EVERYMAN MEDIA GROUP PLC Regulatory Story
Go to market news sectionEveryman Media Group PLC - EMAN Preliminary Results Released 07:00 04-Apr-2016 |
RNS Number : 9747T Everyman Media Group PLC 04 April 2016
('Everyman' or the 'Company')
Revenue for the year up 44% to £20.3m (2014: £14.1m)
Admissions up 50% on last year to 1.2m (2014: 0.8m)
Spend per head up 3% on last year to £15.95 (2014: £15.54)
EBITDA up 25% to £1.71m (2014: £1.37m)
Six new Everyman cinemas were opened during the year, growing the estate to 16 sites
Well positioned to continue expansion with a new site in Bristol due to open in May 2016 and cinemas to open in Harrogate, Chelmsford, Cirencester, Stratford-upon-Avon and Kings Cross, in the next 24 months
The Company today announces that it has exchanged contracts on a new site in Durham. It is expected that the new site will open under the Everyman branding in 2019.
The Company can also today announce that it has entered into a new debt facility with Barclays plc. The facility is an £8 million three 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.
4 April 2016
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
I am pleased to report the Group's results for the year ended 31 December 2015.
2015 marked an important year for the business with new site openings, the strengthening of our new site pipeline and an equity raise to fund the acquisition of four Odeon sites. At the same time, the 2014 committed investment in central overheads was realised. The Board believes this increased central resource (including the appointment of our new CEO, FD and other key roles) will ensure the successful delivery of growth for the business in the coming years.
The Group now operates 16 cinemas, up from 10 cinemas at the beginning of the year. The financial results include the full cost, but limited contribution, from our new sites in Birmingham and Canary Wharf, which were opened in the first half of the financial year. Further, the acquisition of the four Odeon sites had a limited impact on the second half of the financial year.
Overall, the financial performance of the Group after all expenses and taxation is in line with the Board's expectations.
We are one of the leading independent cinema groups in the UK in terms of cinema venues, screens and admissions, with a portfolio of 16 venues and 39 screens operating under the 'Everyman' brand as of March 2016.
The Everyman brand focuses on delivering high quality, whether it be service, environment, food, drink or film. This overall experience is central to our business model and our continued ambition to grow a strong leisure brand. The Board continues to believe that there is significant growth for this model within the UK.
In addition to the Group's commitment to expand the estate, the Board is confident that the growth delivered in 2015 in average ticket price (£10.60 vs. £10.44) and retail spend per customer (£5.35 vs.
£5.10) can be continued going forward as well as there being opportunities to increase other revenue streams from its existing venues through general marketing, advertising and promotion of the 'Everyman' brand.
ResultsRevenue for the year was up 44% on last year to £20,316,000 (2014: £14,096,000).
The Group's underlying operating profit before pre-opening expenses, exceptional items and share- based payments was £318,000 (2014: £557,000). The Group incurred a loss for the year of £556,000 (2014: profit of £195,000). The primary difference between underlying operating profit and reported loss relates to pre-opening costs of £775,000, which have been expensed within administrative expenses.
The Board does not recommend the payment of a dividend at this stage of the Group's development.
The Group has opened new sites at the Mailbox in Birmingham (February 2015), and in Canary Wharf in London (May 2015).
The Group completed an acquisition of four sites from Odeon during the year. The sites in Gerrards Cross and Esher were completely refurbished and relaunched as fully operating Everyman venues in the second half of the year. The sites in Muswell Hill and Barnet were partially refurbished in 2015, with these investments expected to be completed in 2016. The total consideration for the four Odeon venues was £7.1 million, with an additional £4.0 million having been invested in their refurbishment.
The Group conditionally exchanged contracts on four further sites at Chelmsford, Stratford-upon- Avon, Cirencester and Kings Cross in 2015. These sites are on top of contracts exchanged more than one year ago, namely Bristol and Harrogate, both of which are now unconditional. The Group is also in various stages of negotiation on a number of other opportunities.
The Group also invested in refurbishing two of its older cinemas during 2015, in Reigate and Winchester, following the success of a similar project in Walton-On-Thames in 2012.
The Group continues to invest in marketing activity that supports and credibly grows our brand. Our temporary "pop-up" venue at Selfridges, London, continued trading through the first quarter of 2015 and delivered tremendous awareness and positive feedback. In the summer we launched the first Annual Everyman Music Film Festival and we delivered launch event packages around key titles such as 'Fifty Shades of Grey' and 'Spectre'.
Over the course of the year, our employee numbers have increased significantly with our expansion from 274 to 490. Our employees' hard work and passion remains an integral part of our offer and subsequent success. Once again, I thank them all for their continued dedication and support.
Cash inflows from operating activities were £2,959,000 (2014: £2,187,000). Net cash outflow for the year before financing was £16,169,000 (2014: £2,389,000). This is largely represented by capital expenditure on the expansion of the business through the acquisition and refurbishment of the above sites.
Cash held at the end of the year was £9,173,000 (2014: £6,363,000). The cash held will be invested in the continuing development and expansion of the Group's business in 2016.
Pre-opening costs, which have been expensed within administrative expenses, were £775,000 (2014:
£205,000). 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.
On 30 March 2015 the Group appointed Jonathan Peters as Group Finance Director.
Since the year end, trading has been in line with expectations and the film release schedule for 2016 is encouraging.
Future of the CompanyWe continue to challenge ourselves internally to develop, improve and build upon the existing strengths of our underlying business, as well as delivering our expansion plans. It is an exciting time and we believe we will continue to deliver good returns to our Shareholders.
The Directors present their strategic report for the Group for the year ended 31 December 2015.
The Group is a leading independent cinema group in the UK. The principal activity of the Company is that of a holding company.
The Group made a loss after taxation of £556,000 (2014: profit of £195,000).
Further details are shown in the Chairman's statement and Consolidated statement of comprehensive income, together with the related notes to the financial statements.
Everyman Media Group plc issued this content on 04 April 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 08 April 2016 09:12:27 UTC
Original Document: http://investors.everymancinema.com/documents/2016 04 04 Preliminary Results.pdf
