TIDMTEG
RNS Number : 7250T
Ten Entertainment Group PLC
29 March 2021
29 March 2021
Ten Entertainment Group plc
Full-Year Results
Robust response to Covid protects a strong underlying business
well placed to return to growth
Ten Entertainment Group plc ("Ten Entertainment" or "The
Group"), a leading UK operator of 46 family entertainment centres,
today announces its audited full-year results for the 52 weeks to
27 December 2020. The year included 11 weeks of normal trading
conditions, 25 weeks of closure and 16 weeks of disrupted trading
due to Covid-19 restrictions.
Since the outbreak of the Covid-19 pandemic, the Group's
priority has been the health and safety of our employees and
customers and securing the company both financially for our
investors and operationally for all our colleagues.
Business highlights
Strong controls maintained the business in excellent shape
-- Swift and decisive action taken to secure financial security for over 18 months of closure
-- Over GBP18m of liquidity headroom still remains in place as at 26 March
-- 75% reduction in non-property related cash spend during Lockdown
An underlying strong business that continued to develop
-- Good progress in developing our digital platform
-- Next generation development in Manchester exceeded expectations
-- Underlying model still offers significant cash on cash returns to investors
-- Long-standing 8-year track record of organic growth and
>30% returns on acquisition investment
Well positioned for growth and expansion post Covid
-- Strong demand in the summer when the business reopened after first Lockdown
-- The business is operationally fit for purpose; all local
management and teams remain in place
-- Well placed to benefit long-term from reducing capacity in UK leisure and hospitality
Financial Summary
52 weeks 52 weeks 52 weeks ended Movement
ended 27th ended 27th 29th December
December December 2019
2020 2020
IFRS 16 IAS 17 IAS 17
Total sales GBP36.3m GBP36.3m GBP84.1m (56.9%)
Like-for-like sales
growth(1) (17.4%) (17.4%) +8.0% (25.4%pts)
Group adjusted EBITDA(1) GBP3.3m (GBP7.9m) GBP23.6m (GBP31.4m)
Group adjusted (loss)/profit (GBP19.1m) (GBP16.3m) GBP15.4m (GBP31.7m)
before tax(1)
Reported (loss)/profit (GBP17.7m) (GBP12.2m) GBP9.0m (GBP21.3m)
after tax
------------------------------ ------------ ------------ --------------- -----------
Adjusted (loss)/earnings
per share (23.2)p (17.9)p 19.3p (37.3)p
Basic (loss)/earnings
per share (26.3)p (18.1)p 13.9p (32.0)p
Outlook
-- Intend to reopen all centre s on 17 May based on Government roadmap
-- Only GBP6.7m of 2020 cash deferrals fall due in 2021; well within liquidity headroom
-- Strategy remains unchanged:
o Transform the customer experience
o Inward investment
o Estate expansion
-- Initial focus on low capital enhancements to customer experience
-- Will continue to develop estate pipeline for future growth,
taking advantage of new opportunities
Leadership
Following a hugely successful time with The Group, leading the
business to consistent, profitable growth through some momentous
milestones, Nick Basing has announced that now is the right time to
hand over to his successor. He will be stepping down in September.
Nick's leadership and passion has created a modern and dynamic
Group that is at the forefront of delivering a memorable leisure
experience for over 6 million customers. Over the past 12 months
Nick's leadership has navigated the Group through the turbulence of
the Covid-19 pandemic, assuring its financial security. Nick will
remain in place to oversee the appointment and handover to the new
Chair and the relaunch of our business to continue to journey to
future growth.
Nick Basing, Chairman 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.
As my fantastic journey with the business draws to a close, and
I start a new chapter in my career, I look forward to guiding Ten
Entertainment through a successful reopening in May and setting the
business back on the path to growth before handing over the reins
to my successor.
I am hugely privileged to lead a first-class board and I am very
proud of our CEO and CFO for their dedication to the business over
the turbulence of the past 12 months.
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."
Graham Blackwell, Chief Executive Officer, commented:
"2020 has been extremely challenging but we can be proud of the
way we have protected the long-term future of the business. We
progress towards the reopening of hospitality and leisure with a
business that is fit and ready and more digitally driven than ever
before.
We used the time wisely in Lockdown to transform our digital
platforms and to prepare our business for the future, to open our
next generation centre in Manchester and refurbish two of our
flagship centres. We are in great shape, prepared, and looking
forward to reopening, with our team eager to welcome back and
entertain our customers."
Ten Entertainment Group plc via Instinctif
Graham Blackwell, Chief Executive Partners
Officer
Antony Smith, Chief Financial
Officer
Instinctif Partners Tel: 020 7457
Matthew Smallwood 2020
Jack Devoy
There will be a video call today at 9:00am for analysts. The
supporting slides will also be available on the Group's website,
www.tegplc.co.uk, later in the day.
Forward-looking statements
This announcement contains forward-looking statements regarding
the Group. These forward-looking statements are based on current
information and expectations and are subject to risks and
uncertainties, including market conditions and other factors
outside of the Group's control. Readers are cautioned not to place
undue reliance on the forward-looking statements contained herein,
which speak only as of the date hereof. The Group undertakes no
obligations to publicly update any forward-looking statement
contained in this release, whether as a result of new information,
future developments or otherwise, except as may be required by law
and regulation.
1 These are non-IFRS measures used by the Group in understanding
its underlying earnings. Group adjusted EBITDA consists of earnings
before interest, taxation, depreciation, amortisation costs,
exceptional items and profit or loss on disposal of. Group adjusted
profit before tax is defined as profit before exceptional items,
profit or loss on disposal of assets, amortisation of acquisition
intangibles, and adjustments to onerous lease and impairment
provisions. Adjusted basic earnings per share represents earnings
per share based on adjusted profit after tax. Like-for-like sales
are a measure of sales change adjusted for new centres, divested
centres, and temporary centre closures over a comparable trading
period.
CHAIRMAN'S STATEMENT
Keeping the business fit for purpose, ready to recommence
growth
When I wrote this report in May last year, our business had
already been closed for seven weeks as the global pandemic had
begun to take effect. The scale of the challenge has been far
greater than any of us could have imagined. This period has truly
tested the resolve of all of us connected with the leisure and
hospitality industry and of course Ten Entertainment Group.
We achieved much in 2020, despite the enormous degree of
disruption, and I am delighted that all of us came together and
worked tirelessly to secure the Company's future prosperity. Not
only that, but I believe that our core business is now poised to
benefit from a return to a new normal pattern of trading.
We have safeguarded our liquidity to ensure that we emerge from
Lockdown with a secure cash position. We have used the time to
further develop our business so that it remains modern, relevant,
safe and fun when our customers return. We have demonstrated
effective decision-making across a newly developed Board
structure.
From the earliest days as the Covid-19 crisis emerged, the Board
acted at pace to secure long-term stability and maintain confidence
across all key stakeholders. The Group was the fourth UK listed PLC
to come to market with an equity placing which was extremely well
supported, including the management team who all invested. I am
extremely grateful for the confidence our investors showed in us.
Our continued prudent approach to debt management and a high
performing first quarter meant that despite being closed for 26
weeks, we ended the year with just GBP12.6m of bank debt. Since the
year-end we have consolidated our position further with support
from our bank under the Government's Coronavirus Large Business
Interruption Loan Scheme ('CLBILS'). We currently have liquidity
headroom of over GBP18m, more than sufficient to protect our
business well into 2022.
We took the opportunity in the year to strengthen our business
wherever possible. We enhanced our estate with the completion of
our brand-new centre in Manchester (Printworks) and two major
refurbishments at our flagship centres, Acton and Birmingham (Star
City). We concentrated our focus towards our digital strategy in
2020. This had the dual effect of facilitating our response to the
operational challenges of Covid-19, but more importantly it
positions us as best-in-class for the coming years. We were the
first bowling operator in the UK to enable all of our centres with
contact-free food and drink ordering. Our customer engagement
through social media channels grew significantly during Lockdown,
and we are now the most followed bowling business in the UK on
Facebook and Instagram. Our operational leadership played an active
and impactful role in taking the lead for the industry's
negotiations with the Government in setting and agreeing the safe
operating protocols under Covid restrictions, and all our centres
now have fixed lane dividers that allow us to operate all lanes
safely.
Duncan Garrood's decision early in the crisis to leave the
hospitality sector to take up an external position gave us the
opportunity to redefine the appropriate leadership skills for this
next phase of our journey. Graham Blackwell was appointed interim
CEO, most ably supported by Antony Smith our Chief Financial
Officer who has taken on additional leadership responsibilities.
Graham's 30 years' experience in hospitality and bowling and his
deep-rooted operational and commercial acumen make him ideally
placed to lead the business back to achieving consistent growth and
profitability as it has delivered previously over the past eight
years prior to the pandemic. This arrangement has proved highly
effective in navigating the choppiest waters the industry has ever
faced and it was unanimously agreed by the Board to appoint Graham
as Chief Executive Officer in January this year.
Financial support from the Government has been welcome. We have
utilised the Coronavirus Job Retention Scheme responsibly which has
protected the livelihoods of over 1,000 of our team. The business
rates relief has also alleviated the financial burden on the
business and its extension through to 2022 will help us as we
reopen. A reduced rate of VAT for hospitality and leisure has been
a sensible measure overall, although inexplicably it does not
extend to bowling; a situation that we and the industry continue to
pursue with the Treasury working with expert advisers.
Most importantly to highlight, my colleagues across the country,
in all our centres, have been extraordinarily supportive throughout
these challenging times. We have developed a very strong wellbeing
programme to ensure people's welfare, in every respect, is
considered and cared for. Tenpin is characterised by an incredible
esprit de corps. The Board have done everything in its power to
recognise and continue to support this crucial strength of our
business. As a result, there have been no enforced redundancies as
a consequence of Covid-19. I cannot express in words my true
gratitude to each and every one of our team for their support to
the business, each other and me, and I am incredibly excited to
anticipate seeing everyone return back to their places of work and
to provide the warmest welcome to our customers back into our
centres up and down the country.
Our continuous track record of profitable growth for the past
eight years has been temporarily paused for 2020. However, we have
put everything in place to ensure that we are well positioned to
make a strong return to growth. In fact, we believe that pent-up
demand for families to enjoy the experience of socialising will
lead to a rapid recovery.
The headlines of 2020 have been dominated by the drama of
Covid-19 with some tragic and traumatic outcomes for society and
individuals. As a business focused on family entertainment, we
truly hope that this pandemic can be put behind us and important
lessons learned to avoid a repeat for future generations. For TEG
we would wish the year to be defined as maintaining clarity of
purpose, taking decisive action, and working closely with all our
stakeholders to prosper on return.
I have announced my decision to step down from the Board in
September. When I joined in 2009, I inherited a business that was
underinvested and had lost touch with its customers. With a
necessary and innovative restructuring, a relentless new focus that
put our customers back at the heart of everything we do, and a new
team of highly talented people with energy and commitment, we
delivered eight consecutive years of like-for-like growth. We
successfully brought the business to a main listing on the London
Stock Exchange with an IPO in April 2017 and have continued to
deliver strong profit growth and investment returns since. The
final chapter of my love affair with Ten Entertainment will be
welcoming back our customers and colleagues in May and restarting
our proven growth strategy for the business to begin its next
exciting phase. I look forward to watching with great interest in
its next chapter.
We are primed and ready to reopen and there is real cause for
optimism; 30 million people have now received their first dose of
the vaccination and there is a clear Government roadmap back to
normality, with our centres due to reopen on 17 May. Although the
leisure and hospitality landscape will have changed significantly,
our customers will more than ever be seeking out our great value,
well-invested family entertainment centres 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 that the underlying strength of our
business and the stellar work of the leadership team that has
ensured that the business remains on a strong footing for the
future.
Nick Basing
Chairman
29 March 2021
CHIEF EXECUTIVE'S STATEMENT AND OPERATING REVIEW
Overview of 2020
2020 has been extremely challenging dealing with the Covid-19
pandemic, but it has also been a year that we can be proud of. We
have protected the long-term future of the business. All our
centres currently remain closed, almost exactly a year after the
first Government Lockdown on 20 March. We are in good health and
look forward to welcoming back our customers on 17 May as the
Government Lockdown eases.
Our Covid actions can be characterised into four distinct
phases, each with very clear priorities to secure the best possible
outcome for our stakeholders.
-- Pre-Covid
o Accelerating like-for-like growth at 9.6% with record breaking
February half-term sales
o Strategic investment in refurbishing two flagship centres and
new centre in Manchester
o Significant progress on digital integration
-- Lockdown
o Decisive action to secure long-term liquidity against over 18
months of potential closure
o Supporting all major stakeholder groups equitably reducing
cash outflow by over 70%
o Responsibly utilising available Government support
-- Reopening
o Taking the initiative with the Government in agreeing safe
operating protocols with DCMS
o Digitally enabled from the outset with food ordering and track
and trace technology
o Industry-leading initial sales at 82% of prior year despite
restrictions on lane capacity
-- Retightening
o Looking after the health and wellbeing of customers and
employees
o Re-engaging cash conservation measures
o Securing additional funding in preparation for further
Lockdowns
I am proud of the way our team delivered the long-term security
of the business during 2020. We treated our colleagues with dignity
and respect and have worked hard to support their wellbeing as they
cope with a year of uncertainty. We worked together with suppliers
to find solutions that were to our mutual benefit, helping us
conserve cash and long-term future relationships. When we did
reopen, we deployed industry-leading safety standards having worked
closely with the Department for Culture, Media and Sport ('DCMS')
and Public Health England to develop those standards.
We used the time that we were closed wisely and did our utmost
to turn adversity into advantage. Our digital integration moved at
pace and was a critical part of ensuring that we could reopen
safely, with a brand-new food and beverage ordering app that
allowed contact free ordering direct to lane or table. Online
bookings reached record levels of 70% which helped deliver our
Track and Trace requirements quickly and effectively. We completed
high quality refurbishments of two of our flagship centres and
completed our city centre new-build centre in Manchester
Printworks. We have designed and built five new Escape Rooms taking
our total to 13. We have now installed high quality lane dividers
across all our centres that mean we can operate 100% lane capacity
in a Covid secure environment.
As a result of our focus on liquidity management, we exited 2020
with our bank debt at GBP12.6m, only GBP8.5m higher than at the
beginning of the year. With the addition of a new financing
facility we currently still have over GBP18m of remaining liquidity
headroom and are well positioned to reopen strongly.
Our strategy remains unchanged. We will continue to develop our
customer offering to deliver strong like-for-like sales growth; we
will use the cash we generate to invest in existing infrastructure
to ensure our centres remain modern; and we will take the
opportunity of selecting the best quality available centres to
expand our estate.
Pre Covid
The first 11 weeks of the year were very strong for the Group.
Total sales grew by 12.7% and like-for-like sales grew by +9.6%, a
culmination of the accelerating sales growth seen in the second
half of 2019. Capital investment programmes from the new centres at
Falkirk and Southport as well as the 2019 refurbishment centres all
delivered good growth. Trading remained brisk right up until the
first Lockdown was implemented.
Lockdown
Lockdown came swiftly and presented a unique set of
circumstances for most boards throughout the UK. The initial focus
was clear; to conserve cash and maximise the length of time that
the business could remain closed.
We closed all our centres on 20 March, and by 25 March we had
successfully delivered an equity placing from our shareholders to
provide an extra GBP5m of liquidity headroom and reduced our cash
costs by over 70%, all of which ensured the business had sufficient
funds to weather even an 18-month Lockdown. Cost savings were
delivered through three key mechanisms: Government support;
supplier support; and self-help cost savings.
