REG - Hollywood Bowl Group - AGM Trading Statement

Hollywood BowlAnnouncement

30/01/2025 07:00

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RNS Number : 1612V  Hollywood Bowl Group plc  30 January 2025

Hollywood Bowl Group plc

("Hollywood Bowl", the "Company" or the "Group")

 

AGM Trading Update

 

STRONG START TO FY2025 AND FURTHER STRATEGIC PROGRESS

 

Hollywood Bowl Group plc, the UK and Canada's largest ten-pin bowling
operator, issues the following trading update for the financial year starting
1 October 2024 to 12(th) January 2025 ("the period") to coincide with the
Company's Annual General Meeting (AGM) taking place later today.

 

As announced in October 2024, Peter Boddy will retire as Chair of the Board
and step down as a director following today's AGM. Darren Shapland will
succeed Peter as Chair of the Board and Nomination Committee Chair, pending
his election as a director at the AGM.

 

 

Current trading

 

Trading over the period has been strong, including a record revenue month in
both the UK and Canada in December. Total revenue growth over the period was
up 11.3% and in line with Board expectations.

 

Total UK revenue was up 8.0% with LFL revenues up 4.5% over the period. Total
Canada revenue (on a constant currency basis) was up 40.8% (LFL revenues up
14.2% over the period), with Splitsville centres up 37.2% and Splitsville LFL
centres revenue up 7.0% over the period.

 

This performance reflects the continued demand for affordable, fun and
family-friendly competitive socialising in both the UK and Canada.

 

 

Driving returns through investment in growing and enhancing the quality of the
estate

 

The Group is on track to meet its target of 130 centres by 2035 and has a
strong new centre pipeline in FY2025:

 

UK - Hollywood Bowl centres

·      Currently on site at two new centres due to open in in H1 FY2025
(Preston and Inverness)

·      Starting on site at two locations in February 2025 due to open in
H2 FY2025 (Uxbridge and Reading)

·      Swindon opened in November 2024 and is performing well and in
line with expectations

·      On track to deliver five refurbishments in FY2025

 

Canada - Splitsville centres

·      On site at two new centres due to open in H1 FY2025 (Kanata,
Ottawa and Creekside, Calgary)

·      Starting on site at Christy's Corner, Alberta in H2 FY2025, due
to open H1 FY2026

·      Glamorgan, Calgary refurbishment completed in November 2024 and
is performing well and in line with expectations

·      On track to deliver five refurbishments in FY2025

 

 

Outlook

 

We remain resilient to inflationary pressures with over 70 per cent of Group
revenue not subject to cost-of-goods inflation. We are well positioned to
mitigate the effects from the increases to National Insurance contributions
and National Living and Minimum Wages given our strong cost culture and
relatively low labour-to-revenue ratio of under 20 per cent in the UK. As UK
families continue to face cost of living challenges, great value for money
will be a true point of differentiation with a family of four being able to
enjoy a game of bowling with us for under £26.

 

 

The Group remains confident in the outlook for the financial year. Our strong
cash position means we are well placed to continue to invest in the
significant growth opportunity ahead in both the UK and Canada and we remain
focused on continuing to execute our customer-led strategy to generate
attractive returns.

 

Stephen Burns, Chief Executive Officer, commented:

 

"We are pleased to report a strong period of trading, building on the momentum
from the previous financial year, including our highest ever monthly revenue
in December and our biggest ever day of trading on New Year's Eve. This
successful start to the year underlines the continued strength of our
value-for-money, family-friendly customer proposition. Looking ahead, we are
confident in the outlook and our ability to further develop our market-leading
position in the UK and Canada, enhancing the customer experience and seizing
the significant growth opportunity ahead."

 

 Enquiries:                                                 Via Teneo

 Hollywood Bowl Group PLC
 Stephen Burns, Chief Executive Officer
 Laurence Keen, Chief Financial Officer
 Mat Hart, Chief Sustainability and Communications Officer

 Teneo
 Elizabeth Snow                                             hollywoodbowl@teneo.com
 Laura Marshall                                             +44 (0)20 7353 4200

 

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