REG - Hollywood Bowl Group - Final Results - Year ending 30 September 2025
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RNS Number : 6322L Hollywood Bowl Group plc 16 December 2025
Hollywood Bowl Group plc
("Hollywood Bowl", or the "Group")
Final Results for the Year Ended 30 September 2025
CONTINUED STRONG FINANCIAL AND OPERATIONAL PERFORMANCE
Hollywood Bowl Group plc, the UK and Canada's largest ten-pin bowling
operator, announces its audited results for the year ended 30 September 2025
("FY2025").
Financial Summary
Adjusted results(1) Statutory results
FY2025 FY2024 Movement FY2025 FY2024 Movement
FY2025 vs FY2024
FY2025 vs FY2024
Revenue £250.7m £230.4m +8.8% £250.7m £230.4m +8.8%
Group EBITDA pre-IFRS 16 £68.4m £67.7m +0.9% N/A N/A N/A
Group EBITDA £91.2m £87.6m +4.2% N/A N/A N/A
Group profit before tax (pre-IFRS 16) £49.4m £53.4m -7.5% N/A N/A N/A
Group profit before tax £46.0m £50.3m -8.6% £44.3m £42.8m +3.6%
Group profit after tax £36.7m £37.6m -2.4% £34.6m £29.9m +15.7%
Earnings per share 21.51p 21.92p -1.9% 20.28p 17.42p +16.4%
Earnings per share (pre-IFRS 16) 23.61p 23.95p -1.4% N/A N/A N/A
Total ordinary dividend per share 13.28p 12.06p +10.1% 13.28p 12.06p +10.1%
1 A reconciliation between adjusted and statutory is shown later in the
report.
Continued strong financial and operational performance
· Fourth consecutive year of record revenue and adjusted EBITDA, in
line with expectations
o Group revenue of £250.7m up 8.8% (FY2024: £230.4m)
o Group adjusted EBITDA growth (pre-IFRS 16) of 0.9% to £68.4m (FY2024:
£67.7m)
o Group adjusted EBITDA growth of 4.2% to £91.2m (FY2024: £87.6m)
· Group like-for-like (LFL) revenue growth of 0.6% (1.3% on a
constant currency basis)
o UK LFL up 1.1%, despite a challenging backdrop for indoor leisure, with
spend per game ("SPG") up 9.2%
o Canada LFL up 3.2% on a constant currency basis, with SPG up 14.8%
o Strong value credentials maintained - a family of four can bowl in the UK
for £26
· Group statutory profit after tax up 15.7% to £34.6m (FY2024:
£29.9m)
o Group adjusted profit after tax of £36.7m (FY2024: £37.6m)
· Strong cash generation and free cash flow with robust balance
sheet
o Maintained tight control on costs driving efficiencies in Group functions
o Closing net cash balance of £15.2m
· Total of £35m returned to shareholders in the year
o Dividend policy updated to 55% of adjusted PAT pre-IFRS 16
o Proposed final dividend of 9.18p, giving a total dividend of 13.28p
o £15m share buyback completed in the period
Disciplined investment to drive growth
· Estate expansion plan ahead of target
o Opened a record five new sites in the UK and two in Canada
o On track to reach 130 centres by 2035 - 95 in UK and 35 in Canada
o Completed five refurbishments in the UK and seven in Canada
o New sites and refurbishments performing in line or above expectations
o Tenant of choice through strong covenants and sector-leading offer
· Proactive initiatives boosting bookings, improving customer
experience and SPG
o Dynamic pricing to stimulate bookings and optimise yield at centre level
o Upweighted data driven marketing activity for sales activation and
retention
o New Group-wide booking system driving increased conversion and order
values
o £11m invested in new amusement machines improving customer choice
o Trialling new initiatives, including E-darts and cashless amusement
payments
· Largest branded operator in Canada
o Significant growth since FY2022 - 3x centres, 3.9x revenue and 3.75x
EBITDA
o Canada now accounts for 15% of Group revenues
o Successfully replicating UK operating model in Canada
o Introduced market innovations including wear your own shoes and bowling by
the game
· Senior leadership team expanded and realigned for next stage of
growth
o Antony Smith joins as Group CFO in February 2026, bringing highly relevant
experience
o Laurence Keen appointed Canada CEO from February 2026
Outlook
· Differentiated business model is well-positioned to continue to
drive growth
o Ongoing robust demand for multi-generational affordable leisure in UK and
Canada
o Operational focus to minimise the impact of external cost pressures and
demand levers to maximise revenues and drive profitability
o Over 70% of UK revenue not subject to cost-of-goods inflation, labour
costs represent less than 20% of UK revenue and UK energy hedged through
FY2027
o Pipeline of four new centres secured for opening in FY2026, in line with
capital allocation policy
Stephen Burns, Chief Executive Officer, commented: "We delivered a fourth
consecutive year of record revenue and adjusted EBITDA, against a backdrop of
industry-wide challenges. We achieved double digit revenue growth in
amusements and are the number one bowling operator in Canada. Our focus on the
customer proposition and operational excellence yielded strong results, with
uplifts in spend per game across all categories whilst maintaining accessible
pricing."
"This performance demonstrates the resilience of our model and the enduring
appeal of bowling for consumers. As we look to 2026, we remain focussed on
delivering sustainable growth, while generating the compelling shareholder
returns we are known for."
Enquiries:
Hollywood Bowl Group PLC - via Headland
Stephen Burns, Chief Executive Officer
Laurence Keen, Chief Financial Officer
Mat Hart, Chief Sustainability and Communications Officer
Headland
Rosh Field / Antonia Pollock
hollywoodbowl@headlandconsultancy.com
+44 (0)20 3805 4822
Chief Executive Officer's review
We have delivered a year of excellent progress at Hollywood Bowl Group,
driving strong financial performance through our operational excellence and
clear strategy for growth. The Group made significant investment in the
opening of seven new centres and 12 refurbishments, further solidifying our
market-leading position in ten-pin bowling and competitive socialising,
executing on our expansion plans in both the UK and Canada.
Our strategy, focused on delivering affordable, family-friendly experiences,
continues to underpin our success. We achieved record levels of revenue,
supported by disciplined cost management and continued investment in our
customer proposition in line with our capital allocation policy.
Group revenue increased 8.8% to £250.7m (FY2024: £230.4m), with
like-for-like (LFL) growth of 0.6%. On a constant currency basis, LFL revenue
was up 1.3%. Group adjusted EBITDA pre-IFRS 16 was £68.4m (FY2024: £67.7m).
Statutory profit after tax was £34.6m (FY2024: £29.9m), whilst adjusted
profit after tax was £36.7m (FY2024: £37.6m).
Whilst the cost of living remains high, consumers continue to prioritise their
spending on experiences as opposed to purchases. Hollywood Bowl is uniquely
placed to capitalise on this trend with its significant scale and unique
appeal as an activity that is inclusive and enjoyable for all age groups, with
a wider target market when compared to new competitive socialising entrants
which are predominantly adult-focused and city-centre based.
Our bowling centres are out of town destinations for consumers, combining
bowling with amusements and food and drink, enhancing the overall customer
experience and driving higher spend per visit.
Our business model is differentiated and resilient. It combines a
customer-focused approach, multi-generational product appeal and well-invested
centres in prime locations.
In FY2025 we invested £36.5m across the estate including maintenance capital
expenditure, refurbishments and new openings, and now have 92 centres across
the UK and Canada, with a strong pipeline of further opportunities.
Despite the UK experiencing the hottest and driest spring and summer on
record, which presented trading challenges for the indoor leisure sector, the
resilience of our model, the investments we have made in technology, and our
agile and proactive management approach, meant that we were able to stimulate
demand through additional marketing spend, CRM and dynamic pricing, and manage
costs effectively to drive efficiencies, which supported our performance.
Over 70% of our UK revenue is not subject to cost-of-goods inflation, and
labour costs represent less than 20% of UK revenue. These factors, combined
with energy hedging through FY2027, provide a strong buffer against external
pressures.
UK performance and expansion
The UK business delivered an excellent performance in FY2025. Total revenue
increased to £212.4m, with LFL revenue growth of 1.1%.
Adjusted EBITDA on a pre-IFRS 16 basis in the UK increased to a record
£62.4m.
Average spend per game grew by 9.8%, driven by uplifts in spend on food of
6.0%, drink of 4.1%, amusements of 15.1%; supported by new machine investment
by our amusement supplier, Bandai Namco, of £5m, and investments in revenue
optimising technology including dynamic pricing.
LFL game volumes were down 7.5% compared to the prior year, reflecting the
impact of unseasonal weather in the spring and the hot summer, as well as the
muted consumer confidence this year. Despite these factors, through the
operational levers that we have in place we were able to deliver record
results, which were also in the context of three previous years of exceptional
performance.
Our pricing remained highly competitive, with a family of four able to bowl
for under £26 at peak times. We have maintained headline price increases well
below inflation, and utilised dynamic pricing to ensure that our offer remains
accessible to a broad customer base. This commitment to affordability is
particularly important given the ongoing cost-of-living challenges faced by
households.
Innovation continues to play a key role in our UK performance. We trial new
initiatives regularly, introducing concepts like E-darts and extended
amusement areas as part of our refurbishment programme.
During the year, we completed five refurbishments in the UK in Tolworth,
Portsmouth, Bentley Bridge, Birmingham Resorts World and Basingstoke. These
investments are delivering strong returns in line with expectations and
enhancing the customer experience through the introduction of upgraded
interiors, digital signage and Pins on Strings. In November 2025 we
refurbished our Norwich centre and have no more planned in the UK for FY2026,
following significant refurbishment investments in FY2024 and FY2025, as well
as the impact of the Covid closures increasing the life of the refurbishments
completed pre FY2020. We expect to return to the refurbishment cycle in the UK
in FY2027.
We also expanded our UK estate, opening five new centres - in Preston,
Inverness, Swindon, Uxbridge, and Reading - bringing our total to 77. Each new
site has traded well in line with our expectations. The Reading Oracle centre,
a converted department store, co -located with retail and casual dining, set
opening weekend trading records after a £4.5m investment.
These new centres highlight the strength of our UK pipeline and our capability
to secure prime locations that meet strict investment criteria, with our
development expertise delivering projects on schedule and within budget.
We expect to open two new UK centres in FY2026 and remain on track for 95 UK
centres by 2035.
Canada performance and expansion
We continue to deliver progress in Canada, where we have now established a
strong platform.
The Canadian business delivered a good performance in FY2025. Total revenue
increased to CAD 70.0m (£38.3m), up from CAD 53.0m (£30.7m) in FY2024, with
LFL revenue growth of 3.2%. Adjusted EBITDA on a pre-IFRS 16 basis in Canada
increased to a record CAD 10.5m (£5.9m), up from CAD 9.4m (£5.4m) in FY2024.
As a result of our evolving customer-focused operating model, we grew average
spend per game by 14.8% to CAD 17.36.
Our Striker bowling equipment business also continues to perform well.
Revenues in FY2025 totalled CAD 8.6m (£4.7m), up CAD 1.3m compared to the
prior year. Investing in bowling equipment and technology at cost has lowered
capital expenditure and shortened lead times for centre upgrades, supporting
estate improvements in Canada.
