Hollywood Bowl eyes expansion to more than 110 centres in UK and Canada
Hollywood Bowl has said it sees “a significant opportunity” to roll out its leisure business to more than 110 centres across the UK and Canada.
In a trading update on Monday, the bowling alley operator said it was eyeing expansion opportunities across its three experiential brands, Hollywood Bowl and Puttstars in the UK and Splitsville in Canada.
Chief exec Stephen Burns told Morning Wire that these new spots were unlikely to be in the capital, and said: “The problem with London is that there is no space”.
Instead, he said the focus would be more on retail parks and the mixed retail scene.
The London-listed firm said it expected to report EBITDA growth of more than 40 per cent compared to its £38.2m sum posted in 2019, which would place its earnings ahead of market expectations.
Sales grew 42 per cent compared to pre-Covid levels, with the UK raking in some £178.7m of a total group revenue of £184.9m, for the year to the end of September.
While customers are “undoubtedly facing a number of challenges,” Burns said he believes that the operator’s “great value for money offer will remain very attractive to families looking for high quality, affordable leisure experiences to enjoy together.”
Burns told Morning Wire that bowling represents a “sweet spot” for British consumers thanks to competitive pricing and accessibilty.
The company notably hedged its energy contracts up to September 2024, allowing it to dodge the inflationary woes battering its rivals.
In a note to investors, Berenberg said the company had “consistently under-promised and over-delivered on expectations” since it went public in 2016.
Shares in the operator lifted slightly by two per cent in early trading on Monday morning.