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Ten Entertainment swings to pre-tax loss on Covid-19 shutdowns
29th Mar 2021 08:08
(Sharecast News) - Bowling centre operator Ten Entertainment swung to a pre-tax loss in 2020 but said on Monday that its "robust response" to the Covid-19 pandemic had protected "a strong underlying business" and left it well placed to return to growth.
Ten Entertainment said total sales had slumped 56.9% to £36.3m, while like-for-like sales growth contract 17.4%.
Adjusted underlying earnings tumbled from £23.6m in 2019 to £3.3m in the 52 weeks ended 27 December, with the group also reporting an adjusted pre-tax loss of £19.1m, a marked turnaround when compared to the £9.0m pre-tax profit recorded a year earlier.
The AIM-listed group stated the "swift and decisive action" taken to secure financial security for over 18 months of closure left it positive of its ability to continue operating, with over £18.0m of liquidity headroom still in place as of 26 March.
Looking forward, Ten added that it intends to reopen all of its centres on 17 May, based on Downing Street's Covid-19 roadmap, and said it would continue to develop its estate pipeline for future growth, taking advantage of new opportunities.
Outgoing chairman Nick Basing 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.
"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."
As of 1400 GMT, Ten Entertainment shares were down 1.30% at 227.02p.
Ten Entertainment said total sales had slumped 56.9% to £36.3m, while like-for-like sales growth contract 17.4%.
Adjusted underlying earnings tumbled from £23.6m in 2019 to £3.3m in the 52 weeks ended 27 December, with the group also reporting an adjusted pre-tax loss of £19.1m, a marked turnaround when compared to the £9.0m pre-tax profit recorded a year earlier.
The AIM-listed group stated the "swift and decisive action" taken to secure financial security for over 18 months of closure left it positive of its ability to continue operating, with over £18.0m of liquidity headroom still in place as of 26 March.
Looking forward, Ten added that it intends to reopen all of its centres on 17 May, based on Downing Street's Covid-19 roadmap, and said it would continue to develop its estate pipeline for future growth, taking advantage of new opportunities.
Outgoing chairman Nick Basing 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.
"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."
As of 1400 GMT, Ten Entertainment shares were down 1.30% at 227.02p.