TIDMPIER
RNS Number : 4394N
Brighton Pier Group PLC (The)
25 September 2023
25 September 2023
The Brighton Pier Group PLC
(the "Company" or the "Group")
Unaudited interim results for the 6 months ended 25 June
2023
The Brighton Pier Group today announces its unaudited results
for the 6 months ended 25 June 2023. Total revenues for the Group
were GBP16.2 million (2022: GBP17.3 million), following a
challenging second quarter as previously announced by the Group.
The majority of this sales decline was from the Bars division which
faced tough comparable numbers, following exceptionally strong
trading from a post-pandemic surge in demand in the first half of
2022. Ongoing inflationary pressures, in particular to food,
beverage and staff costs have had a significant impact on the
Group's operating margins in the first half of 2023, resulting in
lower earnings than in the previous year.
Financial highlights
-- Total revenue in the period was GBP16.2 million (2022: GBP17.3 million).
-- Group EBITDA* was GBP1.4 million (2022: GBP3.0 million).
-- Group gross margin was 86% (2022: 87%).
-- Loss before tax (excluding highlighted items) was GBP(1.0)
million (2022: profit of GBP0.7 million).
-- Adjusted EPS was (1.7)p (2022: 0.9p).
-- Net cash flow from operations was GBP3.2 million (2022: GBP4.4 million).
-- Net debt was GBP4.7 million (25 December 2022: GBP7.1 million).
* EBITDA is detailed in Note 7 to the financial statements.
Principal developments
-- Brighton Palace Pier sales performance was up 2% versus 2022,
but down GBP(0.2) million on EBITDA at GBP0.5 million (2022: GBP0.7
million).
-- The Bars division suffered from a contraction in consumers'
disposable incomes resulting from the challenging macroeconomic
environment, with sales down across the estate.
-- The Golf division saw lower footfall across the estate in
June and higher costs but with the exception of June, trading has
been consistent, with the division generating GBP1.4 million of
EBITDA (2022: GBP1.9 million).
-- Lightwater Valley added new dinosaur-themed attractions for
2023. Admissions were down versus the prior year primarily due to
wet weather, but the park achieved a new weekend record number of
visitors during the Coronation of King Charles III in May.
Outlook
-- As reported in the 25 July 2023 trading update, the weekend train strikes, exacerbated by exceptionally poor weather in July and August, and the temporary restriction of access following a fire at a major hotel opposite the entrance to the Pier towards the end of July, resulted in sales and earnings being lower than expected.
-- These factors continued to affect trading in the 12-week
period ending 17 September 2023 resulting in total sales of GBP12.3
million, down GBP(0.3) million versus the previous year (2022:
GBP12.6 million).
-- Whilst the board has been encouraged to see improved trading
in the first 3 weeks of September, macroeconomic challenges
continue to impact the business. This, together with the weaker
than expected summer trading period, has led the Board to conclude
that operating profit for the current financial year is likely to
be below current expectations.
-- The Group's outlook in the short-to-medium term remains cautious.
Anne Ackord, Chief Executive Officer, said:
"As highlighted in our last trading update, the Group is
navigating a challenging environment, with persistent high
inflation and cautious spending by consumers negatively impacting
trading. When combined with the ongoing cost pressures, this has
resulted in the Group recording lower than expected sales and
earnings in the first half of 2023.
Trading in the 12 weeks to 17 September 2023 has been further
impacted by events outside of our control. The regular weekend
train strikes in particular have reduced visitor numbers on the
Pier by 18% versus comparable weeks in 2022. Combined with the
unseasonably wet weather and the hotel fire that disrupted sales on
the Pier for the final two weeks of July (two of the top ten
trading weeks of the year), trading has been unusually
difficult.
The Group continues to be cash generative and has a robust
balance sheet, making it well placed to weather the macroeconomic
challenges and execute its longer-term growth strategy.
I believe as a result there is significant upside opportunity
for the Group in a more typical year".
All Company announcements and news are available at
www.brightonpiergroup.com
Enquiries:
The Brighton Pier Group PLC Tel: 020 7376 6300
Luke Johnson, Chairman Tel: 020 7016 0700
Anne Ackord, Chief Executive Officer Tel: 01273 609 361
John Smith, Chief Financial Officer Tel: 020 7376 6300
Cavendish Securities plc (Nominated Adviser
and Broker)
Stephen Keys (Corporate Finance) Tel: 020 7 397
8926
Callum Davidson (Corporate Finance) Tel: 020 7397 8923
Michael Johnson (Sales) Tel: 020 7397 1933
Novella (Financial PR) Tel: 020 3151 7008
Tim Robertson
Claire de Groot
Safia Colebrook
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
About The Brighton Pier Group PLC
The Brighton Pier Group PLC is a UK entertainment business
spread across four divisions:
-- Brighton Palace Pier offers a wide range of attractions
including two arcades (with over 300 machines) and eighteen funfair
rides, together with a variety of on-site hospitality and catering
facilities. According to Visit Britain, it was the most popular
free outdoor attraction in England with over 4.6 million visitors
in 2022 .
