Ten Entertainment hailed an historic summer on Wednesday, after lockdown restrictions eased and sales surged.
The group – which operates 46 bowling and family entertainment centres – said like-for-like sales grew by 22.5% in the six weeks from 17 May, when lockdown restrictions were lifted on indoor hospitality.
The growth continued into the second half, with underlying sales in the 11 weeks since 27 June ahead 42.0%.
Ten called it the “the most successful summer trading period” in its history, and it now anticipates the full-year outlook to be ahead of previous management expectations.
The strong demand seen in the first half is expected to continue through the second, though the firm conceded it would moderate to high single digit growth “as the staycation bubble subsides”. It is forecasting double digit sales growth in 2022 compared to a 2019 baseline.
Graham Blackwell, chief executive, said: “I am delighted to see our centres so busy again.
“We are now 100% focused on the future, returning to our strategy of growth through acquisitions and internal investment. We will commence some new developments over the coming months, as well as transforming our customer proposition in four of our busiest family entertainment centres.”
As at 1230 BST, shares in Ten were trading 4% higher at 2651.p.
Total interim sales in the 26 weeks to 27 June were £10.6m, compared to £22.5m in same period a year previously. There were six trading weeks in the first half in 2021 compared to 12 in the first half of 2020.
Earnings before interest, tax, depreciation and amortisation were £0.6m, down on 2020’s £4.8m, while the pre-tax loss widened to £10.8m from £6.3m.
Anna Barnfather, analyst at Liberum, said: “Ten Entertainment has had a dream restart, with all the innovation and investment coming to fruition, which, alongside a staycation boost, has pushed like-for-like sales up 42% over the summer versus 2019 levels.
“That goes someway to offset the 20 weeks closure period at the start of the year and leads us to a further round of upgrades, clawing back a large proportion of first half losses.” Liberum has a ‘buy’ rating on the stock and a target price of 325p.”