These results reflect strong demand for affordable, family-friendly leisure
experiences and the validity of our strategy to replicate our proven UK
operating model in Canada.
Since entering the market in FY2022, we have grown our estate to 15 centres,
making us the largest branded operator in the country. Canada now accounts for
15% of Group revenues.
The Canadian market remains highly fragmented and underinvested, displaying
many characteristics of the UK market ten years ago, which is creating a
significant opportunity to extend our geographic presence through new
greenfield centre developments in well-populated urban areas with favourable
demographics, that are currently under-served by family entertainment offers,
or for us to acquire existing businesses that fit our strict criteria.
Our initial expansion focused on extending our footprint in Toronto and
Calgary through acquisitions, but this has evolved to predominantly focus on
new build greenfield opportunities which are starting to emerge due to an
evolving retail landscape and the increased recognition of the Splitsville
brand and proposition amongst landlords.
We added two new greenfield centres during the year in prime high footfall
locations in Kanata and Creekside. Both are trading above our initial
expectations.
We completed seven refurbishments, leveraging our UK expertise to enhance the
customer offer and bring new innovations into the market including wear your
own shoes and bowling by the game. The investment profile differs from the UK
as there is more upfront capital investment required to bring the acquired
centres up to a base level from which we then implement our brand standards.
We are confident these investments will hit our EBITDA targeted return in
Canada of 25% in their first year post refurbishment.
We will open our first centre in Edmonton in FY2026 and have an exciting
pipeline of new opportunities. We remain on track to operate 35 centres by
2035, establishing Splitsville as a national chain.
Technology driving revenue growth
Technology investment plays an important role in our strategy. During the
year, we completed the roll out our new in-house Group booking platform to the
UK and Canada, delivering a faster, more reliable experience for customers and
team members.
We have seen improvements in booking speed and reliability and increased
online conversion rates and order values.
The system has been further evolved to include online party and VIP sales, AI
driven upsells during the booking journey, and increasingly sophisticated
yield management though dynamic pricing. To support our next stage of growth,
we have developed an exciting technology roadmap.
The integration of technology and marketing enables us to personalise the
customer journey, driving engagement and repeat visits. We have invested
significantly this year in growing the capability and scale of our marketing
team. Our marketing approach continues to evolve, leveraging data insights to
deliver targeted digital campaigns and optimise increased levels of marketing
spend.
Enhancing our customer proposition
Constant innovation of our customer offer is a key driver of higher spend in
our centres.
In addition to introducing the latest digital signage and new brand
environments, we are finding new opportunities to optimise
our space that complement our core bowling offer and increase the yield per
sq. ft potential.
This includes increasing the density and range of our amusements, as well as
introducing new digital payment options. In the UK this has helped drive
amusement spend per game (SPG) by 15.1%.
In some UK centres, where space allows, we have introduced extra full-size or
compact-format bowling lanes, such as duckpin and e-darts.
We have also continued the installations of cost-saving and
experience-enhancing Pins on Strings with all but one of the UK bowling estate
and 60% of the Canadian estate now using this technology, with the remainder
of the Canadian estate due to be completed in FY2026.
Our teams are at the heart of delivering an excellent customer experience and
consistently delivered high quality customer experiences which resulted in
increased dwell time and record levels of positive customer satisfaction and
net promoter scores in the UK and Canada.
Creating outstanding workplaces for our team members is a key element of our
strategy and we are delighted to have been ranked in the Sunday Times Best
places to work 2025 (very big organisation) list, achieved a three-star
excellent employee experience and recognised as one of the World's Happiest
Places To Work by WorkL in the UK, and have also been accredited as a Great
Place to Work in Canada.
This year, we achieved record attendance on our sector-leading management
development programmes, including our new graduate scheme, and we were
delighted that 61% of internal UK management positions were achieved through
internal appointments. These results explain why we have relatively low team
member turnover rates compared to the wider leisure market and illustrate our
record in home-growing talent.
We have accelerated sharing UK best practice and knowledge in Canada, not
least through several of our UK team taking up a variety of senior operational
roles in our Canadian business including the appointment of Laurence Keen, our
current CFO, as CEO of Canada from February 2026. To further support Canada,
we also created Group departments for all central support functions which has
improved efficiencies and is further enhancing our performance in Canada.
A responsible business
Running and growing our business in a sustainable manner remains a key focus
for the Group, and we made good progress this year against our sustainability
strategy and targets.
Our centres continue to play an important social role in our local
communities, and we were pleased to have beaten our UK targets for
concessionary discount and school games played and for charity fundraising for
our charity partner, Macmillan.
We have recycled more UK waste than ever, thanks to behavioural programmes and
standardised procedures. Solar arrays are now installed at 34 centres, and
increasing renewable energy use at more locations remains a priority as we
reduce both our carbon footprint and our reliance on purchased electricity. We
are also using more low-carbon materials and energy-efficient technologies in
refurbishments and new builds.
Our Canadian operations have started to become more closely aligned to our UK
sustainability strategy including team development and behavioural change
programmes, so that we can further improve our environmental and social
performance and we have extended our associated targets for FY2026.
UK Government Budget
Increases to living and minimum wages announced to the Government's budget
November 2026 will have an impact on the Group's cost base. Also, whilst on
the face of it the business rates multiplier appears to reduce business rates,
the revaluation will wipe this reduction out, and therefore we will see an
increase in business rates in FY2026.
Shareholder returns
The Board is pleased to declare a final ordinary dividend of 9.18 pence per
share, in line with our capital allocation policy of 55% of adjusted profit
after tax on a pre-IFRS 16 basis. Together with the interim dividend of 4.10
pence per share, this represents growth of 10.1% compared to the prior year.
Total shareholder returns for FY2025 will amount to £37.4m, including the
share buyback of £15m.
Outlook
Our continued strong performance demonstrates the robust demand for fun,
affordable, family-friendly leisure experiences in both of our key
territories.
The Group has a successful, proven strategy focused on growing and improving
the quality of the estate in the UK and Canada and enhancing the customer
experience.
The highly cash-generative nature of the business and strength of our balance
sheet mean that we are well placed to pursue opportunities to invest in our
future growth and meet our target of 130 centres by 2035, whilst continuing to
make returns to shareholders in line with our progressive dividend policy.
We are well positioned for future growth, supported by a robust UK and
international pipeline, ongoing capital investments, a high performing team
and a differentiated and resilient business model. We continue to lead the
competitive socialising market in both the UK and Canada, and we are confident
about our prospects for another exciting year ahead.
Stephen Burns
Chief Executive Officer
16 December 2025
Chief Financial Officer's review
Group financial results
Adjusted results(1) Statutory results
FY2025 FY2024 Movement FY2025 FY2024 Movement
FY2025 vs FY2024
FY2025 vs FY2024
Revenue £250.7m £230.4m +8.8% £250.7m £230.4m +8.8%
Gross profit £208.8m £191.2m +9.2% £157.0m £145.5m +7.9%
Gross profit margin 83.3% 83.0% +30bps 62.6% 63.2% -60bps
Administrative expenses £149.5m £130.6m +14.5% £100.4m £92.6m +8.4%
Operating profit N/A N/A N/A £58.2m £53.5m +8.8%
Group EBITDA pre-IFRS 16 £68.4m £67.7m +0.9% N/A N/A N/A
Group EBITDA £91.2m £87.6m +4.2% N/A N/A N/A
Group profit before tax (pre-IFRS 16) £49.4m £53.4m -7.5% N/A N/A N/A
Group profit before tax £46.0m £50.3m -8.6% £44.3m £42.8m +3.6%
Group profit after tax £36.7m £37.6m -2.4% £34.6m £29.9m +15.7%
Earnings per share 21.51p 21.92p -1.9% 20.28p 17.42p +16.4%
Earnings per share (pre-IFRS 16) 23.61p 23.95p -1.4% N/A N/A N/A
Total ordinary dividend per share 13.28p 12.06p +10.1% 13.28p 12.06p +10.1%
1 A reconciliation between adjusted and statutory measures is shown at the end
of this report.
Following the introduction of the lease accounting standard IFRS 16, the Group
continues to present adjusted EBITDA on both a pre- and post-IFRS 16 basis,
with the pre-IFRS 16 measure remaining the key metric for internal
decision-making, investor assessment and loan facility compliance. We have
also amended our dividend policy to reflect this impact.
Revenue
Total Group revenue for FY2025 was £250.7m, 8.8% growth on FY2024.
UK centre LFL revenue growth was up 1.1%, with spend per game growth of 9.2%,
and a 7.5% decline in LFL game volumes. Alongside the impact of our new UK
centres, total UK revenue for FY2025 was £212.4m up 6.4% compared to the same
period in FY2024.
Canadian LFL revenue growth, when reviewing in Canadian Dollars (CAD) to allow
for the disaggregation of the foreign currency effect (constant currency), was
3.2%, with total revenues up 32.8% to CAD 70.0m (£38.3m). FY2025 was a year
of investment in our Splitsville estate in Canada, with seven refurbishments
completed as well as the commencement of a major partnership with our UK
amusement supplier, Bandai Namco. Splitsville bowling centre revenue was up
CAD 15.9m (35.1%) to CAD 61.1m, despite the refurbishments and amusement
implementation resulting in some short-term disruption to trading in the year.
Striker generated revenue of CAD 8.6m (FY2024: CAD 7.7m) in the year.
New centres in the UK and Canada are included in 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.
Gross profit on cost of goods sold
Gross profit on cost of goods sold is calculated as revenue less directly
attributable cost of goods sold and does not include any payroll costs. Gross
profit on cost of goods sold was £208.8m, a 9.2% increase on FY2024 with
gross profit margin on cost of goods sold at 83.3% in FY2025, up 30bps on
FY2024.
Gross profit on cost of goods sold for the UK business was £179.3m with a
margin of 84.4% up 50 bps on FY2024, with higher margin seen in all areas of
the UK business.
Gross profit on cost of goods sold for the Canadian business was in line with
expectations at CAD 53.9m (£29.5m), with a margin of 77.2% (FY2024: 76.8%).
This margin increase is primarily due to the significant revenue growth seen
in the Splitsville bowling centres which make up a larger proportion of total
revenue in Canada versus our Striker equipment business. Splitsville had a
gross profit margin on cost of goods sold of 82.8%, in line with expectations.
Administrative expenses pre-adjusting items
Following the adoption of IFRS 16 in FY2020, administrative expenses exclude
property rents (turnover rents are not excluded) and include the depreciation
of property right-of-use assets.
Total administrative expenses, including all payroll costs, were £149.5m
(FY2024: £130.6m). On a pre-IFRS 16 basis, administrative expenses were
£161.3m (FY2024: £146.9m).
Employee costs in centres were £51.8m (FY2024: £45.7m), an increase of
£6.1m when compared to FY2024, due to a combination of the impact of the
higher than inflationary national minimum and living wage increases seen
compared to the prior year, the impact of higher LFL revenues, new centres, as
well as the part year impact in the UK, of the increase in employers national
insurance. UK centre employee costs were £42.0m, an increase of £4.1m when
compared to FY2024. Total centre employee costs in Canada were CAD 18.0m
(£9.8m), an increase of CAD 4.5m (£2.0m).
