Bowling centre operator Ten Entertainment (TEG:AIM) has unveiled plans to reopen sites.
Having shored up its finances and cut costs, management have moved to prepare to adapt to operate in 'new normal' conditions.
The large spaces that the business operates from will be configured to make them ‘Covid secure’ while protective equipment and hygiene materials have been secured to protect staff and customers alike.
Elsewhere the company reported strong sales growth for the year ended 30 December 2019 of 10.2% to £84m, up 8% on a like-for-like basis. Adjusted pre-tax profit was 14.5% ahead to £15.4m.
Strong growth continued right up until the enforced lockdown with like-for-like sales growth accelerating to 9.3%, resulting in total revenue growth of 12.7%. The shares fell 1.5% to 146.5p.
CORONAVIRUS RESPONSE
The company acted swiftly by raising £5m of new equity, equivalent to 5% of capital on 26 March and combined with a £25m revolving credit facility it entered the crisis with £30m of liquidity headroom.
Operating costs were reduced by 70% to just £1.4m per month, while the firm took full advantage of the government coronavirus hep schemes including furloughing 99% of employees, and applying for the business rates holiday.
Management have taken a collaborative approach to critical business partners and agreed to put long-term contracts on hold. Landlords have been supportive with rent deferrals during the period of closure.
The company believes it will be in a stronger position once trading conditions normalise, and its good value, broad family entertainment offering make it ideally positioned even in ‘straitened economic times.’
As part of actions to conserve cash, the board has not recommended paying a final dividend for 2019.
