19th Mar 2020 13:08
(Alliance News) - Cinema chain Everyman Media Group PLC on Thursday said its revenue rose by a quarter, but added that trading over recent days has been hurt by the Covid-19 spread and a spate of delays to major film releases.
On Tuesday, the AIM-listed firm decided to close all its venues until further notice.
In the year ended January 2, revenue rose 25% to GBP65.0 million from GBP51.9 million. Pretax profit meanwhile fell 15% to GBP2.3 million from GBP2.7 million.
Contributing to the profit fall were GBP2.7 million in depreciation of right-use assets costs, against none reported in the year prior.
Admissions during the year rose 17% to 3.3 million, with average spend per head rising 13% to GBP7.13.
Everyman opened seven new venues during the period, growing its estate to 33 sites and 110 screens.
Its market share also edged higher to 3.1% from 2.5%, ensuring it remains the fifth largest cinema business in the UK, by box office revenue.
Everyman added: "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 March 16, the board of Everyman took the decision to close its venues to guests from March 17 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."
Everyman said it has more than GBP14 million headroom at its disposal from a loan facility. The company said it has also postponed all non-committed capital expenditure.
"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," Everyman said.
Shares in the company were 15% higher at 94.00 pence each in London on Thursday afternoon.
By Eric Cunha; [email protected]
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