The chief executive of Everyman Media Group has stepped down with immediate effect, less than three weeks after the company warned that trading had been weaker than expected and cut its financial forecasts.
Sudden Leadership Change
Everyman said on Monday that Alex Scrimgeour was leaving the business and would be replaced on an interim basis by non-executive director Farah Golant. The announcement follows a trading update issued on 10 December that lowered expectations for revenue and earnings, triggering a 20% fall in the company’s share price.
The cinema chain operates 49 venues across the UK and is positioned as an upmarket operator, offering luxury seating and expanded food and drink menus.
Forecast Cuts And Trading Pressures
In its December trading update, Everyman said end-of-year trading had been weaker than anticipated. The company now expects revenue of £114.5 million for 2025, compared with a previous forecast of £121.5 million. Underlying earnings are expected to reach at least £16.8 million, down from an earlier estimate of £19.9 million.
The downgrade marked a reversal from earlier expectations and raised concerns about the pace of recovery in the cinema sector.
Scrimgeour’s Tenure And Board Response
Scrimgeour became chief executive in January 2021, joining Everyman after leading French restaurant chain Cote Brasserie since 2015. During his time at the cinema group, the business navigated the reopening of venues following Covid-related closures.
Chairman Philip Jacobson said Scrimgeour had played a pivotal role in leading the company through its recovery from the pandemic and noted that revenue more than doubled during that period.
Market Commentary And Competitive Pressure
Dan Coatsworth, head of markets at AJ Bell, said the outgoing chief executive faced multiple challenges from the outset, including the pandemic and cost-of-living pressures. He added that Everyman’s share price fell by 76% during Scrimgeour’s tenure and said the business had lost momentum.
Coatsworth said the chain had once offered a distinctive proposition, but competitors had adopted similar features. Rivals such as Vue and Odeon have installed reclining seats and expanded food and bar offerings, reducing differentiation in the market.
Ownership And Strategic Questions
Coatsworth also pointed to the role of Blue Coast Private Equity, which owns a 29% stake in Everyman. He said it would be notable if the investor chose to acquire the remainder of the business and take it private as part of a turnaround effort.
Featured image credits: Wikimedia Commons
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