Everyman Media Group PLC (AIM: EMAN) announces its audited final results for the year ended 2 January 2020.
Financial Highlights
· Revenue for the year up 25.1% to £65.0 million (2018: £51.9 million);
· Admissions up 17% on previous financial period to 3.3 million (2018: 2.8 million);
· Average ticket price increased to £11.37 (2018: £11.26) and Spend Per Head increased 13% to £7.13 (2018: £6.30) driven by menu development and operational improvements;
· Pre IFRS 16 EBITDA* grew 31.3% to £12.0 million (2018: £9.2 million), exceeding revenue growth as the Group continues to benefit from its growing estate. This equates to a post-IFRS 16 EBITDA of £15.6 million;
· Operating profit increased 67.1% to £4.8 million (2018: £2.9 million);
· A further seven new Everyman venues opened in the last 12 months, growing the estate to 33 sites and 110 screens as at 18 March 2020;
· Box office market share rose to 3.1% (2018: 2.5%) and Everyman remains the fifth largest cinema business in the UK by gross box office revenue.
Outlook
Since our financial year end the outlook for the UK and Global economy has become increasingly uncertain due to the spread of the COVID-19 virus. Following guidance provided by the UK government on 16 March 2020, the Board of Everyman took the decision to close its venues to guests from 17 March 2020 until further notice. The health of our staff and our customers is the Board’s highest priority.
We therefore expect to see a significant pause in business and are taking all appropriate measures to reduce the financial impact of this on the Group. Whilst the exact longer term impact of the situation is difficult to predict the Board believes that shareholders should take comfort from the following:
• The Group has in excess of £14m headroom in its loan facility currently
• Action has been taken to postpone all non-committed capital expenditure, which will affect our planned rollout but maintains the strong financial position of the group
• Actions to reduce operating expenses have been taken and further actions are in place to reduce expenses to a minimum during this period of closure
We will see a significant interruption in business and new openings, but will remain well placed to deliver again in 2021. Cinema has been a part of the social experience for over 80 years and we are confident we will be well placed to deliver again for our customers, continuing to provide them with a great night out, once we have overcome the Coronavirus crisis.
*Adjusted for pre-opening costs, acquisition expenses, depreciation, amortisation and share based payments. IFRS 16 has been applied. Pre IFRS 16 EBITDA would have been £12.0m, an increase of 30.4%.
Crispin Lilly, Chief Executive Officer of Everyman Media Group PLC said:
“We are facing an unprecedented global situation, and are now concentrating all our resources on tackling the challenge at hand. We will be focussed on preparing the business to be in the best possible position in the future. Everyman has proven itself to be a strong business with good growth fundamentals, which the Board is confident will stand the Company in a good position once the current market challenges have been overcome.”
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