Half Yearly Report

RNS Number : 1884S

Everyman Media Group PLC

22 September 2014

 



Everyman Media Group plc

("Everyman" or the "Group")

Interim Results (unaudited) for the six-month period ended 30 June 2014

Highlights

·     Revenue for the period up 15% to £6,212,000 (H1 2013: £5,380,000)

·     Profit before tax up 20% to £220,000 (H1 2013 £183,000)

·     Cash held at the end of the period was £8,541,000 (H1 2013: £1,919,000)

·     The Group will be opening new sites at the Mailbox in Birmingham (early 2015) and Canary Wharf in London (mid 2015)

·     The Group has also exchanged contracts for new sites in Bristol and Harrogate

Chairman's Statement

I am pleased to report on the Group's half year results for the six-month period ended on 30 June 2014, which have been prepared in accordance with International Financial Reporting Standards as adopted by the EU ("IFRS").

The Group achieved a profit after tax for the period of £139,000 (2013: £159,000).The Group's underlying operating profit before pre-opening expenses, exceptional items and share-based payments was £358,000 (2013: £297,000). Overall, the financial performance of the Group after all expenses and taxation is in line with the Board's expectations.

The effective tax rate is higher than the standard rate of corporation tax for the six-month period due to the effect of significant capital expenditure made by the Group part of which does not qualify for capital tax allowances or only qualifies for capital tax allowances at a reduced rate. The Group's effective tax rate is also affected by charges for share-based payments and fair-value movements in respect of the Group's derivative financial instruments.

The share-based payment expense for the period was £84,000 (30 June 2013: £10,000, 31 December 2013 £526,000) reflecting share option incentives provided to the Group's senior management and employees. The expense for the year ended 31 December 2013 included share-based payments becoming fully vested on achieving a quotation on AIM.

Review of the business

For the half year ended 30 June 2014, the Group received 0.82 per cent (2013: 0.70 per cent) of all box office revenues for cinemas in the United Kingdom (Source: Rentrak EDI). The Board continues to believe there is significant growth potential for an independent cinema chain within the UK.

The 'Everyman' brand continues to be positioned at the premium end of the UK cinema market and the Board remains confident that there is scope to increase box office sales, retail spend per customer and other revenue streams from its existing venues through general marketing, advertising and promotion of the 'Everyman' brand.

Results

Revenue for the half year ended 30 June 2014 was up 15% on last year to £6,212,000 (2013: £5,380,000).

The Board does not recommend the payment of a dividend at this stage of the Group's development.

Openings

In the period since the year end, the Group has acquired additional space adjacent to our existing site in Hampstead which has been used to expand the food offer.

The Group will be opening new sites at the Mailbox in Birmingham (early 2015), and Canary Wharf in London (mid 2015). The Group has also exchanged contracts for new sites in Bristol and Harrogate. There are a number of other sites which are already in the pipeline and at various stages of negotiation.

Cash flows

Cash flows from operating activities were £845,000 (2013: £2,241,000). Net cash outflow for the period before financing was £276,000 (2013: £1,657,000).

Cash held at the end of the period was £8,541,000 (2013: £1,919,000). The cash held will be invested in the continuing development and expansion of the Group's business in 2014 and into 2015.

Pre-opening costs

Pre-opening costs, which have been expensed within administrative expenses, were £54,000 (2013: £125,000). These costs include expenses, net of the effect of rent free periods, 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

Since the year end trading has been in line with expectations and there remains a strong pipeline of new opportunities.

Board Changes

On 26th June 2014, the Company announced that Andrew Myers its Chief Executive would be leaving the business at the end of 2014. The Board would like to thank Andrew for his dedication and commitment. On 3 September 2014, the Company announced the appointment of Crispin Lilly, as its new Chief Executive Officer. Crispin is due to commence his position with Everyman before the end of the year.

Paul Wise

Chairman

22 September 2014

Consolidated statement of comprehensive income for the six-month period ended 30 June 2014 (unaudited)

