Powerleague Share Discussion Threads

[digitalinvestor] 06/3/2009 08:09

Debt seems high - I wonder what their bank facilities are?

[cupasoup2006] 04/3/2009 08:40

Poor results! Dont quite get a lot of what yey're saying in the press either! Only have to look at Goals (GOAL) to see what can be achieved in this sector - they reported great results - higher profits on less sites and can roll out more sited from their cashflow.!!

[lobby ludd] 03/3/2009 13:16

Goals Soccer Centre - the other major 5 a side operater - issued their full year results YESTERDAY, for those who wish to compare the two, eg. goals LFL was +3%.

[maddox] 03/3/2009 13:01

Promethean,

Not sure you are worrying about the correct items in the accounts. The cash flow statement and the B/S are different representations of the same thing and I doubt that E&Y would miss such an anomaly. They will need to have some cash on hand - shown as a current asset in the B/S but they have had a net cash outflow during the year - shown as an increase in (probably)the overdraft in the cashflow statement. However, these are tiddling amounts.

The real issue is that their Net Debt increased £17m or by 75% but the cost of debt increased by 250% to £1.5m! (£0.6m - £2.1m = £1.5m). This has essentially wiped out the benefit of the increase in turnover brought in by the acquisitions. It is just as well that the revenue is holding up to pay the financing costs.

Regards, Maddox

[promethean] 03/3/2009 10:09

I posted this on stockopedia...


RNS today showing six-monthly figures. As is typical with these kinds of results, the management show glowing headline pre-tax operating figures with revenue up 29% and operating cashflow up 86%... but these figures are inflated by acquisitions in the last year - like for like sales growth is pitiful and deflated by about 2% yoy.

What gives me the willies here is that the accounts don't seem to tally.. the cash flow statement shows end of period cash balance at -£1.608m, whereas the balance sheet shows £321,00 ... ?

I thought I was an educated fellow, so I've sent an email to the IR dept to explain this anomaly. If I'm grossly mistaken let me know.

[5dally] 03/3/2009 08:08

Results looks ok to me....

[matt123d] 24/2/2009 11:33

Looking pretty weak here, have taken an initial short position from 25p.

[jmjeffer] 26/1/2009 14:25

Looking at PWR's accounts they have a covanant of 2.75 interest cover. Obvioulsy given the low rates currently all is fine however if rates were to rise quickly (which could potentially happen in a few years to rectify inflationary pressure) the company could be caught out if they dont grow their bottom line.

[slapdash] 26/1/2009 09:58

Powerleague has too much debt as does Goals but Powerleague has done a growth through aquisition strategy which I'm not sure about.... Chairman is very arrogant as well.... management sold the bulk of their shares to a private equity firm and then bought back only a nominal amount when they fell in price... all for show...

Slap

[sebass] 26/1/2009 07:26

I think the key difference is that Goals strategy aims to open centres larger centres in more populated areas whereas powerleague tend to have smaller centres and they seem to be more flexible on the location or size of their centres. This allows Goals to be more operationally geared than powerleague hence the higher operating margin.

[jmjeffer] 25/1/2009 20:13

What do we think the reason is behind why PWR is so undervalued compared to Goals? ideas welcome

[cupasoup2006] 11/1/2009 15:38

Dont understand why either - profits have been static and analysts have pulled back their profit numbers

[slapdash] 05/1/2009 01:06

how can they have tipped it when the momentum is downwards????? slap

[beaufort1] 23/12/2008 15:37

Tipped in Momentum Investor, which I received yesterday. Share volumes are so low that even that is enough to move the share price

[jazza] 26/11/2008 12:08

Recently decided to give up either the gym membership or playing 6-a-side as I couldn't find the time (or push my ageing body hard enough) to do both justice.

No contest, gave up the gym.....why?

Gyms are dull, I only went to keep fit....god it's dull on a cross-trainer, treadmill...if it weren't for the sky sports monitors showing footy/cricket etc I'd have died of boredom right there on the treadmill....

Footy is fun, it may keep you fit...but that's not the point...it's the game, the contest that counts!!!


