely thank our shareholders for the support they have shown us throughout this challenging time.

Our banking partners have also been supportive and have made appropriate changes to the covenants on the Group credit facility. The Group will remain within its banking covenants for the next 12 months, and has significant remaining headroom, with Bank net debt at the half year of GBP4.3m (H1 2019: GBP9.1m).

Continued engagement with key stakeholders

I am very proud of the work done in engaging with our loyal customer base whilst venues were closed and heartened by the response and level of interaction we received back from our customers. Our Everyman 'lockdown house parties' were particularly successful. The initiative saw us encouraging households to watch the same films simultaneously on a Saturday evening, connecting them via social media to create a sense of a shared experience. We were engaging with over 50,000 people at peak, and as a result of this activity we saw a significant increase in social media engagement from Lockdown to re-opening with our Instagram, Twitter and Facebook followers increasing (Instagram +23% to 82k; Twitter +2% to 34k and Facebook +11% to 125k).

The support of our Members has been extraordinary, and we have been pleased to see their ongoing passion for the brand and for film.

Many of our suppliers and partners volunteered concessions to ongoing contractual arrangements which was gratefully received. In addition, the work carried out by the industry bodies such as the UK Cinema Association and Cinema First, as well as the UK Hospitality Association must be recognised both in their tireless work with Government bodies such as the Department for Digital, Culture, Media and Sport (DCMS), but also pulling together some strong industry wide initiatives.

People

Throughout this whole period one thing has remained consistent and that has been the passion and care shown by our teams throughout the business for Everyman. Despite the personal impact and immensely different experiences that lockdown has meant for every individual, the enthusiasm and support for the business has shone through. I always take time to recognise the importance of our people to the business in these reports, but never has it been more apparent or more important. Thank you all.

Streisan Bevan stepped down from the Board on 18 April 2020, and post-period end, Crispin Lilly tendered his resignation after almost six years as Group Chief Executive. His contribution to the Group has been vast and we take this opportunity to again thank him for all his efforts at Everyman. The Board is currently undertaking a full search for his replacement.

Environmental, social and governance

We took part in an NHS staff promotion with Blue Light, and we were pleased to be able to welcome and thank NHS staff who have worked so hard over the Lockdown.

We assisted our employees with the transition to furlough with additional financial support by maintaining their wages at 100% throughout April.

The Board has acted quickly to secure the financial position and long term liquidity of the Company. It has embraced video conferencing as a platform to meet and make decisions during Lockdown on a frequent basis to ensure actions have been taken in the best interests of all the business stakeholders.

Performance Review

The Group uses the following key performance indicators, in addition to total revenue, to monitor the progress of the Group's activities. For clarity, we have included these for the period. The figures were impacted by the closure of our venues from 17 March.

 
                                                          26 weeks       26 weeks         Year 
                                                             ended          ended        ended 
                                                       2 July 2020    4 July 2019    2 January 
                                                                                          2020 
 Admissions            -44%                                828,945      1,475,425    3,271,166 
 Box office average    -6%                                GBP10.61       GBP11.27     GBP11.37 
  ticket 
 Food and beverage     -7%                                 GBP6.49        GBP6.95      GBP7.13 
   spend per head 
 

Trading performance for the first two months of the year pre-lockdown is set out below.

 
                                              January - February   January - February 
                                                            2020                 2019 
 Admissions            +43.2%                            669,712              467,766 
 Box office average    -1.8%                            GBP10.59             GBP10.78 
  ticket 
 Food and beverage      +7%                              GBP6.55              GBP6.12 
   spend per head 
 

Admissions were driven by additional venues (five new venues in the second half of 2019) and the film slate. The decline in box office average ticket price in the first two months of the year reflects an increased proportion of members' tickets year on year. Excluding memberships and complimentary tickets, average ticket price increased by 5% year on year.

Trading post-period end

Having introduced new Covid-19 operating, social distancing and cleaning protocols, we began opening our venues on 4 July and all sites were operational by 21 August.