-- The Golf division ( which trades as Paradise Island Adventure
Golf) operates eight indoor mini-golf sites at high footfall retail
and leisure centres.
-- The Bars division trades under a variety of concepts
including Embargo República, Lola Lo, Le Fez, Lowlander and
Coalition. The Group's bars target a customer base of students'
midweek and stylish over-21s and professionals at the weekend.
-- Lightwater Valley Family Adventure Park, a leading North
Yorkshire attraction, is focused on family days out. Set within 175
acres of landscaped parkland, the park operates a variety of
attractions including rides, amusements, crazy golf, children's
outdoor and indoor play, entertainment shows, together with
numerous food, drink and retail outlets.
Business Review
Introduction
The Group's strategy remains focused on capitalising on the
potential of its diversified portfolio of leisure and family
entertainment assets in the UK. However, the Group is navigating a
uniquely challenging trading environment, with persistently high
inflation leading to a decline in consumer confidence and
discretionary spend. This, combined with significant ongoing cost
increases, has led to lower sales and earnings in the 6 months
ended 25 June 2023 (2022: 6 months ended 26 June 2022).
Operational review
The first 13-week period to the end of March 2023 saw the Group
trading in line with expectations. A comparatively mild winter
resulted in strong initial demand at the Pier, but this was offset
by the wettest March in over 40 years. The high-margin Golf
division continued to perform well during this period. The Bars
division saw some softness in trading but was behind 2022 primarily
due to exceptional trading following the surge in demand seen
post-pandemic. Lightwater Valley was closed during this time.
In the latter 13-week period, which typically represents
approximately 60% of sales in the 6 month period, trading suffered
across the Group as previously announced, with continued wet
weather in April leading to lower admissions on the Pier and at
Lightwater Valley across the key Easter period. Rail disruption
also affected footfall to the Pier and some Bars sites.
Cost increases during this period were particularly severe, with
significant increases to food prices contributing to lower gross
margins at the Pier and Lightwater Valley, which were both down 3%
versus 2022. Wage increases, meanwhile, resulted in lower operating
margins across the Group.
Financial review and KPIs
Total Group revenue for the period was GBP16.2 million (2022:
GBP17.3 million).
Revenue split by division :
-- Pier division GBP7.5 million (2022: GBP7.3 million)
-- Golf division GBP3.2 million (2022: GBP3.4 million)
-- Bars division GBP4.1 million (2022: GBP5.1 million)
-- Lightwater Valley GBP1.4 million (2022: GBP1.5 million)
Total Group EBITDA for the period was GBP1.4 million (2022:
GBP3.0 million).
EBITDA split by division :
-- Pier division GBP0.5 million (2022: GBP0.7 million)
-- Golf division GBP1.4 million (2022: GBP1.9 million)
-- Bars division GBP0.4 million (2022: GBP1.1 million)
-- Lightwater Valley GBP(0.3) million (2022: GBP(0.1)
million)
-- Group overhead costs GBP(0.6) million (2022: GBP(0.6)
million)
Group gross margin for the period was 86% (2022: 87%).
Highlighted items totalling GBP3.0 million of charges (2022:
GBPnil) were recognised during the period. These charges
reflect:
-- GBP1.1 million - impairment of goodwill in Lightwater Valley; and
-- GBP1.9 million - impairment charges to property, plant and
equipment and right-of-use assets in the Bars division.
Group loss on ordinary activities before tax (excluding
highlighted items) was GBP(1.0) million (2022: profit of GBP0.7
million).
Group loss on ordinary activities after tax was GBP(3.6) million
(2022: profit of GBP0.4 million).
