Cinema operator Everyman Media Group plc (LON:EMAN) has posted a 132% surge in full year underlying earnings today as revenues grew on the expansion of the business.
Adjusted underlying earnings (EBITDA) rose to £4.0mln in the year ended 29 December 2016 from £1.7mln the previous year.
Revenue jumped 45% to £29.6mln from £20.3mln, boosted by the addition of four new Everyman cinemas, a rise in admissions, an increase in box-office pricing and an improved spend per head on food and beverages.
Admissions increased 40% to 1.7mln from 1.2mln a year earlier.
Everyman said the UK cinema market continues to be dominated by Cineworld, Odeon and Vue but the group is investing in new sites and in existing venues to grow market share. The company is planning on opening a further six venues.
“The group proposition is based on unique, high quality, intimate venues, usually of a smaller capacity and in relatively central high street locations,” the company said.
Alongside its results, Everyman announced it had agreed a new debt facility with Barclays on 10 March for up to £10mln to fund its expansion plans.
The expansion will also be funded by exisiting cash resources. Cash held at the end of 2016 was £1.5mln, down from £9.1mln the previous year, reflecting investment on the expansion.
Everyman said it was not recommending a dividend at this stage.
Looking ahead, the group said: "The directors believe that the cinema market is in a strong position overall and the breadth and quality of film releases will continue to support our growth."