We applaud the Government on its swift action with the
introduction of the Coronavirus Job Retention Scheme ('CJRS'). This
measure enabled us to furlough over 95% of our employees in order
to save costs and preserve the jobs of our entire workforce. I am
pleased to note that we have not enacted any centre-based
redundancies as a result of Covid-19. The one-year relief on
business rates was also helpful. We were pleased to see this
extended in the Chancellor's March 2021 Budget. We have fully
utilised applicable Government grant schemes and HMRC 'Time to Pay'
schemes. We are mindful of our duty to act responsibly in respect
of this level of support and are confident that we have done
so.
Our suppliers have been extremely supportive throughout the
periods of Lockdown. Many contracts have been paused while we are
closed. We have regeared seven leases, benefiting from rent
holidays in exchange for an extension to lease terms, as well as
agreeing short-term deferrals and waiver periods on many other
properties. The long-term nature of our leases, which is reflected
in our very low average rent cost, gives the opportunity to defer
payments over a considerable time, and as a result, the burden of
deferred rents is not onerous in 2021 when we reopen.
Self-help cost savings have been essential to minimising the
cash outflow from the business. The Board cancelled its plans for
the final 2019 dividend and paused its expansion pipeline. The
latter was not only a prudent cash-saving measure but also reflects
our belief that the leisure landscape will look very different once
we emerge from the crisis. We expect that there will be a variety
of possible leisure space in the coming months and are confident
that we can rapidly increase our estate expansion pipeline when the
time is right.
Reopening
Once the financial security of the business was secured, the
focus turned to preparing to reopen the business. Our operational
expertise, and close long-term involvement with the Tenpin Bowling
Proprietors' Association ('TBPA') meant that we took the lead in
dealing with the Government and the Department for Digital,
Culture, Media and Sport ('DCMS') in designing and implementing
safe operating protocols for the industry.
Bowling centres are large well-ventilated spaces and can be
readily adapted to social distancing. On average customers in our
centres have four times the space that one would expect when
visiting a bar or restaurant. A wide variety of measures were
introduced to give customers peace of mind.
We were the first UK bowling operator to integrate a web-based
ordering app to allow food and drink to be ordered directly to lane
or table. Our online booking system and in-centre Wi-Fi was
enormously effective at capturing customer data, and we saw a surge
in online bookings to around 70% of total bowling sales.
Initially we were required to close alternate lanes, limiting
our capacity by 50%. We have subsequently installed sturdy steel
and glass lane divider screens that we have agreed with the DCMS
will allow us to deploy all of our lane capacity.
The wait to reopen was disappointingly longer than we had hoped.
While bars and restaurants opened on 4 July, and gyms at the
beginning of August, the majority of our bowling centres had to
wait until 15 August. Once open, the initial results were very
encouraging. In August, we delivered 82% of the previous year's
sales on a like-for-like basis, despite the 50% reduction in lane
capacity. In September, as the children returned to school, demand
was concentrated more to the weekends. This exacerbated the impact
of capacity constraints and increased the clipping of demand.
Nonetheless, September delivered like-for-like sales at 74% of the
prior year levels, a creditable performance that demonstrated that
our customers were keen to return.
This level of performance enabled the business to return to cash
generation in the second half of August and during September.
However, by the end of September the Covid infection rates had
started to increase and the Government started to move to a regime
of tightening restrictions.
Retightening
October saw an almost weekly change in rules, as well as the
added complexity of regionally based tiers and local closures. As
restrictions tightened there was a demonstrable effect on sales.
This was caused in part by the restrictions themselves and in part
by a fearfulness of venturing out from the public in response to
Government messaging.
The 10pm curfew had an unwelcome 5-10% impact on sales
performance. Complex rules governing alcohol sales with meals had a
further 5% impact on sales and the overall level of consumer
confidence was waning, restricting demand further. The most
significant impact came with the introduction of rules forbidding
household mixing in many regions. This is a cornerstone of a
business that brings friends and families together and it is
difficult to operate under these constraints. By the end of October
an inevitable second Lockdown was enforced, and in reality,
December broadly remained in Lockdown, with only a few of our
centres allowed to open, and those that were open were highly
compromised.
In total for 2020 our business was closed for 49% of the time
and was significantly disrupted for more than half of the
remainder.
Our strategy and plan
Our immediate focus is to reopen the business on 17 May on a
firm footing and return it to consistent cash generation. From
there, our strategy is clear and remains unchanged for the medium
term. Continued profit growth generates strong cash flow which is
used to fund our three strategic pillars for growth:
-- Transforming the customer experience - keeping the customer offer innovative and fresh
-- Inward investment - modernising and developing the existing estate
-- Expanding the estate - acquisition of existing bowling
centres and redeveloping retail and leisure units
The strategy is underpinned by an investment in our people. Well
trained, motivated and rewarded employees provide better customer
experiences, focused on service.
2020 has been a year of adversity in many ways. However, we have
sought to use the time in Lockdown wisely to create a stronger and
more sustainable business for the future. We have made great
strides in our digital integration, our sustainability agenda and
in focusing on the wellbeing of our people.
Digital integration
We invested in a completely new platform for our website in 2019
which was launched in early 2020. This proved pivotal in ensuring
that the business was well placed to deliver on the challenges of
operating under Covid-19 restrictions. The website is fully
integrated across all parts of the business. This gave us the
flexibility to introduce our table ordering app for food and drink,
offer the Eat Out to Help Out scheme, implement Track and Trace,
and most importantly to scale up to 70% online bookings.
Our fully integrated systems are in place across the entire
estate using the latest technology from the industry leading
supplier. All of our centres have the latest generation of scoring
technology and are in the process of upgrading the last 50% of the
estates software to BESX, Qubica's latest enhanced software package
which includes multi-media software. The seamless real-time
integration of our EPOS system to our website and booking engine
enables best-in-class yield and capacity management and we are
consistently upgrading our systems to maximise the use of the
technology that we have deployed.
The enhanced digital integration also gave us the opportunity to
engage with and listen to our customers better. We significantly
increased our following on social media and Tenpin is now the most
followed bowling company in the UK on Facebook and Instagram. This
has helped us to cleanse and develop our customer database; analyse
our critical customer demographics; and launch more targeted
digital campaigns for when we reopen. I am really pleased with the
progress we have made and look forward to continuing to enhance our
digital engagement with customers.
We have appointed a new Digital Communications Director, Lisa
Johnson, who has a strong background in digital strategy and
experiential leisure having worked with Legoland, The Restaurant
Group, Bounce and Amazon. Her strategic review has confirmed that
our investment in developing our CRM system and website platform
was well targeted and creates an excellent foundation for growth.
She is now developing an exciting new focus for our customer
engagement as we reopen, and we are looking forward to this coming
to fruition during 2021.
Sustainability
The importance of community in a year like 2020 cannot be
overemphasised. I have been delighted to see the way our people
worked together to support each other and their wider local
communities. Many of our team members volunteered at local
charities or within their local community, helping those less able
to get out and about for food and essentials. We were able to
donate food and drink to local food banks, charities and schools
providing much needed Lockdown treats for families struggling in
Lockdown.
During 2020 we partnered with Rays of Sunshine as our chosen
national charity. Rays of Sunshine helps brighten the lives of
seriously ill young people by granting wishes and providing ongoing
support in hospital and within the community. We have engaged in
fundraising activities and are looking forward when we are open to
using our centres to help this fantastic good cause.
We have made good progress in reducing our energy consumption
and have continued to invest in Pins & Strings which makes a
substantial energy saving. 87% of the estate now benefits from this
low energy technology which means we have reduced our overall
energy consumption by 8%. Low energy screens and LED lighting
installations have further contributed to our energy savings
initiatives as we act to reduce our overall carbon footprint. In
addition to these energy reductions we now purchase all our
electricity from 100% renewable sources.
We will continue to engage with investors on ESG and
sustainability issues and ensure that the Board and management team
continually review ways to make further improvements in becoming a
sustainable business.
People and wellbeing
Looking after our people during 2020 was a key business
priority. 98% of our employees were furloughed at least at some
point during the year, and it was critical to preserve their income
as far as possible. There were times where some people fell between
the gaps in the CJRS scheme, and the Company supported those team
members throughout. We are proud to say that we did not make a
single centre-based employee redundant as a result of Covid-19.
Communication is key in times of crisis, and we kept people
fully engaged an informed using Yapster, our digital communication
tool. This not only helped people understand the actions we were
taking to secure the business's future, but also kept people in
touch with friends and colleagues.
We introduced a comprehensive wellbeing strategy that cared for
people's physical, mental and financial health. Over 80% of our
employees accessed our extensive wellbeing online resources,
gaining access to discount schemes to help with grocery bills and
investment in technology to help with home-schooling as well as
online support for mental wellbeing and mindfulness. We also
launched a comprehensive set of voluntary skills toolkits and
development aids to help people keep mentally active while on
furlough.
Overall engagement levels remained high, and 95% of our people
felt that they had been well treated and communicated with during
2020.
Outlook
The year ended with all our centres closed, and this remains the
case today. It is encouraging that during the pre Covid and
Reopening phases of 2020 the business traded well, and there is
every reason to expect it to do so again. Almost 30 million people
in the UK have now been vaccinated, creating a genuine prospect of
a return to more normal trading conditions.
The Government's roadmap means that we expect to reopen on 17
May with much of the rest of UK hospitality. We anticipate that at
this time there will be significant pent-up demand for leisure, and
we believe that our business will continue to be highly attractive
to families and friends who want to get together once again for a
fun and social experience. We are well placed to capitalise on that
demand as well as the inevitable contraction in supply from those
businesses whose balance sheets were not as strong as ours.
At this stage, due to the continued uncertainty, it is not
possible to provide financial guidance. However, we do know that we
have a strong business that can return rapidly to its previous
levels and then grow further from there. We have a proven strategy
and a strong track record that will stand us in good stead as we
reopen and rebuild.
Finally, I'd like to take the opportunity to thank Nick Basing
for his unwavering support and guidance over the past 12 years.
Nick has created something truly special in Ten Entertainment, and
I am committed to ensuring that we continue his legacy. We will
continue to deliver the passion, energy and edge that Nick brought
to the team. Nick's core values that he instilled into the Group
will always be at the forefront in everything we do. Over the
coming months as we reopen, I have no doubt that Nick will continue
to contribute ideas, energy and experience to the business as he
passes on the baton to take the business into the next stage of its
growth.
Graham Blackwell
Chief Executive Officer
29 March 2021
FINANCIAL REVIEW
2020 was a year of significant disruption as a result of the
Covid-19 pandemic. The business was fully closed for 49% of the
year and severely disrupted for a further 30% of the time.
Consequently, sales fell by (56.9%) in the year and the Group
generated a loss after tax of (GBP12.2m) (FY19: +GBP9.0m).
Our business operates out of 46 centres that are held on a long
leasehold basis. The nature of the disruption was such that while
no income was generated for half the year, a significant proportion
of the fixed costs of the business, particularly the leasehold
property costs, could not be removed during the temporary closure
periods. As a result, the (GBP47.9m) reduction in sales resulted in
a (GBP21.3m) reduction in profit after tax on an IAS 17 basis.
The principal focus for the year was cash management and
liquidity conservation. The Group made an equity placing of
3,250,000 ordinary shares, 5% of the issued share capital, which
raised GBP5m. We fully utilised the available Government support to
protect the livelihoods of our employees and we took a highly
disciplined approach to cash management with many contractual
commitments waived or deferred with the support of our strong
supplier base.
As a result of the robust cash conservation measures, the bank
net debt grew by only GBP8.5m in the year to (GBP12.6m), which left
a further GBP12.4m of available liquidity headroom. The headroom
has subsequently been further supplemented with a GBP14m three-year
term loan raised through our existing banking partner under the
Coronavirus Large Business Interruption Loan Scheme ('CLBILS'). As
at 26 March, the Group has remaining liquidity headroom in excess
of GBP18m.
FINANCIAL SUMMARY
52 weeks 52 weeks 52 weeks
to to to
27 December 27 December 29 December
2020 2020 2019 Movement
GBP000 IFRS 16 IAS 17 IAS 17
------------------------------------ ------------- ------------- ------------- -----------
Revenue 36,269 36,269 84,122 (47,853)
Cost of sales(1) (4,854) (4,854) (10,387) 5,533
Gross margin 31,415 31,415 73,735 (42,320)
GP% 86.6% 86.6% 87.7% (1.1%)
Total operating costs (18,051) (29,177) (40,855) 11,678
Centrally allocated overheads (4,537) (4,537) (3,155) (1,382)
Support office (5,480) (5,561) (6,157) 596
Group adjusted EBITDA(2) 3,347 (7,860) 23,568 (31,428)
Profit on share of joint venture - - 10 (10)
Depreciation and amortisation (16,634) (7,986) (7,379) (607)
Net interest (5,815) (457) (788) 331
Group adjusted (loss)/profit
before tax(2) (19,102) (16,303) 15,411 (31,714)
Impairment (2,521) - - -
Exceptional items - - (2,391) 2,391
Profit /(loss) on disposal
of assets 99 123 (932) 1,055
Amortisation of acquisition
intangibles (142) (142) (293) 151
(Loss)/profit before tax (21,666) (16,322) 11,795 (28,117)
Taxation 3,919 4,101 (2,758) 6,859
Of which: taxation attributable
to Group adjusted (loss)/profit 3,463 4,097 (2,836) 6,933
(Loss)/profit after tax (17,747) (12,221) 9,037 (21,259)
Earnings per share
Basic (loss)/earnings per
share (26.3)p (18.1)p 13.9p
Adjusted basic (loss)/earnings
per share (23.2)p (17.9)p 19.3p
Full-year dividend - - 3.7p
1 Cost of sales and operating expenses are presented on the
basis as analysed by management. Cost of sales in the financial
summary are determined by management as consisting of the direct
bar, food, vending, amusements and gaming machine related costs.
Statutory costs of sales reflected in the statement of
comprehensive income also include the staff costs but excludes
security and machine licence costs incurred by the centres.
Operating expenses are split into more detail in the financial
summary to obtain statutory operating profit, with overheads,
support office, amortisation, depreciation and exceptional costs
reflected separately.
2 These are non-IFRS measures used by the Group in understanding
its underlying earnings. Group adjusted EBITDA consists of earnings
before interest, taxation, depreciation, amortisation costs,
exceptional items and profit or loss on disposal of assets. Group
adjusted profit before tax is defined as profit before exceptional
items, profit or loss on disposal of assets and amortisation of
acquisition intangibles. Adjusted basic (loss)/earnings per share
represent earnings per share based on adjusted profit after tax.
Like-for-like sales are a measure of growth of sales adjusted for
new or divested centres and adjusting for whether a centre was
forced to close due to Covid regulations over a comparable trading
period.
Revenue
Pre Covid Full Lockdown Reopening Retightening
--------------- -------
YOY % change Jan Feb Mar Apr - Aug Sep Oct Nov Dec Total
Jul
------ ------ ------- -------- ------- ------- ------- ------- ------- -------
Total Sales +10.6 +20.3 (40.1) (100.0) (64.1) (26.4) (41.0) (89.7) (85.7) (56.9)
------ ------ ------- -------- ------- ------- ------- ------- ------- -------
Like-for-like +7.5 +16.7 (24.9) n/a (18.0) (26.0) (39.5) (62.1) (64.3) (17.4)
------ ------ ------- -------- ------- ------- ------- ------- ------- -------
Pre Covid trading was strong, delivering +12.7% total sales
growth and +9.6% like-for-like sales growth in the first 11 weeks
of the year before the Lockdown, continuing the business's strong
momentum of eight consecutive years of like-for-like growth. A
particularly strong February with well executed half-term plans
delivered like-for-like sales growth of +16.7%.
Over the course of the year, our centres were closed for 49% of
the available time, with a full national Lockdown from late March
until mid-August and a further English and Scottish Lockdown in
November.
