Everyman Group, the growing cinema chain, has reported a 91% increase in adjusted EBITDA for the six months to the end of June 2016, with revenue up 49% to £12.1m.
The group, which now operates 19 venues, up from 16 at the beginning of the year, said that since the period-end, trading had been in line with expectations following a good overall summer release slate in the cinema market set against a weak comparable period in 2015.
The company said that trading in the first half was driven by the opening of a new venue in Bristol together with significant maturing revenue growth coming from the six venue openings and two refurbishments in 2015.
A temporary one-screen venue opened in July 2016 in Kings Cross, which will remain in place until the permanent venue is completed in late 2017. A five-screen venue opened in Harrogate in September.
For the first half, the group’s box office was up 50% on the previous year, which it said reflected favourably versus a market movement of +0.5%. This resulted in the group’s market share increasing to 1.46% for the period (30 June 2015: 0.94%).
The company said: “We feel that Everyman is enhancing its position as a well-respected brand in the UK leisure market and is attracting increased interest from developers looking for a cinema/leisure operator that appeals to a more discerning customer within a more intimate environment.”
The group said it continued to find attractive new site opportunities for future investment. Contracts have now been conditionally exchanged on sites at Horsham (expected to open in 2018), Durham (2019) and Wokingham (2019). These are in addition to those previously announced: Chelmsford (December 2016), Stratford-upon-Avon (2017) and Kings Cross (2017). It was previously expected that a new venue in Cirencester would open in 2017, however, the longstop date in the contract was reached without necessary conditions being satisfied, so the company has exercised its option to exit the lease.
The company said its underlying operating profit before acquisition costs, pre-opening costs, share-based payment expenses, depreciation and amortisation was £1.34m (30 June 2015: £704,000, full year to 31 December 2015: £1,.7m).
The group incurred pre- opening expenses of £281,000 in the period (30 June 2015: £347,000, full year to 31 December 2015: £775,000) which reflected the reduced opening of new venues during the period.
The company incurred a loss after tax for the period of £670,000 (30 June 2015: a loss of £430,000, full year to 31 December 2015: a loss of £556,000).
During the period the group entered into a new debt facility with Barclays plc. The facility is an £8m three-year revolving loan facility.
The company said: “Since the period-end, trading has been in line with expectations continuing a reasonable overall summer in the cinema market. We believe that it is a good period for film-making, with increasing confidence in the quality and quantity of film content over the coming years.”