In summary, for the 6 month period ended 25 June 2023:
-- Revenue: GBP16.2 million (2022: GBP17.3 million)
-- Operating (loss)/profit: GBP(3.2) million (2022: GBP1.3
million)
-- Group EBITDA: GBP1.4 million (2022: GBP3.0 million)
-- Operating (loss)/profit excluding highlighted items*:
GBP(0.3) million (2022: GBP1.3 million)
-- (Loss)/profit before tax excluding highlighted items*:
GBP(1.0) million (2022: GBP0.7 million)
-- (Loss)/profit before tax: GBP(3.9) million (2022: GBP0.7
million)
-- (Loss)/profit for the period: GBP(3.6) million (2022: GBP0.4
million)
-- Net debt at the end of the period: GBP4.7 million (25 Dec
2022: GBP7.1 million)
-- Basic (losses)/earnings per share excluding highlighted items*: (1.7)p
(2022: 0.9p)
-- Basic (losses)/earnings per share: (9.6)p (2022: 1.1p)
-- Diluted (losses)/earnings per share excluding highlighted items*: (1.7)p
(2022: 0.9p)
-- Diluted (losses)/earnings per share: (9.6)p (2022: 1.1p)
* Highlighted items are detailed in Note 4 to the financial
statements.
Cash flow and balance sheet
The Group generated net cash flow from operations of GBP3.2
million (2022: GBP4.4 million), after interest and tax payments ,
all of which was available for investment or the repayment of
debt.
Capital expenditure in the period totalled GBP0.4 million (2022:
GBP0.6 million) across the Group .
During the period, the Group made net debt repayments of GBP0.4
million (2022: GBP2.8 million ), which includes the final repayment
of the Group's Coronavirus Business Interruption Loans (totalling
GBP5.0 million).
Total bank debt at the end of the period was GBP10.9 million (25
December 2022: GBP11.3 million). With the Group's Coronavirus
Business Interruption Loans now fully repaid, remaining debt
relates to the term loan .
At the period end, cash and cash equivalents were GBP6.2 million
(25 December 2022: GBP4.2 million).
Consequently, net debt at the period end stood at GBP4.7 million
(25 December 2022: GBP7.1 million). The Directors continue to take
a cautious approach to net debt levels for the Group.
The Group currently has an undrawn revolving credit facility of
GBP1.0 million, giving total cash availability to the Group of GBP
7.2 million as at the period end .
Details of the Group's banking covenants can be found on page 90
of the December 2022 Annual Report.
Trading for the 12 weeks to the 17 September 2023
Total sales for the 12-week period to 17 September 2023 were
GBP12.3 million, down GBP(0.3) million versus the previous year
(2022: GBP12.6 million). This shortfall was primarily due to a
significant reduction in footfall to the Pier, which saw visitor
numbers decrease by 18% compared to 2022.
Total sales for the Pier were GBP6.0 million, down GBP(0.5)
million versus 2022 (2022: GBP6.5 million), due to a combination of
one-off factors previously noted.
Conversely, the poor weather resulted in stronger trading in the
Golf division, where sites are located inside larger shopping
centres. Total sales of GBP1.7 million were GBP0.2 million higher
than the previous year (2022: GBP1.5 million).
Lightwater Valley traded ahead of 2022, with total sales of
GBP2.7 million, up GBP0.3 million (2022: GBP2.4 million). This was
due to increased visitor numbers to the park, which were 24% up on
last year principally due to warm weather in September and several
different promotional offers that were made available to guests. As
a result of these offers, overall spend per head was lower than in
2022.
The Bars division continues to be impacted by the headwinds in
the UK economy. Its younger demographic has been more severely
affected by price inflation, resulting in lower spends and
reduction in numbers of visits. Total sales were GBP1.9 million,
down GBP(0.3) million versus last year (2022: GBP2.2million).
Outlook and strategy
While current economic conditions continue to create an
uncertain trading environment, the disappointing trading seen over
the key summer months has largely been the result of circumstances
beyond the Group's control, and while the outlook for the
short-to-medium term must remain one of caution, there are
nonetheless encouraging signs.
Trading in the Golf division remains robust and, going forwards,
is expected to continue to hold up well.
Lightwater Valley is still trading below the exceptional summer
seen following acquisition of the park by the Group in June 2021.
However, visitor numbers in summer 2023 were above the prior year
equivalent. The Group will begin to implement improvement processes
to further increase revenues per visitor, particularly in relation
to food, beverage and retail. This will be combined with structural
changes that will enable the cost base to be optimised in advance
of the next peak trading period in summer 2024. The project to
install circa twenty pod-type units for rental is still in the
early stages but is expected to start once the planning variations
are approved.
Similarly, spend per head at the Pier was ahead of last year and
prior to the issues experienced across the summer months, sales
were tracking ahead of 2022. The Pier retains its iconic status,
attracting millions of visitors every year, and the Group urges
those involved in the rail strikes to agree a resolution so that
the ongoing disruption does not continue into 2024.