Reopening in mid-August was encouraging, with August and
September delivering 77% of last year's sales despite operating at
only 50% capacity. Initial consumer appeal as the country exited
Lockdown demonstrated good pent-up demand for our family
entertainment centres. Our market-leading Covid security measures,
including a rigorous cleaning regime and a food and drink ordering
app for table service, ensured that our customers felt safe to
return. Further investments have now been made in fixed lane
dividers at all centres which means that we can now safely operate
100% of available lanes.
The regulatory landscape continued to evolve, and as it
tightened in the autumn and winter there was a significant impact
on consumer demand. The introduction of curfews; Rule of Six;
complex constraints governing alcohol sales; and most significantly
a ban on household mixing all contributed to considerable consumer
confusion. This impacted on our ability to run our centres
profitably in the final quarter of the year.
Total sales for FY20 were GBP36.3m which is (56.9%) down on FY19
and (17.4%) down on a like-for-like basis adjusting for enforced
centre closure periods. Unsurprisingly, with the significant
disruption which has impacted all but three months of 2020, the
Group is reporting a loss for FY20.
The Board is satisfied that consumer demand for family
entertainment remains strong and the underlying fundamentals of the
business model remain in place. This is a highly cash-generative
model that typically generates 75% of EBITDA into free cash flow.
We are confident that as restrictions are eased, growth will return
as consumers emerge from more than a year of Lockdowns and
restrictions.
Gross margin
Gross margin has reduced slightly in 2020 but remains high at
86.6% (FY19: 87.7%) reflecting the margin rich nature of our
business model. Overall, the pattern of consumer behaviours has
been slightly impacted by Covid-19 restrictions which has resulted
in a small erosion of the business margin. Bowling sales, when
open, remained resilient and still represented 46% of sales, all of
which were delivered at high margin.
However, a number of Covid-19 restrictions had an adverse impact
on margin. The introduction of the curfew reduced high margin
alcohol sales, and the restrictions that required customers to
purchase food with alcoholic beverages further eroded the average
margin. Social distancing measures led to the restriction of
capacity on pool tables and table tennis tables as well as our very
popular traditional children's arcade machines. These are all
asset-based high margin activities and thus the slight product mix
shift had a small adverse effect.
As well as impacting margin, these restrictions slightly reduced
the average spend per head, which declined slightly in the year by
4.2% to GBP13.99 (FY19: GBP14.60). We anticipate that as trading in
our centres normalises, our margins and average spend will return
to previous levels.
Operating costs
Total operating costs have been a significant focus in 2020 as
the business has strived to reduce its cash commitments. On an IAS
17 basis, including property rent, operating costs were GBP29.2m, a
GBP11.7m reduction compared to 2019. This represented a 28.6%
reduction in costs for the year. During Lockdown, non-property
related costs were reduced by over 75% in order to conserve
cash.
Principal sources of the savings were a GBP3.6m reduction as a
result of the Government business rates holiday; a GBP5.9m
reduction in labour costs, supported by CJRS as the business was
closed; a GBP2.1m reduction in centre operating costs such as
utilities and contracts; and a GBP1.3m reduction as a result of
other cost-saving initiatives deployed.
The business was only trading for 51% of the year, and during
this time costs were higher than would be expected at the
suppressed volume levels. An increased cost of labour resulted as a
function of the stringent safety and cleaning regime in place to
ensure our customers and employees could enjoy their bowling
experience safely. This meant that the operating cost of our
centres while they were open was broadly flat year-on-year, with
the volume based savings offset by the incremental labour for Covid
security.
Central costs
Central costs comprise centrally allocated overheads and the
cost of the support office, including the PLC. Total central costs
grew by GBP0.8m in 2020 compared to 2019. A 9.7% saving in support
office costs was offset by an increased cost of 43.8% in the
centrally allocated centre costs.
Centrally allocated costs grew by GBP1.4m in the year which
included a GBP1.2m Covid security investment. This included the
purchase of personal protective equipment ('PPE') for centre staff;
sanitising stations; customer information and point of sale
materials; and the design and construction of steel and glass lane
dividers that now mean that the business can operate 100% of lanes.
Given the Covid-19 specific nature of these modifications, the
business was unable to estimate the useful economic life of these
investments and has expensed the items in the year rather than
assigning them as a capital investment. In addition, the business
invested in increased communication and research with customers to
ensure that we clearly understood and met expectations on
reopening.
Over 98% of central and support centre staff were furloughed
under CJRS or took a wage reduction at some point during the year.
The Board took the decision to support the wages of all employees
to the 80% level which meant topping up those employees who missed
cut-off dates or were earning above the threshold. There was a
GBP0.5m cost to that decision in the year, but the Board deemed
this a responsible approach that would assure the financial and
mental wellbeing of our teams. There was no bonus payable in
respect of 2020, and there was a release in respect of both the
2018 and 2019 Executive LTIP scheme in the expectation that the EPS
target will not be met. In order to secure liquidity longevity, the
business incurred professional fees in respect of lease regears,
the equity placing in March, preparation and application for the
CLBILS and advice in respect of Government lobbying for reopening
and securing the appropriate support measures such as the reduced
rate of VAT. Overall net savings of GBP0.6m were delivered in the
support office costs.
Group adjusted EBITDA (on an IAS 17 basis)
Group adjusted EBITDA has declined to a (GBP7.9m) loss compared
to the GBP23.6m profit in 2019. This swing of (GBP31.4m) is
directly attributable to the (GBP47.9m) of lost revenue offset in
part by the significant cost savings noted above.
Management estimate that the fixed cost of the business,
particularly the property related costs, is such that, with the
increased Covid security measures, it can be expected that the
Group breaks even at roughly 60% of 2019 sales. During 2020, only
January, February and during the Reopening phase of the business in
the second half of August and September exceeded this
threshold.
The leasehold nature of the business and the physical customer
experience means that during Lockdown, with no source of income and
fixed cost base of 93% of the standard run rate, it is not possible
to avoid losses. However, the experience of 2020 has shown that
once customers are allowed to return, so long as restrictions are
not too onerous, the business can rapidly return to profit and cash
generation.
Depreciation, amortisation and capital expenditure
Depreciation and amortisation in 2020, on an IAS 17 basis, was
8.2% higher than last year at GBP8.0m (FY19: GBP7.4m). This
resulted from the rollover effect of investments made in 2019 as
well as a further GBP7.0m of capital investment made in 2020.
Maintenance capital spend, on items that are direct replacements
and not specifically enhancement investments, was GBP0.7m, which is
a significant reduction on last year's GBP2.4m. This was a function
of the Board's decision to reduce discretionary spend to an
absolute minimum.
Commencement of new strategic capital expenditure was placed on
hold at the announcement of Lockdown, but the Board decided to
complete the projects that were already in progress. As a result,
total spend in 2020 was GBP6.3m compared to GBP9.0m in 2019. This
represents a 30% saving, reflecting the long-term planned nature of
these investments as well as the decision at the end of 2019 to
front-end load the strategic developments for 2020 to maximise the
in-year benefits.
Inward Investment of GBP2.7m focused on eight further Pins &
Strings implementations, taking the total completed estate to 87%,
and two significant refurbishments at Acton and Birmingham Star
City. These projects had little opportunity to deliver returns in
2020 but are fully expected to reduce costs and drive incremental
returns on reopening.
Estate expansion was principally the investment in Manchester
Printworks at GBP3.1m. Unfortunately, construction delays and
complexities due to Covid-19 added around 20% to the total cost of
the project. However, we are delighted with the result and even
though the centre opened under significant restrictions in
September, the initial trading exceeded expectations. We are
confident that this next generation centre will be one of the
strongest in our estate.
Finally, GBP0.5m was invested in the customer experience
enhancement. This was a combination of ongoing investment in
digital enablement, for example being first to market with a
web-based food and drink ordering platform, as well as developing
our CRM platform and enhancing our website to enable us to be the
first UK bowling operator to offer ApplePay and GooglePay.
These additions to the asset base have all strengthened the
underlying business model and we are confident that they remain
relevant and additive to our customer proposition post Covid-19. We
fully expect these projects to deliver strong double-digit returns
once the business reopens.
Depreciation and amortisation on an IFRS 16 basis was GBP16.6m.
The additional GBP8.6m compared to IAS 17 described above all
relates to the depreciation of our right of use property
assets.
Finance costs and Banking Arrangements
52 weeks 52 weeks 52 weeks
to to to
27 December 27 December 29 December
2020 2020 2019
GBP000 IFRS 16 IAS 17 IAS 17
-------------------------------------- ------------- ------------- -------------
Interest on bank debt (330) (330) (277)
Amortisation of bank financing costs (49) (49) (56)
Lease interest charges (5,393) (27) (282)
Other finance costs (43) (51) (173)
------------- ------------- -------------
Net interest (5,815) (457) (788)
Net interest has reduced year-on-year on an IAS 17 basis despite
the increased burden of debt. Bank interest increased by 19.1% to
GBP0.3m reflecting the increased drawings on the Group's RCF
facility. However, other finance costs and finance leases both
reduced by a larger amount as a result of support from our key
suppliers who allowed us to pause our leases in exchange for a
commensurate increase in term at the end of the lease.
Lease charges as a result of the liability on the right of use
property assets was an additional GBP5.4m. This is larger than
anticipated last year as the Group agreed seven lease regears in
2020 in order to help reduce the cash burden of leases in 2020.
Since the year end, the Group has secured an additional GBP14m
term loan with our current banking partner under the Government's
Coronavirus Large Business Interruption Loan Scheme ('CLBILS').
This facility increases the Group's available headroom
significantly, and is sufficient to provide liquidity longevity
well into 2022 even if the business should remain closed. As part
of the process of securing the CLBILS, the Group agreed with the
bank a new set of financial covenants on the existing RCF and the
new CLBILS which recognise the impact of the pandemic.
Group adjusted loss before tax
The Group delivered an adjusted loss before tax of (GBP16.3m) on
an IAS 17 basis. On an IFRS 16 basis this loss was (GBP19.1m). The
difference is a result of the profit compression effect of the
standard on businesses like ours that are at the early stages of
their lease tenure. The differential is larger than anticipated in
last year's report as a result of the lease regears in 2020 which
have extended the weighted average lease expiry by three years to
19 years. This differential does not impact cash flow and in fact
in 2020 and 2021 have benefited from improved cash positions as a
result of the lease regears by exchanging short-term rent payments
for a longer lease tenure.
Disposal of assets
The business has continued the roll-out of the latest technology
of bowling pinsetters, referred to as Pins & Strings. When
these are installed, it results in a non-cash loss on disposal of
the existing pinsetters. In 2020 the profit of GBP0.1m arose on the
disposal of gaming machines which was significantly lower than in
2019 when the loss from pinsetters was (GBP0.9m). The eight centre
s benefiting from Pins & Strings in 2020 had somewhat older
pinsetters that had been almost fully depreciated.
Although the programme does result in this non-cash loss, the
technology generates a significant return on investment from
reduced costs and an improved customer experience. The business has
now almost completed the programme, with only six centre s
remaining, and has temporarily placed it on hold in order to
conserve cashflow.
Amortisation of acquisition intangibles
The amortisation of acquisition intangibles charge was GBP0.1m
(FY19: GBP0.3m) with the decline arising from the amortisation of
customer lists to nil in the prior year.
Taxation
There is no tax due for 2020 as a result of the loss, and the
Group has generated a tax credit of GBP3.9m. This credit is split
between:
-- a GBP2.5m corporation tax credit being a prior year adjustment
-- a GBP1.4m deferred tax credit mainly arising from the
recognition of a deferred tax asset on the remaining FY20 tax
losses
The Group has submitted an early loss carry back claim to HMRC
in respect of GBP2.3m of 2019 tax paid and this is included as a
receivable on the balance sheet. The claim is still under
consideration by HMRC and a tax refund has not yet been
received.
(Loss)/profit after tax
The Group generated a loss after tax of (GBP17.7m). On an IAS 17
basis the loss after tax was (GBP12.2m) (FY19: +9.0m). The year on
year change of (GBP21.3m) is a function of the lost revenue and
enforced closures as a result of the Covid-19 pandemic.
Number of shares and (loss)/earnings per share
The number of shares in issue is 68,346,970. Increases in issued
share capital in the year arose from a 5% equity placing of
3,250,000 additional shares in March and the issue of 96,970 shares
in May in respect of the partial vesting of the 2017 LTIP
scheme.
(Loss)/earnings per share were a loss of (26.3p). On an IAS17
basis the loss per share was (18.1p) (FY19: +13.9p). The EPS
compression of (4.2p) as a result of two major elements: the
front-end loaded nature of the lease portfolio, which charges a
higher interest charge in the early years than the cash equivalent
of the rent; exacerbated by the GBP1.4m savings to IAS 17 EBITDA in
respect of lease regears which are not recognised under IFRS 16.
The in-year savings to EBITDA as a result of savings in rent
contribute 2.0p to the EPS compression, which is a one-off for
2020.
Dividends
The Board is not recommending a dividend for 2020 in order to
conserve liquidity headroom. The Board's priority is to reopen the
business safely and return trading to a steady and consistent
position of cash generation. The Group has a track record of
high-returning strategic investments, and the capital deployment
policy will be reviewed together with the dividend policy and debt
strategy once the Group resumes normal trading and has sufficient
cash resources. The Group must first discharge its obligations
under the CLBILS term loan in order for a dividend to be paid.
BALANCE SHEET
As at 27 December 27 December 29 December Movement
2020 2020 2019
GBP000 IFRS 16 IAS 17 IAS 17
Assets
Goodwill and other intangible assets 30,136 30,136 30,314 (178)
Property, plant and equipment 41,453 46,410 47,248 (838)
Deferred tax asset 4,118 1,131 - 1,131
Right of use assets 157,145 - - -
Inventories 508 508 1,297 (789)
Trade and other receivables 1,672 1,785 4,929 (3,144)
Cash and cash equivalents 7,394 7,394 2,188 5,206
----------- ----------- ----------- --------
242,426 87,364 85,976 1,388
Liabilities
Lease liabilities (185,146) (7,224) (8,109) 885
Bank borrowings (19,908) (19,908) (6,109) (13,799)
Trade and other payables and provisions (5,981) (11,115) (11,505) 390
Other liabilities (1,582) (1,579) (3,342) 1,763
----------- -----------
(212,617) (39,826) (29,065) (10,761)
Net assets 29,809 47,538 56,911 (9,373)
Net debt analysis
As at GBP000 27 December 27 December 29 December
2020 2020 2019 Movement
IFRS 16 IAS 17 IAS 17
Closing cash and cash equivalents 7,394 7,394 2,188 5,206
Bank loans (20,000) (20,000) (6,250) (13,750)
Bank net debt (12,606) (12,606) (4,062) (8,544)
Finance leases - machines and other (6,945) (7,224) (8,109) 885
Finance leases - property (178,201) - - -
Statutory net debt (197,752) (19,830) (12,171) (7,659)
CASH FLOW
52 weeks 52 weeks
to 27 December to 29 December
2020 2019
GBP000 GBP000 Movement
--------------------------------------- ---------------- ---------------- ---------
Cash flows from operating activities
Group adjusted EBITDA (7,860) 23,568 (31,428)
Maintenance capital (741) (2,369) 1,628
Movement in working capital 5,489 1,829 3,660
Finance lease and taxation payments (1,636) (5,325) 3,689
Free cash flow (4,747) 17,703 (22,450)
Dividends paid (2,405) (7,150) 4,745
---------------- ---------------- ---------
Cash flow available for investment (7,152) 10,553 (17,705)
Proceeds from issue of shares 4,878 - 4,878
Inward investment (2,710) (4,183) 1,473
Transforming customer experience (483) (2,198) 1,715
Expanding the estate (3,105) (2,618) (487)
Exceptionals and share-based payments 25 (1,414) 1,439
---------------- ---------------- ---------
Cash flow after investment (8,544) 140 (8,684)
Draw down/(Repayment) of debt 13,750 (3,250) 17,000
Opening cash and cash equivalents 2,188 5,298 (3,110)
Cash and cash equivalents - end of
period 7,394 2,188 5,206
================ ================ =========
IFRS 16
The Group adopted IFRS 16, using the modified retrospective
method, on 30 December 2019, the first day of the accounting
period. On adoption, the group recognised GBP164.9m of Right of Use
('ROU') property assets in respect of its leasehold properties.
