Everyman Media : Annual Report and Financial Statements – Year Ended 2024

Everyman Media Group PLC

Registered number 08684079

Annual report and financial statements

Year ended

02 January 2025

Everyman Media Group PLC

Annual report and financial statements

Contents

Page

Company information	3
Chairman's statement	4
Chief Executive's statement	5
Strategic report	9
Climate-Related Financial Disclosures	11
Finance Director's statement	15
Companies Act Section 172 statement	18
Corporate governance	21
Audit Committee report	25
Remuneration Committee report	27
Directors' report	30
Statement of Directors' responsibilities in respect of the annual report and financial statements	35
Independent auditor's report to the members of Everyman Media Group PLC	36
Consolidated statement of profit and loss and other comprehensive income	43
Consolidated balance sheet	45
Consolidated statement of changes in equity	46
Consolidated cash flow statement	47
Notes to the financial statements	48
Company balance sheet	80
Company statement of changes in equity	81
Notes to the Parent company financial statements	82

2

Everyman Media Group PLC

Annual report and financial statements

Company information

Directors	Function
Adam Kaye	Executive Director
Alexander Scrimgeour	Chief Executive Officer
Charles Dorfman	Non-Executive Director
Maggie Todd	Non-Executive Director
Michael Rosehill FCA	Non-Executive Director
Philip Jacobson FCA	Non-Executive Chairman
Ruby McGregor-Smith FCA	Non-Executive Director
William Worsdell FCA	Finance Director
Company secretary
One Advisory Limited
Registered office address of the Company
Studio 4
2 Downshire Hill
London
NW3 1NR
Company registration number
08684079 (registered in England & Wales)
Nominated adviser and broker
Canaccord Genuity Limited
88 Wood Street
London
EC2V 7QR
Auditor to the Company
BDO LLP
R+
2, Blagrave Street
Reading
Berkshire
RG1 1AZ
Solicitor to the Company
Howard Kennedy
No. 1 London Bridge
London
SE1 9BG
Registrar to the Company
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol
BS13 8AE

3

Everyman Media Group PLC

Annual report and financial statements

Chairman's statement

Review of the Year

I am pleased to report another year of operational and strategic progress. Admissions rose to 4.3 million, a 15.0% increase on last year (2023: 3.7 million). Average ticket price climbed to £11.98, a 2.8% rise on last year (2023: £11.65), while Food & Beverage Spend per Head increased to £10.64, up 3.4% on last year (2023: £10.29). Most encouragingly, our market share grew to 5.4%, a 12.5% increase on last year (2023: 4.8%).

2024 was not without challenges. The Screen Actors Guild-American Federation of Television and Radio Artists ("SAG-AFTRA") and Writers Guild of America ("WGA") strikes of 2023 resulted in a disappointing number of releases in the second quarter.

In the fourth quarter we faced a number of other challenges. Most notable was the failure of Joker: Folie a Deux to excite cinemagoers in October, reaching just £10.3m at the UK Box Office in comparison to 2019's Joker, which grossed over £58.0m. Whilst trading in November and December was very strong in absolute terms, congestion in the film slate prevented major releases from reaching their full box office potential.

We are mindful of the ongoing cost challenges facing the broader hospitality sector and continue to ensure that our cost base is efficient.

During 2024 we opened three new venues, in Bury St Edmunds, Cambridge and Stratford International. As ever, each of these venues highlight the outstanding quality and unique aesthetic that has become associated with Everyman.

I would like to extend my thanks to our venue and Head Office teams, who performed outstandingly in 2024.

Outlook

Despite the challenges arising from the announcement of increases to National Living Wage and the lowering of National Insurance thresholds in November's Autumn Statement, we look to 2025 with confidence. With the impact of the SAG-AFTRA and WGA strikes firmly behind us, we look forward to a robust lineup of releases distributed more evenly throughout the year.

