REG - Hollywood Bowl Group - Half Year Trading Update

Hollywood BowlAnnouncement

23/04/2025 07:00

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RNS Number : 7270F  Hollywood Bowl Group plc  23 April 2025

Hollywood Bowl Group plc

 

("Hollywood Bowl" or the "Group")

 

Half Year Trading Update

 

STRONG FIRST HALF TRADING AND FURTHER GROWTH IN THE UK & CANADA

 GIVE CONFIDENCE FOR FULL YEAR

 

 

Hollywood Bowl Group, operator of the UK's and Canada's largest ten-pin
bowling brands, is pleased to announce a trading update for the six months
ended 31 March 2025.

 

Key highlights

 

o  Record first half Group revenue of £129.2m, up 8.4%. compared to £119.2m
in H1 FY2024

o  UK revenue up 4.7%, to £108.2m

o  Canada revenue up 40.8% on a constant currency basis(1), to CAD 38.0m
(£21.1m)

o  Total Group like-for-like (LFL) revenue growth of 2.1%(2)

o  UK LFL total revenue up 1.3%,with bowling centres LFL of 1.5%

o  Canada LFL total revenue up 13.6%, with bowling centres LFL of 3.7%, on a
constant currency basis(1)

o  Group LFLs are negatively impacted by 0.9% due to the timing of Easter
compared to H1 FY2024, as well as a 0.2% impact from the extra leap year day
in 2024

·      Successful completion of £10m share buyback

o    3,762,176 shares purchased and cancelled

·      Strong balance sheet supports growth strategy

o  Net cash position on 31 March 2025 of £22.7m

o  Undrawn £25m revolving credit facility

·      Continued strong customer demand and operational momentum

o  The Group remains confident in the outlook for the business in FY2025

 

UK - 75 Hollywood Bowl centres

o  Three new centres opened in Swindon, Preston, and Inverness, all
performing well and in line with expectations

o  On track to open two new centres in H2 FY2025 in Uxbridge and Reading

o  Four refurbishments completed in H1 FY2025 and on track to complete one
further refurbishment in H2 FY2025

 

Canada - 15 centres

o  Two new centres opened in Kanata, Ottawa and Creekside, Calgary, both
performing well and in line with expectations

o  Starting construction at Christy's Corner, Alberta in H2 FY2025, due to
open H1 FY2026

o  Two refurbishments completed in H1 FY2025 and on track to complete four in
H2 FY2025

 

(1.) (When reviewing in Canadian Dollars (CAD) to allow for the disaggregation
of foreign currency effect. Canada revenue includes Striker Bowling Solutions
(bowling equipment supply and maintenance) and bowling centres.)

(2. Like-for-like (LFL) revenue growth is total revenue excluding any new
centres and closed centres. New centres are included in the LFL revenue after
they complete the calendar anniversary of their opening date. Closed centres
are excluded for the full financial year in which they were closed.)

 

Trading in the first half has been strong and included a record revenue month
in both the UK and Canada in December. Performance has been driven by the
ongoing successful execution of our strategy to drive returns through
investment in the size and quality of the estate and in the customer
experience.

 

The five new centre openings in the UK and Canada during the first half have
performed well and the pipeline continues to build across both geographies.
The Group remains on track to achieve its target total of 130 centres by 2035.
Further progress has been made with the ongoing refurbishment programme in the
UK and Canada, delivering target returns and receiving excellent customer
feedback.

 

There remains strong, continued demand for fun leisure activities across both
geographies. Families are actively seeking experiences that are affordable,
safe, and convenient, and that cater to all ages. As the UK and Canada's
largest ten-pin bowling operator, Hollywood Bowl Group is well positioned to
meet this demand given its inclusive, great value-for-money offer.

 

The Group's resilience to inflationary pressures, with over 70% of Group
revenue not subject to cost-of-goods inflation, has allowed prices to be kept
affordable and attractive in recent years. As previously announced, the cost
impact from recent changes to National Insurance contributions and National
Living and Minimum Wages in the UK is expected to be c. £1.2m on an
annualised basis from when the changes were implemented in April 2025. The
Group is well positioned to mitigate these higher employment costs given the
strong cost culture and low labour-to-revenue ratio of under 20% in the UK.
It is the Group's view that the tariff changes, announced in early April 2025,
will have no material impact on its operating costs.

 

The Group successfully completed a £10m share buyback on 8(th) April 2025.
The ongoing significant cash generation from the core business and returns
from the ongoing investment programme allows the Group to continue to invest
in the quality of its estate, further expand its portfolio in the UK and
Canada, and enhance the customer experience, while maximising returns to its
shareholders. The Group remains confident in the outlook for the business in
FY2025.

 

Stephen Burns, Chief Executive Officer of Hollywood Bowl Group, commented:

 

"We are pleased with our half year performance, with results in line with our
expectations, reflecting the ongoing demand for fun leisure activities and the
attraction of bowling as an affordable, inclusive experience that everyone can
enjoy. We have made excellent progress in executing our growth strategy,
opening five new centres, and upgrading six centres across the UK and Canada.
Our teams work extremely hard to deliver high-quality experiences and we
continue to invest in growing our estate and enhancing our industry-leading
proposition, while carefully controlling costs and cash."

 

Hollywood Bowl will report its Interim Results on Thursday 29(th) May 2025.

 

Enquiries:

 

 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 (mailto:Hollywoodbowl@teneo.com)

 Laura Marshall

 

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