These assets were then immediately impaired, with the impairment
charge of (GBP16.3m) going to reserves. This was a result of
testing the expected cashflows against the assets. The discount
rate to apply in determining the ROU asset is the Group's
incremental borrowing rate, which ranged from 2.1% to 3.8%. The
discount rate to apply to the expected cash flows is the Group's
WACC of 11.6%.
The future liabilities for the property assets on adoption were
(GBP151.5m) with an average lease expiry of 19 years, a function of
the recent property deals to secure long-term tenure at our
centres.
During the year, a further impairment test was triggered because
of the Covid-19 pandemic. Since this occurred after the 30 December
2019 adoption, the cashflows needed to be modified to include a
reduced cashflow for 2020 and 2021 due to the enforced closures and
reduced trading. This impairment test resulted in a further
impairment charge in the 2020 P&L of GBP2.5m.
Accounting standards and use of non-GAAP measures
The Group has prepared its consolidated financial statements
based on International Financial Reporting Standards as adopted by
the European Union for the 52 weeks ended 27 December 2020. The
basis for preparation is outlined in the accounting policies to the
financial statements on page 93.
The Group uses certain measures that it believes provide
additional useful information on its underlying performance. These
measures are applied consistently but as they are not defined under
GAAP they may not be directly comparable with other companies'
adjusted measures. The non-GAAP measures are outlined in Note 2 to
the financial statements on page 105.
Principal risks and uncertainties
The Group's principal risks and uncertainties are set out on
pages 46 to 48 of the Annual Report.
Attention is drawn in particular to the risk associated with
Covid-19. At the time of signing all centres in the Group are
closed due to the ongoing international pandemic after operating
only 51% of the year in 2020 and not open at all during 2021. The
business has taken significant actions to conserve cash, raise
financing and work with the banks to ensure liquidity is available
and covenants are reset to recognise the pandemic. These actions,
described in the CEO's Operating Review, mean that the Directors
are confident that the business has sufficient liquidity to
continue closed for well over 12 months. Therefore these financial
statements have been prepared on a going concern basis.
Note on Alternative Profit Measures
The group uses a number of Alternative Profit Measures ("APM"s)
in the disclosure of its results. In particular for 2020, with the
transition to IFRS16, the Group has presented its results for the
year on an IAS17 and IFRS16 basis. The use of IAS17 basis for 2020
aids year on year comparison as it is not possible to restate 2019
on an IFRS16 basis. Therefore, where year on year movements are
discussed, these are on an IAS17 basis.
Other APMs are also used, such as EBITDA and Free Cash Flow,
where they provide the user with additional information that helps
them to interpret the results using measures that the Board
consider relevant and helpful. It should be noted that
like-for-like sales refer to sales in centres that were open and
trading in both periods. The measure excludes new centres that were
not in place in the prior year, but also excludes periods where
existing centres were in an enforced closure period in the current
period due to Covid-19 restrictions.
Going Concern
In assessing the going concern position of the Group and Company
for the Annual Report and the financial statements for the year
ended 27 December 2020, the Directors have considered its business
activities in light of the uncertainty caused by the Covid-19
outbreak and the impact on the Group's profit, cash flow, liquidity
and covenants. All the Group's centres were closed for trade from
20 March 2020 with a phased reopening from 4 August 2020 when it
reopened the three Welsh centres, with the majority of the English
centres then reopening from 15 August 2020. All English centres
were closed again during the November Lockdown and though the
majority of centres reopened in December, the bulk closed again
during the month as local Lockdowns and tiered restrictions were
imposed, leaving only six centres open as at 27 December 2020.
These centres then closed when the national Lockdown resumed in
January 2021 and all centres have remained closed until the date of
this Annual Report.
As part of the review of the potential impact of the Covid-19
outbreak on the Group's cash flows and liquidity over the next 12
months, a base case and a downside case were prepared. Critical to
both cases was the availability of cash from the bank facilities
with RBS and amended covenants that could be met in both cases.
In January 2021, the Group negotiated a new GBP14m CLBILS term
loan facility agreement with RBS, with a term of three years. This,
along with the current GBP25m revolving credit facility with RBS,
provides the Group with a GBP39m available debt facility.
In May 2020, RBS agreed to the waiver of the leverage and fixed
charge covenants that were in place, until the end of June 2021. As
part of the negotiation of the CLBILS facility in January 2021, the
covenants were renegotiated and amended to the following:
Current covenants:
Fixed charge covenant (Adjusted EBITDA
Leverage covenant (Ratio of total plus rent to rent adjusted finance
net debt to adjusted EBITDA) costs)
Testing for 2021 waived, replaced Testing for 2021 waived, replaced
by new covenants by new covenants
March 2022 - reference level - 1.10x March 2022 - reference level - 7.50x
June 2022 - reference level - 1.25x June 2022 - reference level - 5.00x
September 2022 - reference level September 2022 - reference level
- 1.50x - 4.00x
December 2022 - reference level - December 2022 - reference level -
1.50x 2.25x
------------------------------------- --------------------------------------
New covenants:
Introduced for January 2021 to December 2021:
Minimum liquidity
Minimum EBITDA
Quarter 1 - GBP4,750,000 in cash
Quarter 1 - GBP5,550,000 EBITDA loss and cash equivalents
Quarter 2 - GBP10,550,000 cumulative Quarter 2 - GBP4,000,000 in cash
EBITDA loss and cash equivalents
Quarter 3 - GBP10,550,000 cumulative Quarter 3 - GBP1,500,000 in cash
EBITDA loss and cash equivalents
Quarter 4 - GBP12,550,000 cumulative Quarter 4 - GBP1,500,000 in cash
EBITDA loss and cash equivalents
------------------------------------- ---------------------------------
The base case was prepared using the following key
assumptions:
-- centres forced to close with no revenue for January to May 2021;
-- during closure, CJRS is still being provided and a
significant portion of employees are on furlough, variable
operating and central costs are kept to a minimum, the business
rates holiday is still being provided, but fixed costs as rent and
service charges are maintained as normal;
-- centres reopen from May, with levels of trade starting at
-65% of the equivalent periods in FY19, moving up to -30%, with
trade by the latter quarter of the year and the first quarter of
FY22 expected to be at similar levels to FY19;
-- the -65% and -30% trading options reflect disruption from
local Lockdowns and reflects the similar effects of social
distancing restrictions such as the 'Rule of Six', household mixing
and curfews, as was felt in 2020, had on revenue. Variable
operating and administrative costs
are reflective of the level of trade with fixed costs as rent,
business rates and support centre costs maintained as normal as the
centres are open;
-- reduced maintenance and marketing spend, as well as reducing
all non-essential and non-committed capital expenditure in FY21 and
the first quarter of FY22; and
-- no dividend payments in FY21 or FY22.
Under this base case scenario in FY21, the Group is not expected
to be profitable but will have sufficient liquidity and no covenant
breaches are forecast within the next 12 months from the signing of
the Annual Report and Accounts.
The downside case was prepared using the following key
assumptions:
-- revenue is assumed at 37% down on the base case for FY21 and
9% down on the base case for FY22;
-- where the base case expected trade to return to FY19 levels
for the last quarter of FY21 and into the first quarter of FY22,
the downside case reflects these at -65% and -30% of FY19
levels;
-- in line with the revenue reduction, there is a reflective
reduction in variable operating costs including employee costs.
Where centres are forced to close, it is assumed CJRS is available
and is taken up until September but after that no claim is
assumed;
-- reduced maintenance and marketing spend, as well as reducing
all non-essential and non-committed capital expenditure in FY21 and
FY22 as in the base case; and
-- no dividend payments in FY21 or FY22.
The downside case modelled is severe but plausible and would
still leave the Group with GBP5m of liquidity at the end of FY21
and in 12 months from now and the Group would pass the minimum
liquidity tests but would breach the EBITDA test for September and
December 2021 as there would be no CJRS claimed after September
when it is currently expected to end. The fixed cost and leverage
covenants commencing from quarter one of FY22 pass. In the event of
a full lockdown in any of the months in quarter one of FY22, there
would be a breach of the first quarters covenants. In the event
that a covenant is breached, an extension of this covenant would
need to be negotiated with RBS. The Directors believe this would
likely be given as the Group would still have GBP5m of liquidity
available, has a strong relationship with RBS and has successfully
obtained covenant waivers recently.
Nevertheless, in the event of extended Lockdown measures
impacting the Group's operations, the possibility of a covenant
breach at the end of December 2021 cannot be discounted, and as
such represents a material uncertainty that may cast significant
doubt on the Group and Company's ability to continue as a going
concern.
Taking the above and the principal risks faced by the Group and
Company into consideration, and the Directors expectation that they
could negotiate an extension to the covenant should the need arise,
the Directors are satisfied that the Group and Company have
adequate resources to continue in operation for the foreseeable
future, a period of at least 12 months from the date of this
report. Accordingly, the Group and Company continue to adopt the
going concern basis in preparing these financial statements.
The Financial Statements do not include the adjustments that
would result if the Group and Company were unable to continue as a
going concern.
Antony Smith
Chief Financial Officer
29 March 2021
Consolidated statement of comprehensive income
for the 52-week period ended 27 December 2020
52 weeks 52 weeks
to to
27 December 29 December
2020 2019
Note GBP000 GBP000
---------------------------------------------------- ---- ------------ ------------
Revenue 1 36,269 84,122
---------------------------------------------------- ---- ------------ ------------
Cost of sales (14,095) (24,930)
---------------------------------------------------- ---- ------------ ------------
Gross profit 22,174 59,192
---------------------------------------------------- ---- ------------ ------------
Administrative expenses (38,025) (46,609)
---------------------------------------------------- ---- ------------ ------------
Operating (loss)/profit (15,851) 12,583
---------------------------------------------------- ---- ------------ ------------
Analysed as:
---------------------------------------------------- ---- ------------ ------------
Group adjusted EBITDA 3,347 23,568
Exceptional administrative costs - (2,391)
Amortisation of acquisition intangibles (142) (293)
Depreciation and amortisation (16,634) (7,379)
Impairment (2,521) -
Profit on share of joint venture - 10
Profit/(loss) on disposal of assets 99 (932)
---------------------------------------------------- ---- ------------ ------------
Operating (loss)/profit (15,851) 12,583
---------------------------------------------------- ---- ------------ ------------
Finance costs 5 (5,815) (788)
---------------------------------------------------- ---- ------------ ------------
(Loss)/profit before taxation (21,666) 11,795
---------------------------------------------------- ---- ------------ ------------
Taxation 11 3,919 (2,758)
---------------------------------------------------- ---- ------------ ------------
(Loss)/profit and total comprehensive (loss)/income
for the period attributable to owners of the
parent (17,747) 9,037
---------------------------------------------------- ---- ------------ ------------
Earnings per share
---------------------------------------------------- ---- ------------ ------------
Basic (loss)/earnings per share 12 (26.30)p 13.90p
---------------------------------------------------- ---- ------------ ------------
Diluted (loss)/earnings per share 12 (26.30)p 13.87p
---------------------------------------------------- ---- ------------ ------------
Consolidated and Company statements of financial position
as at 27 December 2020
Group Company
------------------------------ ---- ------------------------ ------------------------
27 December 29 December 27 December 29 December
2020 2019 2020 2019
Note GBP000 GBP000 GBP000 GBP000
------------------------------ ---- ----------- ----------- ----------- -----------
Assets
------------------------------ ---- ----------- ----------- ----------- -----------
Non-current assets
------------------------------ ---- ----------- ----------- ----------- -----------
Goodwill 13 29,350 29,350 - -
------------------------------ ---- ----------- ----------- ----------- -----------
Intangible assets 13 476 653 - -
------------------------------ ---- ----------- ----------- ----------- -----------
Investments in joint venture 14 310 310 310 310
------------------------------ ---- ----------- ----------- ----------- -----------
Investments 15 - - 38,915 38,915
Property, plant and equipment 16 41,453 47,248 - -
Right-of-use assets 17 157,145 - - -
Deferred tax asset 4,118 - - -
------------------------------ ---- ----------- ----------- ----------- -----------
232,852 77,561 39,225 39,225
------------------------------ ---- ----------- ----------- ----------- -----------
Current assets
------------------------------ ---- ----------- ----------- ----------- -----------
Inventories 508 1,297 - -
------------------------------ ---- ----------- ----------- ----------- -----------
Trade and other receivables 1,672 4,929 62 2,412
------------------------------ ---- ----------- ----------- ----------- -----------
Corporation tax receivable 2,302 - - -
------------------------------ ---- ----------- ----------- ----------- -----------
Cash and cash equivalents 7,394 2,188 4,577 3
------------------------------ ---- ----------- ----------- ----------- -----------
11,876 8,414 4,639 2,415
------------------------------ ---- ----------- ----------- ----------- -----------
Liabilities
------------------------------ ---- ----------- ----------- ----------- -----------
Current liabilities
------------------------------ ---- ----------- ----------- ----------- -----------
Bank borrowings and leases 19 (34,031) (9,227) 6 9
------------------------------ ---- ----------- ----------- ----------- -----------
Trade and other payables 20 (8,282) (9,819) (1,312) (6,871)
------------------------------ ---- ----------- ----------- ----------- -----------
Corporation tax payable - (907) -
------------------------------ ---- ----------- ----------- ----------- -----------
Provisions 21 - (91) - -
------------------------------ ---- ----------- ----------- ----------- -----------
(42,313) (20,044) (1,306) (6,862)
------------------------------ ---- ----------- ----------- ----------- -----------
Net current liabilities (30,437) (11,630) 3,333 (4,447)
------------------------------ ---- ----------- ----------- ----------- -----------
Non-current liabilities
------------------------------ ---- ----------- ----------- ----------- -----------
Bank borrowings and leases 19 (171,024) (4,991) - -
------------------------------ ---- ----------- ----------- ----------- -----------
Other non-current liabilities - (1,284) - -
------------------------------ ---- ----------- ----------- ----------- -----------
Deferred tax liability (1,582) (2,057) - -
------------------------------ ---- ----------- ----------- ----------- -----------
Provisions - (688) - -
------------------------------ ---- ----------- ----------- ----------- -----------
(172,606) (9,020) - -
------------------------------ ---- ----------- ----------- ----------- -----------
Net assets 29,809 56,911 42,558 34,778
------------------------------ ---- ----------- ----------- ----------- -----------
Equity
------------------------------ ---- ----------- ----------- ----------- -----------
Share capital 683 650 683 650
------------------------------ ---- ----------- ----------- ----------- -----------
Share premium 4,844 - 4,844 -
------------------------------ ---- ----------- ----------- ----------- -----------
Merger reserve 6,171 6,171 - -
------------------------------ ---- ----------- ----------- ----------- -----------
Share-based payment reserve 250 275 250 275
------------------------------ ---- ----------- ----------- ----------- -----------
Retained earnings 17,861 49,815 36,781 33,853
------------------------------ ---- ----------- ----------- ----------- -----------
Total equity 29,809 56,911 42,558 34,778
------------------------------ ---- ----------- ----------- ----------- -----------
Consolidated and Company statements of cash flows
for the 52-week period ended 27 December 2020
52 weeks 52 weeks
to to
27 December 29 December
2020 2019
Group Note GBP000 GBP000
------------------------------------------------------- ---- ------------ ------------
Cash flows (used in)/generated from operating
activities
Cash generated from operations 18 4,480 23,917
Corporation tax paid (715) (2,616)
------------------------------------------------------- ---- ------------ ------------
Finance costs paid (5,766) (681)
------------------------------------------------------- ---- ------------ ------------
Net cash (used in)/generated from operating activities (2,001) 20,620
