Boss of Everyman Cinema Chain Departs After Profit Warning
The leadership of Everyman cinema chain is changing as Alex Scrimgeour steps down just weeks after the company issued a profit warning. This sudden transition raises questions about the future of the brand, particularly in a challenging market.
Key Details of the Departure
– Immediate Departure: Alex Scrimgeour’s exit was announced on Monday, effective immediately.
– Interim Leadership: Non-executive director Farah Golant will take over on an interim basis.
– Profit Warning: This leadership change follows a trading update on December 10, where Everyman reported weaker-than-expected trading, resulting in a 20% drop in its share price.
Financial Context
– Revenue Forecasts: Everyman Media Group revised its revenue forecast down to £114.5 million for 2025, and underlying earnings are now projected at a minimum of £16.8 million, compared to prior forecasts of £121.5 million and £19.9 million.
– Market Position: Everyman operates 49 venues across the UK, renowned for luxury seating and gourmet food offerings.
Leadership Achievements and Challenges
– Role in Recovery: Chairman Philip Jacobson acknowledged Mr. Scrimgeour’s crucial role in leading the company’s recovery from the pandemic, during which revenue more than doubled.
– Challenges Faced: Industry analyst Dan Coatsworth noted that Scrimgeour’s tenure was marked by crisis management, including the impacts of the pandemic and the ongoing cost-of-living challenges.
– Declining Share Price: Despite some recovery within the cinema industry post-pandemic, Coatsworth pointed out that Everyman’s share price plummeted by 76% during Scrimgeour’s leadership, prompting concerns about the brand’s competitiveness.
Competitive Landscape
– Market Imitation: Once seen as offering a unique experience, Everyman’s upscale concept has been emulated by larger rivals like Vue and Odeon, which have introduced features like reclining seats and in-cinema bars.
– Future Considerations: There is speculation about whether Blue Coast Private Equity, which holds a 29% stake in Everyman, might consider taking the chain private to implement a turnaround strategy.
As the cinema landscape continues to evolve, it remains to be seen how Everyman will adapt post-Scrimgeour. The future of this iconic brand hangs in the balance amid increasing competition and shifting consumer preferences.