Whilst trading was inevitably soft in the early stages, customer feedback has consistently been very positive, and we have been encouraged by the levels of attendance. We have continued to drive customer engagement through initiatives such as the launch of our 'in venue' House Party, essential worker free tickets through Blue Light and strand programming with library content.

The release of Tenet saw a sharp increase in activity levels. F&B Spend per head has increased by 41% since reopening, which we believe is due to the higher proportionate level of service staff to guests, and customer appetite to make the most of a night out. The roll out of Vista Serve, a mobile ordering platform, across all venues during Lockdown, has also facilitated this increase.

We opened a new venue on King's Road in Chelsea opened on 24 July, and Lincoln on 21 August, both of which have performed strongly enough to place in the top half of our portfolio.

Outlook

Whilst the ability to reopen our venues has undoubtably brought much relief, uncertainty remains, and the recent tightening of restrictions by the government has made the path to 'normality' less clear.

Our business is able to provide a particularly safe and enjoyable experience in the current environment. Our venues are largely located at the heart of residential communities and are generally spacious. We have implemented strong yet pragmatic safeguarding guidelines and worked hard to make sure a visit to an Everyman remains personal, welcoming, and fun.

Whilst the ongoing film slate is uncertain at this time, we remain confident that when people can fully socialise again our business will be well placed to meet the demand. Our newly opened venues have performed well and are a valuable addition to our estate.

We have a strong balance sheet and are confident that our business is both robust and agile, able to withstand whatever conditions we face in the period ahead. When the time comes, we will continue to deliver as we were, driving growth and expanding our footprint through the continued delivery of the exceptional experiences that we are known and respected for.

Paul Wise

Executive Chairman

30 September 2020

Chief Financial Officer's Statement

Revenue and Operating Profit

The first half of 2020 is split between two distinct trading periods. The business traded until 16 March 2020 and then was fully closed in Lockdown for the remainder of the period and generated no trading income during this period.

As a result, revenue for the period was down 48.3% on last year to GBP15.0m (4 July 2019: GBP28.9m, full year to 2 January 2020: GBP65.0m). In the period before closure revenue was 47% higher year on year due to the level of admissions and the impact of the five new venues opened in 2019.

Reported gross profit margin is 61.8% in the period and is consistent year on year.

Included within other operating income of GBP3.3m is government support through the Job Retention Scheme (JRS) and the Business Support Grants (BSG).

The Group's adjusted operating profit before depreciation, amortisation, pre-opening expenses, other exceptional Covid-19 related costs and revenue, and share-based payments was GBP0.5m (4 July 2019: GBP6.6m, full year to 2 January 2020: GBP15.6m).

Operating expenses were GBP24.9m, (H1 2019 GBP16.3m). Included in the HI 2020 costs are the following costs/(income) directly attributable to Covid-19:

 
                                  GBP'000 
 Asset impairment                   5,635 
 Costs associated with exiting 
  future venues                     1,382 
 Variable lease payments in 
  the period                        (376) 
 Total                              6,641 
 

In addition, the five new venues opened in H2 2019, added costs of GBP1.5m, and the depreciation charge is GBP1.1m higher in H1 2020. The share based payment charge was an increase of GBP0.2m versus H1 2019.

The Board carried out a full impairment review at the half year and as a result an impairment of GBP5.6m has been made, based on judgement of future cash flows by each venue. The trading landscape is continually changing in terms of government legislation, which in turn has an impact on consumer confidence and film studios assessment of the film slate. The Board fully expects to revisit these assumptions at the year end and to adjust the impairment provision according to the latest outlook.

During the period the Board reviewed all future property commitments and where desirable, and possible, has exited to protect future liquidity by reducing capital commitments. This has resulted in some charges for exiting as well as the write off of costs already incurred on projects. The total of these charges is GBP1.4m.