Total property-related costs, accounted for pre-IFRS 16, were £49.9m (FY2024:
£42.0m). The UK business accounted for £43.1m (FY2024: £37.8m). Rent costs
in the UK increased to £20.2m (FY2024: £18.3m).
Canadian property centre costs were in line with expectations at CAD 12.4m
(£6.8m), an increase of CAD 4.4m due to the increased size of the estate when
compared to FY2024.
Utility costs increased by £1.9m compared to the same period in FY2024, with
UK centres accounting for £1.6m of this increase due in the main to the new
fixed rate announced during FY2024, with the balance in relation to the
increased number of centres in Canada.
Total property costs, under IFRS 16, were £53.3m (FY2024: £47.6m), including
£13.0m accounted for as property lease assets depreciation and £13.1m in
implied interest relating to the lease liability.
Total corporate costs increased year on year, by £2.0m, to £26.9m. UK
corporate costs increased by £1.0m to £21.9m due to a combination of payroll
costs and increased spend on marketing as we pushed ahead with our investment
in this area. As we continue to build out our support team in Canada for
growth, corporate costs increased to CAD 9.1m (£5.0m) from CAD 6.5m (£3.8m).
This structure in Canada should allow us to expand our estate by 25% before
adding significantly more cost.
The statutory depreciation and amortisation and impairment charge for FY2025
was £33.9m compared to £32.2m in FY2024. Depreciation and amortisation on
property, plant, equipment and intangibles, increased from £15.5m in FY2024
to £19.1m in FY2025, as we continued our capital investment programme into
new centres and refurbishments in the UK and Canada.
Following the investment activity undertaken in FY2025, the Group expects to
benefit from improved profitability and operational performance in FY2026.
Adjusting items
Total adjusting items before tax were a charge of £1.7m in the period,
compared to a charge of £7.6m in FY2024. Adjusting items include impairments
and therefore FY2024 comparatives have been re-presented as such.
During the period, impairments of £2.3m (FY2024: £5.3m) were recognised,
primarily in relation to our Putt & Play mini-golf centres.
The impairment reflects a discounted cash flow analysis of future cash flows,
resulting in a reassessment of the carrying amount of property, plant and
equipment (PPE) and right-of-use (ROU) assets associated with the mini-golf
centres on the balance sheet.
The discount rate used for the weighted average cost of capital (WACC) was
13.5 per cent pre-tax (FY2024: 12.4 per cent) in the UK.
Other adjusting items relate to three areas; the earn out consideration for
Teaquinn President Pat Haggerty £0.7m, of which
£0.2m is in administrative expenses and £0.6m is in interest expenses;
aborted acquisition and legal costs in Canada
£0.2m; £1.6m in in relation to a business interruption insurance claim
received in the period. More detail on these costs is shown in note 5 to the
Financial Statements.
Group adjusted EBITDA and operating profit
Group adjusted EBITDA pre-IFRS 16 increased 0.9 per cent, to £68.4m. The
reconciliation between statutory operating profit and Group adjusted EBITDA on
both a pre-IFRS 16 and under-IFRS 16 basis is shown in the table opposite.
UK adjusted EBITDA pre-IFRS 16 was £62.4m (FY2024: £62.3m). Included in this
FY2024 metric, the UK business benefitted from business rates rebates of
£2.8m and Surrey Quays which closed in September 2024, worth £1.1m.
Canadian adjusted EBITDA pre-IFRS 16 was CAD 10.5m (£5.9m), up 11.6% on a
constant currency basis, whilst bowling centre level EBITDA pre-IFRS 16 was up
CAD 2.9m to CAD 17.7m. Following the investment activity in the year in
Canada, the Group expects to see incremental profit metrics in FY2026.
FY2025 FY2024
£'000
£'000
Operating profit 58,224 53,506
Depreciation 30,505 25,919
Impairment 2,288 5,316
Amortisation 1,155 935
Loss on property, right-of-use assets, plant and equipment and software 223 88
disposal
Adjusting items excluding interest and impairment (1,160) 1,823
Group adjusted EBITDA under IFRS 16 91,235 87,587
IFRS 16 adjustment (Rent) (22,880) (19,838)
Group adjusted EBITDA pre-IFRS 16 68,355 67,749
Share-based payments
During the year, the Group granted further Long-Term Incentive Plan (LTIP)
shares to the senior leadership team as well as starting a new save as you
earn (SAYE) scheme for all team members. The Group recognised a total charge
of £1.8m (FY2024: £1.8m) in relation to the Group's share-based
arrangements.
Financing
Finance costs (net of finance income) increased to £13.9m in FY2025 (FY2024:
£10.7m) comprising mainly of implied interest relating to the non-cash lease
liability under IFRS 16 of £13.7m (FY2024: £11.6m).
During the year, the Group agreed a new three-year, £25m RCF and £5m
accordion, with its current provider, Barclays PLC, effective 8 May 2025, with
a lower margin of 1.30 per cent (from 1.65 per cent) above SONIA. The RCF
remains fully undrawn.
Taxation
The Group's tax charge for the year is £9.7m, an effective rate of tax of
21.8%, arising on the profit before tax generated in the period. The effective
tax rate is lower in FY2025 due to the impact of prior period adjustments and
is expected to return to between 25% and 26% in FY2026.
Segmentation
Year ended 30 September 2025
UK Canada Total
£'000
£'000
£'000
Revenue 212,410 38,252 250,662
Gross profit on cost of goods sold 179,296 29,515 208,811
Group adjusted EBITDA pre-IFRS 16(1) 62,418 5,937 68,355
Group adjusted EBITDA 81,336 9,899 91,235
Depreciation and amortisation 26,055 5,605 31,660
Impairment of PPE and ROU assets 2,288 - 2,288
Loss/(profit) on property, right-of-use assets, plant 245 (22) 223
and equipment and software disposal
Adjusting items excluding interest and impairment (1,548) 388 (1,160)
Operating profit 54,296 3,928 58,224
Finance (income) (766) (61) (827)
Finance expense 11,759 3,008 14,767
Profit before tax 43,303 981 44,284
1 IFRS 16 adoption has an impact on EBITDA, with the removal of rent from
the calculation. For Group adjusted EBITDA pre-IFRS 16, it is deducted for
comparative purposes and is used by investors as a key measure of the
business. The IFRS 16 adjustment is in relation to all rents that are
considered to be non-variable and of a nature to be captured by the standard.
Earnings
Group profit after tax for the year was £34.6m (FY2024: £29.9m) and basic
earnings per share of 20.28 pence per share (FY2024: 17.42 pence per share).
Group adjusted profit after tax is £36.7m (FY2024: £37.6m), and basic
adjusted earnings per share of 21.51 pence per share (FY2024: 21.92 pence per
share). Adjustments here are reconciled in the table at the end of this
report.
IFRS 16 impacts statutory profit only through non-cash depreciation and
interest, reducing FY2025 profit before tax by £3.4m (FY2024: £3.1m). These
effects unwind as leases mature, though continued regears and extensions -
where strategically beneficial - may moderate this decline. Our focus, and
where investor and analysts should therefore focus, is on the underlying cash
cost of occupancy, which remains aligned with pre-IFRS 16 metrics and reflects
the Group's proactive and disciplined lease strategy. Our market position and
covenant strength continue to support favourable outcomes in lease
negotiations, reinforcing long-term value creation.
Therefore, given the accounting treatment under IFRS 16 can introduce non-cash
volatility in reported profit, we believe showing on a pre-IFRS 16 basis gives
a better view of underlying trade. Group adjusted profit after tax on a
pre-IFRS 16 basis is £40.3m (FY2024: £41.1m).
Cash flow and liquidity
The liquidity position of the Group remains strong, with a net cash position
of £15.2m as at 30 September 2025. The table opposite shows a breakdown of
cash utilisation in the year.
Adjusted operating cash flow was £64.1m (FY2024: £58.2m) at a conversion of
70.2% (FY2024: 66.4%).
During FY2025 the Group completed £15m of share buybacks. The Group holds no
ordinary shares in treasury and therefore the total voting rights in Hollywood
Bowl, post the completion of the share buyback, is 166,851,906. The weighted
average number of shares in FY2025 was 170,629,123.
Capital expenditure
During the financial year, Group capital expenditure was 30.6% lower than the
prior year, at £36.5m (FY2024: £52.7m).
In the period, UK expansionary capital spend was £20.7m, with £15.9m on the
five new centres opened in the period, £4.8m on refurbishments. Expansionary
capital expenditure in Canada amounted to CAD 20.2m (£10.8m).
The level of investment was consistent with management expectations and
primarily reflected the completion of a number of major refurbishment projects
and the opening of two new centres.
The FY2026 capital expenditure programme is expected to comprise a broadly
consistent level of maintenance expenditure, up to three planned
refurbishments, and the development of two new centres in the UK and two in
Canada. Accordingly, total capital expenditure for FY2026 is anticipated to be
in the range of £25m to £30m, although may increase should additional new
centre developments in Canada commence during the year.
Depreciation on property, plant and equipment is expected to increase by
approximately £2.0m to £2.5m in FY2026, reflecting the Group's continued
investment in new centres and enhancement of the existing estate. These
investments underpin long-term growth, with returns expected to exceed the
Group's cost of capital, supporting sustained profitability and shareholder
value creation.
Dividend and capital allocation policy
In line with the comments regarding non cash volatility from IFRS 16, the
Group is proposing to declare dividends based on group adjusted profit after
tax on a pre-IFRS 16 basis for its final FY2025 ordinary dividend as well as
future dividends. The Board has declared a final ordinary dividend of 9.18
pence per share. Subject to approval at the AGM, the ex-dividend date will be
29 January 2026, with a record date of 30 January 2026 and a payment date of
20 February 2026.
Cash flow and net debt
FY2025 FY2024
£'000
£'000
Group adjusted EBITDA under IFRS 16 91,235 87,587
Movement in working capital 1,809 1,018
Impact of adjusting items on working capital (178) (1,387)
Maintenance capital expenditure (6,582) (7,973)
Share-based payments 1,798 1,782
Taxation (9,445) (10,536)
Payment of capital elements of leases (14,560) (12,305)
Adjusted operating cash flow (OCF)(1) 64,077 58,186
Adjusted OCF conversion 70.2% 66.4%
Expansionary capital expenditure(2) (29,947) (30,952)
Disposal proceeds 80 -
Net bank interest received 720 1,616
Lease interest paid (13,731) (11,615)
Free cash flow (FCF)(3) 21,199 17,235
Adjusting items 1,338 (436)
Acquisition of centres in Canada - (9,283)
Cash acquired in acquisitions - 78
Acquisition of centres in UK - (4,474)
Share (buyback)/issue (15,151) (379)
Dividends paid (20,827) (26,180)
Effect of foreign exchange rates on cash and cash equivalents (72) (314)
Net cash flow (13,513) (23,753)
1 Adjusted operating cash flow is calculated as Group adjusted EBITDA less
working capital, maintenance capital expenditure, taxation and payment of the
capital element of leases. This represents a good measure for the cash
generated by the business after considering all necessary maintenance capital
expenditure to ensure the routine running of the business. This excludes
adjusting items, net interest paid, debt drawdowns and any debt repayments.
