Site Acquisitions

RNS Number : 3961L

Ten Entertainment Group PLC

19 April 2018

 

Ten Entertainment Group plc

Announcement of Acquisition Agreement for two sites and Q1 Trading Update

Ten Entertainment Group ('TEG' or 'the Group'), one of the UK's leading tenpin bowling companies, today announces that it has agreed conditionally to acquire two further sites ('Acquisitions'). Upon completion of the Acquisitions, this will grow the Group's total estate to 44 sites.

The sites are well located, existing units in Leeds and Luton.

The completion of the Acquisitions is conditional upon inter alia the landlords for each site entering into licences to assign and authorised guarantee agreements with the seller of the sites.

Following completion of the Acquisitions, the Group will have added four new units to its estate in FY18, in line with the guidance of two to four acquisitions for the year.

The Acquisitions are consistent with the Group's growth strategy and TEG has a proven track record of integrating separate operating businesses since 2014.

In keeping with the standard practice, both of these units will benefit from significant investment as a result of the 'Tenpinisation' process, bringing the operations, systems and technology and customer experience up to the market-leading standards of the Group's wider estate.

It has been agreed that the units will be acquired from MFA Bowl for a cash consideration of £1.3m. The gross assets acquired pursuant to the transaction are estimated at £1.3m.

Current trading remains strong, with Q1 like-for-like sales up 5.1%, which was better than we had anticipated (trading was helped in part by the timing of Easter this year, but hindered by the unusual disruption caused by the widespread snow in week 9).

Nick Basing, Chairman, commented:

"These latest acquisitions are a further sign of the Group's ability and opportunity to strengthen its strong national estate, in new markets with anticipated good rates of return on invested capital.  We are happy with our performance so far this year." 

Enquiries:
Ten Entertainment Group plc	via Instinctif partners
Alan Hand, Chief Executive Officer
Mark Willis, Chief Financial Officer
Instinctif Partners	Tel: [phone]
Matthew Smallwood
Tom Berger

 

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