In the Bars division, the combination of decline in consumer
discretionary income, coupled with ongoing train strikes targeted
at Friday and Saturday trading sessions, is likely to continue to
bear down on sales and profits over the remainder of the current
financial year and potentially into 2024.
Inflationary cost pressures are expected to continue to present
challenges across the Group. Where price rises cannot be fully
passed on, the Group will instead implement cost-saving initiatives
in order to preserve future cash flows and earnings.
Poor weather over the summer disproportionately impacts the
Group's trading performance. The diverse experiences offered by the
Group's four operating divisions continue to prove attractive to
our customers, and the Board believes that the strength of these
different offerings will drive the business forwards over the
longer term.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
for the 6 month period ended 25 June 2023
Unaudited Unaudited Audited
6 months ended 6 months ended 18 months ended
25 June 26 June 25 December
2023 2022 2022
Notes GBP'000 GBP'000 GBP'000
Revenue 16,204 17,332 58,905
Cost of sales (2,340) (2,238) (7,748)
Gross profit 13,864 15,094 51,157
Operating expenses - excluding highlighted items (14,143) (13,912) (42,373)
Highlighted items 4 (2,958) 44 451
-------------------------------------------------------- ------ --------------- --------------- ----------------
Total operating expenses (17,101) (13,868) (41,922)
Other operating income 21 90 197
Operating (loss)/profit - excluding highlighted items (258) 1,272 8,981
Highlighted items 4 (2,958) 44 451
-------------------------------------------------------- ------ --------------- --------------- ----------------
Operating (loss)/profit (3,216) 1,316 9,432
Finance income 68 - 24
Finance cost (782) (615) (1,817)
(Loss)/profit before tax - excluding highlighted items (972) 657 7,188
Highlighted items 4 (2,958) 44 451
-------------------------------------------------------- ------ --------------- --------------- ----------------
(Loss)/profit on ordinary activities before taxation (3,930) 701 7,639
Tax credit/(charge) on ordinary activities 5 333 (281) (1,266)
(Loss)/profit for the period (3,597) 420 6,373
(Losses)/earnings per share - Basic 6 (9.6) 1.1 17.1
Adjusted (losses)/earnings per share - Basic* 6 (1.7) 0.9 16.4
(Losses)/earnings per share - Diluted 6 (9.6) 1.1 16.9
Adjusted (losses)/earnings per share - Diluted* 6 (1.7) 0.9 16.2
* Adjusted basic and diluted earnings per share are calculated based on the profit for the
period adjusted for highlighted items.
2023 basic weighted average number of shares in issue was 37.29m (2022: 37.29m).
2023 diluted weighted average number of shares in issue was 37.57m (2022: 37.29m).
No other comprehensive income was earned during the period (2022: GBPnil).
INTERIM CONDENSED CONSOLIDATED BALANCE SHEET
At At At
25 June 26 June 25 December
2023 2022 2022
GBP'000 GBP'000 GBP'000
Non-current assets
Intangible assets 8,480 11,004 9,545
Property, plant & equipment 27,464 28,608 28,139
Right-of-use assets 22,878 24,153 25,223
Other receivables due in more than
one year - 206 -
58,822 63,971 62,907
-------- -------- ------------
Current assets
Inventories 1,046 931 815
Trade and other receivables 3,288 1,967 1,835
Deferred tax assets 333 - -
Cash and cash equivalents 6,191 7,654 4,208
10,858 10,552 6,858
-------- -------- ------------
TOTAL ASSETS 69,680 74,523 69,765
======== ======== ============
EQUITY
Issued share capital 9,322 9,322 9,322
Share premium 15,993 15,993 15,993
Merger reserve (1,111) (1,111) (1,111)
Other reserve 452 452 452
Retained (deficit)/earnings (2,700) 275 897
Equity attributable to equity
shareholders of the parent 21,956 24,931 25,553
-------- -------- ------------
TOTAL EQUITY 21,956 24,931 25,553
-------- -------- ------------
LIABILITIES
Current liabilities
Trade and other payables 8,189 8,928 3,833
Other financial liabilities 485 1,371 11,327
Lease liabilities 2,154 1,842 1,808
Income tax payable 987 1,297 987
Provisions 119 - 119
11,934 13,438 18,074
-------- -------- ------------
Non-current liabilities
Other financial liabilities 10,400 11,271 -
Lease liabilities 24,617 24,359 25,365
Deferred tax liability 512 524 512
Other payables 261 - 261
35,790 36,154 26,138
-------- -------- ------------
TOTAL LIABILITIES 47,724 49,592 44,212
-------- -------- ------------
TOTAL EQUITY AND LIABILITIES 69,680 74,523 69,765
======== ======== ============
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
