Announcement • Dec 22
Ten Entertainment Group's Cancellation of Listing and Admission to Trading of Shares on Main Market Expected on 24 January 2024 On 6 December 2023, the boards of Ten Entertainment Group plc ("TEG") and Neon Buyer Limited ("Bidco"), a newly incorporated entity indirectly owned by investment funds advised by Trive, announced that they had reached agreement on the terms of a recommended cash offer by Bidco for the entire issued and to be issued share capital of TEG (the "Acquisition"). The Acquisition is to be implemented by way of a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006 (the "Act") (the "Scheme"). Suspension of listing of, and dealings in TEG Shares expected on 7:30 a.m. on 23 January 2024. Effective Date of the Scheme expected: 23 January 2024. Cancellation of listing and admission to trading of TEG Shares on the Main Market expected By 8:00 a.m. on 24 January 2024. Announcement • Dec 07
Ten Entertainment Group to Cancel Listing of the Shares from the Official List The boards of directors of Neon Buyer Limited ("Bidco") and Ten Entertainment Group plc ("TEG") announced that they have reached agreement on the terms and conditions of a recommended cash acquisition by Bidco of the entire issued, and to be issued, ordinary share capital of TEG. It is intended that the Acquisition will be implemented by way of a court-sanctioned scheme of arrangement under Part 26 of the 2006 Act. It is intended that the London Stock Exchange and the FCA will be requested respectively to cancel trading in TEG Shares on the London Stock Exchange's Main Market and the listing of the TEG Shares from the Official List on or shortly after the Effective Date. It is expected that the last day of dealings in TEG Shares on the Main Market of the London Stock Exchange is expected to be the Business Day immediately prior to the Effective Date and no transfers will be registered after 6.00 p.m. (London time) on that date. On the Effective Date, TEG will become a wholly-owned subsidiary of Bidco and share certificates in respect of TEG Shares will cease to be valid and should be destroyed. In addition, entitlements held within CREST to the TEG Shares will be cancelled on the Effective Date. New Risk • Dec 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of British stocks, typically moving 10.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (10.0% average weekly change). Profit margins are more than 30% lower than last year (16% net profit margin). Valuation Update With 7 Day Price Move • Dec 06
Investor sentiment improves as stock rises 36% After last week's 36% share price gain to UK£4.09, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 19x in the Hospitality industry in the United Kingdom. Total returns to shareholders of 112% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at UK£5.42 per share. Announcement • Dec 06
Trive Capital Fund IV LP and Trive Capital Fund IV-A LP managed by Trive Capital Management LLC agreed to acquire Ten Entertainment Group plc (LSE : TEG) from Graham Blackwell, Antony Smith, Adam Bellamy, Julie Sneddon, Christopher Mills and others for approximately £280 million. Trive Capital Fund IV LP and Trive Capital Fund IV-A LP managed by Trive Capital Management LLC agreed to acquire Ten Entertainment Group plc (LSE : TEG) from Graham Blackwell, Antony Smith, Adam Bellamy, Julie Sneddon, Christopher Mills and others for approximately £280 million on December 6, 2023. Under the terms, £4.125 per share will paid in cash. Transaction has been unanimously approved by Ten Entertainment board of directors. Transaction is subject to approval from Ten Entertainment's shareholders, the sanction of the Scheme by the Court The cash consideration payable to TEG Shareholders under the terms of the Acquisition will be financed by: (i) an equity investment indirectly into Bidco from the Trive Funds; and (ii) debt to be provided by funds managed by affiliates of Fortress Investment Group LLC pursuant to the Interim Facilities Agreement. Henrik Persson, Carl Holmes, Seamus Fricker and George Dollemore of Cavendish Capital Markets Limited acted as financial advisor to bidco and Trive. Nicholas Page and Andrea Francisco of Lazard & Co., Limited acted as financial advisor to Ten Entertainment Group. Upcoming Dividend • Sep 28
Upcoming dividend of UK£0.035 per share at 3.5% yield Eligible shareholders must have bought the stock before 05 October 2023. Payment date: 27 October 2023. Payout ratio is a comfortable 35% and this is well supported by cash flows. Trailing yield: 3.5%. Lower than top quartile of British dividend payers (6.3%). Higher than average of industry peers (2.0%). Reported Earnings • Sep 21
First half 2023 earnings released: EPS: UK£0.18 (vs UK£0.27 in 1H 2022) First half 2023 results: EPS: UK£0.18 (down from UK£0.27 in 1H 2022). Revenue: UK£65.3m (up 3.3% from 1H 2022). Net income: UK£12.3m (down 33% from 1H 2022). Profit margin: 19% (down from 29% in 1H 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.4% p.a. on average during the next 3 years, compared to a 7.8% growth forecast for the Hospitality industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 93% per year but the company’s share price has only increased by 30% per year, which means it is significantly lagging earnings growth. New Risk • Sep 20