------------------------------------------------------- ---- ------------ ------------
Cash flows used in investing activities
Investment in joint venture - (300)
Acquisition of centre s by Tenpin Limited - (1,400)
Purchase of property, plant and equipment (6,044) (8,556)
------------------------------------------------------- ---- ------------ ------------
Purchase of software (119) (212)
------------------------------------------------------- ---- ------------ ------------
Net cash used in investing activities (6,163) (10,468)
------------------------------------------------------- ---- ------------ ------------
Cash flows generated from/(used in) financing
activities
Cash costs capitalised from new borrowings - (153)
Gross proceeds from issue of new shares 5,038 -
Transaction costs from share issue (160) -
Lease principal payments (2,853) (2,709)
Dividends paid (2,405) (7,150)
Drawdown of bank borrowings 18,350 17,000
------------------------------------------------------- ---- ------------ ------------
Repayment of borrowings (4,600) (20,250)
------------------------------------------------------- ---- ------------ ------------
Net cash generated from/(used) in financing activities 13,370 (13,262)
------------------------------------------------------- ---- ------------ ------------
Net increase/(decrease) in cash and cash equivalents 5,206 (3,110)
------------------------------------------------------- ---- ------------ ------------
Cash and cash equivalents - beginning of period 2,188 5,298
------------------------------------------------------- ---- ------------ ------------
Cash and cash equivalents - end of period 7,394 2,188
------------------------------------------------------- ---- ------------ ------------
52 weeks 52 weeks
to to
27 December 29 December
2020 2019
Company Note GBP000 GBP000
----------------------------------------------------- ---- ------------ ------------
Cash flows used in operating activities
----------------------------------------------------- ---- ------------ ------------
Cash used in operations 18 (5,358) (2,104)
----------------------------------------------------- ---- ------------ ------------
Net cash used in operating activities (5,358) (2,104)
----------------------------------------------------- ---- ------------ ------------
Cash flows used in investing activities
----------------------------------------------------- ---- ------------ ------------
Investment in joint venture - (300)
----------------------------------------------------- ---- ------------ ------------
Net cash used in investing activities - (300)
----------------------------------------------------- ---- ------------ ------------
Cash flows generated from financing activities
Net cash received from issue of new shares 4,878 -
Dividends received 7,459 7,410
----------------------------------------------------- ---- ------------ ------------
Dividends paid (2,405) (7,150)
----------------------------------------------------- ---- ------------ ------------
Net cash generated from financing activities 9,932 260
----------------------------------------------------- ---- ------------ ------------
Net increase/(decrease) in cash and cash equivalents 4,574 (2,144)
----------------------------------------------------- ---- ------------ ------------
Cash and cash equivalents - beginning of period 3 2,147
----------------------------------------------------- ---- ------------ ------------
Cash and cash equivalents - end of period 4,577 3
----------------------------------------------------- ---- ------------ ------------
Consolidated and Company statements of changes in equity
for the 52-week period ended 27 December 2020
Share-based
Share Share payment Merger Retained Total
capital premium reserve reserve earnings equity
Group GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
---------------------------------------------- -------- -------- ----------- -------- --------- --------
Balance at 30 December 2018 650 - 159 6,171 47,928 54,908
Dividends paid - - - - (7,150) (7,150)
Share-based payment charge - - 116 - - 116
Profit for the period and total comprehensive
income attributable to owners of the
parent - - - - 9,037 9,037
---------------------------------------------- -------- -------- ----------- -------- --------- --------
Balance at 29 December 2019 (as previously
reported) 650 - 275 6,171 49,815 56,911
---------------------------------------------- -------- -------- ----------- -------- --------- --------
Adjustment on initial application
of IFRS 16 - - - - (14,970) (14,970)
Taxation on IFRS 16 transition adjustment - - - - 3,168 3,168
---------------------------------------------- -------- -------- ----------- -------- --------- --------
Adjusted balance at 30 December 2019 650 - 275 6,171 38,013 45,109
---------------------------------------------- -------- -------- ----------- -------- --------- --------
Share-based payment charge - - (25) - - (25)
Issue of shares 33 4,844 - - - 4,877
Dividends paid - - - - (2,405) (2,405)
---------------------------------------------- -------- -------- ----------- -------- --------- --------
Loss for the period and total comprehensive
loss attributable to owners of the
parent - - - - (17,747) (17,747)
---------------------------------------------- -------- -------- ----------- -------- --------- --------
Balance at 27 December 2020 683 4,844 250 6,171 17,861 29,809
---------------------------------------------- -------- -------- ----------- -------- --------- --------
Share-based
Share Share payment Merger Retained Total
capital premium reserve reserve earnings equity
Company GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
----------------------------------- -------- -------- ----------- -------- --------- -------
Balance at 30 December 2018 650 - 159 - 35,583 36,392
Profit for the period - - - - 5,420 5,420
Share-based payment charge - - 116 - - 116
Dividend paid - - - - (7,150) (7,150)
----------------------------------- -------- -------- ----------- -------- --------- -------
Balance at 29 December 2019 650 - 275 - 33,853 34,778
----------------------------------- -------- -------- ----------- -------- --------- -------
Share-based payment charge - - (25) - - (25)
Issue of shares net of transaction
costs 33 4,844 - - - 4,877
Dividend paid - - - - (2,405) (2,405)
Profit for the period - - - - 5,333 5,333
----------------------------------- -------- -------- ----------- -------- --------- -------
Balance at 27 December 2020 683 4,844 250 - 36,781 42,558
----------------------------------- -------- -------- ----------- -------- --------- -------
Notes to the Financial Statements
1. General information
The Company's ordinary shares are traded on the London Stock
Exchange. The address of the registered office is Aragon House,
University Way, Cranfield Technology Park, Cranfield, Bedford MK43
0EQ. The consolidated financial statements of the Group for the
52-week period ended 27 December 2020 comprise the Company and its
subsidiaries (together referred to as the 'Group'). The principal
activity of the Group comprises the operation of tenpin bowling
centres.
2. Basis of preparation
These financial statements have been prepared in accordance with
international accounting standards in conformity with the
requirements of the Companies Act 2006 ('IFRS') and the applicable
legal requirements of the Companies Act 2006. In addition to
complying with international accounting standards in conformity
with the requirements of the Companies Act 2006, the consolidated
financial statements also comply with international financial
reporting standards adopted pursuant to Regulation (EC) No
1606/2002 as it applies in the European Union.
The accounting policies which follow set out those policies
which apply in preparing the financial statements for the 52 weeks
ended 27 December 2020 and have been applied consistently, to all
periods presented in these consolidated financial statements, other
than the adoption of IFRS 16 Leases which became effective for the
Group from 30 December 2019. IFRS 16 is a replacement for IAS 17
Leases. There has been a significant impact on the Group's
accounting for leases as a result of IFRS 16, the effect of which
is set out further down this report. The Group and the Company
financial statements are presented in Sterling and all values are
rounded to the nearest thousand pounds (GBP000) except when
otherwise indicated. The financial statements are prepared using
the historical cost basis. On publishing the Company financial
statements here together with the Group financial statements, the
Company is taking advantage of the exemption in Section 408 of the
Companies Act 2006 not to present its individual statement of
comprehensive income and related notes that form a part of these
approved financial statements.
3. Going concern
In assessing the going concern position of the Group and Company
for the Annual Report and the financial statements for the year
ended 27 December 2020, the Directors have considered its business
activities in light of the uncertainty caused by the Covid-19
outbreak and the impact on the Group's profit, cash flow, liquidity
and covenants. All the Group's centres were closed for trade from
20 March 2020 with a phased reopening from 4 August 2020 when it
reopened the three Welsh centres, with the majority of the English
centres then reopening from 15 August 2020. All English centres
were closed again during the November Lockdown and though the
majority of centres reopened in December, the bulk closed again
during the month as local Lockdowns and tiered restrictions were
imposed, leaving only six centres open as at 27 December 2020.
These centres then closed when the national Lockdown resumed in
January 2021 and all centres have remained closed until the date of
this Annual Report.
As part of the review of the potential impact of the Covid-19
outbreak on the Group's cash flows and liquidity over the next 12
months, a base case and a downside case were prepared. Critical to
both cases was the availability of cash from the bank facilities
with RBS and amended covenants that could be met in both cases.
In January 2021, the Group negotiated a new GBP14m CLBILS term
loan facility agreement with RBS, with a term of three years. This,
along with the current GBP25m revolving credit facility with RBS,
provides the Group with a GBP39m available debt facility.
In May 2020, RBS agreed to the waiver of the leverage and fixed
charge covenants that were in place, until the end of June 2021. As
part of the negotiation of the CLBILS facility in January 2021, the
covenants were renegotiated and amended to the following:
Current covenants:
Fixed charge covenant (Adjusted EBITDA
Leverage covenant (Ratio of total plus rent to rent adjusted finance
net debt to adjusted EBITDA) costs)
Testing for 2021 waived, replaced Testing for 2021 waived, replaced
by new covenants by new covenants
March 2022 - reference level - 1.10x March 2022 - reference level - 7.50x
June 2022 - reference level - 1.25x June 2022 - reference level - 5.00x
September 2022 - reference level September 2022 - reference level
- 1.50x - 4.00x
December 2022 - reference level - December 2022 - reference level -
1.50x 2.25x
------------------------------------- --------------------------------------
New covenants:
Introduced for January 2021 to December 2021:
Minimum liquidity
Minimum EBITDA
Quarter 1 - GBP4,750,000 in cash
Quarter 1 - GBP5,550,000 EBITDA loss and cash equivalents
Quarter 2 - GBP10,550,000 cumulative Quarter 2 - GBP4,000,000 in cash
EBITDA loss and cash equivalents
Quarter 3 - GBP10,550,000 cumulative Quarter 3 - GBP1,500,000 in cash
EBITDA loss and cash equivalents
Quarter 4 - GBP12,550,000 cumulative Quarter 4 - GBP1,500,000 in cash
EBITDA loss and cash equivalents
------------------------------------- ---------------------------------
The base case was prepared using the following key
assumptions:
-- centres forced to close with no revenue for January to May 2021;
-- during closure, CJRS is still being provided and a
significant portion of employees are on furlough, variable
operating and central costs are kept to a minimum, the business
rates holiday is still being provided, but fixed costs as rent and
service charges are maintained as normal;
-- centres reopen from May, with levels of trade starting at
-65% of the equivalent periods in FY19, moving up to -30%, with
trade by the latter quarter of the year and the first quarter of
FY22 expected to be at similar levels to FY19;
-- the -65% and -30% trading options reflect disruption from
local Lockdowns and reflects the similar effects of social
distancing restrictions such as the 'Rule of Six', household mixing
and curfews, as was felt in 2020, had on revenue. Variable
operating and administrative costs
are reflective of the level of trade with fixed costs as rent,
business rates and support centre costs maintained as normal as the
centres are open;
-- reduced maintenance and marketing spend, as well as reducing
all non-essential and non-committed capital expenditure in FY21 and
the first quarter of FY22; and
-- no dividend payments in FY21 or FY22.
Under this base case scenario in FY21, the Group is not expected
to be profitable but will have sufficient liquidity and no covenant
breaches are forecast within the next 12 months from the signing of
the Annual Report and Accounts.
The downside case was prepared using the following key
assumptions:
-- revenue is assumed at 37% down on the base case for FY21 and
9% down on the base case for FY22;
-- where the base case expected trade to return to FY19 levels
for the last quarter of FY21 and into the first quarter of FY22,
the downside case reflects these at -65% and -30% of FY19
levels;
-- in line with the revenue reduction, there is a reflective
reduction in variable operating costs including employee costs.
Where centres are forced to close, it is assumed CJRS is available
and is taken up until September but after that no claim is
assumed;
-- reduced maintenance and marketing spend, as well as reducing
all non-essential and non-committed capital expenditure in FY21 and
FY22 as in the base case; and
-- no dividend payments in FY21 or FY22.
The downside case modelled is severe but plausible and would
still leave the Group with GBP5m of liquidity at the end of FY21
and in 12 months from now and the Group would pass the minimum
liquidity tests but would breach the EBITDA test for September and
December 2021 as there would be no CJRS claimed after September
when it is currently expected to end. The fixed cost and leverage
covenants commencing from quarter one of FY22 pass. In the event of
a full lockdown in any of the months in quarter one of FY22, there
would be a breach of the first quarters covenants. In the event
that a covenant is breached, an extension of this covenant would
need to be negotiated with RBS. The Directors believe this would
likely be given as the Group would still have GBP5m of liquidity
available, has a strong relationship with RBS and has successfully
obtained covenant waivers recently.
Nevertheless, in the event of extended Lockdown measures
impacting the Group's operations, the possibility of a covenant
breach at the end of December 2021 cannot be discounted, and as
such represents a material uncertainty that may cast significant
doubt on the Group and Company's ability to continue as a going
concern.
Taking the above and the principal risks faced by the Group and
Company into consideration, and the Directors expectation that they
could negotiate an extension to the covenant should the need arise,
the Directors are satisfied that the Group and Company have
adequate resources to continue in operation for the foreseeable
future, a period of at least 12 months from the date of this
report. Accordingly, the Group and Company continue to adopt the
going concern basis in preparing these financial statements.
The Financial Statements do not include the adjustments that
would result if the Group and Company were unable to continue as a
going concern.
4. Leases
IFRS 16 Leases replaces existing guidance under IAS 17 and
introduces a fundamental change to the recognition, measurement,
presentation and disclosure of leases for lessees.
The Group adopted IFRS 16 with effect from 30 December 2019. The
Group applied the standard using the modified retrospective
approach and thus comparative information has not been restated and
is presented, as previously reported, under IAS 17. The new
standard results in all property leases which were classified as
operating leases under IAS 17, being recognised on the Statement of
Financial Position as, from a lessee perspective, there is no
longer any distinction between operating and finance leases. Under
IFRS 16, an asset, based on the right to use a leased item over a
long-term period and a financial liability to pay rentals are
recognised. The only exceptions are short-term and low-value
leases.
The Group leases properties, which under IAS 17 were classified
as operating leases with payments made charged to profit or loss as
arising over the period of the lease. From 30 December 2019, under
IFRS 16, leases are recognised as a right-of-use asset with a
corresponding lease liability from the date at which the leased
asset becomes available for use by the Group. Each lease payment is
allocated between the liability and a finance cost. The finance
cost is charged to profit or loss over the lease period using the
effective interest method. Right-of-use assets are measured at
cost, less any accumulated depreciation and impairment losses, and
adjusted for any remeasurement of lease liabilities. The cost of
right-of-use assets includes the amount of lease liabilities
recognised, less any lease incentives received. Right-of-use assets
are depreciated on a straight-line basis over the shorter of the
lease term and the estimated useful lives of the assets. Lease
liabilities are measured at the present value of lease payments to
be made over the lease term. The lease payments include fixed
payments (including in-substance fixed payments) less any lease
incentives receivable and variable lease payments that depend on an
index or a rate. Variable lease payments that do not depend on an
index or a rate are recognised as expenses in the period in which
the event or condition that triggers the payment occurs.
