23 Mar 2020 07:00
23rd March 2020
Ten Entertainment Group plc
Notice of enforced temporary closure of all sites and FCA request for postponement of preliminary results
Ten Entertainment Group plc ("TEG" or "the Group"), a leading UK based operator of 45 family entertainment centres, formally confirms the temporary closure of all centres in compliance with Her Majesty's Government response to Covid-19.
We ceased operations with immediate effect at midnight on Friday 20th March. We had contingency plans for closure which went smoothly. We will be working in the interim to ensure that we are fully secure, and all sites have been fully cleaned and are ready to open at short notice, once permitted.
We currently have cash balance of £20.5m, a further overdraft facility of £2m and undrawn RCF funds of an additional £2.8m. This totals a liquidity headroom of over £25m. In addition, we are pleased that the generous and impactful set of measures that the Government have now confirmed, such as rates relief and support with employee pay, will further strengthen our position. We are currently reviewing the detail of these measures. We are already in close discussions with our bank, landlords and key business partners, with whom we have worked for many years, and who are already demonstrating keen support.
The Board has already ceased all future capital investment on projects that are not already under construction and has put its property acquisition strategy on hold. In accordance with the Government's announcement on Friday 20th March, the vast majority of the company's employees will be furloughed. Other cash conservation measures are being developed and these will be deployed as soon as possible.
The Board are confident that a combination of our own self-help actions, our financing facility and Government support, will provide liquidity comfortably beyond the end of the calendar year.
The Group has previously announced on 15th January that it expects 2019 Group adjusted EBITDA, on a going concern basis, to be in line with the range of market expectations, the consensus of which is approximately £23.6m. There is no change to this guidance.
Trading in the first 11 weeks of 2020 had been strong and was expected to continue before the impact of Government measures as a result of Covid-19. Sales for the 11 weeks to 15th March were +12.7% compared to the same period last year and +9.3% on a like-for-like basis.
The FCA has requested that all listed companies observe a moratorium on the publication of preliminary financial statements for at least two weeks from today's date. The Group will be observing this moratorium. Therefore, we are today announcing a delay to the publication of our preliminary financial statements which were planned to be released on 25th March 2020. Further information on a revised timetable for publication of our preliminary financial statements will follow when further guidance from the FCA and other regulatory authorities is available.
Nick Basing, Chairman, commented:
"It is hugely disappointing to be instructed to suspend operations forthwith, in our role to keep the nation's families entertained. But we live in extraordinary times where the health of the nation always comes first. We entirely support the Government action and are also supremely grateful for their generous fiscal support in the interim.
"Our business has been growing year on year for 8 consecutive years. It is strongly supported with relatively very low levels of gearing and a conservative balance sheet.
"We look forward to welcoming our customers back and have no doubt that the need amongst friends and families will be stronger than ever.
I am confident we will be ready when the time comes."
Duncan Garrood, Chief Executive Officer, commented:
"I am grateful to all our employees for their professionalism and hard work in the difficult circumstances of closing down our centres on Friday. We are committed to securing their jobs and income for the future and have strong plans in place which, together with the unprecedented levels of Government support will provide us a great platform for growth once we are able to re-open.
Enquiries:
Ten Entertainment Group plc Duncan Garrood, Chief Executive Officer Antony Smith, Chief Financial Officer
| via Instinctif Partners |
Instinctif Partners Matthew Smallwood Jack Devoy | Tel: 020 7457 2020 |
About Ten Entertainment Group plc
The Group is the second largest ten-pin bowling operator in the UK market with a total of 45 sites trading under the Tenpin brand and approximately 1,100 bowling lanes across the estate. The Group also has a variety of other entertainment offerings, such as amusement machines, table-tennis, soft play, escape rooms, laser games and pool tables, plus food and beverages.
1 Growth from net new centres represents the contribution from two acquisitions completed during the year and a full year effect of four acquisitions and one closure completed in 2018.