Full-Year Results 29 March 2021

Results for the 52 weeks to 27 December 2020

29 March 2021

Ten Entertainment Group plc

Full-Year Results

Robust response to Covid protects a strong underlying business well placed to return to growth

Ten Entertainment Group plc ("Ten Entertainment" or "The Group"), a leading UK operator of 46 family entertainment centres, today announces its audited full-year results for the 52 weeks to 27 December 2020. The year included 11 weeks of normal trading conditions, 25 weeks of closure and 16 weeks of disrupted trading due to Covid-19 restrictions.

Since the outbreak of the Covid-19 pandemic, the Group's priority has been the health and safety of our employees and customers and securing the company both financially for our investors and operationally for all our colleagues.

Business highlights

Strong controls maintained the business in excellent shape

  • Swift and decisive action taken to secure financial security for over 18 months of closure

  • Over £18m of liquidity headroom still remains in place as at 26 March

  • 75% reduction in non-property related cash spend during Lockdown

An underlying strong business that continued to develop

  • Good progress in developing our digital platform

  • Next generation development in Manchester exceeded expectations

  • Underlying model still offers significant cash on cash returns to investors

  • Long-standing 8-year track record of organic growth and >30% returns on acquisition investment

Well positioned for growth and expansion post Covid

  • Strong demand in the summer when the business reopened after first Lockdown

  • The business is operationally fit for purpose; all local management and teams remain in place

  • Well placed to benefit long-term from reducing capacity in UK leisure and hospitality

Financial Summary

52 weeks ended 27th December

52 weeks ended 27th December

52 weeks ended

29th December

Movement

2019

2020

2020

IFRS 16

IAS 17

IAS 17

Total sales

£36.3m

£36.3m

£84.1m

(56.9%)

Like-for-like sales growth1

(17.4%)

(17.4%)

+8.0%

(25.4%pts)

Group adjusted EBITDA1

£3.3m

(£7.9m)

£23.6m (£31.4m)

Group adjusted (loss)/profit before tax1

(£19.1m)

(£16.3m)

£15.4m (£31.7m)

Reported (loss)/profit after tax

(£17.7m)

(£12.2m)

£9.0m (£21.3m)

Adjusted (loss)/earnings per share

(23.2)p

(17.9)p

19.3p (37.3)p

Basic (loss)/earnings per share

(26.3)p

(18.1)p

13.9p (32.0)p

Outlook

  • Intend to reopen all centres on 17 May based on Government roadmap

  • Only £6.7m of 2020 cash deferrals fall due in 2021; well within liquidity headroom

  • Strategy remains unchanged:

    • o Transform the customer experience

    • o Inward investment

    • o Estate expansion

  • Initial focus on low capital enhancements to customer experience

  • Will continue to develop estate pipeline for future growth, taking advantage of new opportunities

Leadership

Following a hugely successful time with The Group, leading the business to consistent, profitable growth through some momentous milestones, Nick Basing has announced that now is the right time to hand over to his successor. He will be stepping down in September. Nick's leadership and passion has created a modern and dynamic Group that is at the forefront of delivering a memorable leisure experience for over 6 million customers. Over the past 12 months Nick's leadership has navigated the Group through the turbulence of the Covid-19 pandemic, assuring its financial security. Nick will remain in place to oversee the appointment and handover to the new Chair and the relaunch of our business to continue to journey to future growth.

Nick Basing, Chairman said:

"Although the leisure and hospitality landscape has changed significantly, we know that our customers will more than ever be seeking out our great value experiences to reconnect with friends and family.

As my fantastic journey with the business draws to a close, and I start a new chapter in my career, I look forward to guiding Ten Entertainment through a successful reopening in May and setting the business back on the path to growth before handing over the reins to my successor.

I am hugely privileged to lead a first-class board and I am very proud of our CEO and CFO for their dedication to the business over the turbulence of the past 12 months.

Ten Entertainment's fundamental purpose is to make friends and families happy; we entertain and enthral profitably. I remain confident in the strength of our business and the stellar work of the leadership team has ensured we are on a strong footing for the future, and I leave my legacy in safe hands."

Graham Blackwell, Chief Executive Officer, commented:

"2020 has been extremely challenging but we can be proud of the way we have protected the long-term future of the business. We progress towards the reopening of hospitality and leisure with a business that is fit and ready and more digitally driven than ever before.

We used the time wisely in Lockdown to transform our digital platforms and to prepare our business for the future, to open our next generation centre in Manchester and refurbish two of our flagship centres. We are in great shape, prepared, and looking forward to reopening, with our team eager to welcome back and entertain our customers."

Ten Entertainment Group plc

via Instinctif Partners

Graham Blackwell, Chief Executive Officer Antony Smith, Chief Financial Officer

Instinctif Partners

Tel: 020 7457 2020

Matthew Smallwood Jack Devoy

There will be a video call today at 9:00am for analysts. The supporting slides will also be available on the Group's website,www.tegplc.co.uk, later in the day.

Forward-looking statements

This announcement contains forward-looking statements regarding the Group. These forward-looking statements are based on current information and expectations and are subject to risks and uncertainties, including market conditions and other factors outside of the Group's control. Readers are cautioned not to place undue reliance on the forward-looking statements contained herein, which speak only as of the date hereof. The Group undertakes no obligations to publicly update any forward-looking statement contained in this release, whether as a result of new information, future developments or otherwise, except as may be required by law and regulation.

1

These are non-IFRS measures used by the Group in understanding its underlying earnings. Group adjusted EBITDA consists of earnings before interest, taxation, depreciation, amortisation costs, exceptional items and profit or loss on disposal of. Group adjusted profit before tax is defined as profit before exceptional items, profit or loss on disposal of assets, amortisation of acquisition intangibles, and adjustments to onerous lease and impairment provisions. Adjusted basic earnings per share represents earnings per share based on adjusted profit after tax. Like-for-like sales are a measure of sales change adjusted for new centres, divested centres, and temporary centre closures over a comparable trading period.

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Ten Entertainment Group plc published this content on 29 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 March 2021 06:07:04 UTC.