In applying IFRS 16 for the first time, the Group has used the
following practical expedients permitted by the standard:
-- use of a single discount rate to a portfolio of leases with
reasonably similar characteristics;
-- short-term leases (leases of less than 12 months) and leases
with less than 12 months remaining as at the date of adoption of
the new standard are not within the scope of IFRS 16;
-- leases for which the asset is of low value (IT equipment and
small items of office equipment) are not within the scope of IFRS
16; and
-- exclusion of initial direct costs from the measurement of the
right-of-use asset on transition.
On transition to IFRS 16, the Group elected to apply the
practical expedient to apply the definition of a lease from IAS 17
for contracts in place at 30 December 2019. For leases previously
classified as finance leases the entity recognised the carrying
amount of the lease asset and lease liability immediately before
transition as the carrying amount of the right-of-use asset and the
lease liability at the date of initial application. The measurement
principles of IFRS 16 are only applied after that date. For all
leases previously classified as operating leases, these liabilities
and assets were measured at the present value of the remaining
lease payments, discounted using the Group's average incremental
borrowing rate (IBR) as of 30 December 2019, specific to the
portfolio of leases. The IBR is a significant area of estimation,
as the Group obtained a range of borrowing rates for differing
terms to determine a range of rates on adoption as reflected in IBR
accounting policy. A 1% increase in all of these rates would
decrease the value of the right-of-use asset on adoption by
GBP13.1m, while a 1% decrease in the rates would increase the value
by GBP15.1m.
Under IFRS 16, the right-of-use assets are tested for impairment
in accordance with IAS 36 'Impairment of Assets'. This replaces the
previous requirement to recognise a provision for onerous leases.
An impairment assessment of the cash-generating unit ('CGU') assets
was performed on transition at 30 December 2019 with an impairment
charge of GBP16.3m identified as part of the adoption of IFRS 16 in
retained earnings. A CGU is each of the 46 (2019: 45) centres open
as at the period end. The recoverable amount of each CGU has been
calculated as the higher of its value in use and its fair value
less cost to sell. The calculation of value in use is based on
pre-tax cash flow projections from the financial forecasts approved
by the Board covering a one-year period and extrapolated by
management using an estimated medium-term growth rate for a further
two years. Cash flows beyond this three-year period are
extrapolated over the life of the lease relating to that
centre.
The key assumptions of the value in use calculation at the
adoption date are:
Period on which management-approved forecasts are based 3 years
-------------------------------------------------------- -------
Growth rate applied beyond approved forecast period 2%
-------------------------------------------------------- -------
Pre-tax discount rate 11.6%
-------------------------------------------------------- -------
The pre-tax discount rate applied to the cash flow projections
approximates the Group's weighted average cost of capital ('WACC'),
adjusted only to reflect the way in which the market would assess
the specific risks associated with the estimated cash flows of the
bowling businesses and to exclude any risks that are not relevant
to estimated cash flows of the bowling businesses, or for which
they have already been adjusted.
The budgets which underlie the calculations are compiled on a
centre -by- centre basis, with gross margin, staff cost, property
cost and other operating profit assumptions being based on past
performance and known factors specific to that centre which are
expected by management to affect future performance, to reflect the
operating circumstances and risks relevant to each part of the
business at the time of adoption. They also include an allocation
of central overheads which are allocated across the centres based
on turnover. Due to the timing of the adoption of IFRS 16 these
forecasts do not take the impact of Covid-19 into
consideration.
The key assumptions to which the calculation is sensitive are
the pre-tax discount rate, the future trading performance and the
growth rate that is expected of each centre. If the discount rate
applied in the calculations is increased by 1%, the impairment
charge increases by GBP3.4m. If the growth rate applied is changed
to 1% then impairment increases by GBP2.4m.
The effect of the accounting policy change on the Consolidated
Statement of Financial Position at implementation on 30 December
2019 was:
As at As at
29 December IFRS 30 December
2019 adjustment 2019
Assets GBP000 GBP000 GBP000
----------------------------------------- ------------ ----------- ------------
Right-of-use assets - 148,645 148,645
Deferred tax asset on IFRS 16 transition - 3,168 3,168
Prepayments 2,559 (2,559) -
----------------------------------------- ------------ ----------- ------------
2,559 149,254 151,813
Liabilities
----------------------------------------- ------------ ----------- ------------
Lease - Property current - (12,400) (12,400)
Lease - Property non-current - (151,538) (151,538)
Deferred income - Lease incentive (1,578) 1,578 -
Onerous lease provision (779) 779 -
----------------------------------------- ------------ ----------- ------------
(2,357) (161,581) (163,938)
Retained earnings
----------------------------------------- ------------ ----------- ------------
Retained earnings 49,815 (11,802) 38,013
----------------------------------------- ------------ ----------- ------------
49,815 (11,802) 38,013
----------------------------------------- ------------ ----------- ------------
The adoption of IFRS 16 reduced opening retained earnings as at
30 December 2019 by GBP11.8m.
During the period ended 27 December 2020, the application of
IFRS 16 resulted in increased adjusted EBITDA, as reported in the
Consolidated Income Statement and Consolidated Statement of
Comprehensive Income, of GBP11.2m in comparison to treatment under
IAS 17. There was an increase to operating profit of GBP2.6m. The
differences have arisen as operating lease payments under IAS 17
were replaced by a depreciation charge on right-of-use assets,
onerous lease provision under IAS 17 has been replaced by
impairment of assets and adjustments to rent free periods and other
lease incentives. Profit before taxation therefore decreased by a
total of GBP2.8m with the inclusion of GBP5.4m of finance costs
under the new standard. The table below reconciles operating profit
between IAS 17 and the new standard, IFRS 16:
GBP000
----------------------------------------------------------------- -------
Add: Operating lease costs under IAS 17 11,230
----------------------------------------------------------------- -------
Impact on adjusted EBITDA for the period ended 27 December 2020: 11,230
----------------------------------------------------------------- -------
Less: Depreciation of right-of-use assets for leases previously
recognised as operating leases under IAS 17 (8,648)
----------------------------------------------------------------- -------
Less: Onerous lease provision previously recognised under IAS
17 (17)
----------------------------------------------------------------- -------
Impact on operating profit for the period ended 27 December
2020: 2,565
----------------------------------------------------------------- -------
Less: Finance costs (interest) (5,388)
----------------------------------------------------------------- -------
Net decrease to profit before tax (2,823)
----------------------------------------------------------------- -------
The table below represents a reconciliation from operating lease
commitments disclosed at 29 December 2019 to lease liabilities
recognised at 30 December 2019:
GBP000
---------------------------------------------------------- --------
Operating lease commitments disclosed at 29 December 2019 197,386
---------------------------------------------------------- --------
Increase from contractual rent reviews1 37,248
---------------------------------------------------------- --------
Effect of discounting lease payments2 (70,695)
---------------------------------------------------------- --------
Lease liabilities recognised at 30 December 2019 163,939
---------------------------------------------------------- --------
1 The previous disclosure of commitments was based on the
current agreed rent over the term of the lease, whilst under IFRS
16 lease commitments factor in the minimum rent increases agreed in
the rent review clauses of the leases.
2 The previous disclosure of commitments was undiscounted, while
under IFRS 16 lease commitments are discounted over the term of the
lease based on the Group's incremental borrowing rate.
5. Segment reporting
Segmental information is presented in respect of the Group's
business segments. Strategic decisions are made by the Board based
on information presented in respect of these segments. There are no
differences in the measurement of segment profit or loss, assets
and liabilities for each segment.
The Group comprises the following segments:
Tenpin Limited - Tenpin Limited is a leading tenpin bowling
operator in the UK. All revenue is derived from activities
conducted in the UK.
Central - comprises central management including company
secretarial work and the Board of Directors' and general head
office assets and costs. The segment results for the 52-week period
ended 27 December 2020 are used by the Board for strategic decision
making, and a reconciliation of those results to the reported
profit in the Consolidated Statement of Comprehensive Income, and
the segment assets are as follows:
Tenpin
Limited Central Group
GBP000 GBP000 GBP000
---------------------------------------------- --------- -------- ---------
For the 52-week period ended 27 December 2020
---------
Segment revenue - external 36,269 - 36,269
---------------------------------------------- --------- -------- ---------
Bowling 16,830 - 16,830
---------
Food and drink 9,898 - 9,898
---------
Machines and amusements 8,298 - 8,298
---------
Other 1,243 - 1,243
---------------------------------------------- --------- -------- ---------
Adjusted EBITDA (Note 6) 5,466 (2,119) 3,347
Segment assets as at 27 December 2020 223,200 21,528 244,728
Segment liabilities as at 27 December 2020 (193,029) (21,890) (214,919)
---------------------------------------------- --------- -------- ---------
Reconciliation of adjusted EBITDA to reported
operating (loss)/profit
---------------------------------------------- --------- -------- ---------
Adjusted EBITDA (Note 6) 5,466 (2,119) 3,347
---------------------------------------------- --------- -------- ---------
Amortisation and depreciation of intangibles,
property, plant and equipment and
right-of-use assets (16,634) - (16,634)
Amortisation of fair value items (142) - (142)
Impairment (2,521) - (2,521)
Profit on disposals (Note 9) 99 - 99
---------------------------------------------- --------- -------- ---------
Operating loss (13,732) (2,119) (15,851)
Finance costs (Note 8) (5,654) (161) (5,815)
---------------------------------------------- --------- -------- ---------
Loss before taxation (19,386) (2,280) (21,666)
---------------------------------------------- --------- -------- ---------
Tenpin
Limited Central Group
GBP000 GBP000 GBP000
---------------------------------------------- --------- -------- ---------
For the 52-week period ended 29 December 2019
---------------------------------------------- --------- -------- ---------
Segment revenue - external 84,122 - 84,122
---------------------------------------------- --------- -------- ---------
Bowling 39,912 - 39,912
---------
Food and drink 21,426 - 21,426
---------
Machines and amusements 19,649 - 19,649
---------------------------------------------- --------- -------- ---------
Other 3,135 - 3,135
---------------------------------------------- --------- -------- ---------
Adjusted EBITDA (Note 6) 25,526 (1,958) 23,568
Segment assets as at 29 December 2019 88,420 (2,445) 85,975
Segment liabilities as at 29 December 2019 (28,189) (875) (29,064)
---------------------------------------------- --------- -------- ---------
Reconciliation of adjusted EBITDA to reported
operating profit
---------------------------------------------- --------- -------- ---------
Adjusted EBITDA (Note 6) 25,526 (1,958) 23,568
---------------------------------------------- --------- -------- ---------
Amortisation and depreciation of intangibles
and property, plant and equipment (7,379) - (7,379)
Loss on disposals (Note 5) (932) - (932)
Profit on share of joint venture 10 - 10
Amortisation of fair valued intangibles (114) (179) (293)
Exceptional items (Note 9) (2,300) (91) (2,391)
Operating profit/(loss) 14,811 (2,228) 12,583
Finance (costs)/income (Note 8) (865) 77 (788)
---------------------------------------------- --------- -------- ---------
Profit/(loss) before taxation 13,946 (2,151) 11,795
---------------------------------------------- --------- -------- ---------
All assets have been allocated to segments.
6 Alternative performance measures - non-GAAP measures
The Group has identified certain measures that it believes will
assist in the understanding of the performance of the business. The
measures are not defined under IFRS and they may not be directly
comparable with other companies' adjusted measures. The non-IFRS
measures are not intended to be a substitute for an IFRS
performance measure but the business has included them as it
considers them to be important comparables and key measures used
within the business for assessing performance. These financial
statements make reference to the following non-IFRS measures:
Group adjusted EBITDA - this consists of earnings before
interest, taxation, depreciation, amortisation costs, exceptional
items and profit or loss on disposal of assets.
52 weeks 52 weeks
to to
27 December 29 December
Reconciliation of operating profit to Group adjusted 2020 2019
EBITDA GBP000 GBP000
--------------------------------------------------------------- ------------ ------------
Group adjusted EBITDA 3,347 23,568
--------------------------------------------------------------- ------------ ------------
Amortisation of software (184) (283)
Amortisation of fair valued items on acquisition (142) (293)
Profit on disposals 99 (932)
Impairment (2,521)
Depreciation of property, plant and equipment and right-of-use
assets (16,450) (7,096)
--------------------------------------------------------------- ------------ ------------
Profit on share of joint venture - 10
--------------------------------------------------------------- ------------ ------------
Operating profit before exceptional items (15,851) 14,974
--------------------------------------------------------------- ------------ ------------
Exceptional items - other - (2,391)
--------------------------------------------------------------- ------------ ------------
Operating profit (15,851) 12,583
--------------------------------------------------------------- ------------ ------------
Costs of sales - Costs of sales in the financial summary are
determined by management as consisting of the direct bar, food,
vending, amusements and gaming machine related costs. Statutory
costs of sales reflected in the statement of comprehensive income
also include the staff costs but excludes security and machine
licence costs incurred by the centres.
52 weeks 52 weeks
to to
27 December 29 December
2020 2019
Reconciliation of costs of sales GBP000 GBP000
--------------------------------------------------------- ------------ ------------
Costs of sales per the financial review (4,854) (10,387)
--------------------------------------------------------- ------------ ------------
Centre labour costs (9,519) (15,173)
--------------------------------------------------------- ------------ ------------
Machine licence and security costs in administrative
expenses 278 630
--------------------------------------------------------- ------------ ------------
Costs of sales per the statement of comprehensive income (14,095) (24,930)
--------------------------------------------------------- ------------ ------------
Adjusted underlying profit after tax - this consists of the
profit after tax adjusted for exceptional items, profit or loss on
disposal of assets, amortisation of acquisition intangibles and
impairment provisions. The reconciliation of this number to profit
after tax is included under Note 12.
Exceptional costs - exceptional items are those significant
items which management considers to be one-off and non-recurring.
The separate reporting of these per Note 9 helps to provide a
better indication of underlying performance.
Like-for-like sales - these are a measure of growth of sales
adjusted for new or divested centre s over a comparable trading
period. The reconciliation of this % to the total sales
(decline)/growth is reflected on page 12.
Return on Capital Employed ('ROCE') - this is operating profit
as a percentage of total capital employed which consists of
non-current assets and current assets less current liabilities.
Bank net debt - this is made up of bank borrowings less cash and
cash equivalents.
7 Staff costs and numbers
52 weeks 52 weeks
to to
27 December 29 December
2020 2019
Staff costs - Group GBP000 GBP000
---------------------- ------------ ------------
Wages and salaries 11,829 17,553
Social security costs 1,088 1,154
Other pension costs 170 180
---------------------- ------------ ------------
Share-based payments (25) 116
---------------------- ------------ ------------
13,062 19,003
---------------------- ------------ ------------
Staff costs included within costs of sales are GBP9.0m (2019:
GBP14.6m). The balance of staff costs is recorded within
administrative expenses. The staff costs are net of CJRS which
amount to GBP5.2m. Details of Directors' remuneration are set out
in the Directors' Report. No Directors have accrued any retirement
benefits and Directors that resigned during the year received no
compensation for loss of office. The highest paid Director for the
52-week period ended 27 December 2020 received remuneration of
GBP267,323 (2019: GBP348,633). The 2017 LTIP scheme vested in 2020
and 96,970 awards were exercised at a market value of GBP133,819.
All key management positions are held by Executive Directors of Ten
Entertainment Group plc and, accordingly, no further disclosure of
key management remuneration is deemed necessary.