2 Expansionary capital expenditure includes refurbishment and new centre
capital expenditure.
3 Free cash flow is defined as net cash flow pre-adjusting items, cost of
acquisitions, debt facility repayment, debt drawdowns, dividends and equity
placing.
Going concern
As detailed in note 2 to the Financial Statements, the Directors are satisfied
that the Group has adequate resources to continue in operation for the
foreseeable future, a period of at least 12 months from the date of this
report.
UK Government Budget
The recently confirmed increases to the living and minimum wage were fully
anticipated in our internal planning; however, the impact on our cost base
will still be significant. In addition, the full-year effect of the employer
National Insurance changes introduced in April 2025 will be in H1 of FY2026,
creating a further step-up in employment costs before any offsetting
operational efficiencies take hold. On property costs, the Government's
business-rates measures announced in the Autumn Budget offer limited respite.
Although the lower multiplier is welcome, the shift to a three-yearly
revaluation cycle, introduced last year, means that the April 2026 revaluation
is likely to recalibrate rateable values upward for much of our estate. As
such, we expect the overall business-rates costs to increase, with the benefit
of lower multipliers offset by higher valuations.
Laurence Keen
Chief Financial Officer
16 December 2025
Note on alternative performance measures (APMs)
APM FY2025 FY2024
£m
£m
LFL revenue Revenue 250.7 230.4
Less: new centres non-annualised 22.9 -
Less: closed centre (full year) - 3.7
LFL revenue 227.8 226.6
Gross profit on costs of goods sold (Adjusted gross profit) Gross profit 157.0 145.5
Add: centre staff costs 51.8 45
.7
Adjusted gross profit 208.8 19
1.
2
Administrative expenses Administrative expenses 100.4 92.6
Less: adjusting items 2.7 7.
7
Add: centre staff costs 51.8 45
.7
Adjusted administrative expenses 149.5 130.6
Add: rent 22.9 19.8
Less: IFRS depreciation 12.6 11.3
Adjusted administrative expenses pre-IFRS 16 159.8 139.1
Group adjusted EBITDA Operating profit 58.2 53.5
Add: depreciation 30.5 25.9
Add: amortisation 1.2 0.9
Add: loss on PPE 0.2 0.1
Add: adjusting items before tax (note 5) 1.7 7.6
Less: adjusting items in interest expense (note 5) 0.6 0.4
Group adjusted EBITDA 91.2 87.6
Group adjusted EBITDA pre-IFRS 16 Group adjusted EBITDA 91.2 87.6
Less: rent 22.9 19
.8
Group adjusted EBITDA pre-IFRS 16 68.4 67.7
Adjusted group profit before tax Group profit before tax 44.3 42.8
Add: adjusting items before tax 1.7 7.6
Adjusted group profit before tax 46.0 50.3
Adjusted basic earnings per share (EPS) Adjusted group profit before tax 46.0 50.3
Less: tax charge 9.7 12.8
Add: tax on adjusting items 0.4 0.1
Adjusted group profit after tax 36.7 37.6
Weighted average number of shares 170,629,123 171,647,892
Adjusted basic EPS 21.51 21.92
Adjusted group profit pre-IFRS 16 Adjusted group profit before tax 46.0 50.3
Add: IFRS 16 movement 26.3 22.9
Less: rent 22.9 19.8
Adjusted group profit before tax pre-IFRS 16 49.4 53.4
Less: tax charge 9.3 12.7
Add: IFRS 16 tax movement 0.2 0.4
Adjusted group profit after tax pre-IFRS 16 40.3 41.1
Weighted average number of shares 170,629,123 171,647,892
Adjusted basic EPS pre-IFRS 16 23.61 23.95
LFL revenue UK Total UK revenue 212.4 199.7
Less: new centres non-annualised 14.4 -
Less: closed centres - 3.7
LFL revenue UK 198.1 196.0
LFL revenue Canada (CAD) Total Canada revenue 70.0 52.7
Less: new centres non-annualised 15.6 -
LFL revenue CAD 54.4 52.7
Consolidated income statement and statement of comprehensive income
Year ended 30 September 2025
Note Before adjusting items Adjusting items (note 5) Total Before adjusting items(1) Adjusting items(1) Total
30 September 2025
30 September 2025
30 September 2025
30 September 2024
30 September 2024
£'000
£'000
£'000
£'000 (note 5)
£'000
30 September 2024
£'000
Revenue 3 250,662 - 250,662 230,399 - 230,399
Cost of goods sold (41,851) - (41,851) (39,178) - (39,178)
Centre staff costs (51,843) - (51,843) (45,723) - (45,723)
Gross profit 156,968 - 156,968 145,498 - 145,498
Other income - 1,613 1,613 - 607 607
Administrative expenses 6 (97,616) (2,741) (100,357) (84,853) (7,746) (92,599)
Operating profit 59,352 (1,128) 58,224 60,645 (7,139) 53,506
Finance income 8 827 - 827 1,722 - 1,722
Finance expenses 8 (14,187) (580) (14,767) (12,040) (430) (12,470)
Profit before tax 45,992 (1,708) 44,284 50,327 (7,569) 42,758
Tax charge 9 (9,283) (392) (9,675) (12,700) (148) (12,848)
Profit for the year attributable to equity shareholders 36,709 (2,100) 34,609 37,627 (7,717) 29,910
Other comprehensive income
Retranslation loss of foreign currency denominated operations (1,261) - (1,261) (1,057) - (1,057)
Total comprehensive income for the year attributable to equity shareholders 35,448 (2,100) 33,348 36,570 (7,717) 28,853
Basic earnings per share (pence) 10 20.28 17.42
Diluted earnings per share (pence) 10 20.14 17.31
1 The Directors have reviewed their definition of adjusting items in the
Financial Statements and have now disclosed impairment within adjusting items.
Comparatives have also been re-presented. See note 5.
Consolidated statement of financial position
As at 30 September 2025
Note 30 September 2025 30 September 2024
£'000
£'000
ASSETS
Non-current assets
Property, plant and equipment 11 121,737 101,936
Right-of-use assets 12 186,717 172,767
Goodwill and intangible assets 13 99,336 100,323
Deferred tax asset 17 849 518
408,639 375,544
Current assets
Cash and cash equivalents 15,189 28,702
Trade and other receivables 14 9,633 9,420
Corporation tax receivable 2,208 1,268
Inventories 3,553 2,897
30,583 42,287
Total assets 439,222 417,831
LIABILITIES
Current liabilities
Trade and other payables 15 35,063 30,427
Lease liabilities 12 15,131 14,231
50,194 44,658
Non-current liabilities
Other payables 15 5,706 7,116
Lease liabilities 12 220,662 204,011
Deferred tax liability 17 5,552 3,993
Provisions 5,820 5,848
237,740 220,968
Total liabilities 287,934 265,626
NET ASSETS 151,288 152,205
Equity attributable to shareholders
Share capital 1,668 1,721
Share premium 39,716 39,716
Capital redemption reserve 59 1
Merger reserve (49,897) (49,897)
Foreign currency translation reserve (2,451) (1,190)
Retained earnings 162,193 161,854
TOTAL EQUITY 151,288 152,205
Consolidated statement of changes in equity
For the year ended 30 September 2025
Share Capital Share Merger Foreign currency Retained Total
capital
redemption
premium
reserve
translation reserve
earnings
£'000
£'000
reserve
£'000
£'000
£'000
£'000
£'000
Equity at 30 September 2023 1,717 - 39,716 (49,897) (133) 156,537 147,940
Shares issued during the year 5 - - - - - 5
Share buy back (1) 1 - - - (379) (379)
Dividends paid (note 19) - - - - - (26,180) (26,180)
Share-based payments - - - - - 1,782 1,782
Deferred tax on share-based payments - - - - - 184 184
Retranslation of foreign currency denominated operations - - - - (1,057) - (1,057)
Profit for the year - - - - - 29,910 29,910
Equity at 30 September 2024 1,721 1 39,716 (49,897) (1,190) 161,854 152,205
Shares issued during the year 5 - - - - - 5
Share buy back (58) 58 - - - (15,151) (15,151)
Dividends paid (note 19) - - - - - (20,827) (20,827)
Share-based payments - - - - - 1,798 1,798
Deferred tax on share-based payments - - - - - (90) (90)
Retranslation of foreign currency denominated operations - - - - (1,261) - (1,261)
Profit for the year - - - - - 34,609 34,609
Equity at 30 September 2025 1,668 59 39,716 (49,897) (2,451) 162,193 151,288
Consolidated statement of cash flows
For the year ended 30 September 2025
Note 30 September 2025 30 September 2024
£'000
£'000
Cash flows from operating activities
Profit before tax 44,284 42,758
Adjusted by:
Depreciation of property, plant and equipment (PPE) 11 13,455 11,167
Depreciation of right-of-use (ROU) assets 12 17,050 14,752
Amortisation of intangible assets 13 1,155 935
Impairment of PPE and ROU assets 11, 12 2,288 5,316
Net interest expense 8 13,940 10,748
Loss on disposal of property, plant and equipment 223 88
and software
Landlord settlement 5 - (607)
Insurance settlement 5 (1,613) -
Share-based payments 1,798 1,782
Operating profit before working capital changes 92,580 86,939
Increase in inventories (656) (294)
Increase in trade and other receivables (275) (1,183)
Increase in payables and provisions 2,740 2,495
Cash inflow generated from operations 94,389 87,957
Interest received 879 1,782
Income tax paid - corporation tax (9,445) (10,536)
Bank interest paid (159) (166)
Lease interest paid (13,731) (11,615)
Landlord settlement 5 - 607
Insurance settlement 5 1,613 -
Net cash inflow from operating activities 73,546 68,029
Cash flows from investing activities
Acquisition of subsidiaries - (13,757)
Subsidiary cash acquired - 78
Purchase of property, plant and equipment (35,815) (37,979)
Purchase of intangible assets (714) (946)
Proceeds from sale of assets 80 -
Net cash used in investing activities (36,449) (52,604)
Cash flows from financing activities
Payment of capital elements of leases (14,560) (12,305)
Share buy back (15,151) (379)
Dividends paid (20,827) (26,180)
Net cash used in financing activities (50,538) (38,864)
Net change in cash and cash equivalents for the year (13,441) (23,439)
Effect of foreign exchange rates on cash and cash equivalents (72) (314)
Cash and cash equivalents at the beginning of the year 28,702 52,455
Cash and cash equivalents at the end of the year 15,189 28,702
Notes to the financial statements
For the year ended 30 September 2025
1. General information
The financial information set out above does not constitute the company's
statutory accounts for the years ended 30 September 2025 or 2024, but is
derived from these accounts. Statutory accounts for 2024 have been delivered
to the registrar of companies, and those for 2025 will be delivered in due
course. The auditor has reported on those accounts; their reports were (i)
unqualified, (ii) did not include a reference to any matters which the auditor
drew attention by way of emphasis without qualifying their report and (iii)
did not contain a statement under section 498 (2) or (3) of the Companies Act
2006.