Everyman has also taken advantage of the amendment to IFRS16 Covid-19 related rent concessions. Where the rent concession is a direct consequence of the Covid-19 pandemic, the revised consideration for the lease is substantially the same or less, the reduction affects only payments originally due on or before 30 June 2021 and there were no other substantive changes to the lease then the concessions can be credited to the profit and loss rather than a lease modification. This has resulted in a one-off credit of GBP376k in the period.

Cost savings achieved through closure amounted to GBP175k in head office payroll, including a 50% cut in Directors pay, and GBP230k reduction in venue pay. The impact of these savings was partly offset by the impact of the increase in minimum wage (GBP0.3m). The rates saving in the period from the rates holiday was GBP380k and savings were made in other overheads amounting to GBP0.6m.

Net finance costs

The Group's net bank interest payable was GBP0.2m in H1 2020 in line with H1 2019.

The Group's non-cash finance charge in H1 2020 was GBP1.2m (H1 2019 GBP0.9m), relates to interest charges relating to the unwinding of the IFRS 16 lease liability in the period.

Profit before Taxation

The Group generated a loss for the period of GBP11.7m (4 July 2019 GBP0.6m profit, full year to 2 January 2020 GBP1.8m).

Taxation

The effective tax rate is lower than the standard rate of corporation tax for the six-month period ended 2 July 2020 due to the effect of deferred tax arising from the valuation of share options (both exercised and unexercised).

Share based payments

The share-based payment expense for the period was GBP0.6m (4 July 2019: GBP0.4m, full year to 2 January 2020: GBP0.9m) reflecting share option incentives provided to the Group's management and employees.

Cash flows

Cash flow has been significantly impacted by the Lockdown which resulted in no sales activity from 16 March 2020 to 4 July 2020. In response, a robust approach to cash management was adopted, with all suppliers and landlords contacted to reduce costs and or/extend payments terms.

Net cash outflow from operating activities was GBP4.4m (4 July 2019 cash inflow: GBP2.9m from operating activities, full year to 2 January 2020: GBP15.9m generated from operating activities). This includes the negative movement in working capital of GBP4.0m due to the paying down of creditors, in particular film distributors.

Net cash outflows for the period, before financing, were GBP10.8m (2 July 2019: GBP6.0m, full year to 2 January 2020: GBP8.2m). At the start of Lockdown there were two major projects that were already committed and almost complete, the first being the new venue in Chelsea and the second being the new venue in Lincoln. These were completed and the venues opened in July and August respectively.

The business raised GBP16.8m net of expenses and paid down GBP7m of the RCF to reduce it GBP10m at the half year.

Cash held at the end of the period was GBP5.7m (4 July 2019: GBP1.9m, 2 January 2020: GBP4.3m). Since the period end a further GBP3m of the RCF has been repaid, bringing the amount drawn down to GBP7m.

The Group has access to a GBP30m facility of which GBP10m was drawn by the end of the period.

Elizabeth Lake

CFO

30 September 2020

Consolidated statement of profit and loss and other comprehensive income for the period ended 2 July 2020 (unaudited)

 
                                                Six-month       Six-month        Year 
                                                   period    period ended       ended 
                                                    ended 
                                                   2 July          4 July   2 January 
                                                     2020            2019        2020 
                                         Note      GBP000          GBP000      GBP000 
 
 Revenue                                  4        15,006          28,924      64,955 
 Cost of Sales                                    (5,727)        (11,076)    (24,937) 
                                               ----------  --------------  ---------- 
 
 Gross profit                                       9,279          17,848      40,018 
                                               ----------  --------------  ---------- 
 
 Other operating income                             3,327               -           - 
 Impairment of goodwill, property, 
  plant and machinery                             (5,635) 
 Administrative expenses                         (19,241)        (16,250)    (35,213) 
                                               ----------  --------------  ---------- 
 
 Operating profit/(loss)                         (12,270)           1,598       4,805 
                                               ----------  --------------  ---------- 
 
 Financial income                                       -               -           1 
 Financial expenses                               (1,480)         (1,153)     (2,510) 
                                               ----------  --------------  ---------- 
 Net financing expense                            (1,480)         (1,153)     (2,509) 
                                               ----------  --------------  ---------- 
 
