News blog

Essenden

• BY: Andrew Hore |
• POSTED: 14/04/2014 |

Bowling centres operator Essenden is planning to swap its loan notes for new shares.

Essenden is offering 1.33 of a share for each £1. That will more than double the number of shares in issue. At 87p a share, down 9.5p, Essenden is currently valued at £18.6m.

The ISDX quotation for the loan notes will be cancelled.

The loan notes were issued as a means of returning cash to shareholders but poor trading has meant that Essenden has been unable to redeem the loan notes. The loan notes have made it more difficult to make an acquisition and management has decided they need to be

Essenden operates bowling centres in 29 locations. The number of sites has been reduced and in 2013 revenues fell from £47.1m to £45.6m. Even so, Essenden swung from a small loss in 2012 to a profit of £3.6m in 2013. There was net cash of £2.1m at the end of 2013.

Like-for-like sales did improve last year and this trend is continuing.

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