Companies: PWR   

Given the market’s shunning of companies exposed to consumer-facing sectors, now is the apposite time to evaluate the investment prospects of companies operating in more resilient markets.

One such area is five-a-side football, to which hordes of players continue to flock. One of the leading commercial operators is Powerleague, which has just reassured its numbers for the year to June will meet forecasts – analysts have pencilled in pre-tax profits of £4.87m from £26.9m sales, ahead of £6.28m from a top line £33.86m for June 2009.

Alongside the trading missive, the company announced the acquisition of Soccer Sensations, a Stockton-on–Tees based centre complementing the portfolio of 43 UK centres. This follows February’s acquisition of JJB Sport’s ‘SoccerDome’ indoor centre for £17.4m cash, a deal that has integrated nicely with the acquired sites seeing the benefits of the group’s systems and management’s dogged focus on increasing pitch utilisation. Furthermore, the four new centres opened during the year – in Cardiff, Milton Keynes, Shrewsbury and central London – were also said to be performing well.

Powerleague, which inked a strategic partnership with investment fund Patron Capital Partners earlier this year, to assist with expansion and help unlock value from its property portfolio, was originally recommended by Growth Company Investor at 70p back in 2006. Following a disappointing share price performance in 2008, the shares are trading on a prospective multiple of only 8.8 times 2009’s 5.24p earnings forecast. At current levels, there is little sense cutting losses. A firm hold.

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