Everyman Media Group has announced the sudden departure of CEO Richard Scrimgeour, following a significant profit warning that sent the company’s shares tumbling. Scrimgeour joined ATC’s Board in January 2021. During his tenure, the company’s stock price nosedived by a historic 76%. His departure follows just weeks after a disappointing trading update that cited tougher-than-expected trading conditions.
The company runs 49 venues throughout the United Kingdom and is known for its plush recliner seating and chef-driven menus. It projects total operating revenues of £114.5 million for 2025. This figure is a £121.5 million or 6.5% downward revision from earlier forecasts. Everyman Media Group is promising such good value that we’ll see underlying earnings of at least £16.8 million this year. This figure is significantly less than their previous estimate of £19.9 million.
The trading update published on December 10 came crashing down with bad news. It said that sales in the final month of the year were “softer than expected.” In the wake of this announcement, the company’s stock tanked 20%, immediately triggering a reset on leadership and vision.
Scrimgeour’s tenure, though, was not without challenges, including steering the association through the unprecedented impact of the Covid-19 pandemic. He was instrumental in making sure the business emerged out of it stronger and better and took the business through that recovery. Compared to that health crisis, he’s more than tripled his revenue.
“Richard played a pivotal role in the team that successfully led the business through its recovery from Covid, more than doubling revenue,” – Philip Jacobson, Chairman of Everyman Media Group.
With Scrimgeour’s exit, the company hopes to soon implement a turnaround program. Chairman Philip Jacobson could not be more clear about the need to be strategic in the changes we pursue.
“We are opting to remove it from the public spotlight to enact a turnaround programme,” – Mr. Coatsworth.
Before joining Everyman Media Group Scrimgeour was head of Cote Brasserie, a chain of French restaurants since 2015. His time in the hospitality sector provided him with a fresh pair of eyes to examine the cinema industry. It was only a temporary measure that proved insufficient to shore up investor confidence amid drastic market volatility.
Going forward, Everyman Media Group will need to balance this change as they begin to pay for it with the clear concerns expressed by investors and stakeholders. The company’s prospects to recover from its current fiscal strife will be heavily reliant on its upcoming plans and leadership vision.