So maybe there was some surprise that the economic downturn hadn't impacted Powerleague as yet (see AGM statement)....not a surprise to me....a game of footy is recession-proof!!!

[lobby ludd] 26/11/2008 11:54

Lengthy article on Powerleague in the FT today.

[5dally] 24/11/2008 07:22

Very positive :-)

RNS Number : 7214I
Powerleague Group plc
24 November 2008









For immediate release: 24 November 2008




POWERLEAGUE GROUP PLC ("Powerleague" or "the Company")




AGM STATEMENT




At the Company's Annual General Meeting being held today, Claude Littner, Chairman of Powerleague, the market-leading operator of premium quality, purpose-built 5-a-side football centres in the UK, will make the following comments with regard to current trading:




"I am pleased to report that, in the first 21 weeks of this financial year, total revenues are up significantly on last year and, despite the economic downturn, our margins remain stable. We are also benefiting from the recent reductions in interest rates with a significant element of our debt linked to the base rate.




"The integration of the five SoccerDome centres continues to progress well and they are all making a positive contribution to profits. Each centre has benefited from the introduction of our systems and a more focused and pro-active sales and marketing approach. Our autumn marketing campaign has yielded good returns and we are seeing improved levels of bookings at these centres.




"I am also pleased to report that the integration of the centre in Stockton-on-Tees that we acquired in August 2008 from Soccer Sensations is progressing well. Last year we invested £1.4 million in upgrading eighty pitches at nine of our centres and it is pleasing to note that we are seeing the benefits of this investment flow through. Our Mill Hill centre is showing further growth following the addition of two extra 5-a-side pitches in September 2008.




"Further progress has been made on our extensive pipeline of new site opportunities and we look forward to updating shareholders on future site development in March when our half year interim results are announced."




"Our focus this year is to grow revenue at the four centres that we opened in the last financial year and rationalise the integration into our core estate of the centres that we acquired over the last twelve months. We believe that 5-a-side football remains a resilient business. Although it will not be immune to the current economic environment, I am pleased that trading has been in line with management expectations and I remain confident that the investments we have made will provide further sales and profit growth in the current year."

[slapdash] 02/10/2008 08:34

no evidence it is non-cyclical... management of course always say they are non-cyclical but that is probably rot... lots of new businesses do that before a recession only to find out otherwise

lack of like-for-like's is very worrying.. at interim stage like-for-like's were poor... so they have given up reporting them!!!!!!!!!

Slap

[little beaker] 02/10/2008 08:28

Where's the evidence that their business model is non-cyclical? Falls into the category of consumer discretionary expenditure, which is always butchered in a downturn.

[wjccghcc] 02/10/2008 08:22

Actually PBT and EPS were slightly ahead of brokers forecasts.

At least it looks like they're reigning in the capex with no new openings planned. They have strong cashflow so some of that debt should be paid down this year.

The lack of LFL is annoying although it may be to do with the Soccerdomes acquisition where they had different systems. Having integrated them now, I'd hope they reinstate the figures ASAP.

Pitch revenues is probably one of the most resistant consumer-facing items so they should keep churning out the cash. Not tempted to add any though until I see that's true in the figures.

[cupasoup2006] 02/10/2008 08:15

'Like for Likes' - where are they?

[little beaker] 02/10/2008 08:14

Would be interested in the company if it weren't for their acquisitive strategy diluting margins and increasing interest payments and risk.

Bit odd really going into an economic downturn where cash is king. Puts a big question mark on management's acumen.

[joetrader4] 02/10/2008 08:11

yeah, but opened 4 sites at start of year the added 5 thro acquisition in March which they have said were profitable so why are profits not up?? Also, NO MENTION OF LIKE FOR LIKES!!!

[slapdash] 02/10/2008 07:49

yup eps down... net profit flat.... etc etc..... could be due to tax charge kicking in and higher interest charges though so shouldn't be too harsh... i.e. might not reflect operational performance... but doesn't bode well... at last interims issue appeared to be reduced spending on drinks...

but a company like this is supposed to be a growth story!!!!

Slap