We continue with our programme of measured organic expansion. New venues include Brentford and The Whiteley (Bayswater), a landmark re-development of the historic West End shopping centre. Notwithstanding the broader consumer environment, we are optimistic about the year ahead. We remain mindful of net debt and further reducing leverage over the next two years.

Philip Jacobson

Non-Executive Chairman

14 April 2025

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Everyman Media Group PLC

Annual report and financial statements

Chief Executive's Statement

Business Model and Growth Strategy

The Everyman brand is positioned as a premium offering within the UK leisure market. The Group's venues are predominantly located in vibrant town-centres, and designed to provide a welcoming, high-quality environment. Everyman's core focus is on delivering exceptional hospitality, which is reflected in its venues, food and beverage options, staff, and film programming.

The Group continues to see significant long-term growth potential across the UK. Measured expansion remains a focus, with new site openings and selective acquisition opportunities under evaluation. Everyman is committed to continually enhancing the customer experience, in-venue service, film curation and investing in the development of its food and beverage range. Targeted marketing supports these efforts, helping to build brand awareness and drive sustained revenue growth.

Financial Overview

Despite a heavily interrupted film slate due in the main to the impact of the WGA and SAG-AFTRA strikes, we saw strong growth in all key revenue generating metrics in 2024. Admissions increased to 4.3m, a 15.0% increase on last year (2023: 3.7m). Average Ticket Price increased to £11.98, a 2.8% increase on last year (2023: £11.65) and Food & Beverage Spend per Head increased to £10.64, a 3.4% increase on last year (2023: £10.29). More pleasing still, our Market Share increased to 5.4%, a 12.5% increase on last year (2023: 4.8%).

We faced some significant cost headwinds in 2024, the most notable being a £1.5m increase in People costs, directly attributable to the National Living Wage. Additionally, having rolled off a favourable long-term contract, we faced a £1.2m increase in the cost of our Utilities. Despite these headwinds and challenges associated with the 2024 film slate, Adjusted EBITDA was in line with the prior year at £16.2m (2023: £16.2m).

The Group's operating loss increased to £3.4m (2023: £0.1m) mainly as a result of additional depreciation charges on the expanded estate

and an impairment charge of £2.6m (2023: £0.7m). The loss before tax increased to £10.2m (2023: £5.5m) due to additional interest charges on lease liabilities relating to the increased number of venues. These metrics are explored in more detail in the Finance Director's Statement.

We continued our programme of measured organic expansion, opening three new venues in Bury St Edmunds, Cambridge and Stratford International. As such, the cash flow statement for the year includes £15.4m on the acquisition of Property, Plant & Equipment (2023: £18.6m). This amount also includes work in progress on our venues in Brentford and The Whiteley (Bayswater), which both open in 2025.

The Group has been able to finance the majority of its expansion through £21.6m of operating cash flow (2023: £17.9m) and received lease

incentives of £5.7m (2022: £4.1m) in the form of landlord contributions to venue fit out costs. This illustrates the ongoing appeal to have Everyman as an anchor leisure tenant.

We were pleased to reduce net banking debt to £18.1m (2022: £19.4m). With capital expenditure on new openings excluded, the Group would have generated significant free cash flow.

Everyman continues to see the property acquisition landscape as highly favourable, with the majority of transactions attracting significant lease incentives and generating strong investment returns. The Board continues to be mindful of making the most of these attractive market conditions whilst maintaining sensible levels of banking debt and reducing leverage. As a result, following the opening of a new venue in Brentford in March, the Board expects to open one further venue in 2025, at The Whiteley in Bayswater. Two further venues are expected to open in 2026, plus our fully fitted-out venue in Durham, pending completion of the wider Milburngate scheme.

The Directors consider that the Group balance sheet remains robust, with sufficient working capital to service ongoing requirements and to support our growth going forward.

5

Everyman Media Group PLC

Annual report and financial statements

Chief Executive's Statement (cont.)

