- Strong half despite weak film slate
- Full year results expected to meet expectations
- Reduced rate of new openings in 2025
Investors gave a rousing applause for posh cinema group Everyman (EMAN:AIM), sending the shares up 3.5p or 6.2% to 60p after it delivered a strong first half performance.
The shares continued their recovery, rising 22% from the lows in June, taking gains over the last 12 months to 8% compared with a 1% advance for the FTSE Aim All-Share index.
For the 26-weeks to 27 June, revenue increased by 22% to £46.9 million driven by admissions, up 18.7%, higher ticket prices, up 2.3%, and a 2.1% increase in food and beverage spend per head.
Adjusted EBITDA (earnings before interest, tax, depreciation, and amortisation) increased 6.9% to £6.2 million.
Everyman said the increase in admissions, revenue and EBITDA would have been greater but for the adverse impact of a reduced second quarter film slate driven by last year’s writers and actors strikes.
One new site was opened in the period taking the total estate to 45 cinemas and 155 screens. The group said it continues to evaluate the rate of expansion while maintaining a prudent approach to funding needs.
Consequently, it has reduced the cadence of openings for 2025 to ensure availability of capital for several ‘key projects’ scheduled for 2026.
STRONG Q4 FILM SLATE
The group expects a ‘significant’ second half weighting to admissions in 2024 reflecting a strong final quarter film slate including Joker: Folie a Deux in October, Gladiator 2, Paddington in Peru, Wicked and Moana in November, and The Lion King in December.
CEO Alex Scrimgeour commented: ‘‘We achieved strong growth in revenue, increased EBIDTA and record market share, driven by rising demand for Everyman’s unique brand of hospitality.
‘The expansion of our footprint continues, with one new venue opened in the period and two more openings to look forward to in the year, further consolidating our position as the market leader in premium cinema.’
Looking ahead, the board expressed ‘confidence’ in achieving full year financial performance in line with market expectations.
The company-complied consensus is calling for revenue of £108 million (£90.9 million in 2023) and adjusted EBITDA of £19.3 million.
EXPERT VIEW
Analyst Mark Photiades at Canaccord Genuity maintained his 2024 estimates but slightly reduced 2025 EBITDA forecasts by around 9% to reflect the lower rate of openings.
‘We believe Everyman remains a strong consumer brand with a unique premium offering, and we believe it is well positioned for further growth’, added Photiades.
