Key facts
- Luxury cinema chain Everyman is likely to delist from London's AIM market.
- Shareholders, including a private equity firm, are pressuring the company to delist.
- Blue Coast Capital, a private equity firm, holds over 29% of Everyman's shares and is speculated to be preparing a takeover bid.
- Everyman has not turned a profit since 2019 and reported a £10 million pre-tax loss in the last fiscal year.
- The company's share price has fallen by nearly 80% in the last five years.
Luxury cinema chain Everyman is poised to delist from London's AIM market following significant pressure from its shareholders. The company announced on Tuesday that it is likely to propose a delisting, a move that sent its share price plummeting.
The decision comes after a period of poor financial performance, with Everyman failing to turn a profit since 2019 and reporting a £10 million pre-tax loss in the year to January, despite a 9% increase in revenue to £117 million. However, the company did report a 23% growth in admissions and a 27% jump in revenue to £59 million in the 21 weeks to May.
Key to the delisting push are directors Adam Kaye, Charles Dorfman, and Michael Rosehill, who collectively hold 45.6% of the company's issued capital and have informed the board of their desire to quit the stock exchange. The board also believes that an additional 11% of shareholders support this move.
Michael Rosehill is also a director at private equity firm Blue Coast Capital, which has amassed a stake of over 29% in Everyman. Analysts have long speculated that Blue Coast Capital is preparing a takeover bid, a move that would be triggered if they reached a 30% equity threshold. IG's chief market analyst Chris Beauchamp noted that Blue Coast Capital appears intent on making a bid to turn the company around, highlighting the continued decline in Everyman's share price without a clear strategy.
Andrew Renton, research director at Cavendish, suggested that the delisting plans make a bid from Blue Coast Capital more likely, as investors selling shares to avoid holdings in a private company could be acquired by the firm. Renton added that while delisting could provide Everyman with more time for a turnaround, it would not alter the challenging dynamics of the cinema market.
Everyman appointed Farah Golant as its permanent chief executive in April, succeeding Alex Scrimgeour, who departed in December following a profit warning.