The average monthly number of persons employed (including
Executive Directors) during the period, analysed by category, was
as follows:
52 weeks 52 weeks
to to
27 December 29 December
2020 2019
Staff numbers - Group Number Number
---------------------- ------------ ------------
Centre staff 931 978
Administration 45 56
Unit management 150 153
---------------------- ------------ ------------
1,126 1,187
---------------------- ------------ ------------
52 weeks 52 weeks
to to
27 December 29 December
2020 2019
Staff costs - Company GBP000 GBP000
----------------------------------------------- ------------ ------------
Wages and salaries 1,144 1,125
Social security costs 123 96
Other pension costs 11 13
Share-based payments (25) 116
----------------------------------------------- ------------ ------------
1,253 1,350
----------------------------------------------- ------------ ------------
Staff numbers - Company Number Number
----------------------------------------------- ------------ ------------
Administration (including Executive Directors) 6 9
----------------------------------------------- ------------ ------------
8 Finance costs
52 weeks 52 weeks
to to
27 December 29 December
2020 2019
GBP000 GBP000
--------------------------------------------------------- ------------ ------------
Interest on bank loans and overdrafts 330 277
Amortisation of debt issuance costs 49 56
Lease interest 5,393 282
Notional interest on unwinding of discount on provisions - 7
Other 43 166
--------------------------------------------------------- ------------ ------------
Finance costs 5,815 788
--------------------------------------------------------- ------------ ------------
9 (Loss)/profit before taxation
The following items have been included in arriving at a
(loss)/profit before taxation:
52 weeks 52 weeks
to to
27 December 29 December
2020 2019
GBP000 GBP000
--------------------------------------------------------- ------------ ------------
Staff costs (Note 7) 13,062 19,003
Consumables charged to cost of sales 754 1,770
Depreciation of property, plant and equipment (Note
16) 5,498 7,096
Depreciation of right-of-use assets (Note 17) 10,965 -
Amortisation of software (Note 9) 171 283
Amortisation of fair valued intangibles on acquisition
(Note 13) 101 245
(Profit)/loss on disposal of assets (99) 932
Profit on share of joint venture - (10)
Impairment 2,521 -
Government grants received (excluding CJRS) (148) -
CJRS grants received (5,205) -
Operating lease rentals (receivable)/payable - property (10) 11,932
Share-based payments (25) 116
Repairs on property, plant and equipment 2,436 1,943
--------------------------------------------------------- ------------ ------------
Exceptional items
Provision for updated HMRC guidance - 822
Redundancy and restructuring costs - 643
Costs relating to acquisitions and one-off lease charges - 926
--------------------------------------------------------- ------------ ------------
Total exceptional costs - 2,391
--------------------------------------------------------- ------------ ------------
Auditors' remuneration
Fees payable to Company's auditors for the Company and
Consolidated financial statements 40 53
Audit of Company's subsidiaries 95 70
Audit-related assurance services 35 39
--------------------------------------------------------- ------------ ------------
170 162
--------------------------------------------------------- ------------ ------------
10 Results attributable to Ten Entertainment Group plc
The financial statements of the Company, Ten Entertainment Group
plc, were approved by the Board of Directors on 29 March 2021. The
result for the financial year dealt with in the financial
statements of Ten Entertainment Group plc was a profit of GBP5.3m
(2019: profit of GBP5.4m). As permitted by Section 408 of the
Companies Act 2006, no separate statement of comprehensive income
is presented in respect of the Company.
11 Taxation
Recognised in the consolidated statement of comprehensive
income:
52 weeks 52 weeks
to to
27 December 29 December
2020 2019
GBP000 GBP000
--------------------------------------------------------- ------------ ------------
Current tax
Current tax on (loss)/profit for the period - 2,678
Adjustment in respect of prior years (2,494) 126
Deferred tax
Origination and reversal of temporary differences (1,384) (92)
Adjustment in respect of prior years (41) 46
--------------------------------------------------------- ------------ ------------
Tax (credit)/charge in statement of comprehensive income (3,919) 2,758
--------------------------------------------------------- ------------ ------------
The tax on the Group's (loss)/profit before tax differs (2019:
differs) from the theoretical amount that would arise using the
standard rate of tax in the UK of 19% (2019: 19%). The differences
are explained below:
52 weeks 52 weeks
to to
27 December 29 December
2020 2019
GBP000 GBP000
---------------------------------------------------- ------------ ------------
(Loss)/profit before taxation (21,666) 11,795
---------------------------------------------------- ------------ ------------
Tax using the UK corporation tax rate of 19% (2019:
19%) (4,118) 2,241
Expenses not deductible (372) 509
Adjustment in respect of prior years (2,535) 172
Allowable depreciation on leases - (414)
Permanent differences 605 250
Loss carry back 2,501 -
---------------------------------------------------- ------------ ------------
Tax (credit)/charge (3,919) 2,758
---------------------------------------------------- ------------ ------------
In the Spring Budget 2020, the UK Government announced that from
1 April 2020 the corporation tax rate would remain at 19% (rather
than reducing to 17%, as previously enacted). This new law was
substantively enacted on 17 March 2020. Deferred taxes at the
balance sheet date have been measured using these enacted tax rates
and reflected in these financial statements. In the Spring Budget
2021, the Government announced that from 1 April 2023 the
corporation tax rate will increase to 25%. As the proposal to
increase the rate to 25% had not been substantively enacted at the
balance sheet date, its effects are not included in these financial
statements. However, it is likely that the overall effect of the
change, had it been substantively enacted by the balance sheet
date, would be to increase the tax expense for the period by
GBP1.2m, to increase the deferred tax asset by GBP1.0m.
12 Earnings per share
Basic earnings per share for each period is calculated by
dividing the earnings attributable to ordinary shareholders by the
weighted average number of ordinary shares in issue during the
period. The total shares in issue at the end of the 52-week period
were 68,346,970.
The Company has 103,673 potentially issuable shares (2019:
179,451), all of which relate to share options issued to Directors
of the Company. Diluted earnings per share amounts are calculated
by dividing profit for the year and total comprehensive income
attributable to equity holders of the Company by the weighted
average number of ordinary shares outstanding during the year
together with the dilutive number of ordinary shares.
Adjusted basic earnings per share has been calculated in order
to compare earnings per share year-on-year and to aid future
comparisons. Earnings has been adjusted to exclude exceptional
expenses and other one-off costs (and any associated impact on the
taxation charge). Adjusted diluted earnings per share is calculated
by applying the same adjustments to earnings as described in
relation to adjusted earnings per share divided by the weighted
average number of ordinary shares outstanding during the year
adjusted by the effect of the outstanding share options.
52 weeks 52 weeks
to to
27 December 29 December
2020 2019
Basic and diluted GBP000 GBP000
--------------------------------------------------- ------------ ------------
(Loss)/profit after tax (17,747) 9,037
--------------------------------------------------- ------------ ------------
Basic weighted average number of shares in issue 67,471,461 65,000,000
--------------------------------------------------- ------------ ------------
Adjustment for share awards 103,673 179,451
--------------------------------------------------- ------------ ------------
Diluted weighted average number of shares in issue 67,575,134 65,179,451
--------------------------------------------------- ------------ ------------
Basic (loss)/earnings per share (pence) (26.30)p 13.90p
--------------------------------------------------- ------------ ------------
Diluted (loss)/earnings per share (pence)* (26.30)p 13.87p
--------------------------------------------------- ------------ ------------
Below is the calculation of the adjusted earnings per share:
52 weeks 52 weeks
to to
27 December 29 December
2020 2019
Adjusted (loss)/earnings per share GBP000 GBP000
------------------------------------------------- ------------ ------------
(Loss)/profit after tax (17,747) 9,037
Amortisation of fair valued items on acquisition 142 293
(Profit)/Loss on disposals (99) 932
Profit on share of joint venture - (10)
Impairment 2,521 -
Exceptional costs - 2,391
------------------------------------------------- ------------ ------------
Tax impact on above adjustments (456) (78)
------------------------------------------------- ------------ ------------
Adjusted underlying (loss)/profit after tax (15,639) 12,565
------------------------------------------------- ------------ ------------
Adjusted (loss)/profit after tax (15,139) 12,565
------------------------------------------------- ------------ ------------
Weighted average number of shares in issue 67,471,461 65,000,000
------------------------------------------------- ------------ ------------
Adjusted basic (loss)/earnings per share (23.18)p 19.33p
------------------------------------------------- ------------ ------------
Adjusted diluted (loss)/earnings per share* (23.18)p 19.27p
------------------------------------------------- ------------ ------------
* The diluted EPS is the same as the basic EPS as the adjustment
for the share awards would be anti-dilutive so has been
excluded.
13 Goodwill and intangible assets
Fair valued
intangibles
on
acquisition Goodwill Software Total
Group GBP000 GBP000 GBP000 GBP000
---------------------------------------- ------------ -------- -------- -------
Cost
---------------------------------------- ------------ -------- -------- -------
At 1 January 2018 2,938 28,045 1,010 31,993
---------------------------------------- ------------ -------- -------- -------
Additions - 1,305 212 1,517
---------------------------------------- ------------ -------- -------- -------
At 29 December 2019 2,938 29,350 1,222 33,510
---------------------------------------- ------------ -------- -------- -------
Additions - - 119 119
Adjustment on initial application of
IFRS 16 - - (40) (40)
---------------------------------------- ------------ -------- -------- -------
At 27 December 2020 2,938 29,350 1,301 33,589
---------------------------------------- ------------ -------- -------- -------
Accumulated amortisation and impairment
losses
---------------------------------------- ------------ -------- -------- -------
At 1 January 2018 2,331 - 648 2,979
---------------------------------------- ------------ -------- -------- -------
Charge for the period - amortisation 245 - 283 528
---------------------------------------- ------------ -------- -------- -------
At 29 December 2019 2,576 - 931 3,507
---------------------------------------- ------------ -------- -------- -------
Charge for the period - amortisation 101 - 171 272
Adjustment on initial application of
IFRS 16 - - (16) (16)
---------------------------------------- ------------ -------- -------- -------
At 27 December 2020 2,677 - 1,086 3,763
---------------------------------------- ------------ -------- -------- -------
Net book value
---------------------------------------- ------------ -------- -------- -------
At 27 December 2020 261 29,350 215 29,826
---------------------------------------- ------------ -------- -------- -------
At 29 December 2019 362 29,350 291 30,003
---------------------------------------- ------------ -------- -------- -------
At 30 December 2018 607 28,045 362 29,014
---------------------------------------- ------------ -------- -------- -------
Impairment testing is carried out at the cash-generating unit
('CGU') level on an annual basis. A CGU is the smallest dentifiable
group of assets that generates cash inflows that are largely
independent of the cash inflows from other assets or groups of
assets. Each individual centre is considered to be a CGU. However,
for the purposes of testing goodwill for impairment, it is
acceptable under IAS 36 to group CGUs, in order to reflect the
level at which goodwill is monitored by management. The whole Group
is considered to be one group of CGUs, for the purposes of goodwill
impairment testing, on the basis of the level at which goodwill is
monitored by management and historical allocation of goodwill upon
acquisition. The overall process for testing impairment follows the
same methodology as detailed in Note 12 for property, plant and
equipment. As part of the business combination accounting for the
acquisition of Essenden Limited in 2015, the fair value of customer
lists, rebate contracts and the Tenpin Limited website was
recognised and have been fully amortised over the period for which
the benefits were expected to be recognised. The remaining value is
for the lease acquired at the Worcester centre which was
significantly below market value and was fair valued and accounted
for on acquisition in 2016 and is being amortised until the end of
the lease. The amortisation charged on the above intangible assets
is included in other administrative expenses in the statement of
comprehensive income. Bank borrowings are secured on property,
plant and equipment for the value of GBP25.0m (2019: GBP25.0m).
14 Investments in joint venture
Group and Company GBP000
------
At 1 January 2018
---------------------------------------- ------
Acquisitions and disposals 310
---------------------------------------- ------
At 29 December 2019 310
---------------------------------------- ------
Share of post-tax profit in new venture -
---------------------------------------- ------
At 27 December 2020 310
---------------------------------------- ------
Company Country of incorporation Ownership interest Principal activity
%
---------------------------------------- ------------------------ ------------------ ------------------
Houdini's Escape Room Experience Limited UK 50% Leisure
(Registered address:
11 Stares Close, Gosport, Hampshire,
England, PO13 9RZ)
---------------------------------------- ------------------------ ------------------ ------------------
In December 2019, the Company entered into a Share Purchase
Agreement and acquired 50% of the share capital of Houdini's Escape
Rooms Experience Limited for GBP0.3m. The Company also entered into
a joint venture agreement to determine the arrangements around the
selection of Directors, dividend policy, premises use, provision of
services, put and call option arrangements and deadlock procedures.
Tenpin Limited and Houdini's also entered into a GBP2.5m loan
facility agreement whereby Houdini's can borrow money from Tenpin
Limited over a three-year period to fund the building of Escape
Rooms on their premises. GBP0.2m has been borrowed as at 27
December 2020. The loans will incur a market rate of interest and
have been secured by a Debenture Agreement that the two parties
entered into. As the purpose of the joint venture is to fund and
build Escape Rooms there is a restriction in the agreement around
the payment of dividends by Houdini's. Houdini's has a financial
year ending 31 July and once its financial statements have been
finalised and submitted the Group will look at changing the date to
be that of the Group. Due to the Covid-19 pandemic, Houdini's has
been closed for a significant portion of the year and no profit has
been generated of which a 50% share would be added to the
investment value. The business has not impaired the investment in
Houdini's as it believes the impact of the pandemic on the joint
venture is short term, and it will return to a profitable position
once trade returns to normal.
Prior to the above agreements, in 2019 Houdini's built and
operated Escape Rooms at three of Tenpin's centres which were
covered by a revenue share agreement between the parties. Going
forward after entering into the joint venture arrangement, Tenpin
will charge Houdini's an operating licence fee instead. Further
rooms are under construction at other centres but due to the
Covid-19 pandemic, the rollout has been delayed.
15 Investments
Subsidiaries'
shares
Company GBP000
--------------------------- -------------
At 1 January 2019 38,915
--------------------------- -------------
Acquisitions and disposals -
--------------------------- -------------
At 29 December 2019 38,915
--------------------------- -------------
Acquisitions and disposals -
--------------------------- -------------
At 27 December 2020 38,915
--------------------------- -------------
The Directors believe that the carrying value of the investments
is supported by the underlying net assets of the business and the
future profits that will be generated by the Group.
Group investments
The Company has investments in the following subsidiary
undertakings, which affected the results and net assets of the
Group:
Percentage
Country of of shares
Parent registration held
------------------------------------ ---------------------------- -------------- ----------
Companies owned directly by Ten
Entertainment Group plc
------------------------------------ ---------------------------- -------------- ----------
England &
TEG Holdings Limited Wales 100%
------------------------------------------------------------------ ------------- ----------
Companies owned indirectly by Ten
Entertainment Group plc
------------------------------------ ---------------------------- -------------- ----------
England &
Tenpin Limited TEG Holdings Limited Wales 100%
England &
Indoor Bowling Equity Limited TEG Holdings Limited Wales 100%
Indoor Bowling Equity England &
Indoor Bowling Acquisitions Limited Limited Wales 100%
Indoor Bowling Acquisitions England &
Essenden Limited Limited Wales 100%
England &
Georgica Limited Essenden Limited Wales 100%
England &
Georgica Holdings Limited Georgica Limited Wales 100%
England &
Tenpin Five Limited Tenpin Limited Wales 100%
England &
Tenpin One Limited Tenpin Limited Wales 100%
England &
Georgica (Lewisham) Limited Georgica Holdings Limited Wales 100%
England &
GNU 5 Limited Georgica Holdings Limited Wales 100%
England &
Tenpin (Sunderland) Limited Tenpin Limited Wales 100%
England &
Quattroleisure Limited Tenpin Limited Wales 100%
England &
Tenpin (Halifax) Limited Tenpin Limited Wales 100%]
------------------------------------ ---------------------------- -------------- ----------
Ten Entertainment Group plc and all its Group companies have
their registered office at Aragon House, University Way, Cranfield
Technology Park, Cranfield, Bedford MK43 0EQ.