KPIs

The Group uses the following key performance indicators, in addition to total revenues, to monitor the progress of the Group's activities:

	Year ended	Year ended
	02 January	28 December
	2025	2023
	(53 weeks)	(52 weeks)
Admissions	4,312,708	3,749,120
Paid for average ticket price	£11.98	£11.65
Food and beverage spend per head	£10.64	£10.29

New Venues

During 2024 the Group opened three new venues: a three-screen venue in Bury St Edmunds in February 2024, a five-screen venue in Cambridge in November 2024 and a three-screen venue in Stratford International in December 2024. Management is confident that they will create significant value moving forward, with new venues typically taking four years to reach full maturity.

In 2025, the Group plans to open venues at The Whiteley (Bayswater) and Brentford. Beyond 2025, other venues are in advanced stages of negotiation; however, the Board remains mindful of measured expansion funded mainly through free cash flow.

Our fully fitted out venue in Durham is ready to open, pending practical completion of the wider Milburngate scheme. Our current expectation is that the venue will open in Q4 2026.

At the end of the year, the Group operated 47 venues with 163 screens:

Location	Number of Screens	Number of Seats
Altrincham	4	247
Bath	4	229
Birmingham	3	328
Bristol	4	476
Bury St. Edmunds	3	228
Cambridge	5	321
Cardiff	5	253
Chelmsford	6	411
Cheltenham	5	369
Clitheroe	4	255
Edinburgh	5	407
Egham	4	275
Esher	4	336
Gerrards Cross	3	257
Glasgow	3	201
Harrogate	5	410
Horsham	3	239
Leeds	5	611
Lincoln	4	291
Liverpool	4	288
London, 14 venues	40	3,383
Manchester	3	247
Marlow	2	161
Newcastle	4	215
Northallerton	4	274
Oxted	3	212
Plymouth	3	190
Reigate	2	170
Salisbury	4	311

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Everyman Media Group PLC

Annual report and financial statements

Stratford-Upon-Avon	4	384
Walton-On-Thames	2	158
Winchester	2	236
Wokingham	3	289
York	4	329
	163	12,991

The Market

The SAG-AFTRA and WGA strikes, which ran from May to November 2023, resulted in delays to both the production and promotion of certain titles. The disruption was most pronounced in the second quarter of 2024 which, following the delay of Deadpool & Wolverine from May to July, saw few major releases of particular note. As a direct result of the strikes, 2024 was the poorest performing second quarter since 2008, with the UK Box Office 25% down on 2022 and 16% down on 2023.

In October we saw the critical and commercial disappointment of Joker: Folie a Deux, which grossed just £10.3m at the UK Box Office. This was a drop of over 80% on the original Joker, which reached over £58.0m in 2019. The failure of the film to connect with audiences resulted in a dry October slate and a difficult start to the fourth quarter.

There were, however, a number of highlights to the 2024 film slate. We started the year with a strong awards season, with titles such as Poor Things, The Holdovers and All Of Us Strangers playing particularly well to the Everyman audience. Dune: Part II captivated our guests during March and Deadpool & Wolverine was the summer's major release, grossing £58m in the UK.

November saw the major blockbusters Paddington in Peru, Gladiator II, Wicked and Moana 2 release in consecutive weeks. Whilst each title delivered in excess of £30m at the UK Box Office, the compressed nature of their release dates prevented the films from reaching their full box office potential.

The Group was pleased that market share for the year was 5.4%, up from 4.8% in 2023. Positive momentum in market share has continued into the new year.

Key Business Developments

We grew our Membership base during the period, reaching 56,486 members by the end of the year (2023: 34,151), an increase of over 65%. Focus groups conducted during 2023 underscored the potential value of expanding our membership base; as a result, we introduced

• new strategy that included on-screen, out-of-home, and digital advertising, and the introduction of ticket bundles (which allow members to extend the number of visits within their existing membership term). While Membership remains an important driver of brand advocacy, its primary benefit is increased guest frequency, which supports higher admissions and, consequently, contributes to incremental Revenue and EBITDA.

