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Cineworld reports slower than expected recovery with admissions below expectations: Cineworld Group, which operates 747 cinema sites and 9,139 screens globally, has reported a slower than expected recovery in the first half of the year and admissions remain below expectations. It stressed the group continues to welcome cinema-goers around the world despite filing for Chapter 11 bankruptcy in the United States earlier this month. Group revenue increased 417% to $1,515m for the six months ended 30 June 2022 compared with $292.8m the previous year reflects the uninterrupted operation of our cinemas across all territories. UK and Ireland revenue was up 468% to $266.8m (2021: $47.0m). Group adjusted Ebitda stood at $364.2m (2021: loss of $21.1m) due to operating profit of $57.3m excluding depreciation and amortisation of $270.6m, impairments of $66.3m and other exceptional and adjusting income totalling $30.0m (net). It reported a pre-tax loss of $364.2m (2021: loss of $576.4m. UK and Ireland admissions were up to 15.9 million (2021: 2.6 million). The company stated: “The group’s results have been positively impacted by the easing of all remaining covid restrictions in the first quarter of 2022. At the same time, cash burn of $144.9m (first half 2021: $271.0m) reflects the slower-than-expected recovery in the first half of 2022. The group has reviewed and revised down its short and medium-term cinema admission forecasts. The review was prompted by the slower-than-expected recovery being experienced in 2022 combined with external forecasts indicating a lower volume of theatrical releases in 2023 and 2024. Third-quarter admissions have been below expectations. The fourth quarter is anticipated to be stronger, supported by the scheduled release of Black Adam, Black Panther: Wakanda Forever, Avatar: The Way of Water and other blockbuster films. Cinema admissions in both FY23 and FY24 are expected to remain below pre-pandemic levels.” Alicja Kornasiewicz, chair of Cineworld Group, said: “Despite the gradual easing of covid-19 restrictions and the group’s improved performance, particularly over the second quarter of the half-year period, the lingering impact of the covid-19 pandemic contributed to us continuing to face pressures, particularly in relation to our balance sheet and liquidity position. This led us to initiate a Chapter 11 restructuring process in the US that aims to create a more effective business and strengthened capital structure to better position Cineworld for the future. I would like to thank all our leadership team and colleagues for their efforts in continuing to provide our customers with the best cinematic experience possible.” Mooky Greidinger, chief executive of Cineworld Group, added: “This has been a challenging period for Cineworld due to the unprecedented impact of the covid-19 pandemic on our business and its lagging and continuing disruption to film schedules. Covid-19 continued to weigh on our trading during the half-year, although we have been encouraged by the gradual ongoing recovery in our performance over recent months – as pandemic restrictions ended, guests returned for popular movies. As we navigate this Chapter 11 process to help position Cineworld for long-term growth, we remain committed to our strategy to be ‘The Best Place to Watch a Movie’.”

Updated Premium Database of Multi-Site Companies released today at midday, 60 businesses being added: A total of 60 new multi-site companies, operating 520 sites, have been added to the next edition of the Propel Premium Database of Multi-Site Companies, which will be released today (Friday, 30 September), at midday. The updated Propel Multi-Site Database, which is produced in association with Virgate, includes regional bar and restaurant operators, expanding hotel companies, and growing entertainment concepts. Premium subscribers will also receive a 4,100-word report on the new additions to the database. The comprehensive database is updated monthly and provides company names, the people in charge, how many sites each firm operates, its trading name and its registered name at Companies House if different. The database now features 2,676 companies. Premium subscribers will also receive the next edition of the New Openings Database on Friday, 7 October, at midday. It focuses on newly announced openings and upcoming launches in the sector and is updated every month. The next edition also includes a 13,000-word report on the new additions to the database. Premium subscribers also receive access to the Propel Turnover & Profits Blue Book, which is produced in association with Mapal Group, and the UK Food and Beverage Franchisor Database. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £895 plus VAT – whether they are an operator or a supplier. The single subscription rate is £445 plus VAT for operators and £545 plus VAT for suppliers. Email jo.charity@propelinfo.com to upgrade your subscription. Subscribers also receive access to Propel’s library of lockdown videos and Friday Wrap interviews and now also have access to a curated video library of the sector’s finest leaders and entrepreneurs, offering their insights on running outstanding businesses in the sector. Premium subscribers also receive their morning newsletter 11 hours early, at 7pm the evening before our 6am send-out; regular video content and regular exclusive columns from Propel group editor Mark Wingett.

Parkdean – 2021 a year of significant progress, staycation market performing strongly: Parkdean Resorts, Britain’s biggest holiday park operator, has said that 2021 was a year of “significant progress” for the business and is well placed in a “growing and resilient staycation market that will benefit from high demand next year”. The company, which owns and operates 66 holiday parks on 3,500 acres of land in prime staycation locations across the UK, reported revenues up from £348.4m to £537.4m with adjusted Ebitda up from £58.1m to £144.7m in the year to 31 December 2021. It invested £80m over the year, which it has increased to £110m during its current financial year. This included investment in its “Park of the Future” programme, to improve food and beverage offering, facilities, kids’ activities and accommodation across selected “Springboard” parks. It also developed three existing parks in 2021, and the business said it has plans to develop 36 additional parks in a similar way. It said its investment in its website resulted in a sales channel shift towards direct on-line bookings which now generate more than 85% of our holiday sales. Online revenues for the business have increased by 90% since 2019. The business said it was its intention to build more than 3,000 new pitches across its existing estate landbank of 3,900 pitches. In line with its footprint expansion strategy, the company acquired a 31.14-acre site with planning permission for 260 pitches, adjacent to its Southview park in Skegness. Steve Richards, chief executive of Parkdean Resorts, said: “2021 was a year of significant progress, in which we saw high returns on the capital investment we made in the quality of our accommodation and park facilities, whilst further digitalising our customer journey, resulting in 85% of our revenues now being booked online, and with 83% of guests voting us great value for money and 78% stating they would return. We have just traded through a very busy summer period in which our parks were full and looking ahead Parkdean Resorts is well placed in a growing and resilient staycation market that will benefit from high demand next year, but of course the business is not immune from the current macro pressures of inflation and the cost-of-living crisis that our customers face. We remain confident that demand for our value for money, family friendly and well-located parks will be strong, and we are cautiously optimistic in outlook.”

FTSE 250 suffers worst fall since covid lockdowns: The FTSE 250 index of companies, regarded as a barometer of the health of the UK economy, endured its worst session yesterday (Thursday, 29 September) since the onset of the pandemic lockdowns more than two years ago. The Times reported the sharp fall in the mid-cap index contributed to a global equity markets sell-off. This was driven by fears that an economic slowdown would be made worse by rapidly rising interest rates aimed at taming inflation. However, investor sentiment in London was made more bearish by the government’s mini-budget last Friday (23 September). The FTSE 250 closed down 530.57 points, or 3.1%, at 16,790.40. This was its biggest daily fall since March 2020 and put it back to its levels of May 2020. The FTSE 100 blue-chip index finished at its lowest value since July last year after shedding 123.80 points, or 1.8%, to 6,881.59, bringing it down 6.8% this year. Stuart Cole, head macro economist at Equiti Capital, a financial services company, said: “Economic policy now is a mess and the tighter monetary policy gets the more damage it will do to UK consumers, UK spending and the UK economy.” News of tougher trading also prompted a sell-off of shares in Mitchells & Butlers, falling 20p, or 14.7%, to close at 115p.