6 months to 6 months to 18 months to
25 June 26 June 25 December
2023 2022 2022
GBP'000 GBP'000 GBP'000
Operating activities
(Loss)/profit before tax (3,930) 701 7,639
Net finance costs 714 615 1,793
Amortisation of intangible assets 31 35 126
Depreciation of property, plant and equipment 750 751 2,372
Depreciation of right-of-use assets 866 897 2,453
Gain on derecognition of lease liabilities due to disposal - - (688)
Gain on derecognition of lease liabilities due to waivers &
concessions - (145) (402)
Charge on recognition of in-substance fixed rent - 264 268
Impairment charge - goodwill 1,070 643 985
Impairment charge/(credit) - property, plant and equipment 303 (424) (424)
Impairment charge/(credit) - right-of-use assets 1,585 (489) (489)
(Decrease)/increase in provisions - (258) 119
Increase in inventories (231) (219) (84)
Increase/(decrease) in trade and other receivables (1,453) (714) 2,381
Increase/(decrease) in trade and other payables 4,229 3,361 (3,539)
Interest paid on borrowings (411) (247) (712)
Interest paid on lease liabilities (371) (368) (1,105)
Interest received 68 - 24
Income tax paid - (34) (32)
Net cash inflow from operating activities 3,220 4,369 10,685
------------ ------------ -------------
Investing activities
Purchase of property, plant and equipment and intangible assets (415) (582) (1,296)
Proceeds from disposal of property, plant and equipment 95 - 18
Payment of deferred consideration to former Lightwater Valley
Attractions Limited shareholders - - (1,000)
Net cash outflow used in investing activities (320) (582) (2,278)
------------ ------------ -------------
Financing activities
Repayment of borrowings (442) (2,805) (9,063)
Principal paid on lease liabilities (475) (584) (2,216)
Net cash outflow used in financing activities (917) (3,389) (11,279)
------------ ------------ -------------
Net increase/(decrease) in cash and cash equivalents 1,983 398 (2,872)
Cash and cash equivalents at beginning of period 4,208 7,256 7,080
Cash and cash equivalents at end of period 6,191 7,654 4,208
============ ============ =============
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY
Issued Share Other Merger Retained Total
share premium reserves reserve earnings/ shareholders'
Unaudited capital (deficit) equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------- --------- --------- ---------- --------- ----------- ---------------
At 25 December
2022 9,322 15,993 452 (1,111) 897 25,553
----------------- --------- --------- ---------- --------- ----------- ---------------
Loss for the
period - - - - (3,597) (3,597)
At 25 June
2023 9,322 15,993 452 (1,111) (2,700) 21,956
----------------- --------- --------- ---------- --------- ----------- ---------------
Issued Share Other Merger Retained Total
share premium reserves reserve (deficit)/ shareholders'
Unaudited capital earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------- --------- --------- ---------- --------- ------------ ---------------
At 26 December
2021 9,322 15,993 452 (1,111) (145) 24,511
----------------- --------- --------- ---------- --------- ------------ ---------------
Profit for
the period - - - - 420 420
At 26 June
2022 9,322 15,993 452 (1,111) 275 24,931
----------------- --------- --------- ---------- --------- ------------ ---------------
Issued Share Other Merger Retained Total
share premium reserves reserve (deficit)/ shareholders'
Audited capital earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------- --------- --------- ---------- --------- ------------ ---------------
At 27 June
2021 9,322 15,993 452 (1,111) (5,476) 19,180
----------------- --------- --------- ---------- --------- ------------ ---------------
Profit for
the period - - - - 6,373 6,373
At 25 December
2022 9,322 15,993 452 (1,111) 897 25,553
----------------- --------- --------- ---------- --------- ------------ ---------------
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
1. GENERAL INFORMATION
The Brighton Pier Group PLC (registered number 08687172) is a
public limited company incorporated and domiciled in England and
Wales. The Company's ordinary shares are traded on AIM. Its
registered address is 36 Drury Lane, London, WC2B 5RR. The Company
is the immediate and ultimate parent of the "Group".
The Brighton Pier Group PLC owns and operates Brighton Palace
Pier, one of the leading tourist attractions in the UK. The Group
is also a leading operator of eight premium bars nationwide, eight
indoor mini- golf sites and Lightwater Valley Family Adventure Park
in North Yorkshire.