In September we launched our new App, which delivered improvements in functionality and user experience, as well as adding Android to existing iOS compatibility for the first time. The new App also gives users the ability to purchase Memberships and Gift Cards, as well as including additional features such as favourite venues and watchlists. Since launch we have seen a 52% increase in downloads and a 22% increase in sessions, as well as a 37% increase in transactions completed.

Our Food & Beverage offer continues to go from strength to strength. During the year we added new sharing dishes such as Serrano Ham and Cheese Croquetas, Achiote Chicken Skewers and Honey and Mustard Sausages, as well as a new Korean Fried Chicken Burger, Fig & Prosciutto Pizza and a Baked Camembert. New drinks included Rum Punch, Raspberry Mojito and Watermelon and Elderflower Coolers.

We also completed the successful roll out of at-seat QR codes which give guests the ability to order Food & Beverage from mobile devices. This feature has significantly increased repeat orders, with 18.3% of orders placed through this process being second orders before the film starts. This is one of the key contributing factors to the year-on-year increase in Food & Beverage Spend per Head.

Our Food and Beverage is highly complementary and enhances the Everyman proposition. We expect that continued innovation will continue to drive increases in spend per head going forward.

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Everyman Media Group PLC

Annual report and financial statements

Chief Executive's Statement (cont.)

People

Everyman would not be the business that it is without our exceptional and dedicated venue and Head Office teams. We are consistently focused on training initiatives in order to deliver our unique brand of hospitality and exceptional guest experiences. In 2024, we made improvements to our digital training platform, launched our Kitchen Apprenticeship programme and established an operational training team.

We opened three venues in 2024 and warmly welcome our latest team members who are delivering the Everyman experience in these new locations. We also extend our thanks to our experienced teams, who have expertly trained our new people.

We are delighted that so many people are choosing to start and develop their careers at Everyman, and internal progression remains a significant focus for us.

Outlook

Despite what has been a challenging year, we remain excited about the future of Everyman. With our Membership base increasing at an accelerated pace and our market share continuing to improve, it remains evident that the Everyman model has become the most relevant form of cinema.

We continue our programme of prudent expansion. The deal landscape remains favourable and landlords continue to seek out Everyman as a high quality, premium leisure tenant. In 2025 we will open two new venues, and a further three in 2026, with several further exciting opportunities in the pipeline. We continue to focus on controlling net debt and reducing leverage, with the majority of organic expansion financed through free cash flow.

We look forward to a well-rounded and more consistently-phased film slate in 2025, with disruption from the SAG-AFTRA and WGA strikes now concluded. Bridget Jones: Mad About the Boy has delivered an encouraging start to the year, and further key titles include Mission Impossible: The Final Reckoning and Lilo & Stitch in May, F1 in June, Superman in July, Downton Abbey 3 in September, Wicked: Part 2 in November and Avatar: Fire and Ash in December.

Alexander Scrimgeour

CEO

14 April 2025

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Everyman Media Group PLC

Annual report and financial statements

Strategic Report

The Directors present their strategic report for the Group for the year ended 02 January 2025 (comparative period: 52 weeks 28 December 2023).

Review of the business

The Group made a loss after tax of £8.5m (2023: £2.7m). Non-GAAP adjusted EBITDA was £16.2m (2023: £16.2m).

The Finance Director's Statement contains a detailed financial review. Further details are also shown in the Chief Executive's Statement and consolidated statement of profit and loss and other comprehensive income, together with the notes to the financial statements.

Principal risks and uncertainties

The Board considers risk assessment to be important in achieving its strategic objectives. There is a process of evaluation of performance targets through regular reviews by senior management to forecasts. Project milestones and timelines are reviewed regularly.

