Hollywood Bowl (LON:BOWL) Results day was 13/12/19 http://www.stockwatchuk.com/

Hollywood Bowl PLC,......Presentation by the CEO and FD with CTO in the room. .

To a packed room, BOWL (£412m market cap) presented the FY19 numbers, to end September. This was the third year since the listing and the PLC is adopting a modified IFRS16 approach for 2020. This time last year was clearly a buying opportunity. A Boris Bounce is obvious in the share price. A good start to 2020 has happened with modest upgrades spotted. The share price is up 20% since the 13/12 announced figures.

The FY19 revenue was £130m, up 8%, PBT at £27.6m, up 15% and EPS 14.86p. Lfl revenue growth was 5.5% and game volumes up 3.1%. The net debt was £2.1m (with £25m in the bank) and free cash flow generation £14.7m with maintenance capex at £8.6m (£2.6m on the new scoring system, 8 refurbishments ). Operating margins were 21.9% , up from 20.6% and 13.7% in 2016. The average spend per game was 964p, up 4.5%. Bar and diner spend per game was up 3.1% after a modified food offer introduced in the 2H. The cinema slates were ‘strong’ for them helping drive amusement spend up 10%. The FY ordinary dividend was 7.43p (£16.2m in total) and an additional 4.5p special dividend proposed giving 11.93p for the year and up 12.7% on FY18. This is the third consecutive year of a special so taking the total return to shareholders since the IPO to £47.7m. Future margins were mentioned to be around 21.4-21.6%, costs rising by 3.8% yoy (1.8% lfl growth needed to mitigate cost rises) and the rent bill is £30.6m and to rise by 2.3% in 2020. 2020 maintenance capex estimate of £9-10m ( 7-10 centres) and 95% of the estate has been refurbished. IFRS 16 will reduce PBT by between £1.2m to £1.7m and FY21 a full review of the banking facilities will be made.

The lease liabilities are £170m- £190m, with an average lease length of 13.8 years and an average rent of 887p per sqft.

2020 should see between 7–10 refurbishments and 4 new centres ( 1 bowls, 3 the mini golf trials) open, costing £9 - £10m in total. The growth strategy was well explained by the CEO and FD (‘ super cautious’ on…

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