Hollywood Bowl Group plc (together with its subsidiaries, "the Group") is a
public limited company whose shares are publicly traded on the London Stock
Exchange and is incorporated and domiciled in England and Wales. The
registered office of the Parent Company is Focus 31, West Wing, Cleveland
Road, Hemel Hempstead, HP2 7BW, United Kingdom. The registered company number
is 10229630.
The Group's principal activities are that of the operation of ten-pin bowling
and mini-golf centres, and a supplier and installer of bowling equipment as
well as the development of new centres and other associated activities.
The Directors of the Group are responsible for the consolidated Financial
Statements, which comprise the Financial Statements of the Company and its
subsidiaries as at 30 September 2025.
2. Material accounting policies
The material accounting policies applied in the consolidated Financial
Statements are set out below. These accounting policies have been applied
consistently to all periods presented in these consolidated Financial
Statements. The financial information presented is as at and for the financial
years ended 30 September 2025 and 30 September 2024.
Statement of compliance
The consolidated Financial Statements have been prepared in accordance with
UK-adopted International Accounting Standards ('IFRS Accounting standards')
and the requirements of the Companies Act 2006. The functional currencies of
entities in the Group are Pounds Sterling and Canadian Dollars. The
consolidated Financial Statements are presented in Pounds Sterling and all
values are rounded to the nearest thousand, except where otherwise indicated.
Basis of preparation
The consolidated Financial Statements have been prepared on a going concern
basis under the historical cost convention, except for fair value items on
acquisition.
The Company has elected to prepare its Financial Statements in accordance with
FRS 102, the Financial Reporting Standard applicable in the UK and Republic of
Ireland. On publishing the Parent Company Financial Statements here together
with the Group Financial Statements, the Company has taken advantage of the
exemption in s408 of the Companies Act 2006 not to present its individual
income statement and statement of comprehensive income and related notes that
form a part of these approved Financial Statements.
Basis of consolidation
The consolidated financial information incorporates the Financial Statements
of the Company and all of its subsidiary undertakings. The Financial
Statements of all Group companies are adjusted, where necessary, to ensure the
use of consistent accounting policies. Acquisitions are accounted for under
the acquisition method from the date control passes to the Group. On
acquisition, the assets, liabilities and contingent liabilities of a
subsidiary are measured at their fair values at the date of acquisition. Any
excess of the cost of acquisition over the fair values of the identifiable net
assets acquired is recognised as goodwill, or a gain on bargain purchase if
the fair values of the identifiable net assets are below the cost of
acquisition. Intragroup balances and any unrealised gains and losses or income
and expenses arising from intragroup transactions are eliminated in preparing
the consolidated financial statements.
Earnings per share
The calculation of earnings per ordinary share is based on earnings after tax
and the weighted average number of ordinary shares in issue during the year.
For diluted earnings per share, the weighted average number of ordinary shares
in issue is adjusted to assume conversion of all dilutive potential ordinary
shares. The Group has two types of dilutive potential ordinary shares, being
those unvested shares granted under the Long-Term Incentive Plans and
Save-As-You-Earn plans.
Standards issued not yet effective
At the date of authorisation of this financial information, certain new
standards, amendments and interpretations to existing standards applicable to
the Group have been published but are not yet effective, and have not been
adopted early by the Group. These are listed below:
Standard/ Content Applicable for financial years beginning on/after
interpretation
IAS 21 Lack of exchangeability An entity is impacted by the amendments when it has a transaction or an 1 October 2025
operation in a foreign currency that is not exchangeable into another currency
at a measurement date for a specified purpose. A currency is exchangeable when
there is an ability to obtain the other currency (with a normal administrative
delay), and the transaction would take place through a market or exchange
mechanism that creates enforceable rights and obligations.
This amendment is not expected to have a material impact on the Group.
Amendments to IFRS 9 and IFRS 7 Classification and measurement of financial On 30 May 2024, the IASB issued targeted amendments to IFRS 9 and IFRS 7 to 1 October 2026
instruments respond to recent questions arising in practice, and to include new
requirements not only for financial institutions but also for corporate
entities. These amendments:
· clarify the date of recognition and derecognition of some financial
assets and liabilities, with a new exception for some financial liabilities
settled through an electronic cash transfer system;
· clarify and add further guidance for assessing whether a financial
asset meets the solely payments of principal and interest (SPPI) criterion;
· add new disclosures for certain instruments with contractual terms that
can change cash flows (such as some financial instruments with features linked
to the achievement of environment, social and governance targets); and
· update the disclosures for equity instruments designated at fair value
through other comprehensive income (FVOCI)
It is not yet determined if this amendment is expected to have a material
impact on the Group.
IFRS 19 Subsidiaries without Public Accountability: Disclosures IFRS 19 is a new, voluntary International Accounting Standards Board (IASB) 1 October 2027
standard that allows eligible subsidiaries with no public accountability to
apply IFRS accounting standards with reduced disclosure requirements. To be
eligible, a subsidiary must not have public accountability and its parent must
produce publicly available consolidated financial statements under IFRS.
This amendment is not expected to have a material impact on the Group.
IFRS 18 Presentation and disclosure in financials statements IFRS 18 will replace IAS 1 Presentation of financial statements and introduces 1 October 2027
the following key requirements:
Entities are required to classify all income and expenses into five categories
in the statement of profit or loss, namely the operating, investing,
financing, discontinued operations and income tax categories. Entities are
also required to present a newly-defined operating profit subtotal. Entities'
net profit will not change.
Management-defined performance measures (MPMs) are disclosed in a single note
in the financial statements.
Enhanced guidance is provided on how to group information in the financial
statements.
In addition, all entities are required to use the operating profit subtotal as
the starting point for the statement of cash flows when presenting operating
cash flows under the indirect method.
The Group is still in the process of assessing the impact of the new standard,
particularly with respect to the structure of the Group's statement of profit
or loss, the statement of cash flows and the additional disclosures required
for MPMs.
It is not yet determined if this amendment is expected to have a material
impact on the Group.
Climate change
In preparing the consolidated financial statements, management has considered
the impact of climate change, taking into account the relevant disclosures in
the strategic report, including those made in accordance with the
recommendations of the Task Force on Climate-related Financial Disclosures
(TCFD) and the Companies (Strategic Report) (Climate-related Financial
Disclosure) Regulation 2022 and our sustainability targets.
The expected environmental impact on the business has been modelled. The
current available information and assessment did not identify any risks that
would require the useful economic life of assets to be reduced in the year or
identify the need for impairment that would impact the carrying values of such
assets or have any other impact on the financial statements.
For many years, Hollywood Bowl Group plc has placed sustainability at the
centre of its strategy and has been working on becoming a more sustainable
business. A number of actions have been implemented to help mitigate and adapt
against climate-related risks. The cost and benefits of such actions are
embedded into the cost structure of the business and are included in our
five-year plan. This includes the roll-out of Pins on Strings technology,
solar panels and the move to 100% renewable energy. The five-year plan has
been used to support our impairment reviews and going concern and viability
assessment (see viability statement in the full annual report).
Our TCFD disclosures in the full annual report include climate-related risks
and opportunities based on various scenarios. When considering climate
scenario analysis, and modelling severe but plausible downside scenarios, we
have used the NGFS "early action" scenario as the most severe case for climate
transition risks, and the IPCC's SSP5-8.5 as the most severe case for physical
climate risk. Whilst these represent situations where climate could have a
significant effect on the operations, these do not include our future
mitigating actions which we would adopt as part of our strategy. The climate
transition plan to net zero outlines that it may not be feasible to completely
abate Scope 1, 2 and 3 emissions by 2050. In this instance, the Group will
offset residual emissions through actions like carbon removals or ecosystem
restoration.
The assessment with respect to the impact of climate change will be kept under
review by management, as the future impacts depend on factors outside of the
Group's control, which are not all currently known.
Going concern
In assessing the going concern position of the Group for the Consolidated
Financial Statements for the year ended 30 September 2025, the Directors have
considered the Group's cash flow, liquidity, and business activities, as well
as the principal risks identified in the Group's Risk Register.
As at 30 September 2025, the Group had cash balances of £15.2m, no
outstanding loan balances and an undrawn RCF of £25m.
The Group has undertaken a review of its liquidity using a base case and a
severe but plausible downside scenario.
The base case is the Board-approved budget for FY2026 as well as the first
three months of FY2027 which forms part of the Board-approved five-year plan.
As noted above, the costs and benefits of our actions on climate change are
embedded into the cost structure of the business and included in our five-year
plan. Under this scenario there would be positive cash flow, strong profit
performance and all covenants would be passed. It should also be noted that
the RCF remains undrawn. Furthermore, it is assumed that the Group adheres to
its capital allocation policy. The most severe downside scenario stress tests
for reasonably adverse variations in the economic environment leading to a
deterioration in trading conditions and performance.
Under this severe but plausible downside scenario, the Group has modelled
revenues dropping by 3 and 4% from the assumed base case for FY2026 and FY2027
respectively and inflation continues at an even higher rate than in the base
case across all costs.
The model still assumes that investments into new centres would continue,
whilst refurbishments in the early part of FY2027 would be reduced. These are
all mitigating actions that the Group has in its control. Under this scenario,
the Group will still be profitable and have sufficient liquidity within its
cash position to not draw down the RCF, with all financial covenants passed.
Taking the above and the principal risks faced by the Group into
consideration, the Directors are satisfied that the Group and Company have
adequate resources to continue in operation and meet their liabilities as they
fall due for the foreseeable future, a period of at least 12 months from the
date of this report.
Accordingly, the Group and Company continue to adopt the going concern basis
in preparing these Financial Statements.
Leases
The Group as lessee
The Group assesses whether a contract is, or contains, a lease, at inception
of the contract. The Group recognises a right-of-use asset and a corresponding
lease liability with respect to all lease arrangements in which it is the
lessee from the date at which the leased asset becomes available for use by
the Group, except for short-term leases (defined as leases with a lease term
of 12 months or less) and leases of low-value assets. For these leases, the
Group recognises the lease payments as an operating expense on a straight-line
basis over the term of the lease unless another systematic basis is more
representative of the time pattern in which economic benefits from the leased
assets are consumed.
Right-of-use assets are measured at cost, less any accumulated depreciation
and impairment losses, and adjusted for any remeasurement of lease
liabilities. The cost of right-of-use assets includes the amount of lease
liabilities recognised, less any lease incentives received. Right-of-use
assets are depreciated on a straight-line basis over the shorter of the lease
term and the estimated useful lives of the assets. The lease term is the
non-cancellable period for which the lessee has the right to use an underlying
asset plus periods covered by an extension option if an extension is
reasonably certain. The majority of property leases are covered by the
Landlord and Tenant Act 1985 (LTA) which gives the right to extend the lease
beyond the termination date. The Group expects to extend the property leases
covered by the LTA. This extension period is not included within the lease
term as a termination date cannot be determined as the Group is not reasonably
certain to extend the lease given the contractual rights of the landlord under
certain circumstances.
Lease liabilities are measured at the present value of lease payments to be
made over the lease term. The lease payments include fixed payments (including
in-substance fixed payments) less any lease incentives receivable and variable
lease payments that depend on an index or a rate. Variable lease payments that
do not depend on an index or a rate are recognised as expenses in the period
in which the event or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Group uses its
incremental borrowing rate at the lease commencement date because the interest
rate implicit in the lease is not readily determinable. After the commencement
date, the amount of lease liabilities is increased to reflect the accretion of
interest and reduced for the lease payments made.
