Ten Entertainment Group PLC (LSE:TEG) shares advanced as it told investors that it continued to perform ‘very well’, with like-for-like (LFL) sales growth of 30% in September and October.
Sales reached an all-time company record in the month of October helped by a strong half-term school holiday and the company said it is looking forward to a successful Christmas trading period.
“The continuing strong sales performance means that the group now expects to make a modest profit before tax for FY21, ahead of previous expectations where a modest loss had been anticipated,” it said in a statement.
“This is a significant achievement for a business that was entirely closed for the first 20 weeks of the year and is testament to the strength of our group and the strong levels of demand for experiences and great value family entertainment.”
In London, Ten Entertainment shares rose by 21.5p or 8.2% to change hands at 283.55p marking a new high since the pandemic.
Liberum Capital repeated a ‘buy’ rating and lifted its price target to 340p from 325p – the broker’s third upgrade for the share since it re-opened its doors in May.
“Ten Entertainment continues to trade ahead of expectations,” analyst Anna Barnfather said in a note.
“We see further earnings upside ahead, but leave FY22E and FY23E forecasts unchanged at this time given wider economic uncertainties and known cost inflation pressures.”