The principal accounting policies adopted by the Group are set
out in Note 2.
2. ACCOUNTING POLICIES
The financial information for the 6 month periods ended 25 June
2023 and 26 June 2022 does not constitute statutory accounts for
the purposes of section 435 of the Companies Act 2006. The
financial information for the 6 month period ended 25 June 2023 has
not been audited. The Group's latest audited statutory financial
statements were for the 18 month period ended 25 December 2022 and
these have been filed with the Registrar of Companies.
Information that has been extracted from the 25 December 2022
accounts is from the audited accounts included in the annual
report, published in May 2023, on which the auditor gave an
unmodified opinion and did not include a statement under section
498 (2) or (3) of the Companies Act 2006. A copy of these accounts
can be found on the Group's website, www.brightonpiergroup.com
.
The interim condensed consolidated financial statements for the
6 months ended 25 June 2023 have been prepared in accordance with
the AIM Rules issued by the London Stock Exchange. They do not
include all the information and disclosures required in the annual
financial statements and should be read in conjunction with the
Group's annual financial statements as at 25 December 2022, which
were prepared using IFRS, in accordance with The International
Accounting Standards and European Public Limited-Liability Company
(Amendment etc.) (EU Exit) Regulations 2019.
The accounting policies used in preparation of the financial
information for the 6 months ended 25 June 2023 are the same
accounting policies applied to the Group's financial statements for
the 18 months ended 25 December 2022, with the exception of income
tax which has been calculated using the forecast effective tax rate
for the 12 months ending 31 December 2023 applied to the loss
before tax for the 6 months ending 25 June 2023. These policies
were disclosed in the 2022 Annual Report.
NOTES to the INTERIM CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
3. SEGMENTAL INFORMATION
Management has determined the operating segments based on the
reports reviewed by the Chief Operating Decision Maker ("CODM")
comprising the Board of Directors. During the 6 month period ended
25 June 2023, the Group changed its measurement method of reported
segment profit or loss, with depreciation charges on property,
plant and equipment and right-of-use assets, amortisation charges
on intangible assets and net finance costs arising on lease
liabilities now allocated between the relevant operating segments,
having previously been grouped within head office costs.
The segmental information is split on the basis of those same
profit centres - however, management report only the contents of
the consolidated statement of comprehensive income and therefore no
balance sheet information is provided on a segmental basis in the
following tables.
6 month period ended Brighton Head June
25 June 2023 Palace Lightwater Total office 2023 consolidated
Pier Golf Bars Valley segments costs total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- --------- -------- -------- ----------- ---------- -------- -------------------
Revenue 7,507 3,147 4,105 1,445 16,204 - 16,204
Cost of sales (1,353) (57) (762) (168) (2,340) - (2,340)
------------------------------- --------- -------- -------- ----------- ---------- -------- -------------------
Gross profit 6,154 3,090 3,343 1,277 13,864 - 13,864
Gross profit % 82% 98% 81% 88% 86% - 86%
Operating expenses
(excluding depreciation
and amortisation) (5,639) (1,678) (2,966) (1,574) (11,857) (639) (12,496)
Other income - - - - - 21 21
------------------------------- --------- -------- -------- ----------- ---------- -------- -------------------
Divisional earnings/(loss) 515 1,412 377 (297) 2,007 (618) 1,389
Highlighted items - - (1,888) (1,070) (2,958) - (2,958)
Depreciation and amortisation
(excluding right-of-use
assets) (222) (219) (181) (159) (781) - (781)
Depreciation of right
of use assets (3) (430) (363) (51) (847) (19) (866)
------------------------------- --------- -------- -------- ----------- ---------- -------- -------------------
Operating profit/(loss) 290 763 (2,055) (1,577) (2,579) (637) (3,216)
Net finance cost (excluding
interest on lease
liabilities) - - - - - (343) (343)
Net finance cost arising
on lease liabilities - (138) (143) (88) (369) (2) (371)
Profit/(loss) before
tax 290 625 (2,198) (1,665) (2,948) (982) (3,930)
Income tax - - - - - 333 333
------------------------------- --------- -------- -------- ----------- ---------- -------- -------------------
Profit/(loss) after
tax 290 625 (2,198) (1,665) (2,948) (649) (3,597)
EBITDA 515 1,412 377 (297) 2,007 (618) 1,389
------------------------------- --------- -------- -------- ----------- ---------- -------- -------------------
