It’s a strike for Hollywood Bowl as record revenue drives continued expansion plans
Hollywood Bowl is rolling into its new financial year on a high after reporting record revenues and pre-tax earnings.
The Hemel Hempstead-based bowling and entertainment business saw its shares lift after it reported a 6.4 per cent rise in revenue to £212.4m for the year to end September. The firm said its earnings before interest, tax and depreciation would be in line with market expectations.
The company said it now has 77 sites in the UK and 15 in Canada, a total increase of 7 venues, adding it was on track to hit its target of hitting 130 centres in total over the next decade.
“We have again demonstrated the success of our proven, customer-led strategy and differentiated business model by delivering record revenues and further profitable growth,” said chief executive Stephen Burns.
“The strong cash generative nature of our business means we are well-placed to continue investing in the size and quality of our estate and to continue to enhance the customer experience through our service standards and the use of digital technology.”
‘Exceptional value for money’
Hollywood Bowl shares jumped as much as 7 per cent to 281p in the first minutes of trade in London on Tuesday. But the stock remains down around 8 per cent over the past 12 months.
The company was last year hit by big hikes to employer national insurance costs, which added more than £1m to its wage bill. But the firm said it was “well-placed to mitigate the increased costs” adding it was still able to offer an affordable family day out, with a family of four able to bowl for just £26.
“As usual, like for like sales remain the key catalyst to forecasts and the rating, and, with investments paying off, there is a good chance that like for like sales will start to re-build as weather normalises,” analysts at Peel Hunt said.
“Core to this is Hollywood Bowl maintaining its exceptional value-for-money proposition.”