 (Loss)/Profit before taxation                   (13,750)             445       2,296 
 Tax credit/(expense)                     5         2,031             115       (526) 
                                               ----------  --------------  ---------- 
 
 (Loss)/Profit for the period                    (11,719)             560       1,770 
 
 Other comprehensive income 
  for the period                                     (26)               -           1 
                                               ----------  --------------  ---------- 
 
 Total comprehensive (loss)/income 
  for the period                                 (11,745)             560       1,771 
                                               ----------  --------------  ---------- 
 
 Basic earnings per share (pence)         6       (18.86)            0.78        2.45 
                                               ----------  --------------  ---------- 
 
 Diluted earnings per share 
  (pence)                                 6       (18.86)            0.75        2.42 
                                               ----------  --------------  ---------- 
 
 All amounts relate to continuing 
  activities. 
 
 Non-GAAP measure: adjusted profit 
  from operations 
 
 Adjusted profit from operations                      539           6,631      15,588 
 Before: 
 Depreciation and amortisation                    (5,159)         (4,151)     (8,763) 
 Disposal of property, plant 
  and equipment                                     (100)                        (52) 
 Acquisition and incorporation expenses                 -             (1)        (25) 
 Pre-opening expenses                               (266)           (445)     (1,044) 
 C-19 new termination costs                       (1,382) 
 C-19 IFRS 16 lease concessions                       376 
 C-19 impairment                                  (5,635) 
 Share-based payment expense                        (630)           (370)       (688) 
 Option-based social security                        (13)            (66)       (211) 
                                               ----------  --------------  ---------- 
 Operating (loss)/profit                         (12,270)           1,598       4,805 
---------------------------------------------  ----------  --------------  ---------- 
 
 

Consolidated balance sheet at 2 July 2020 (unaudited)

 
                                                 Registered in England & Wales 
                                                                      08684079 
 
                                                2 July      4 July   2 January 
                                                  2020        2019        2020 
                                     Note       GBP000      GBP000      GBP000 
 
 Assets 
 Non-current assets 
 Property, plant and equipment                  82,399      71,812      83,499 
 Right-of-use assets                            57,125      46,833      58,415 
 Deferred tax assets                               617           -           - 
 Intangible assets                               9,090      10,326      10,694 
 Trade and other receivables                       173         173         173 
                                            ----------  ----------  ---------- 
                                               149,404     129,144     152,781 
                                            ----------  ----------  ---------- 
 Current assets 
 Inventories                                       420         404         507 
 Trade and other receivables                     3,685       5,144       4,463 
 Cash and cash equivalents                       5,660       1,866       4,271 
                                            ----------  ----------  ---------- 
                                                 9,765       7,414       9,241 
                                            ----------  ----------  ---------- 
 Total assets                                  159,169     136,558     162,022 
                                            ----------  ----------  ---------- 
 
 Liabilities 
 Current liabilities 
 Other interest-bearing loans 
  and borrowings                                    56         122         122 
 Trade and other payables                        9,332      10,780      14,408 
 Lease liabilities                               5,041       2,054       2,386 
 Corporation tax liabilities                       215           -         186 
                                            ----------  ----------  ---------- 
                                                14,644      12,956      17,102 
                                            ----------  ----------  ---------- 
 Non-current liabilities 
 Other interest-bearing loans 
  and borrowings                                10,000      11,000      14,000 
 Other payables                                      -           -           - 
 Lease liabilities                              73,304      58,676      74,005 
 Deferred tax liabilities                            -       1,431       1,362 
                                            ----------  ----------  ---------- 
                                                83,304      71,107      89,367 
                                            ----------  ----------  ---------- 
 Total liabilities                              97,948      84,063     106,469 
                                            ----------  ----------  ---------- 
 
 Net assets                                     61,221      52,495      55,553 
                                            ----------  ----------  ---------- 
 
