The UK’s largest ten-pin bowling operator with a portfolio of approximately 50 centers.
Trading Update For The Year To End September 2017 – Results expected to be marginally ahead of the Boards expectations. Group Revenue for the year up 8.9% and also considering (due to strongcash generation) a return of capital to shareholders.
Tempted a little here, but on a PER of 15 it’s probably about fair value here. A correction to the 160p level (which has happened a number of times in the past) will be more tempting.
11-Dec-2017 – 190p – £285.0m – PER 15.5
Final Results For The 12 Months To End September 2017 – Headline “Strong Revenue and Profit growth”. Including acquisitions Revenue is up 8.8% to £114.0m and PBT is £21.1m, up from £2.6m, EPS is 12.17p. Net Debt is down from £20.8m to £8.1m and the Dividends for the year amount to about 9p per share. Outlook is in-line.
Still on my Watchlist. The 160p level (which has been seen a number of times in the past) is more tempting – Although perhaps we will not see it again now unless there’s a serious market correction. Anyway, there’s just not enough here to make me want to pay up.
9-Apr-2018 – 209p – £306.0m – PER 15.9
Trading Update For The 6 Months To End March 2018 – In-line, LFL Revenue up 4.0%, 9.3% in total.
This was on my Watchlist at 160p. Not overwhelmed by the growth here and not wanting to pay up I have decided to go Neutral.
23-May-2018 – 223p – £334.5m – PER 17.1
Interim Results For The 6 Months To End March 2018 – LFL Revenue up 9.3% (£63.6m vs £58.2m), PBT up 17.4% (£14.6m vs £12.4m), EPS up 18.1% and the Interim is up 12.8% – Debt down almost 50% (£7.2m). FY expected to be in-line.
This is quite impressive and having moved from to Neutral recently I find myself inclined to at least have this on my Watchlist – 200p if I do not open a position soon.
10-Oct-2018 – 201p – £301.5m – PER 14.8
Trading Update For The 12 Months To End September 2018 – In-line, Revenue up 5.8% (LFL 1.8%), PBT growth of 10% expected. Considering returning additional capital to shareholders.
Even though this was on my Watchlist and even after the recent drop I think I will go Neutral here for now – I just prefer Ten Entertainment (TEG), where I am currently Long.
10-Dec-2018 – 183.5p – £275.3m – PER 13.7
Final Results For The 12 Months To End September 2018 – Revenue up 5.8% to £120.5m, PBT up 13.4% to 23.9m, EPS up 2.9% to 12.52p, Net Debt is down from £8.1m to £2.5m, Total Dividend is up 16.6% (Special Dividend of 4.33p (3.33p last time)).
Impressive enough but I still prefer Ten Entertainment (TEG), where I am currently Long.
10-Apr-2019 – 220p – £330m – PER 15.5
Trading Update For The 6 Months To End March 2019 – Revenue up 5.3% (4.4% LFL), continues to trade in-line with the Board’s expectations.
I used to hold Ten Entertainment (TEG) until recently but am now of the view, perhaps wrongly, that neither of these operators are worthy of a 15+ PER rating.
23-May-2019 – 226p – £340m – PER 16.1
Interim Results For The 6 Months To End March 2019 – Revenue up 5.3% (0.4% LFL), PBT up 12.5%, EPS up 13.6%, Interim Dividend up 11.8% and Net Debt is down from £7.2m to £5.3m. FY on track.
This looks quite good but I don’t see much value on a PER of 15+ here.