NOTES to the INTERIM CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
3. SEGMENTAL INFORMATION (continued)
6 month period ended Brighton Head June
26 June 2022 Palace Lightwater Total office 2022 consolidated
Pier Golf Bars Valley segments costs total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- --------- -------- -------- ----------- ---------- -------- -------------------
Revenue 7,341 3,407 5,113 1,471 17,332 - 17,332
Cost of sales (1,116) (50) (943) (129) (2,238) - (2,238)
------------------------------- --------- -------- -------- ----------- ---------- -------- -------------------
Gross profit 6,225 3,357 4,170 1,342 15,094 - 15,094
Gross profit % 85% 99% 82% 91% 87% - 87%
Operating expenses
(excluding depreciation
and amortisation) (5,578) (1,482) (3,088) (1,499) (11,647) (582) (12,229)
Other income 6 35 49 - 90 - 90
------------------------------- --------- -------- -------- ----------- ---------- -------- -------------------
Divisional earnings/(loss) 653 1,910 1,131 (157) 3,537 (582) 2,955
Highlighted items - (158) 202 - 44 - 44
Depreciation and amortisation
(excluding right-of-use
assets) (246) (219) (152) (169) (786) - (786)
Depreciation of right
of use assets (5) (430) (400) (46) (881) (16) (897)
------------------------------- --------- -------- -------- ----------- ---------- -------- -------------------
Operating profit/(loss) 402 1,103 781 (372) 1,914 (598) 1,316
Net finance cost (excluding
interest on lease
liabilities) - - - - - (247) (247)
Net finance cost arising
on lease liabilities (1) (138) (135) (92) (366) (2) (368)
Profit/(loss) before
tax 401 965 646 (464) 1,548 (847) 701
Income tax - - - - - (281) (281)
------------------------------- --------- -------- -------- ----------- ---------- -------- -------------------
Profit/(loss) after
tax 401 965 646 (464) 1,548 (1,128) 420
EBITDA 653 1,910 1,131 (157) 3,537 (582) 2,955
------------------------------- --------- -------- -------- ----------- ---------- -------- -------------------
4. HIGHLIGHTED ITEMS
6 months to 6 months to
25 June 2023 26 June 2022
GBP'000 GBP'000
-------------------------------------------------------------------------------- ------------- -------------
Impairment charge - goodwill 1,070 643
Impairment charge/(credit) - property, plant and equipment 303 (424)
Impairment charge/(credit) - right-of-use assets 1,585 (489)
Turnover rent charge - 107
Charge on recognition of in-substance fixed rent - 264
Gain on derecognition of lease liabilities using IFRS 9 derecognition criteria - (145)
Total 2,958 (44)
-------------------------------------------------------------------------------- ------------- -------------
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
4. HIGHLIGHTED ITEMS (continued)
The above items have been highlighted in order to provide users
of the financial statements visibility of non-comparable costs
included in the Consolidated Statement of Comprehensive Income for
this period.
6 month period ended 25 June 2023
The Group performed an impairment test in June 2023, resulting
in total impairments applied of GBP2,958,000, split between
goodwill (GBP1,070,000), property, plant and equipment (GBP303,000)
and right-of-use assets (GBP1,585,000). See Note 8 for further
details.
6 month period ended 26 June 2022
The Group performed an impairment test in June 2022, resulting
in an impairment of GBP643,000 in the Rushden site, and a reversal
of impairments applied to property, plant and equipment of
GBP424,000 (2021: nil) and right-of-use assets of GBP489,000 (2021:
nil). These reversals were in respect of impairments that were
applied as part of management's 2020 impairment review.
At June 2022, management reviewed the lease arrangements in
place across the Group in conjunction with the forecast performance
at each leased site. With most sites once again trading at or above
pre-pandemic levels, management assessed that the payment of
turnover rent at some sites in the Bars division was sufficiently
certain as to make them in-substance fixed payments. In accordance
with IFRS 16, rent payments totalling GBP264,000 were added back to
the lease liability on the balance sheet, with the corresponding
entry being recognised within highlighted items in the Statement of
Comprehensive Income for the 6 month period ended 26 June 2022 in
order to ensure consistency with the treatment of previously
derecognised liabilities in prior periods.Prior to this assessment
having been made, turnover rent recognised within highlighted items
totalled GBP107,000.
As a result of the COVID-19 pandemic, the Group agreed temporary
lease variations that amounted, in substance, to forgiveness of
rent payable without materially changing the present value of total
cash outflows over the life of the lease. Consequently, the Group
de-recognised the appropriate portion of its total liability in
accordance with the provisions of IFRS 9: Financial Instruments.