 Equity attributable to owners 
 of the Company 
 Share capital                                   9,110       7,234       7,352 
 Share premium                                  57,038      41,034      41,920 
 Merger reserve                                 11,152       9,642      11,152 
 Forex reserve                                       1           -           1 
 Retained earnings                            (16,080)     (5,415)     (4,872) 
                                            ----------  ----------  ---------- 
 Total equity                                   61,221      52,495      55,553 
                                            ----------  ----------  ---------- 
 

Consolidated statement of changes in equity for the period ended 2 July 2020 (unaudited)

 
 
 
                                               Share     Share     Merger     Forex     Retained      Total 
                                             capital   Premium    reserve   Reserve     earnings     equity 
                                     Note     GBP000    GBP000     GBP000    GBP000       GBP000     GBP000 
 
 Balance at 4 January 
  2019                                         7,099    39,066     11,152         -      (2,880)     54,437 
                                            --------  --------  ---------  --------  -----------  --------- 
 Profit for the period                             -         -          -         -          560        560 
                                            --------  --------  ---------  --------  -----------  --------- 
 
 Shares issued in the 
  period                                         135     1,968          -         -            -      2,103 
 Acquisition of NCI with 
  no change in control                             -         -    (1,510)         -                 (1,510) 
 Deferred tax on share-based 
  payments                                         -         -          -         -        (335)      (335) 
 Share-based payments                              -         -          -         -          370        370 
 IFRS16 accumulated restatement                    -         -          -         -      (3,130)    (3,130) 
                                            --------  --------  ---------  --------  -----------  --------- 
 Total transactions with 
  owners of the parent                           135     1,968    (1,510)         -      (3,095)    (2,502) 
                                            --------  --------  ---------  --------  -----------  --------- 
 
 Balance at 4 July 2019                        7,234    41,034      9,642         -      (5,415)     52,495 
                                            --------  --------  ---------  --------  -----------  --------- 
 
 Balance at 5 July 2019                        7,234    41,034      9,642         -      (5,415)     52,495 
 Profit for the period                             -         -          -         -        1,210      1,210 
 Retranslation of foreign 
  currency denominated 
  subsidiaries                                     -         -          -         1            -          1 
 Deferred tax on share-based 
  payments                                         -         -          -         -          335        335 
 Shares issued in the 
  period                                         118       886          -         -            -      1,004 
 Share based payments                              -         -          -         -          318        318 
 Tax on share-based payments                       -         -          -         -        (346)      (346) 
 Acquisition of NCI with 
  no change in control                             -         -      1,510         -      (1,510) 
 Deferred tax on IFRS16 
  accumulated restatement                          -         -          -         -          536        535 
                                            --------  --------  ---------  --------  -----------  --------- 
 Total transactions with 
  owners of the parent                           118       886      1,510         1          543      3,057 
                                            --------  --------  ---------  --------  -----------  --------- 
 
 Balance at 2 January 
  2020                                         7,352    41,920     11,152         1      (4,872)     55,553 
                                            --------  --------  ---------  --------  -----------  --------- 
 
 Balance at 3 January 
  2020                                         7,352    41,920     11,152         1      (4,872)     55,553 
                                            --------  --------  ---------  --------  -----------  --------- 
 Loss for the period                               -         -          -         -     (11,719)   (11,719) 
 Other comprehensive 
  loss                                             -         -          -         -         (26)       (26) 
 Shares issued in the 
  period                                       1,758    15,813          -         -            -     17,571 
 Share issue expenses                              -     (695)          -         -            -      (695) 
 Share-based payments                              -         -          -         -          630        630 
 Tax on share-based payments                       -         -          -         -         (93)       (93) 
 Total transactions with 
  owners of the parent                         1,758    15,118          -         -          511     17,387 
                                            --------  --------  ---------  --------  -----------  --------- 
 
 Balance at 2 July 2020                        9,110    57,038     11,152         1     (16,080)     61,221 
                                            --------  --------  ---------  --------  -----------  --------- 
 
