Bowling firm Ten Entertainment confirmed plans to open three new alleys in the next six months as it heads for a post-pandemic victory.
The firm posted sales of £63.2m in the first half of 2022, up 53 per cent on pre-pandemic levels, while pre-tax profits rocketed 121 per cent to £15.7m.
The Bedford-based company notably froze prices at 2019 levels to maintain value for money and drive footfall, which chief exec Graham Blackwell said “bucked the trend of many other businesses in hospitality and leisure”.
Blackwell said future inflation would be managed in a similar way: through footfall growth, with a “limited need for price increases”.
In a major win, the bowling operator said it had crucially secured 90 per cent of its energy at 2020 prices up until 2024, allowing it to managing soaring costs across wages and food.
These strategic moves have meant that the company is now gearing up for expansion rather than closures. A new bowling alley will open in Walsall next week, with more UK sites opening in the coming months.
Analysts at Peel Hunt gave the stock a buy rating, stating that the company was “materially undervalued” by the market, with shares down nearly 20 per cent in the year to date.
Retail and supply chain partner at the law firm Gowling WLG Sarah Riding told City A.M. that the company’s buoyant results were “yet another example of how tapping into a crowded, risk-led market to offer a genuine consumer experience that is highly engaged with can still pay off significantly.”
Shares climbed nearly five per cent this afternoon.