Ten Entertainment Group PLC (LON: TEG) have seen their shares in green on Wednesday afternoon.
Shares in Ten Entertainment trade at 317p (+2.26%). 15/1/20 14:45BST.
The firm updated the market by saying that total and like for like sales were higher in its recently ended financial year.
Ten also praised the benefit of its technology re-engineering program which has caused results to climb.
Ten Entertainment reported total sales of £84.1 million in its financial year, which ended on December 29.
Notably, this figure showed a 10% increase over the previous financial year’s sales figure of £76.4 million.
Additionally, like for like sales growth was 8% which has been steady across the last few years of trading for the firm.
According to Ten Entertainment, 70% of its estate now benefits from cost efficiencies obtained through its Pins & Strings program, which reduces maintenance costs.
The firm also noted that across the year, four or more of its sites were refurbished including a “prime location” which “has received additional investment as a concept site format to trial new entertainment experiences”.
Ten expressed plans to open an inaugural new build site within the first six months of 2020, and this will strengthen its pipeline.
Its financial 2019 adjusted earnings before interest, tax, depreciation, and amortisation is expected to align with market expectations.
Duncan Garrood, Chief Executive Officer, commented:
“Ten Entertainment has had another strong year, delivering profitable sales growth. Our ever-evolving offer, providing family entertainment underpinned by tenpin bowling, is thoroughly enjoyed by increasing numbers of customers.
“We continue to innovate, increase our footprint and improve the quality of our offering which positions us well for future growth.”
TEG expects to announce its full-year results on 25th March 2020.
Ten make progress from July
In July, the firm announced sales growth and site acquisitions during the first half, and partially attributed its positive figures to digital marketing success.
The Group saw sales and like-for-like sales growth of 9.6% and 7.4% respectively, during the first half. The Company said growth in LFL sales remained stable and it owed the recent improvement to the extended period of hot weather conditions during May and June 2019.
It added that it had expanded its estate with acquisitions of sites in Southport in Q1 and Falkirk in Q2.
Both sites are existing bowling facilities, which will now undergo ‘Tenpinisation’ before contributing to profits in 2020. Ten Entertainment sites now number at 45.
Hollywood Bowl – rivals in the market
A competitor in the industry, Hollywood Bowl (LON:BOWL) have seen a successful time of trading in similar fashion to Ten. In December, the firm reported profit growth as its shares rallied.
Hollywood Bowl said that, for the year ended 30 September, profit before tax grew by 15.3% to £27.6 million, compared to the £23.9 million figure recorded the year prior.
Meanwhile, total revenues grew by 7.8% to £129.9 million, up from last year’s £120.5 million.
Hollywood Bowl added that it has six further bowling centres in the development pipeline from 2021-2023.
The company said that food and drink revenue was up 6.3% on the year before, amounting to £35 million. It said that more customers chose to spend as a result of the launch of its new menu and its enhanced bar and diner experience.
“I am delighted to report another year of strong profitable and cash generative growth, demonstrating the consistent delivery of our proven, customer-led strategy,” Stephen Burns, Chief Executive of Hollywood Bowl, commented in a statement.
The update from Ten is impressive, but shareholders still have to remember that in Hollywood Bowl a big competitor looms. At a time where British businesses are struggling, shareholders should be content.
Ten Entertainment will hope that they can build on the impressive financial year and continue to report growth and profit for shareholders.