 

Consolidated cash flow statement for the period ended 2 July 2020 (unaudited)

 
                                                           2 July      4 July   2 January 
                                                             2020        2019        2020 
                                                 Note      GBP000      GBP000      GBP000 
 Cash flows from operating activities 
 Profit/(loss) for the period                            (11,719)         560         1,770 
 Adjustments for: 
 Financial income                                               -           -           (1) 
 Financial expenses                                         1,480       1,153         2,510 
 Income tax (credit)/expense                      5       (2,031)       (115)           526 
                                                       ----------  ----------  ------------ 
 Operating profit                                        (12,270)       1,598         4,805 
 
 Depreciation and amortisation                              5,159       4,152         8,764 
 Impairment of goodwill, property,                          5,635           -             - 
  plant and equipment and right-of-use 
  assets 
 Loss on disposal of property, plant 
  and equipment                                               830          51            52 
 Transfer of property, plant and equipment 
 to profit and loss                                             -           -             5 
 Rent concessions                                           (376)           -             - 
 Capitalised financial expenses                                 -           -            68 
 Loan arrangement fees                                          -           -          (58) 
 Bad debts                                                      -       (105)          (79) 
 Acquisition and incorporation expenses                         -           1            25 
 Lease incentives amortised                                     -           -             - 
 Market rent provisions                                         -           -             - 
 Equity-settled share-based payment 
  expenses                                                    537         370           688 
                                                       ----------  ----------  ------------ 
                                                            (485)       6,067        14,270 
 Changes in working capital 
 Decrease/(increase) in inventories                            87           2         (101) 
 Increase in trade and other receivables                      777     (1,987)       (1,333) 
 Acquisition of rights-of-use assets                                    (308)             - 
 Acquisition of right-of-of-use 
 Decrease in trade and other payables                     (4,798)       (915)         3,089 
                                                       ----------  ----------  ------------ 
 Cash generated from/(used in) operating 
  activities                                              (4.419)       2,859        15,924 
 
 Corporation tax(paid) refunded                                 -           -             - 
 Net cash generated from/(used in) 
  operating activities                                    (4,419)       2,859      15,924 
                                                       ----------  ----------  ---------- 
 
 Cash flows from investing activities 
 Acquisition and incorporation activities                       -         (1)          (25) 
 Acquisition of property, plant and 
  equipment                                               (6,143)     (8,439)      (23,154) 
 Acquisition of intangible assets                           (271)       (403)             - 
 Interest received                                              -           -             1 
                                                       ----------  ----------  ------------ 
 
 Net cash used in investing activities                    (6,414)     (8,843)      (24,131) 
                                                       ----------  ----------  ------------ 
 
 Cash flows from financing activities 
 Proceeds from the issuance of ordinary 
  shares                                                   17,571         446         1,450 
 Proceeds from bank borrowings                              6,000       6,000        13,000 
 Repayment of bank borrowings                            (10,000)     (2,000)       (6,000) 
 Share issue expenses                                       (695)           -             - 
 Lease payments                                             (400)           -           850 
 Interest paid                                              (228)       (113)         (339) 
                                                       ----------  ----------  ------------ 
 
 Net cash generated from/(used in) 
  financing activities                                     12,248       4,333         8,961 
                                                       ----------  ----------  ------------ 
 Exchange (loss)/gain on cash and                            (26)           -             - 
  cash equivalents 
                                                       ----------  ----------  ------------ 
 
 Net increase/(decrease) in cash and 
  cash equivalents                                          1,389     (1,651)           754 
                                                       ----------  ----------  ------------ 
 
 Cash and cash equivalents at the 
  beginning of the period                                   4,271       3,517         3,517 
                                                       ----------  ----------  ------------ 
 
 Cash and cash equivalents at the 
  end of the period                                         5,660       1,866         4,271 
                                                       ----------  ----------  ------------ 
 

Notes to the financial statements

 
 1     General information 
 
       Everyman Media Group PLC and its subsidiaries (together, 
        'the Group') are engaged in the ownership and management 
        of cinemas in the United Kingdom. Everyman Media Group 
        PLC (the Company) is a public company limited by shares 
        domiciled and incorporated in England and Wales (registered 
        number 08684079). The address of its registered office 
        is Studio 4, 2 Downshire Hill, London NW3 1NR. 
 
