23 January 2018 – trading update
A trading update for 2017 has revealed that profits for the year will be broadly in line with the lower end of market expectations. Total sales increased by 0.5% to £33.7m (2016: £33.5m). In the UK, major Arena investment is delivering good sales growth in a large group of sites and minor refurbishment has reduced the rate of sales decline. Sites that have yet to receive investment have continued to perform poorly. There has been investment in just over half of the estate. A further £3m of capital will be selectively targeted to further modernise the estate during 2018. The Joint Venture in North America with City Football Group, formed in July 2017, is said to be performing and progressing well. A third club in North America opened very recently at Rancho Cucamonga in Los Angeles. Construction of a fourth club is due to commence during the second quarter of 2018. The shares are at a level where we feel that there is good potential for capital growth over the medium to long term. We therefore rate the shares as a BUY.