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 301% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Minor Risks High level of debt (301% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.8% average weekly change). Profit margins are more than 30% lower than last year (16% net profit margin). Announcement • Sep 20
Ten Entertainment Group plc Declares Interim Dividend, Payable on 27 October 2023 Ten Entertainment Group plc declared an interim dividend of 3.5 pence per share (2022 interim: 3.0 pence). The interim ex-dividend date is 5 October 2023, the record date 6 October 2023 and the interim dividend payment date is 27 October 2023. Announcement • Jul 13
Ten Entertainment Group plc to Report First Half, 2023 Results on Sep 20, 2023 Ten Entertainment Group plc announced that they will report first half, 2023 results on Sep 20, 2023 Announcement • Jul 12
Ten Entertainment Group plc Provides Financial Guidance for the First Half and Full Year 2023 Ten Entertainment Group plc provided financial guidance for the first half and full year 2023. The Group expected to report PBT for first half 0f 2023 slightly ahead of last year, demonstrating the underlying growth.For the balance of 2023 the company expected to deliver low single-digit sales growth. Full year profits are expected to be within the range of market consensus. Upcoming Dividend • May 11
Upcoming dividend of UK£0.07 per share at 5.3% yield Eligible shareholders must have bought the stock before 18 May 2023. Payment date: 13 June 2023. Payout ratio is a comfortable 26% and this is well supported by cash flows. Trailing yield: 5.3%. Lower than top quartile of British dividend payers (5.8%). Higher than average of industry peers (1.6%). Announcement • May 05
Ten Entertainment Group plc Approves Final Dividend for the Year Ended 1 January 2023, Payable on 13 June 2023 Ten Entertainment Group plc approved at tis AGM held on May 4, 2023, to declare a final dividend of 7.0 pence per ordinary share for the year ended 1 January 2023 which shall be paid on 13 June 2023. The ex-Div date is 18 May 2023 and the record date is 19 May 2023. Buying Opportunity • May 04
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 8.1%. The fair value is estimated to be UK£3.28, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 28% over the last 3 years. Earnings per share has grown by 71%. Revenue is forecast to grow by 15% in 2 years. Earnings is forecast to decline by 17% in the next 2 years. Buying Opportunity • Apr 19
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 4.3%. The fair value is estimated to be UK£3.34, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 28% over the last 3 years. Earnings per share has grown by 71%. Revenue is forecast to grow by 15% in 2 years. Earnings is forecast to decline by 17% in the next 2 years. Buying Opportunity • Mar 27
Now 23% undervalued Over the last 90 days, the stock is up 7.9%. The fair value is estimated to be UK£3.45, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 28% over the last 3 years. Earnings per share has grown by 71%. Revenue is forecast to grow by 13% in 2 years. Earnings is forecast to decline by 15% in the next 2 years. Reported Earnings • Mar 22
Full year 2022 earnings released: EPS: UK£0.39 (vs UK£0.059 in FY 2021) Full year 2022 results: EPS: UK£0.39 (up from UK£0.059 in FY 2021). Revenue: UK£126.7m (up 88% from FY 2021). Net income: UK£26.6m (up UK£22.6m from FY 2021). Profit margin: 21% (up from 5.9% in FY 2021). Revenue is forecast to grow 8.6% p.a. on average during the next 3 years, compared to a 9.3% growth forecast for the Hospitality industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 71% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Feb 27
Now 21% undervalued Over the last 90 days, the stock is up 11%. The fair value is estimated to be UK£3.41, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 12% in 2 years. Earnings is forecast to decline by 29% in the next 2 years. Buying Opportunity • Feb 01
Now 21% undervalued Over the last 90 days, the stock is up 19%. The fair value is estimated to be UK£3.53, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 12% in 2 years. Earnings is forecast to decline by 29% in the next 2 years. Buying Opportunity • Jan 17
Now 20% undervalued Over the last 90 days, the stock is up 33%. The fair value is estimated to be UK£3.59, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 12% in 2 years. Earnings is forecast to decline by 29% in the next 2 years. Announcement • Jan 11
Ten Entertainment Group plc Provides Earnings Guidance for the Fiscal Year 2022 Ten Entertainment Group plc provided earnings guidance for the fiscal year 2022. The company is expected that profit for the fiscal year 2022 will be at the upper end of market expectations. Valuation Update With 7 Day Price Move • Jan 10
Investor sentiment improved over the past week After last week's 19% share price gain to UK£2.93, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 19x in the Hospitality industry in the United Kingdom. Total loss to shareholders of 4.3% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at UK£3.35 per share. Upcoming Dividend • Sep 29
Upcoming dividend of UK£0.03 per share Eligible shareholders must have bought the stock before 06 October 2022. Payment date: 28 October 2022. Trailing yield: 2.8%. Lower than top quartile of British dividend payers (6.1%). Higher than average of industry peers (1.2%). Reported Earnings • Sep 22
