Everyman Cinemas is set to become the crown jewel of Elephant & Castle's £500m regeneration in South London, as the upmarket chain prepares to open a new five-screen venue. The move marks Everyman's 17th location in the capital and is expected to benefit from increased footfall generated by 'The Elephant' development – a vast mixed-use project aimed at revitalising the area.
The company has faced a tough economic landscape, with no reported profit since 2019. Its latest financials show a pre-tax loss of £10m in the year to January, despite a nine per cent rise in revenue to £117m. However, recent trading updates suggest a recovery is underway, with admissions growing by 23 per cent and revenue jumping by 27 per cent to £59m in the 21 weeks to May.
Everyman's chief executive Farah Golant is optimistic about the new opening, highlighting Elephant & Castle's vibrant community. The strategic move aims to capitalise on the extensive redevelopment, which includes a new town centre featuring retailers such as M&S and Pret A Manger. The project has also secured approval for an additional 507 homes, with 49 designated for affordable rent – underscoring the scale of the regeneration.
The cinema chain's share price took a hit last month following its announcement regarding a likely delisting from AIM. This decision coincides with private equity firm Blue Coast Capital increasing its stake in Everyman to over 29 per cent, raising concerns about a potential takeover bid. The implications for investors on the junior market are significant, as the company's delisting could impact share accessibility and liquidity.
Aidan Malia, senior director of The Elephant development, hailed the addition of Everyman as a significant milestone for the new town centre. The broader regeneration project aims to create a dynamic hub for residents and visitors, integrating leisure, retail, and residential offerings. This substantial investment in urban regeneration reflects confidence in the area's future economic potential.