In addition, the carrying amount of lease liabilities is remeasured if there
is a modification, a change in the lease term or a change in the lease
payments (e.g. changes to future payments resulting from a change in an index
or rate used to determine such lease payments).
The Group applies IAS 36 to determine whether a right-of-use asset is impaired
and accounts for any identified impairment loss as described in the
"impairment" policy.
As a practical expedient, IFRS 16 permits a lessee not to separate non-lease
components, and instead account for any lease and associated non-lease
components as a single arrangement. The Group has not used this practical
expedient. For contracts that contain a lease component and one or more
additional lease or non-lease components, the Group allocates the
consideration in the contract to each lease component on the basis of the
relative stand-alone price of the lease component and the aggregate
stand-alone price of the non-lease components.
Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition exemption to its short-term
leases of machinery and equipment (i.e. those leases that have a lease term of
12 months or less from the commencement date and do not contain a purchase
option). It also applies the lease of low-value assets recognition exemption
to leases of office equipment that are considered to be low value. Lease
payments on short-term leases and leases of low-value assets are recognised as
expenses on a straight-line basis over the lease term.
Adjusting items
Adjusting items are those that in management's judgement need to be disclosed
by virtue of their size, nature and incidence, in order to draw the attention
of the reader and to show the underlying business performance of the Group
more accurately. Such items are included within the income statement caption
to which they relate and are separately disclosed on the face of the
consolidated income statement and in the notes to the consolidated Financial
Statements.
Adjusted measures
The Group uses a number of non-Generally Accepted Accounting Principles
(non-GAAP) financial measures in addition to those reported in accordance with
IFRS. The Directors believe that these non-GAAP measures, listed below, are
important when assessing the underlying financial and operating performance of
the Group by investors and shareholders. These non-GAAP measures comprise of
like-for-like revenue growth, adjusted profit after tax, adjusted earnings per
share, net cash, Group adjusted operating cash flow, revenue generating capex,
total average spend per game, free cash flow, gross profit on costs of good
sold, Group adjusted EBITDA and Group adjusted EBITDA margin.
A reconciliation between key adjusted and statutory measures, as well as notes
on alternative performance measures, is provided in the Chief Financial
Officer's review. This also details the impact of adjusting items when
comparing to the non-GAAP financial measures in addition to those reported in
accordance with IFRS.
Summary of other estimates and judgements
The preparation of the consolidated Group Financial Statements requires
management to make judgements, estimates and assumptions in applying the
Group's accounting policies to determine the reported amounts of assets,
liabilities, income and expenditure. Actual results may differ from these
estimates. The estimates and underlying assumptions are reviewed on an ongoing
basis, with revisions applied prospectively. Judgements made by the Directors
in the application of these accounting policies that have a significant effect
on the consolidated Group Financial Statements are discussed below.
Key sources of estimation uncertainty
There are no estimates that have a significant risk of resulting in a material
adjustment to carrying amounts of assets and liabilities in the next financial
year. Set out below are certain areas of estimation uncertainty in the
financial statements. There are also no key judgements other than those
related to an area of estimation uncertainty:
Property, plant and equipment and right-of-use asset impairment reviews
Property, plant and equipment and right-of-use assets are assessed for
impairment when there is an indication that the assets might be impaired by
comparing the carrying value of the assets with their recoverable amounts. The
recoverable amount is determined as being the highest of the value-in-use and
fair value less costs to sell. The recoverable amount of an asset or a CGU is
typically determined based on value-in-use calculations prepared on the basis
of management's assumptions and estimates, but if a potential impairment is
identified then the recoverable amount is also determined using fair value
less costs to sell.
The key assumptions in the value-in-use calculations include growth rates of
revenue and costs during the five year forecast period, discount rates and the
long term growth rate. Following the impairment charge recorded in the year of
£2,288,000 for four mini-golf and one combined centre, the estimation
uncertainty associated with the remaining carrying amounts is significantly
reduced, and whilst estimation uncertainty remains, this is not assessed as
being material. As such, reasonably possible changes to the assumptions in the
future in four mini-golf and one combined centre would not lead to material
adjustments to the carrying values in the next financial year. The remaining
carrying amount of property, plant and equipment is £2,158,000 and
right-of-use assets is £4,252,000 at these centres. Further information in
respect of the Group's property, plant and equipment and right-of-use assets
is included in notes 11 and 12 respectively.
The key assumption in the fair value less costs to sell calculation, under the
market approach, is the EBITDA multiple.
Contingent consideration
Non-current other payables includes contingent consideration in respect of the
acquisition of Teaquinn Holdings Inc. in FY2022. The additional consideration
to be paid is contingent on the future financial performance of Teaquinn
Holdings Inc. in FY2026. This is based on a multiple of 9.2x Teaquinn's EBITDA
pre-IFRS 16 in the financial period of settlement and is capped at CAD 17m.
The contingent consideration has been accounted for as post-acquisition
employee remuneration and recognised over the duration of the employment
contract to FY2026. The key assumptions include a range of possible outcomes
for the value of the contingent consideration based on Teaquinn's forecasted
EBITDA pre-IFRS 16 and the year of payment. Further information in respect of
the Group's contingent consideration is included in note 15.
Dilapidations provision
A provision is made for future expected dilapidation costs on the opening of
leasehold properties not covered by the LTA and is expected to be utilised on
lease expiry. This also includes properties covered by the LTA where we may
not extend the lease, after consideration of the long-term trading and
viability of the centre. Properties covered by the LTA provide security of
tenure and we intend to occupy these premises indefinitely until the landlord
serves notice that the centre is to be redeveloped. As such, no charge for
dilapidations can be imposed and no dilapidation provision is considered
necessary as the outflow of economic benefit is not considered to be probable.
3. Segmental reporting
Management consider that the Group consists of two operating segments, as it
operates within the UK and Canada. No single customer provides more than ten
per cent of the Group's revenue. Within these two operating segments there are
multiple revenue streams which consist of the following:
UK Canada Total
30 September 2025
30 September 2025
30 September 2025
£'000
£'000
£'000
Bowling 94,902 16,496 111,398
Food and drink 53,111 10,179 63,290
Amusements 61,991 5,877 67,868
Installation of bowling equipment - 4,726 4,726
Other 2,406 974 3,380
212,410 38,252 250,662
UK Canada Total
30 September 2024
30 September 2024
30 September 2024
£'000
£'000
£'000
Bowling 89,347 14,370 103,717
Food and drink 52,316 7,554 59,870
Amusements 55,587 3,691 59,278
Mini-golf 2,360 189 2,549
Installation of bowling equipment - 4,456 4,456
Other 86 443 529
199,696 30,703 230,399
The UK operating segment includes the Hollywood Bowl and Putt&Play brands.
The Canada operating segment includes the Splitsville and Striker Bowling
Solutions brands.
Following a review of revenue volumes, materiality thresholds, as well as
paragraph 23 of IFRS 8, it has been determined that mini-golf revenue does not
warrant separate disclosure and is now included within other revenue.
Year ended 30 September 2025 Year ended 30 September 2024
UK Canada Total UK Canada Total
£'000
£'000
£'000
£'000
£'000
£'000
Revenue 212,410 38,252 250,662 199,696 30,703 230,399
Group adjusted EBITDA(1) pre-IFRS 16 62,418 5,937 68,355 62,308 5,441 67,749
Group adjusted EBITDA(1) 81,336 9,899 91,235 79,715 7,872 87,587
Depreciation and amortisation 26,055 5,605 31,660 23,490 3,364 26,854
Impairment of PPE and ROU assets 2,288 - 2,288 5,316 - 5,316
Loss/(gain) on property, right-of-use assets, plant and equipment and 245 (22) 223 88 - 88
software disposals
Adjusting items excluding interest (1,548) 388 (1,160) (591) 2,414 1,823
and impairment
Operating profit 54,296 3,928 58,224 51,412 2,094 53,506
Finance income (766) (61) (827) (1,580) (142) (1,722)
Finance expense 11,759 3,008 14,767 10,425 2,045 12,470
Profit before tax 43,303 981 44,284 42,567 191 42,758
Non-current asset additions - 22,956 12,554 35,510 26,855 11,675 38,530
Property, plant and equipment
Non-current asset additions - 665 49 714 946 - 946
Intangible assets
Total assets 341,648 97,574 439,222 338,654 79,177 417,831
Total liabilities 232,212 55,722 287,934 218,814 46,812 265,626
1 Group adjusted EBITDA is defined in note 4.
4. Reconciliation of operating profit to Group adjusted EBITDA
Group adjusted EBITDA (earnings before interest, tax, depreciation and
amortisation) reflects the underlying trade of the overall business. It is
calculated as operating profit plus depreciation, amortisation, impairment
losses, loss on disposal of property, plant and equipment, right-of-use assets
and software and adjusting items.
Management use Group adjusted EBITDA as a key performance measure of the
business and it is considered by management to be a measure investors look at
to reflect the underlying business.
30 September 2025 30 September 2024
£'000
£'000
Operating profit 58,224 53,506
Depreciation of property, plant and equipment (note 11) 13,455 11,167
Depreciation of right-of-use assets (note 12) 17,050 14,752
Amortisation of intangible assets (note 13) 1,155 935
Impairment of property, plant and equipment (note 11) 1,059 2,808
Impairment of right-of-use assets (note 12) 1,229 2,508
Loss on disposal of property, plant and equipment, right-of-use assets 223 88
and software (notes 11-13)
Adjusting items excluding interest (note 5) and impairment (notes 11 and 12) (1,160) 1,823
Group adjusted EBITDA 91,235 87,587
Adjustment for IFRS 16 (Property costs) (22,880) (19,838)
Group adjusted EBITDA pre-IFRS 16 68,355 67,749
5. Adjusting items
Adjusting items are disclosed separately in the Financial Statements where the
Directors consider it necessary to do so to provide further understanding of
the financial performance of the Group. They are material items or expenses
that have been shown separately due to, in the Directors judgement, their
size, nature and incidence:
Adjusting items: 30 September 2025 30 September 2024
£'000
£'000
Insurance settlement(1) 1,613 -
Administrative expenses(2) (202) (15)
Acquisition fees(3) (83) (921)
Landlord settlement(4) - 607
Contingent consideration(5) (748) (1,924)
Impairment of PPE and ROU Assets(6, 7) (2,288) (5,316)
Adjusting items before tax (1,708) (7,569)
Tax charge (392) (148)
Adjusting items after tax (2,100) (7,717)
1 During the year, the Group received a business interruption insurance
settlement.
2 30 September 2025 relates to expenses associated with the closure of the
Surrey Quays centre (£50,000) and legal fees relating to the amusement
contract in Canada (£152,000). 30 September 2024 related to expenses
associated with the closure of the Surrey Quays centre.
3 Both years relate to legal and professional fees relating to the
acquisition of Lincoln Bowl, Woodlawn Bowl Inc., Lucky 9 Bowling Centre
Limited and Stoked Entertainment Centre Limited.
4 Settlement payment from the landlord resulting from the closure of
Hollywood Bowl Surrey Quays.