			Six-month period ended	Six-month period ended	Year  ended
			30 June  2014	30 June 2013	31 December 2013
		Note	£000	£000	£000
	Revenue	3	6,212	5,380	11,515
	Cost of sales		(2,423)	(2,270)	(4,699)
	Gross profit		3,789	3,110	6,816
	Administrative expenses		(3,569)	(2,948)	(7,102)
	Exceptional items:	4
	Accelerated share-based payment on listing		-	-	(250)
	IPO expenses		-	-	(282)
	Total administrative expenses		(3,569)	(2,948)	(7,634)
	Profit/(loss) from operations		220	162	(818)
	Adjusted profit from operations (before exceptional items, pre-opening expenses, and share-based payment expense)		358	297	365
	Exceptional items (as above)		-	-	(532)
	Pre-opening expenses		(54)	(125)	(125)
	Share based payment expense		(84)	(10)	(526)
	Profit/(loss) from operations		220	162	(818)
	Financial income		36	63	120
	Financial expenses		(36)	(42)	(83)
	Profit/(loss) before taxation		220	183	(781)
	Income tax (expense)/credit	5	(81)	(24)	77
	Profit/(loss) for the period and total comprehensive income attributable to equity holders of the parent company		139	159	(704)
	Basic earnings/(loss) per share - pence	6	0.38	0.62	(2.42)
	Diluted earnings/(loss) per share - pence	6	0.38	0.61	(2.42)

All amounts relate to continuing activities.

There were no other recognised gains and losses in the period.

	Consolidated statement of financial position at 30 June 2014 (unaudited)
			30 June	30 June	31 December
			2014	2013	2013
			£000	£000	£000
	Assets
	Non-current assets
	Property, plant and equipment		8,765	8,079	7,988
	Goodwill		782	782	782
			9,547	8,861	8,770
	Current assets
	Inventories		80	87	98
	Trade and other receivables		704	429	510
	Cash and cash equivalents		8,541	1,919	8,883
			9,325	2,435	9,491
	Total assets		18,872	11,296	18,261
	Current liabilities
	Trade and other payables		5,009	4,618	4,657
	Loans and borrowings		76	359	76
	Current corporation tax liabilities		-	-	-
	Total current liabilities		5,085	4,977	4,733
	Non-current liabilities
	Loans and borrowings		224	-	254
	Derivative financial instruments		181	242	195
	Deferred tax		252	273	172
			657	515	621
	Total liabilities		5,742	5,492	5,354
	Net assets		13,130	5,804	12,907
	Equity and liabilities
	Equity attributable to owners of the Company
	Ordinary shares		3,629	2,786	3,629
	Share premium		5,774	-	5,774
	Merger reserve		11,152	10,569	11,152
	Retained deficit		(7,425)	(7,551)	(7,648)
	Total equity		13,130	5,804	12,907

Consolidated statement of changes in equity  for the six-month period ended 30 June 2014 (unaudited)		Share	Share	Merger	Retained	Total
		capital	premium	reserve	deficit	equity
		£000	£000	£000	£000	£000
At 1 January 2013		2,786	-	10,569	(7,720)	5,635
Profit for the period		-	-	-	159	159
Total comprehensive income for the period		-	-	-	159	159
Share-based payments		-	-	-	10	10
Total contributions by owners of the parent		-	-	-	10	10
Balance at 30 June 2013		2,786	-	10,569	(7,551)	5,804

Profit for the period		-	-	-	(863)	(863)
Total comprehensive income for the period		-	-	-	(863)	(863)
Shares issued in the period		843	6,157	-	-	7,000
Share issue expenses		-	(383)	-	-	(383)
Shares issued by subsidiary undertaking in the period		-	-	583	-	583
Share-based payments		-	-	-	766	766
Total contributions by owners of the parent	-	843	5,774	583	766	7,966
Balance at 31 December 2013		3,629	5,774	11,152	(7,648)	12,907

Consolidated statement of changes in equity  for the six-month period ended 30 June 2014 (unaudited)		Share	Share	Merger	Retained	Total
		capital	premium	reserve	deficit	equity
		£000	£000	£000	£000	£000
Balance at 1 January 2014		3,629	5,774	11,152	(7,648)	12,907

Profit for the period		-	-	-	139	139
Total comprehensive income for the period		-	-	-	139	139
Share-based payments		-	-	-	84	84
Total contributions by owners of the parent		-	-	-	84	84
Balance at 30 June 2014		3,629	5,774	11,152	(7,425)	13,130