 
 2     Basis of preparation and accounting 
        policies 
 
       These condensed interim financial statements of the Group 
        for the period ended 2 July 2020 have been prepared using 
        accounting policies consistent with International Financial 
        Reporting Standards (IFRSs) as adopted by the European 
        Union. 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 2 January 
        2020. Amendments made to IFRSs specifically IFRS9 and 
        IFRS15 since 2 January 2020 have not had a material effect 
        on the Group's results or financial position for the period. 
 
 
 
 
 
       The financial statements presented in this report have 
        been prepared in accordance with IFRSs applicable to interim 
        periods. However, as permitted, this interim report has 
        been prepared in accordance with the AIM Rules for Companies 
        and does not seek to comply with IAS34 "Interim Financial 
        Reporting". 
 
 
            These condensed interim financial statements have not 
             been audited, do not include all of the information required 
             for full annual financial statements and should be read 
             in conjunction with the Group's statutory consolidated 
             annual financial statements for the year ended 2 January 
             2020. The auditor's opinion on these financial statements 
             was unqualified, did not draw attention to any matters 
             by way of emphasis and did not contain a statement under 
             s498(2) or s498(3) of the Companies Act 2006. 
 
             Going Concern 
             As part of the adoption of the going concern basis, Everyman 
             has considered the uncertainty caused by the recent Covid-19 
             pandemic. From March 16 2020 all of the venues were closed 
             for trade, with a phased re-opening from 4 July to 21 
             August when all venues were fully operational again. In 
             response to the Covid-19 pandemic, in the period since 
             16 March 2020, Everyman has put in place the following 
             appropriate measures: 
              *    raised GBP17.5m in cash from shareholders 
 
 
              *    taken advantage of the business rate relief available 
                   until March 2021 
 
 
              *    claimed furlough income from the Governments JRS 
 
 
              *    claimed income from the Governments Retail, Leisure 
                   and Hospitality Business Grant 
 
 
              *    renegotiated banking covenants until March 2021 
 
 
              *    negotiated rent deferrals and rent regears with 
                   landlords 
 
 
              *    postponed new openings, refurbishments and capital 
                   expenditure 
 
 
 
             The Board has looked at a scenario of admissions continuing 
             at 40% of pre-Covid-19 trade, as well as the severe but 
             plausible downside scenario of complete closure for six 
             months and a slow re-opening. The Directors have a reasonable 
             expectation that the Group has adequate resources to continue 
             in operational existence for the next 12 months. 
 
 
 
 
 
   3 
 
 
 4     Revenue                                          Six-month   Six-month 
                                                           period      period       Year 
                                                                                   ended 
                                                            ended       ended          2 
                                                           2 July      4 July    January 
                                                             2020        2019       2020 
                                                           GBP000      GBP000     GBP000 
 
       Film and entertainment                               8,792      16,629     37,195 
       Food and beverages                                   5,381      10,261     23,310 
       Other income                                           833       2,034      4,450 
                                                      -----------  ----------  --------- 
                                                           15,006      28,924     64,955 
                                                      -----------  ----------  --------- 
 

In additional other operating income was received, furlough income (GBP3.0m) and income from business support grants (GBP0.3m).

