Everyman Media Group PLC Trading Update (6868U)
July 31 2020 - 1:00AM
UK Regulatory
TIDMEMAN
RNS Number : 6868U
Everyman Media Group PLC
31 July 2020
31 July 2020
Everyman Media Group PLC
("Everyman", "Company" or the "Group")
Trading Update
Everyman Media Group plc provides the following trading update
for the 26 weeks ended 2 July 2020.
COVID-19 has significantly impacted the entire cinema industry
in the first half of 2020. Whilst the Company made a strong start
to the year, delivering revenue growth of 47% in the first two
months, Everyman along with all other cinema operators closed its
doors in the middle of March. All venues remained closed for the
rest of H1 with no further revenue from that point until 4
July.
Managing the business through COVID-19
In March, several contingency plans were formulated and
implemented swiftly. An equity raise of GBP17.5m took place, which
secured a strong balance sheet position supported by our available
credit facilities. Our banking partners have been supportive with
appropriate changes to the covenants on the Group credit facility,
and the Group will remain within its banking covenants in H2 and
beyond.
During the period of closure all but 18 staff were furloughed,
and further government support was received in terms of rates
relief and the Retail, Hospitality and Leisure Business Grant. In
addition, the reduction of VAT from 20% to 5% on admissions and
certain food and beverage items will benefit the business in
H2.
Property costs are the second largest overhead in the business
and Everyman has worked with all of its landlords throughout the
period to agree variations to the lease agreements. Concessions
have been agreed on over half of the estate, and further
discussions are still ongoing.
The Group has also worked with landlords on delaying certain new
sites and, in a few cases, exiting existing Agreements for Lease
resulting in a pipeline for 2021/22 of 8 new venues compared with
the 11 previously expected. These actions have significantly
reduced the Group's future capital commitments. The Company will
incur exceptional costs from exiting some of these Agreements, but
the Directors believe, in the current climate, a prudent approach
to new openings is in the Company's best interests.
A phased re-opening
Everyman is pleased to report that since July 4, following the
introduction of new COVID-19 operating, social distancing and
cleaning protocols, there has been a phased re-opening of venues
with 17 currently trading. Customer feedback has been
overwhelmingly positive in these venues and admissions are at
encouraging levels given the scarcity of new content currently. The
remaining venues will be opening in phases with all venues planned
to be open by 21 August. In addition, a new venue on the Kings Road
in Chelsea opened on 25 July, with a further new venue in Lincoln
due to open on 21 August.
Whilst current trading has inevitably been soft with no major
releases, encouraging numbers of customers are returning. This
validates the strength of the business model, which is well
positioned to take advantage as the sector recovers. The Group has
a strong balance sheet to support its activities during what is
expected to be a restricted trading period in H2.
The Group intends to publish its interim results for the 26
weeks ended 2 July 2019 on 30 September 2020.
For further information, please contact:
Everyman Media Group PLC Tel: +44 (0) 20 3145
Crispin Lilly 0500
Elizabeth Lake
Canaccord Genuity Limited - Nominated Tel: +44 (0)20 7523
Adviser and Broker 8000
Bobbie Hilliam
Richard Andrews
Georgina McCooke
Alma PR (Financial PR Advisor)
Rebecca Sanders-Hewett Tel: +44 (0)20 3405
Susie Hudson 0205
Harriet Jackson
About Everyman Media Group PLC:
Everyman is a premium, high growth leisure brand. Everyman
operates a growing estate of venues across the UK, with an emphasis
on providing first class cinema and hospitality.
Everyman is redefining cinema. It focuses on venue and
experience as key competitive strengths, with a unique
proposition:
- Intimate and atmospheric venues, which become a destination in their own right
- An emphasis on a strong quality food and drink menu prepared in-house
- A broad range of well-curated programming content, from
mainstream and independent films to theatre and live concert
streams, appealing to a diverse range of audiences
- Motivated and welcoming teams
For more information visit
http://investors.everymancinema.com/
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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