Tenpin Five Limited and Tenpin One Limited are claiming
exemption from the audit and the preparation of financial
statements in accordance with Section 476A of the Companies Act
2006. A parent guarantee will be issued for the liabilities of
these companies which only consist of intercompany loans with the
parent company and thus the guarantee is not expected to be called
upon.
16 Property, plant and equipment
Fixtures,
fittings
Amusement and
Fixed furnishings machines equipment Total
Group GBP000 GBP000 GBP000 GBP000
---------------------------------------- ----------------- --------- ---------- --------
Cost
---------------------------------------- ----------------- --------- ---------- --------
At 1 January 2019 11,691 9,461 33,901 55,053
---------------------------------------- ----------------- --------- ---------- --------
Additions - 3,624 9,951 13,575
Acquisition of new centre s - - 111 111
Disposals - (1,514) (943) (2,457)
---------------------------------------- ----------------- --------- ---------- --------
At 29 December 2019 11,691 11,571 43,020 66,282
---------------------------------------- ----------------- --------- ---------- --------
Adjustment on initial application of
IFRS 16 - (10,217) (469) (10,686)
Additions - 47 6,548 6,595
Disposals (323) - - (323)
---------------------------------------- ----------------- --------- ---------- --------
At 27 December 2020 11,368 1,401 49,099 61,868
---------------------------------------- ----------------- --------- ---------- --------
Accumulated depreciation and impairment
---------------------------------------- ----------------- --------- ---------- --------
At 1 January 2019 1,928 4,391 7,017 13,336
---------------------------------------- ----------------- --------- ---------- --------
Charge for the period 1,023 2,177 3,896 7,096
---------------------------------------- ----------------- --------- ---------- --------
Disposals - depreciation - (1,164) (234) (1,398)
---------------------------------------- ----------------- --------- ---------- --------
At 29 December 2019 2,951 5,404 10,679 19,034
---------------------------------------- ----------------- --------- ---------- --------
Adjustment on initial application of
IFRS 16 - (4,378) (22) (4,400)
Charge for the period 1,022 133 4,343 5,498
Impairment charge - - 450 450
---------------------------------------- ----------------- --------- ---------- --------
Disposals - depreciation (167) - - (167)
---------------------------------------- ----------------- --------- ---------- --------
At 27 December 2020 3,806 1,159 15,450 20,415
---------------------------------------- ----------------- --------- ---------- --------
Net book value
---------------------------------------- ----------------- --------- ---------- --------
At 27 December 2020 7,562 242 33,649 41,453
---------------------------------------- ----------------- --------- ---------- --------
At 29 December 2019 8,740 6,167 32,341 47,248
---------------------------------------- ----------------- --------- ---------- --------
At 30 December 2018 9,763 5,070 26,884 41,717
---------------------------------------- ----------------- --------- ---------- --------
Property, plant and equipment and right-of-use assets are
reviewed for impairment on an annual basis. The recoverable amount
of each CGU (each of the 46 (2019: 45) centres open as at the
period end has been treated as a CGU) and has been calculated as
the higher of its value in use and its fair value less cost to
sell. The calculation of value in use is based on pre-tax cash flow
projections from the financial forecasts approved by the Board
covering a one-year period and which accounts for the impact of
Covid-19 with year two and three expected to have returned to 2019
pre-Covid-19 levels. Cash flows beyond this three-year period are
extrapolated over the life of the lease relating to that
centre.
The key assumptions of the value in use calculation are:
27 December 29 December
2020 2019
-------------------------------------------------------- ----------- -----------
Period on which management-approved forecasts are based 3 years 3 years
Growth rate applied beyond approved forecast period 2% 2%
Speed of recovery to pre-Covid-19 levels Year 2 N/A
-------------------------------------------------------- ----------- -----------
Pre-tax discount rate 10.78% 13.0%
-------------------------------------------------------- ----------- -----------
The pre-tax discount rate applied to the cash flow projections
approximates the Group's weighted average cost of capital ('WACC'),
adjusted only to reflect the way in which the market would assess
the specific risks associated with the estimated cash flows of the
bowling businesses and to exclude any risks that are not relevant
to estimated cash flows of the bowling businesses, or for which
they have already been adjusted. This pre-tax discount rate has
been benchmarked against the discount rates applied by other
companies in the leisure sector. The pre-tax discount rate has
reduced in this financial year due to the adoption of IFRS 16. The
target Debt:Equity ratio used in the WACC calculation now accounts
for IFRS 16 and so there has been a significant increase in the
debt side of the ratio as well as an increase in the value of the
beta which increased the cost of equity element. As debt has a
lower cost than equity, the calculation has led to a lower discount
rate. The pre-tax cash flows have also increased as there is no
longer a rental cost, but the value of the assets has increased due
to the accounting for the right-of-use assets. The impact of the
Covid-19 pandemic has been factored into the calculations of the
cash flows at the year end which is why there has been further
impairment raised when this has been retested at the period end.
Impairment on transition has been explained under "Leases" in the
statement of accounting policies.
The impairment recognised at the year end as been apportioned
between right-of-use assets and property, plant and equipment based
on the total values of these categories. The approach used to test
for impairment on the adoption of IFRS 16 is disclosed under
"Leases" in the statement of accounting policies.
Due to the uncertainty brought about by Covid-19,the budgets
which underly the calculations have been compiled on a Group basis,
with gross margin, staff cost, property cost and other operating
profit assumptions being based on past performance and known
factors which are expected by management to affect future
performance, to reflect the operating circumstances and risks
relevant to each part of the business. This has been allocated on a
centre basis based on the actual 2019 trading performance and also
includes an allocation of central overheads which are allocated
across the centres based on turnover.
The key assumptions to which the calculation is sensitive remain
the future trading performance, the growth rate that is expected of
each centre, the pre-tax discount rate and speed of recovery. If
the discount rate applied in the calculations is increased by 1%,
the impairment charge increases by GBP3.5m (2019: GBP0.04m). If the
growth rate applied is changed to 1% then impairment increases by
GBP5.3m (2019: GBP0.05m). If the speed of recovery is slower and
the year two trade levels mirror year one then impairment increases
by GBP10.3m. The business has been prudent in its forecasting of
its short-term profitability due to the impact of Covid-19.
For the calculation of fair value less cost to sell, management
has assumed that each Tenpin Limited business could be sold for a
multiple of 5x EBITDA (2019: 5x EBITDA).
The depreciation and impairment charges are recognised in
administrative expenses in the statement of comprehensive income.
Bank borrowings are secured on property, plant and equipment for
the value of GBP25.0m (2019: GBP25.0m).
17 Right-of-use assets
Amusement
machines
Property and other Total
Group GBP000 GBP000 GBP000
---------------------------------------- -------- ---------- --------
Cost
---------------------------------------- -------- ---------- --------
At transition on 30 December 2019 164,920 10,727 175,647
---------------------------------------- -------- ---------- --------
Impairment of assets on transition (16,275) - (16,275)
Lease additions - 444 444
Disposals - (348) (348)
Modification of leases 14,869 14,869
Lease surrenders - - -
---------------------------------------- -------- ---------- --------
At 27 December 2020 163,514 10,823 174,337
---------------------------------------- -------- ---------- --------
Accumulated depreciation and impairment
---------------------------------------- -------- ---------- --------
At transition on 30 December 2019 - 4,416 4,416
---------------------------------------- -------- ---------- --------
Charge for the period 8,648 2,317 10,965
Impairment charge 2,072 - 2,072
Disposals - depreciation - (261) (261)
---------------------------------------- -------- ---------- --------
At 27 December 2020 10,720 6,472 17,192
---------------------------------------- -------- ---------- --------
Net book value
---------------------------------------- -------- ---------- --------
At 27 December 2020 152,794 4,351 157,145
---------------------------------------- -------- ---------- --------
At 29 December 2019 - - -
---------------------------------------- -------- ---------- --------
18 Cash generated from operations
Group Company
---------------------------------------------- -------------------------- --------------------------
52 weeks 52 weeks 52 weeks 52 weeks
to to to to
27 December 29 December 27 December 29 December
2020 2019 2020 2019
Cash flows from operating activities GBP000 GBP000 GBP000 GBP000
---------------------------------------------- ------------ ------------ ------------ ------------
(Loss)/profit for the period (17,747) 9,037 (2,126) (1,990)
---------------------------------------------- ------------ ------------ ------------ ------------
Adjustments for:
Tax (3,919) 2,758 - -
Finance costs 5,815 788 - -
Profit on share of joint venture - (10) - (10)
Non-cash one-off costs - 800 - -
Non-cash share-based payments charge (25) 116 (25) 116
(Profit)/loss on disposal of assets (125) 921 - -
Amortisation of intangible assets 272 528 - -
Depreciation of property, plant and equipment 5,498 7,096 - -
Depreciation of right to use assets 10,965 - - -
Impairment 2,521 - - -
Changes in working capital:
Decrease in inventories 789 208 - -
Decrease/(increase) in trade and other
receivables 3,257 (622) 2,350 (2,383)
(Decrease)/increase in trade and other
payables (2,821) 1,938 (5,557) 2,163
Increase in provisions - 359 - -
---------------------------------------------- ------------ ------------ ------------ ------------
Cash generated from/(used in) operations 4,480 23,917 (5,358) (2,104)
---------------------------------------------- ------------ ------------ ------------ ------------
19 Bank borrowings and lease liabilities
Group Company
---------------------------- ------------------------ ------------------------
27 December 29 December 27 December 29 December
2020 2019 2020 2019
Current liabilities GBP000 GBP000 GBP000 GBP000
---------------------------- ----------- ----------- ----------- -----------
Bank loans 20,000 6,250 - -
Leases - Machines/other 3,201 3,118 - -
Leases - Properties 10,922 - - -
Capitalised financing costs (92) (141) (6) (9)
---------------------------- ----------- ----------- ----------- -----------
34,031 9,227 (6) (9)
---------------------------- ----------- ----------- ----------- -----------
In September 2019, the Group entered into a GBP25.0m facility
with the Royal Bank of Scotland plc ('RBS'). This facility consists
of a committed GBP25.0m facility split into a GBP23.0m revolving
credit facility and a GBP2.0m overdraft facility. All loans carry
interest at LIBOR plus a margin of 1.40%.
Group Company
------------------------ ------------------------ ------------------------
27 December 29 December 27 December 29 December
2020 2019 2020 2019
Non-current liabilities GBP000 GBP000 GBP000 GBP000
------------------------ ----------- ----------- ----------- -----------
Leases - Machines/other 3,744 4,991 - -
Leases - Property 167,280 - - -
------------------------ ----------- ----------- ----------- -----------
171,024 4,991 - -
------------------------ ----------- ----------- ----------- -----------
Bank borrowings are repayable as follows:
Group Company
---------------- ------------------------ ------------------------
27 December 29 December 27 December 29 December
2020 2019 2020 2019
Bank loans GBP000 GBP000 GBP000 GBP000
---------------- ----------- ----------- ----------- -----------
Within one year 20,000 6,250 - -
---------------- ----------- ----------- ----------- -----------
20,000 6,250 - -
---------------- ----------- ----------- ----------- -----------
The drawdown under the revolving credit facility ('RCF') has
been included as payable within one year on the basis that the
business draws down and repays under the RCF on a regular
basis.
Available borrowings are as follows:
Interest Total available Total drawn
Group Currency rates Maturity GBP000 GBP000
-------------------------- --------- -------------- ---------- --------------- -----------
Revolving credit facility GBP LIBOR + 1.40% Sept 2022 23,000 20,000
-------------------------- --------- -------------- ---------- --------------- -----------
Bank overdraft GBP LIBOR + 1.40% Annually 2,000 -
-------------------------- --------- -------------- ---------- --------------- -----------
Total borrowings 25,000 20,000
----------------------------------------------------------------- --------------- -----------
The payment profile of minimum lease payments under Leases is as
follows:
Machines and other
Property leases leases Total
--------------------------- ------------------------ ------------------------ ------------------------
27 December 29 December 27 December 29 December 27 December 29 December
2020 2019 2020 2019 2020 2019
Net GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
--------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Within one year 10,922 3 3,201 3,115 14,123 3,118
Between one and two years 6,168 3 2,667 2,323 8,835 2,326
Between two and five years 20,971 12 1,077 2,389 22,048 2,401
After five years 140,140 264 - - 140,140 264
--------------------------- ----------- ----------- ----------- ----------- ----------- -----------
178,201 282 6,945 7,827 185,146 8,109
--------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Machines and other
Property leases leases Total
----------------------------------- ------------------------ ------------------------ ------------------------
27 December 29 December 27 December 29 December 27 December 29 December
2020 2019 2020 2019 2020 2019
Gross GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
----------------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Within one year 17,522 23 3,402 3,242 20,924 3,265
----------------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Between one and two years 12,348 23 2,768 2,385 15,116 2,408
----------------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Between two and five years 38,039 68 1,111 2,407 39,150 2,475
----------------------------------- ----------- ----------- ----------- ----------- ----------- -----------
After five years 180,932 540 - - 180,932 540
----------------------------------- ----------- ----------- ----------- ----------- ----------- -----------
248,841 654 7,281 8,034 256,122 8,688
----------------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Future finance charges on leases (70,640) (372) (336) (207) (70,976) (579)
----------------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Present value of lease liabilities 178,201 282 6,945 7,827 185,146 8,109
----------------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Leases are in place for all 46 centres (2019: one) at a value of
GBP178.2m (2019: GBP0.3m), amusement machines from Bandai Namco
Europe Limited with a value of GBP6.4m (2019: GBP7.3m), Wi-Fi
equipment with a value of GBP0.1m (2019: GBP0.1m) and coffee
machines acquired in 2019 with a value of GBP0.4m (2019:
GBP0.5m).
Analysis of statutory net debt
Net (debt)/cash as analysed by the Group consists of cash and
cash equivalents less bank loans and amounts to (GBP12.6m) (2019:
(GBP4.1m)). Statutory net debt as analysed below includes
leases.
Net cash
Cash Bank excluding
and cash loans and notes and Statutory
equivalents overdrafts leases Leases net debt
GBP000 GBP000 GBP000 GBP000 GBP000
------------------------------- ------------ ----------- ---------- --------- ---------
Balance at 1 January 2019 5,298 (9,500) (4,202) (6,467) (10,669)
------------------------------- ------------ ----------- ---------- --------- ---------
Cash flows (3,110) 3,250 140 2,709 2,849
------------------------------- ------------ ----------- ---------- --------- ---------
Lease acquisition of amusement
machines - - - (4,351) (4,351)
------------------------------- ------------ ----------- ---------- --------- ---------
Balance at 29 December 2019 2,188 (6,250) (4,062) (8,109) (12,171)
------------------------------- ------------ ----------- ---------- --------- ---------
Adoption of IFRS 16 (163,846) (163,846)
------------------------------- ------------ ----------- ---------- --------- ---------
Balance at 30 December 2019 2,188 (6,250) (4,062) (171,955) (176,017)
------------------------------- ------------ ----------- ---------- --------- ---------
Cash flows 5,206 (13,750) (8,544) 2,853 (5,691)
------------------------------- ------------ ----------- ---------- --------- ---------
Lease modifications in the
year - - - (14,962) (14,962)
------------------------------- ------------ ----------- ---------- --------- ---------
Lease acquisitions - - - (1,082) (1,082)
------------------------------- ------------ ----------- ---------- --------- ---------
Balance at 27 December 2020 7,394 (20,000) (12,606) (185,146) (197,752)
------------------------------- ------------ ----------- ---------- --------- ---------
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR FFFLLVSITFIL
(END) Dow Jones Newswires
March 29, 2021 02:00 ET (06:00 GMT)
Ten Entertainment (LSE:TEG)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Ten Entertainment (LSE:TEG)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
