Ten Entertainment Group PLC Site Closure and Postponement of Results (1159H)
March 23 2020 - 2:00AM
UK Regulatory
TIDMTEG
RNS Number : 1159H
Ten Entertainment Group PLC
23 March 2020
23(rd) 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
20(th) 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 GBP20.5m, a further overdraft
facility of GBP2m and undrawn RCF funds of an additional GBP2.8m.
This totals a liquidity headroom of over GBP25m. 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 20(th) 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 15(th) 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 GBP23.6m. 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 15(th) 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 25(th) 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 via Instinctif
Duncan Garrood, Chief Executive Partners
Officer
Antony Smith, Chief Financial
Officer
Instinctif Partners Tel: 020 7457
Matthew Smallwood 2020
Jack Devoy
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.
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END
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