Everyman Media Group today confirmed the departure of its chief executive, Philip Scrimgeour. The company has provided these updates only weeks after issuing an unusually large profit warning. Scrimgeour, who took the helm in January 2021, was soon navigating an avalanche of challenges. The longtail effect of the pandemic and the quickly arriving cost-of-living crisis tested his leadership like none other. The news follows a similarly stark trading update on December 10. This announcement revealed major downward revisions of the company’s top-line and bottom-line earnings projections.
In that same trading update, Everyman Media Group forecast revenues of £114.5 million by 2025. This represents an increase on their previous forecast of £121.5 million. The company upgraded its underlying earnings outlook to at least £16.8 million. This is a £1.3 million drop from the last forecast of £19.9 million. In the wake of this announcement, the company’s stock shares tanked 20%, a huge 76% nosedive since new leader Scrimgeour took the helm.
Dan Coatsworth, head of markets at AJ Bell, responded to the difficulties Scrimgeour has encountered. Yet, he illustrated how difficult it was for Scrimgeour to lead through the perfect storm of crises that defined his tenure. This past year, Coatsworth stressed the importance for Everyman Media Group to keep on top of balancing these challenges.
“The outgoing boss had to deal with a succession of crises,” – Dan Coatsworth
During Scrimgeour’s time, Everyman Media Group grew to 49 venues in UK currently. It quickly became known for providing a first-class cinema experience, with gourmet menus and extra-wide recliners to boot. During his tenure, the company was first to introduce bars within their theaters to improve the customer experience.
Even with these efforts, Chairman Philip Jacobson stressed a need for a turnaround plan. He acknowledged Scrimgeour’s contributions to the company’s recovery from COVID-19, stating that he “played a pivotal role in the team that successfully led the business through its recovery from Covid, more than doubling revenue.” Jacobson said the time might have come to pursue a new approach.
Coatsworth further remarked on the company’s potential direction: “They might be opting to remove it from the public spotlight to enact a turnaround programme.” That would imply that down the line, Everyman Media Group is looking at even more extreme measures in order to re-structure and re-invigorate its business.
Every cinema operator is facing the same challenge of post-pandemic recovery and consumer shift to at-home viewing. The success of Everyman Media Group will ultimately be based on its ability to recalibrate its game plan to fit these new, unforeseen market circumstances. The search for Scrimgeour’s successor will be critical as the company seeks to regain investor confidence and adapt to a challenging economic landscape.