5 Contingent consideration of £168,000 (30 September 2024: £1,494,000) in
administrative expenses and £580,000 (30 September 2024: £430,000) of
interest expense in relation to the acquisition of Teaquinn in May 2022.
6 Impairment of PPE of £1,059,000 (30 September 2024: £2,808,000) and ROU
Assets of £1,229,000 (30 September 2024: £2,508,000) (See notes 11 and 12).
7 Following shareholder feedback on our FY2024 results, the Audit Committee
has reviewed the treatment of impairment costs during the year and has agreed
the proposal to treat impairment costs or income as an adjusting item. The
comparatives have also been re-presented.
6. Expenses and auditor's remuneration
Included in profit from operations are the following:
30 September 2025 30 September 2024
£'000
£'000
Amortisation of intangible assets 1,155 935
Depreciation of property, plant and equipment 13,455 11,167
Depreciation of right-of-use assets 17,050 14,752
Impairment of property, plant and equipment 1,059 2,808
Impairment of right-of-use assets 1,229 2,508
Operating leases 80 80
Loss on disposal of property, plant and equipment, right-of-use assets and 223 88
software
Adjusting items excluding impairment (note 5) (580) 2,253
Loss on foreign exchange 162 486
Auditor's remuneration:
· Fees payable for audit of these Financial Statements 395 350
Fees payable for other services:
· Audit of subsidiaries 160 140
· Other non-audit assurance services 6 8
561 498
7. Staff numbers and costs
The average number of employees (including Directors) during the year was as
follows:
30 September 2025 30 September 2024
Directors 9 7
Administration 130 118
Operations 2,743 2,701
Total staff 2,882 2,826
The cost of employees (including Directors) during the year was as follows:
30 September 2025 30 September 2024
£'000
£'000
Wages and salaries 57,582 52,824
Social security costs 4,811 4,217
Pension costs 1,312 607
Share-based payments 1,798 1,782
Total staff cost 65,503 59,430
Staff costs included within cost of sales are £51,843,000 (30 September 2024:
£45,723,000). The balance of staff costs are recorded within administrative
expenses.
Wages and salaries includes £685,000 (30 September 2024: £1,494,000) of
contingent consideration in relation to the acquisition of Teaquinn in May
2022, which is recorded within adjusting items (note 5).
8. Finance income and expenses
30 September 2025 30 September 2024
£'000
£'000
Interest on bank deposits 827 1,722
Finance income 827 1,722
Interest on bank borrowings 223 190
Other interest 21 22
Finance costs on lease liabilities 13,731 11,615
Unwinding of discount on contingent consideration 580 430
Unwinding of discount on provisions 212 213
Finance expense 14,767 12,470
9. Taxation
30 September 2025 30 September 2024
£'000
£'000
The tax expense is as follows:
UK corporation tax 8,488 8,495
Adjustment in respect of prior years (687) -
Foreign tax suffered 575 1,252
Total current tax 8,376 9,747
Deferred tax:
Origination and reversal of temporary differences 2,393 1,967
Effect of changes in tax rates 3 (17)
Adjustment in respect of prior years (1,097) 1,151
Total deferred tax 1,299 3,101
Total tax expense 9,675 12,848
Factors affecting current tax charge:
The tax assessed on the profit for the period is different to the standard
rate of corporation tax in the UK of 25% (30 September 2024: 25%). The
differences are explained below:
30 September 2025 30 September 2024
£'000
£'000
Profit excluding taxation 44,284 42,758
Tax using the UK corporation tax rate of 25% (2024: 25%) 11,071 10,690
Change in tax rate on deferred tax balances 3 (17)
Non-deductible expenses 302 508
Non-deductible acquisition related adjusting costs - 510
Effects of overseas tax rates 22 34
Share-based payments 61 (28)
Adjustment in respect of prior years (1,784) 1,151
Total tax expense included in profit or loss 9,675 12,848
The Group's standard tax rate for the year ended 30 September 2025 was 25%
(30 September 2024: 25%).
10. Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to
equity holders of Hollywood Bowl Group plc by the weighted average number of
shares outstanding during the year.
Diluted earnings per share is calculated by adjusting the weighted average
number of ordinary shares outstanding to assume conversion of all dilutive
potential ordinary shares. During the years ended 30 September 2025 and 30
September 2024, the Group had potentially dilutive ordinary shares in the form
of unvested shares pursuant to LTIPs and SAYE schemes.
30 September 2025 30 September 2024
Basic and diluted
Profit for the year after tax (£'000) 34,609 29,910
Basic weighted average number of shares in issue for the period (number) 170,629,123 171,647,892
Adjustment for share awards 1,216,015 1,154,221
Diluted weighted average number of shares 171,845,138 172,802,113
Basic earnings per share (pence) 20.28 17.42
Diluted earnings per share (pence) 20.14 17.31
11. Property, plant and equipment
Freehold Long leasehold Short leasehold improvements Lanes and Plant and machinery, Total
property
property
£'000
pins on strings
fixtures and fittings
£'000
£'000
£'000
£'000
£'000
Cost
At 1 October 2023 6,889 1,240 49,764 22,163 54,868 134,924
Additions - - 23,723 3,900 10,907 38,530
Acquisition - - 189 448 545 1,182
Disposals - - (846) (648) (2,343) (3,837)
Transfer to right-of-use assets(1) - (1,240) - - - (1,240)
Effects of movement in foreign exchange (615) - (249) (170) (141) (1,175)
At 30 September 2024 6,274 - 72,581 25,693 63,836 168,384
Additions - - 19,756 6,824 8,930 35,510
Disposals - - (1,622) (396) (1,365) (3,383)
Effects of movement in foreign exchange (204) - (521) (139) (95) (959)
At 30 September 2025 6,070 - 90,194 31,982 71,306 199,552
Accumulated depreciation
At 1 October 2023 86 417 21,819 5,112 29,211 56,645
Depreciation charge 64 - 3,810 932 6,361 11,167
Impairment charge - - 1,605 - 1,203 2,808
Disposals - - (834) (589) (2,245) (3,668)
Transfer to right-of-use assets(1) - (417) - - - (417)
Effects of movement in foreign exchange (10) - (27) (22) (28) (87)
At 30 September 2024 140 - 26,373 5,433 34,502 66,448
Depreciation charge 147 - 5,318 1,203 6,787 13,455
Impairment charge - - 235 - 824 1,059
Disposals - - (1,572) (332) (1,144) (3,048)
Effects of movement in foreign exchange (8) - (40) (24) (27) (99)
At 30 September 2025 279 - 30,314 6,280 40,942 77,815
Net book value
At 30 September 2025 5,791 - 59,880 25,702 30,364 121,737
At 30 September 2024 6,134 - 46,208 20,260 29,334 101,936
1 During the prior year, management reviewed the classification of long
leasehold property. Subsequently, the long leasehold property previously
classified as property, plant and equipment was reclassified as right-of-use
assets (see note 12).
Short leasehold property includes £1,660,000 (30 September 2024: £7,721,000)
of assets in the course of construction, relating to the development of new
centres.
Impairment
Impairment testing is carried out at the CGU level on an annual basis at the
balance sheet date, or more frequently if events or changes in circumstances
indicate that the carrying value may be impaired. A CGU is the smallest
identifiable group of assets that generates cash inflows that are largely
independent of the cash inflows from other assets or groups of assets. Each
individual centre is considered to be a CGU. The carrying value of the CGU is
compared to its recoverable amount. The recoverable amount is determined as
being the highest of the value-in-use and fair value less costs to sell.
An initial impairment test was performed on all ninety-two centres assessing
for indicators of impairment. A detailed impairment test based on a base case
was then performed on twelve centres, where the excess of value-in-use over
the carrying value calculation was sensitive to changes in the key
assumptions.
Property, plant and equipment and right-of-use assets for twelve centres have
been tested for impairment by comparing the carrying value of each CGU with
its recoverable amount determined from value-in-use calculations using cash
flow projections based on financial budgets approved by the Board covering a
five-year period. For two centres, the recoverable amount has also been
determined from a fair value less costs to sell calculation by applying an
EBITDA multiple to the financial budget approved by the Board for FY2026. If
the carrying value exceeds the higher of the value-in-use and fair value less
the costs to sell the asset, then the asset is impaired, and its value reduced
by recognising an impairment provision.
The key assumptions used in the value-in-use calculations are revenue growth,
cost inflation during the five-year forecast period, the long-term growth rate
and discount rate assumptions. The key risks to those assumptions are the
potential adverse variations in the economic environment leading to a
deterioration in trading conditions and performance during FY2026 and FY2027.
Cash flows beyond this two-year period are included in the Board-approved
five-year plan and assume a recovery in the economy and the performance of our
centres. The other assumptions used in the value-in-use calculations were:
2025 2024
Revenue growth rate (within five years) - UK & Canada 3.0% 3.0%
Cost inflation (within five years) - UK 3.0% 3.2%
Cost inflation (within five years) - Canada 3.7% 3.7%
Discount rate (pre-tax) - UK 13.5% 12.4%
Discount rate (pre-tax) - Canada 10.3% 10.6%
Growth rate (beyond five years) - UK and Canada 1.75% 2.5%
Discount rates reflect current market assessments of the time value of money
and the risks specific to the industry. This is the benchmark used by
management to assess operating performance and to evaluate future capital
investment proposals. These discount rates are derived from the weighted
average cost of capital for the UK and Canada. Changes in the discount rates
over the years are calculated with reference to latest market assumptions for
the risk-free rate, equity risk premium and the cost of debt.
Where fair value less costs to sell has been used, the key assumption used in
the fair value less costs to sell model is the EBITDA multiple. The valuations
are derived using an EBITDA multiple in comparable market transactions.
New CGUs in operation in the UK for less than two years are not subjected to
routine impairment testing under IAS 36 unless impairment indicators are
present. The two-year period reflects the typical stabilisation phase of new
locations. For CGUs in operation in Canada, this period is three years as the
Splitsville brand is still developing its marketing presence. This policy does
not override IAS 36 requirements for immediate testing when indicators exist.
Detailed impairment testing, due to the financial performance of certain
centres, resulted in the recognition of an impairment charge in the year of
£1,059,000 (30 September 2024: £2,808,000) against property, plant and
equipment assets and £1,229,000 (30 September 2024: £2,508,000) against
right-of-use assets for four mini-golf centres and one combined centre (30
September 2024: four mini-golf centres and one combined centre)(note 12),
which form part of the UK operating segment. Following the recognition of the
impairment charge, the carrying value of property, plant and equipment is
£2,158,000 (30 September 2024: £3,156,000) and right-of-use assets is
£4,252,000 (30 September 2024: £5,086,000) for these four (30 September
2024: four) UK mini-golf centres and one combined centre (30 September 2024:
one) (note 12).
Sensitivity to changes in assumptions
The estimate of the recoverable amounts for seven centres affords reasonable
headroom over the carrying value of the property, plant and equipment and
right-of-use asset, and an impairment charge of £2,288,000 (30 September
2024: £5,316,000) for five centres under the base case. Management have
sensitised the key assumptions in the impairment tests of these twelve centres
under the base case.