First half 2022 earnings released: EPS: UK£0.27 (vs UK£0.13 loss in 1H 2021) First half 2022 results: EPS: UK£0.27 (up from UK£0.13 loss in 1H 2021). Revenue: UK£63.2m (up 496% from 1H 2021). Net income: UK£18.3m (up UK£27.1m from 1H 2021). Profit margin: 29% (up from net loss in 1H 2021). Revenue is forecast to grow 7.4% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Hospitality industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Major Estimate Revision • Jul 09
Consensus EPS estimates increase by 25% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from UK£104.5m to UK£112.7m. EPS estimate increased from UK£0.26 to UK£0.32 per share. Net income forecast to grow 444% next year vs 4.8% growth forecast for Hospitality industry in the United Kingdom. Consensus price target up from UK£3.48 to UK£3.61. Share price rose 7.4% to UK£2.24 over the past week. Major Estimate Revision • Apr 06
Consensus EPS estimates increase by 18% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from UK£95.8m to UK£104.5m. EPS estimate increased from UK£0.22 to UK£0.26 per share. Net income forecast to grow 337% next year vs 60% growth forecast for Hospitality industry in the United Kingdom. Consensus price target up from UK£3.25 to UK£3.45. Share price was steady at UK£2.63 over the past week. Reported Earnings • Mar 30
Full year 2021 earnings: EPS misses analyst expectations Full year 2021 results: EPS: UK£0.059 (up from UK£0.26 loss in FY 2020). Revenue: UK£67.5m (up 86% from FY 2020). Net income: UK£4.01m (up UK£21.8m from FY 2020). Profit margin: 5.9% (up from net loss in FY 2020). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 8.0%. Over the next year, revenue is forecast to grow 46%, compared to a 38% growth forecast for the restaurants industry in the United Kingdom. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 91 percentage points per year, which is a significant difference in performance. Recent Insider Transactions • Sep 26
CEO & Executive Director recently sold UK£264k worth of stock On the 23rd of September, Graham Blackwell sold around 100k shares on-market at roughly UK£2.64 per share. This was the largest sale by an insider in the last 3 months. Graham has been a seller over the last 12 months, reducing personal holdings by UK£289k. Price Target Changed • Sep 24
Price target increased to UK£3.17 Up from UK£2.93, the current price target is an average from 6 analysts. New target price is 18% above last closing price of UK£2.69. Stock is up 99% over the past year. Reported Earnings • Sep 23
First half 2021 earnings released: UK£0.13 loss per share (vs UK£0.084 loss in 1H 2020) The company reported a poor first half result with increased losses, weaker revenues and weaker control over costs. First half 2021 results: Revenue: UK£10.6m (down 53% from 1H 2020). Net loss: UK£8.80m (loss widened 57% from 1H 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 111 percentage points per year, which is a significant difference in performance. Price Target Changed • Sep 22
Price target increased to UK£3.10 Up from UK£2.86, the current price target is an average from 6 analysts. New target price is 16% above last closing price of UK£2.68. Stock is up 113% over the past year. Major Estimate Revision • Jul 10
Consensus EPS estimates increase to -UK£0.042 The consensus outlook for earnings per share (EPS) in 2021 has improved. 2021 revenue forecast increased from UK£47.3m to UK£51.0m. EPS estimate increased from -UK£0.12 to -UK£0.042. Hospitality industry in the United Kingdom expected to see average net income growth of 41% next year. Consensus price target up from UK£2.86 to UK£2.93. Share price rose 3.7% to UK£2.54 over the past week. Price Target Changed • May 18
Price target increased to UK£2.86 Up from UK£2.62, the current price target is an average from 6 analysts. New target price is 13% above last closing price of UK£2.52. Stock is up 78% over the past year. Executive Departure • May 08
Non-Executive Chairman Nicholas Basing has left the company On the 5th of May, Nicholas Basing's tenure as Non-Executive Chairman ended after 4.2 years in the role. As of December 2020, Nicholas personally held 1.10m shares (UK£2.2m worth at the time). A total of 3 executives have left over the last 12 months. Reported Earnings • Mar 30
Full year 2020 earnings released: UK£0.26 loss per share (vs UK£0.14 profit in FY 2019) The company reported a poor full year result with weaker earnings, revenues and control over costs. Full year 2020 results: Revenue: UK£36.3m (down 57% from FY 2019). Net loss: UK£17.7m (down 296% from profit in FY 2019). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 71 percentage points per year, which is a significant difference in performance. Is New 90 Day High Low • Mar 11
New 90-day high: UK£2.30 The company is up 13% from its price of UK£2.04 on 11 December 2020. The British market is up 4.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Hospitality industry, which is up 14% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is UK£1.39 per share. Is New 90 Day High Low • Feb 06
New 90-day high: UK£2.26 The company is up 60% from its price of UK£1.41 on 06 November 2020. The British market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Hospitality industry, which is up 30% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is UK£0.97 per share. Price Target Changed • Dec 08
Price target lowered to UK£2.68 Down from UK£3.11, the current price target is an average from 5 analysts. The new target price is 33% above the current share price of UK£2.01. As of last close, the stock is down 24% over the past year.