 
 5    Taxation                                        Six-month   Six-month 
                                                         period      period        Year 
                                                                                  ended 
                                                          ended       ended           2 
                                                         2 July      4 July     January 
                                                           2020        2019        2020 
                                                         GBP000      GBP000      GBP000 
 
  Current tax                                                67           -         428 
      Adjustments in prior years                            (9)           -           - 
                                                     ----------  ----------  ---------- 
                                                             58           -         428 
      Deferred tax (credit)/expense 
  Origination and reversal of temporary 
   differences                                          (3,341)       (222)        (19) 
  Adjustments in respect of prior 
   years                                                  1,131         107         111 
      Deferred tax not previously recognised                121           -           - 
                                                     ----------  ----------  ---------- 
  Total tax (credit)/charge                             (2,031)       (115)         520 
                                                     ----------  ----------  ---------- 
 
 
      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 for the 
       period are as follows: 
 
      Reconciliation of effective                     Six-month   Six-month        Year 
       tax rate                                          period      period       ended 
                                                          ended       ended   2 January 
                                                         2 July      4 July 
                                                           2020        2019        2020 
                                                         GBP000      GBP000      GBP000 
 
  (Loss)/Profit before taxation                        (13,750)         445       2,296 
 
  Tax at the UK corporation tax rate 
   of 19%                                               (2,565)          84         436 
 
  Permanent differences (allowable 
   deductions)/expenses not deductible 
   for tax purposes                                         165       (120)          49 
  Previously unrecognised corporation 
   tax                                                        -           -           6 
  Deferred tax not previously 
   recognised                                             1,266         107         111 
  Other short term timing differences 
   (potentially exercisable share options)              (1,163)        (69)          32 
  Effect of change in expected future 
   statutory rates on deferred tax                          266       (117)       (108) 
                                                     ----------  ----------  ---------- 
  Total tax (credit)/expense                            (2,031)       (115)         526 
                                                     ----------  ----------  ---------- 
 
 
      A reduction in the UK corporation tax rate from 21% to 
       20% (effective from 1 April 2015) was 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 and an additional 
       reduction to 17% (effective 1 April 2020) was substantively 
       enacted on 6 September 2016. This will reduce the Group's 
       future current tax charge accordingly. The deferred tax 
       at 2 July 2020 has been calculated based in these rates. 
 
 
 6    Earnings per                                    Six-month   Six-month 
      share                                              period      period        Year 
                                                                                  ended 
                                                          ended       ended           2 
                                                         2 July      4 July     January 
                                                           2020        2019        2020 
                                                         GBP000      GBP000      GBP000 
 
  (Loss)/Profit used in calculating 
   basic and diluted earnings per share                (11,719)         560       1,770 
 
      Number of shares (000's) 
  Weighted average number of shares 
   for the purpose of basic earnings 
   per share                                             62,131      71,777      72,245 
                                                     ----------  ----------  ---------- 
 
      Number of shares (000's) 
  Weighted average number of shares 
   for the purpose of diluted earnings 
   per share                                             63,234      74,625      73,179 
                                                     ----------  ----------  ---------- 
 
  Basic earnings per share 
   (pence)                                              (18.86)        0.78        2.45 
                                                     ----------  ----------  ---------- 
 
  Diluted earnings per share 
   (pence)                                              (18.86)        0.75        2.42 
                                                     ----------  ----------  ---------- 
 
 
  Basic earnings per share amounts are calculated by dividing 
   net profit/(loss) for the period attributable to Ordinary 
   equity holders of the parent by the weighted average number 
   of Ordinary shares outstanding during the year. 
 
 
  The Company has 5.5m potentially issuable shares (2019: 
   4.3m) 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. 
 
 7    IFRS 16 Covid-19 Related Rent concessions Amendment 
  Implementation of IFRS16 Leases accounting standard 
   in the period 
 
  The Group has adopted the amendment to IFRS 16 that provides 
   an optional practical expedient for lessees from assessing 
   whether a rent concession related to Covid-19 is a lease 
   modification. Where the rent concession is a direct consequence 
   of the Covid-19 pandemic, the revised consideration for 
   the lease is substantially the same or less, the reduction 
   affects only payments originally due on or before 30 June 
   2021 and there were no other substantive changes to the 
   lease then the concessions can be credited to the profit 
   and loss rather than a lease modification. 
 
 
 
 

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END

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