Everyman's growth trajectory on track, says Canaccord Genuity

Everyman Media is "well positioned for future success", according to Canaccord Genuity, which reiterated a 'buy' rating on the company following its 2023 results on Tuesday.

The upmarket cinema chain reported full-year revenues of £90.9m, up 15.3% on 2022, on the back of an 9.7% increase in admissions and increases in both the average ticket price and average spent on food and drink. Adjusted EBITDA came in at £16.2m, up 11.7% from 2022.

"EMAN delivered a record performance in FY23, with double-digit revenue and adjusted EBITDA growth, increased market share and an expanded site portfolio, demonstrating further financial and operational progress despite a challenging consumer backdrop," said analyst Mark Photiades.

Looking ahead, the company said positive momentum continued into the first quarter of 2024, with strong trading driven by 'Dune: Part II' and high-quality awards content, and said that full-year results should "outperform 2023".

According to Photiades, Everyman's "near-term growth trajectory remains on track". He continued: "With multiple attractive attributes and strong forecast growth in revenues and profits, coupled with a robust balance sheet, we believe the brand is well positioned for future success."

The analyst noted that Everyman's shares trade at an EV-to-EBITDA multiple of 9.6x on 2024 estimates, falling to 7.8x on 2025 numbers, which he said "represents good value".

The broker has a 200p target price for the shares, suggesting significant upside from Tuesday morning's price of 60p, up 6.2% on the day.