Consolidated statement of cash flows for the six-month period ended 30 June 2014 (unaudited)	30 June	30 June	31 December
	2014	2013	2013
	£000	£000	£000
Cash flows from operating activities
profit/(loss) from operations	220	162	(818)
Depreciation	380	285	671
Share-based payment	84	10	776
	684	457	629
Decrease/(increase) in inventories	18	(20)	(31)
(Increase)/decrease in trade and other receivables	(195)	243	163
Increase in trade and other payables	338	1,561	1,629
Net cash generated from operating activities	845	2,241	2,390
Cash flows from investing activities
Purchase of property, plant and equipment	(1,157)	(3,898)	(4,194)
Interest received	36	-	11
Net cash generated used in investing activities	(1,121)	(3,898)	(4,183)
Cash flows from financing activities
Proceeds from the issuance of ordinary shares	-	-	7,000
Share issue expenses	-	-	(383)
Repayment of bank borrowings	(30)	(42)	(401)
Receipt of bank loans	-	-	330
Proceeds from issuance of shares in subsidiary undertaking	-	-	583
Interest paid	(36)	(12)	(83)
Net cash generated from financing activities	(66)	(54)	7,046
Net (decrease)/increase in cash and cash equivalents	(342)	(1,711)	5,253
Cash and cash equivalents at the beginning of the period	8,883	3,630	3,630
Cash and cash equivalents at the end of the period	8,541	1,919	8,883

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 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. The Company was incorporated on 10 September 2013 for the purpose of becoming the new parent undertaking of the Group.
2	Basis of preparation
	These condensed interim financial statements of the Group for the six months ended 30 June 2014 (the Period) 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 31 December 2013. Amendments made to IFRSs since 31 December 2013 have not had a material effect on the Group's results or financial position for the six-month period ended 30 June 2014. While the financial figures included within this half-yearly report have been computed in accordance with IFRSs applicable to interim periods, this half-yearly report does not contain sufficient information to constitute an interim financial report as set out in International Accounting Standard 34 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 consolidated annual financial statements for the year ended 31 December 2013. The auditors' opinion on these Statutory Accounts 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.
3	Revenue	30 June	30 June	31 December
		2014	2013	2013
		£000	£000	£000
	Film and entertainment	3,968	3,538	7,705
	Food and beverages	1,829	1,513	3,359
	Other income	415	329	451
		6,212	5,380	11,515

4	Exceptional items of expenditure	30 June	30 June	31 December
		2014	2013	2013
		£000	£000	£000
	Accelerated share-based payment on listing	-	-	250
	IPO expenses	-	-	282
		-	-	532

On 29 October 2013 the previous share option scheme within the Group, based upon ordinary shares within Everyman Media Holdings Limited, was accelerated on listing and a new share-incentive scheme put in place. The options related to the previous scheme were exercised, the vesting periods and the associated share-based payments expense being advanced.

On 7 November 2013 the Company was admitted to the AIM market and an associated placing of shares was made. The total costs were £665,000 of which £383,000 was attributed to share premium.

5	Income tax	30 June	30 June	31 December
		2014	2013	2013
		£000	£000	£000
	Current tax (expense)/credit
	Current tax	-	-	-
	Deferred tax:
	Origination and reversal of temporary differences	81	24	(77)
	Total tax expense/(credit)	81	24	(77)

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 profit/(loss) for the period is as follows:

		30 June	30 June	31 December
		2014	2013	2013
		£000	£000	£000
	Profit/(loss) before tax	220	183	(781)
	Applied corporation tax rates:	21.50%	24.00%	23.25%
	Tax at the UK corporation tax rate of 21.5%/24%/23.25%	47	44	(182)
	Expenses not deductible for tax purposes	1	(20)	65
	Net effect of share options	18	-	(65)
	Effect of change in tax rates	(18)	-	9
	Under-provision in prior years	-	-	106
	Effect of other timing differences	33	-	(10)
	Total tax expense/(credit)	81	24	(77)

6.	Earnings/(loss) per share	30 June 2014	30 June 2013	31 December 2013
		£000	£000	£000
	Profit/(loss) used in calculating basic and diluted earnings/(loss) per share	139	159	(704)
	Number of shares
	Weighted average number of shares for the purpose of basic earnings per share	36,291,024	25,560,136	29,128,127
	Weighted average number of shares for the purpose of diluted earnings per share	36,330,945	26,135,068	29,128,127
	Basic earnings/(loss) per share (pence per share)	0.38	0.62	(2.42)
	Diluted earnings/(loss) per share (pence per share)	0.38	0.61	(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 period.

Where the Group has incurred a loss in a period the diluted earnings per share is the same as the basic earnings per share as the loss has an anti-dilutive effect. The diluted loss per share for 31 December 2013 is therefore the same as the basic loss per share for the period and the diluted weighted average number of shares is the same as the basic weighted average number of shares.

The Company has 3,296,441 potentially issuable shares all of which relate to the potential dilution from the Group's 'A' shares and share options issued to the Directors and certain employees under the Group's incentive arrangements.

 

END

 

 

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