The value of these extended waivers is recognised in the Statement
of Comprehensive Income. The Group recognised total credits of
GBP144,000 within highlighted items in the Statement of
Comprehensive Income during the period ended 26 June 2022.
5. TAXATION
The tax credit of GBP0.3 million (2022: charge of GBP0.3
million) has been calculated by reference to the expected effective
current and deferred tax rates for the 12 month period to the 31
December 2023 applied against the loss before tax for the period
ended 25 June 2023. The full year effective tax charge on the
underlying trading profit is estimated to be GBPnil (18 months
ended 25 December 2022: GBP1.3 million).
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
6. (LOSSES)/EARNINGS PER SHARE
The weighted average number of shares in the period was:
6 months to 6 months to
25 June 2023 26 June 2022
Thousands of shares Thousands of shares
Ordinary shares 37,286 37,286
------------------------------------------------------- -------------------- --------------------
Weighted average number of shares - basic 37,286 37,286
Dilutive effect on ordinary shares from share options 286 -
------------------------------------------------------- -------------------- --------------------
Weighted average number of shares - diluted 37,572 37,286
------------------------------------------------------- -------------------- --------------------
Basic and diluted (losses)/earnings per share are calculated by
dividing the (loss)/profit for the period into the weighted average
number of shares for the year. In order to provide a measure of
underlying performance, management have chosen to present an
adjusted (loss)/profit for the period, which excludes items that
may distort comparability. Such items arise from events or
transactions that fall within the ordinary activities of the Group
but which management believes should be separately identified to
help explain underlying performance.
6 months to 6 months to
25 June 2023 26 June 2022
(Losses)/earnings per share from (loss)/profit for the period
Basic (pence) (9.6) 1.1
Diluted (pence) (9.6) 1.1
------------------------------------------------------------------------ -------------- --------------
Adjusted (losses)/earnings per share from (loss)/profit for the period
Basic (pence) (1.7) 0.9
Diluted (pence) (1.7) 0.9
------------------------------------------------------------------------ -------------- --------------
7. RECONCILIATION TO EBITDA
Group (loss)/profit before tax for the period can be reconciled
to Group EBITDA as follows:
6 months
to 6 months
25 June to 26 June
EBITDA Reconciliation 2023 2022
----------------------------------------------- --------- ------------
(Loss)/profit before tax for the period (3,930) 701
Add back:
Depreciation of property, plant and equipment 750 751
Depreciation of right-of-use-assets 866 897
Amortisation of intangible assets 31 35
Net finance costs 714 615
Highlighted items 2,958 (44)
----------------------------------------------- ------------
Group EBITDA 1,389 2,955
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
8. IMPAIRMENT REVIEW
The Group performed an impairment test in June 2023, with
continuing inflationary pressures and decline in consumer
confidence being considered by management to be indicators of
impairment, prompting a full review of the recoverable amount of
all CGUs within the Group. The Group considers the relationship
between the trading performance of each cash generating unit
('CGU') and their book value when reviewing for indicators of
impairment. Each of the Group's sites represents a separate CGU,
which were assessed individually for impairment. The carrying value
of each CGU consists of the net book value of goodwill (where
applicable), property, plant and equipment and right-of-use assets.
Goodwill is allocated to the site on which it arose.
Management believes the diversity of the Group's offerings and
strong balance sheet will offer some resilience in the short and
medium-term as these factors are tackled. Longer-term, the Board
remains optimistic about the outlook for the Group.
Based on management's review of the expected performance of the
core estate, an impairment to goodwill of GBP1,070,000 was
identified in Lightwater Valley (2022: GBPnil). Further impairments
were applied to property, plant and equipment of GBP303,000 (2022:
GBPnil) and right-of-use assets of GBP1,585,000 (2022: GBPnil) in
the Bars division. The impairments that were recognised following
the June 2023 Group impairment review, along with their impact on
the carrying value of the Group's CGUs, are detailed in the table
below:
Carrying
Carrying value carried
value prior forward after
to June 2023 June 2023
impairment impairment
review Impairment review
GBP'000 GBP'000 GBP'000
Goodwill 9,272 (1,070) 8,202
Property, plant and equipment 27,767 (303) 27,464
Right-of-use assets 24,463 (1,585) 22,878
Total carrying value of CGUs 61,502 (2,958) 58,544
------------------------------- -------------- ----------- ---------------
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END
IR DZLFLXKLXBBV
(END) Dow Jones Newswires
September 25, 2023 02:00 ET (06:00 GMT)
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