Upmarket cinema chain Everyman has announced it is considering abandoning its listing on London’s junior stock market following pressure from top investors and amid a challenging period for its share price.
Shareholder Pressure for Delisting
The company informed investors that its three largest shareholders are advocating for the cancellation of trading its shares on the AIM (Alternative Investment Market). These shareholders, who also serve as directors and collectively hold a 45.6% stake, are supported by additional investors with at least an 11% shareholding who would be “supportive” of delisting plans, according to the board.
Everyman emphasized that there is no certainty the delisting will proceed and that any decision would require shareholder approval. The company did not disclose specific reasons for the potential move, but it coincides with its share price dropping to historic lows.
Share Price Decline
Currently, Everyman shares trade at approximately 35p, less than half their value when trading began 13 years ago and a significant drop from the all-time high of nearly £2.50 per share in 2018. The share price suffered during the pandemic when cinemas were forced to close and has been steadily declining for several years.
Financial Performance Improvement
Despite the share price struggles, Everyman reported improving financial performance in recent months, driven by a strong lineup of film releases. Cinema admissions reached 2.2 million over the 21 weeks to May 28, a 23% increase year-on-year, while revenues rose by over a quarter to £58.5 million. Adjusted earnings grew by 45% year-on-year to £9.4 million during the period.
The company noted that recent films, including Wuthering Heights, Hamnet, Marty Supreme, Project Hail Mary, and The Devil Wears Prada 2, have resonated well with customers and helped gain market share.
About Everyman
Everyman operates 49 cinemas across the UK, offering a premium experience with smaller theaters, sofas, and a food and drinks menu delivered to seats. It also offers memberships ranging from £95 to £680 annually, providing free tickets, discounts, and previews.