• Film release schedule - The level of the Group's box office revenues fluctuates throughout the course of any given year and are largely dependent on the timing of film releases, over which the Group has no control. The film slate in 2024 was impacted by the 2023 WGA and SAG-AFTRA strikes, notably resulting in a shortage of content in the second quarter of the year. The Group mitigates variable box office revenue through high-quality programming, widening the sources for new content and creating other strands such as Throwbacks and Everyman Beyond, which showcase older and independent titles. The Group also focuses on creating a great overall experience at venues, independent from the films themselves.

• Consumer environment - A reduction in consumer spending because of broader economic factors could impact the Group's revenues. Higher interest rates have sustained during 2024, putting pressure on disposable incomes, although the Board considers that the impact on the Group has been minimal. Historically, the cinema industry has been resilient to difficult macroeconomic conditions, with it remaining an affordable treat during such times for most consumers. The Group continues to monitor long term trends and the broader leisure market.

• Alternative media channels - The proliferation of alternative media channels, including streaming, has introduced new competitive forces for the film-going audience, which was accelerated by the pandemic. To date this has proven to be a virtuous relationship, both increasing the investment in film production and further fuelling an overall interest in film with customers of all ages. The Board considers that the Everyman business model works well alongside other film channels. It remains an ever-present caution that to maintain this position we must continue to deliver an exceptional experience to deliver real added value for our customers.

• Inflation - There is a risk to the cost base from inflation, given the current economic and geopolitical environment. To mitigate this, the Group enters into long-term contracts and works very closely with suppliers to improve efficiencies and limit costs. In addition, and thanks to its size, the Group can take advantage of lower price points for higher volumes, and payroll costs are closely monitored and managed to the level of admissions.

• Climate change - The Group's business could suffer because of extreme or unseasonal weather conditions. Cinema admissions are affected by periods of abnormal, severe, or unseasonal weather conditions, such as exceptionally hot weather or heavy snowfall. Climate change is also high on the agenda for investors and increasingly institutional investors are looking closely at the actions being taken by business to reduce carbon emissions. The Group is working towards developing a net zero carbon emissions strategy to mitigate this risk. The Group is compliant with climate-related financial disclosure requirements under the Companies (Strategic Report) (Climate-Related Financial Disclosure) Regulations 2022 ("CRFD"), which are aligned to the Taskforce on Climate-Related Financial Disclosures framework ("TCFD").

• Data and cyber security - The possibility of data breaches and system attacks would have a material impact on the Group through potentially exposing the business to a reduction in service availability for customers, potentially significant levels of fines, and reputational damage. To mitigate this risk, the IT infrastructure is upgraded to ensure that the latest security patches are in place and that ongoing security processes are regularly updated. This is supported by regular pen testing and back-ups.

• Film piracy - Film piracy, aided by technological advances, continues to be a real threat to the cinema industry generally. Any theft within our venues may result in distributors withholding content to the business. Everyman's typically smaller, more intimate auditoria, with much higher occupancy levels than the industry average, make our venues less appealing to film thieves.

• Reputation - The strong positive reputation of the Everyman brand is a key benefit, helping to ensure the successful future performance and growth which also serves to mitigate many of the risks identified above. The Group focuses on customer experience and monitors feedback from many different sources. A culture of partnership and respect for customers and our suppliers is fostered within the business at all levels. We continue to see our market share increase and receive extremely positive customer feedback.

9

Everyman Media Group PLC

Annual report and financial statements

Strategic Report (cont.)

Financial risks

The Group has direct exposure to interest rate movements in relation to interest charges on bank borrowings, with a 1% increase in rates resulting in an increase in interest charges of £0.3m on current forecast borrowings over the next twelve months. The Board manages this risk by minimising bank borrowings and reviewing forecast borrowing positions.

The Group takes out suitable insurance against property and operational risks where considered material to the anticipated revenue of the Group.

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