For five centres where the value-in-use was determined to provide a higher
recoverable amount than fair value les costs to sell, a reduction in revenue
of four and six percentage points down on the base case for FY2026 and FY2027
respectively and a one and two percentage points increase in operating costs
on the base case for FY2026 and FY2027 respectively to reflect higher
inflation, would not cause the carrying value to exceed its recoverable amount
for five centres, which include both bowling and mini-golf centres. Therefore,
management believe that any reasonable possible changes in the key assumptions
would not result in an impairment charge for these five centres. However, a
further impairment of £1,504,000 would arise under this sensitised case in
relation to three centres where we have already recognised an impairment
charge in the year, and four centres where we have not recognised an
impairment charge for the year.
For two centres where the fair value less costs to sell provided a higher
recoverable amount than value-in-use, a reduction in the recoverable amount of
£739,755 would lead to a potential impairment charge of £1,061,000.
12. Leases
Group as a lessee
The Group has lease contracts for property and amusement machines used in its
operations. There are thirteen (30 September 2024: eight) lease contracts that
include variable lease payments in the form of revenue-based rent top-ups. The
Group also has certain leases of equipment with lease terms of 12 months or
less and leases of office equipment with low value. The Group applies the
"short-term lease" and "lease of low-value assets" recognition exemptions for
these leases.
Set out below are the carrying amounts of right-of-use assets:
Right-of-use assets Property Amusement machines Total
£'000
£'000
£'000
Cost
At 1 October 2023 185,971 15,690 201,661
Lease additions 13,405 5,029 18,434
Acquisition 17,641 - 17,641
Lease surrenders - (1,391) (1,391)
Lease modifications and remeasurements 4,890 - 4,890
Transfer from property, plant and equipment(1) 1,240 - 1,240
Effects of movement in foreign exchange (2,338) - (2,338)
At 30 September 2024 220,809 19,328 240,137
Lease additions 24,254 4,452 28,706
Lease surrenders - (1,068) (1.068)
Lease modifications and remeasurements 4,968 - 4,968
Effects of movement in foreign exchange (1,236) - (1,236)
At 30 September 2025 248,795 22,712 271,507
Accumulated depreciation
At 1 October 2023 42,546 8,304 50,850
Depreciation charge 11,577 3,175 14,752
Impairment charge 2,508 - 2,508
Transfer from property, plant and equipment(1) 417 - 417
Lease surrenders - (1,157) (1,157)
At 30 September 2024 57,048 10,322 67,370
Depreciation charge 13,044 4,006 17,050
Impairment charge 1,229 - 1,229
Lease surrenders - (859) (859)
At 30 September 2025 71,321 13,469 84,790
Net book value
At 30 September 2025 177,474 9,243 186,717
At 30 September 2024 163,761 9,006 172,767
1 During the prior year, management reviewed the classification of long
leasehold property. Subsequently, the long leasehold property previously
classified as property, plant and equipment was reclassified as right-of-use
assets (see note 11).
Set out below are the carrying amounts of lease liabilities and the movements
during the year:
Lease liabilities Property Amusement machines Total
£'000
£'000
£'000
At 1 October 2023 185,936 8,269 194,205
Lease additions 13,405 5,029 18,434
Acquisition 15,641 - 15,641
Accretion of interest 11,144 471 11,615
Lease modifications and remeasurements 4,890 - 4,890
Lease surrenders - (322) (322)
Payments (19,962) (3,805) (23,767)
Effects of movement in foreign exchange (2,454) - (2,454)
At 30 September 2024 208,600 9,642 218,242
Lease additions 24,254 4,452 28,706
Accretion of interest 13,113 618 13,731
Lease modifications and remeasurements 4,968 - 4,968
Lease surrenders - (241) (241)
Payments (23,816) (4,475) (28,291)
Effects of movement in foreign exchange (1,322) - (1,322)
At 30 September 2025 225,797 9,996 235,793
Current 10,645 4,486 15,131
Non-current 215,152 5,510 220,662
At 30 September 2025 225,797 9,996 235,793
Current 10,349 3,882 14,231
Non-current 198,251 5,760 204,011
At 30 September 2024 208,600 9,642 218,242
The following are the amounts recognised in profit or loss:
2025 2024
£'000
£'000
Depreciation expense of right-of-use assets 17,050 14,752
Impairment charge of right-of-use assets 1,229 2,508
Interest expense on lease liabilities 13,731 11,615
Expense relating to leases of low-value assets (included in administrative 80 80
expenses)
Variable lease payments, net of rent credits 1,093 1,285
Total amount recognised in profit or loss 33,183 30,240
The Group has contingent lease contracts for thirteen (30 September 2024:
eight) sites. There is a revenue-based rent top-up on these sites. Gross
variable lease payments include revenue-based rent top-ups at eleven (30
September 2024: eight) centres totalling £1,406,000 (30 September 2024:
£897,000). It is anticipated that top-ups totalling £1,675,000 will be
payable in the year to 30 September 2026 based on current expectations.
Impairment testing is carried out as outlined in note 11. Detailed impairment
testing resulted in the recognition of an impairment charge in the year of
£1,229,000 (30 September 2024: £2,508,000) against right-of-use assets for
two UK mini-golf centres and one combined centre (30 September 2024: four UK
mini-golf centres and one combined centre).
13. Goodwill and intangible assets
Goodwill Brands(1) Trademark (2) Customer relationships Software Total
£'000
£'000
£'000
£'000
£'000
£'000
Cost
At 1 October 2023 82,048 7,248 798 805 3,277 94,176
Additions - - - - 946 946
Acquisition 10,668 - - 306 - 10,974
Disposals - - - (1,320) (1,320)
Effects of movement in foreign exchange (3) (19) - (6) - (28)
At 30 September 2024 92,713 7,229 798 1,105 2,903 104,748
Additions - - - - 714 714
Effects of movement in foreign exchange (5) (548) - (37) - (590)
At 30 September 2025 92,708 6,681 798 1,068 3,617 104,872
Accumulated amortisation
At 1 October 2023 - 2,091 466 53 2,190 4,800
Amortisation charge - 568 50 73 244 935
Disposals - - - - (1,313) (1,313)
Effects of movement in foreign exchange - 3 - - - 3
At 30 September 2024 - 2,662 516 126 1,121 4,425
Amortisation charge - 569 50 79 457 1,155
Effects of movement in foreign exchange - (33) - (11) - (44)
At 30 September 2025 - 3,198 566 194 1,578 5,536
Net book value
At 30 September 2025 92,708 3,483 232 874 2,039 99,336
At 30 September 2024 92,713 4,567 282 979 1,782 100,323
1 This relates to the Hollywood Bowl, Splitsville and Striker Bowling
Solutions brands.
2 This relates to the Hollywood Bowl trademark only.
The components of goodwill comprise the following businesses:
30 September 30 September
2025
2024
UK 77,174 77,174
Canada 15,534 15,539
92,708 92,713
At the acquisition date, goodwill is allocated to each group of CGUs expected
to benefit from the combination.
Impairment testing is carried out at the CGU level on an annual basis. A CGU
is the smallest identifiable group of assets that generates cash inflows that
are largely independent of the cash inflows from other assets or groups of
assets. Each individual centre is considered to be a CGU. However, for the
purposes of testing goodwill for impairment, it is acceptable under IAS 36 to
group CGUs, in order to reflect the level at which goodwill is monitored by
management. The UK and Canada are each considered to be a CGU, for the
purposes of goodwill impairment testing. These CGUs form part of the UK and
Canada operating segments respectively.
The recoverable amount of each of the CGUs is determined based on the higher
of fair value less costs to sell and a value-in-use calculation using cash
flow projections based on financial budgets approved by the Board covering a
five-year period. Cash flows beyond this period are extrapolated using the
estimated growth rates stated in the key assumptions. The key assumptions are
disclosed in note 11.
Sensitivity to changes in assumptions
Management believe that any reasonable change in the key assumptions would not
result in an impairment charge of the goodwill.
14. Trade and other receivables
30 September 2025 30 September 2024
£'000
£'000
Trade receivables 1,815 1,537
Other receivables 155 95
Prepayments 7,663 7,788
9,633 9,420
Trade receivables have an ECL against them that is immaterial. There were no
overdue receivables at the end of either year.
15. Trade and other payables
30 September 2025 30 September 2024
£'000
£'000
Current
Trade payables 7,166 5,494
Other payables 4,927 3,658
Accruals and deferred income 16,832 16,162
Taxation and social security 6,138 5,113
Total trade and other payables 35,063 30,427
30 September 2025 30 September 2024
£'000
£'000
Non-current
Other payables 5,706 7,116
Accruals and deferred income includes a staff bonus accrual of £3,903,000 (30
September 2024: £3,950,000). Deferred income includes £1,814,000 (30
September 2024: £983,000) of customer deposits received in advance and
£2,885,000 (30 September 2024: £2,628,000) relating to bowling equipment
installations, all of which will be recognised in the income statement during
the following financial year.
Current other payables includes £1,764,000 (30 September 2024: non-current
other payables £1,759,000) of deferred consideration in respect of the
acquisition of Teaquinn Holdings Inc.
Non-current other payables includes £4,475,000 (30 September 2024:
£3,928,000) of contingent consideration in respect of the acquisition of
Teaquinn Holdings Inc. The additional consideration to be paid is contingent
on the future financial performance of Teaquinn Holdings Inc. in FY2026. This
is based on a multiple of 9.2x Teaquinn's EBITDA pre-IFRS 16 in the financial
period of settlement and is capped at CAD 17m. The contingent consideration
has been accounted for as post-acquisition employee remuneration in accordance
with IFRS 3 paragraph B55 and recognised over the duration of the employment
contract to FY2026.
The present value of the contingent consideration has been discounted using a
WACC of 13% (30 September 2024: 13%). There is a range of possible outcomes
for the value of the contingent consideration based on Teaquinn's forecasted
EBITDA pre-IFRS 16.
The FY2025 provision is based on a payment (undiscounted) of £5,293,000,
using the FY2025 year-end exchange rate. The fair value of the contingent
consideration will be re-assessed at every financial reporting date, with
changes recognised in the income statement. In FY2025, this re-assessment
resulted in an increase in the charge of £168,000 (30 September 2024:
reduction of £261,000) based on the current expectation of the final
consideration payment, which has been recognised in adjusting administrative
expenses (note 5).
16. Loans and borrowings
On 29 September 2021, the Group entered into a £25m revolving credit facility
(RCF) with Barclays Bank plc. The RCF had an original termination date of 31
December 2024. On 22 March 2024, the RCF had the termination date extended to
31 December 2025.
On 8 May 2025, the RCF was cancelled and the Group entered into a new £25m
RCF with Barclays Bank plc. The RCF was undrawn at the date of cancellation.
The new RCF has a termination date of 7 May 2028.
Interest is charged on any drawn balance based on the reference rate (SONIA),
plus a margin of 1.30% (30 September 2024: 1.65%).
A commitment fee equal to 35%of the drawn margin is payable on the undrawn
facility balance. The commitment fee rate as at 30 September 2025 was
therefore 0.4550% (30 September 2024: 0.5775%).
Issue costs of £135,000 were paid to Barclays Bank plc on commencement of the
original RCF and a further £35,000 on extension of the RCF. Issue costs of
£125,000 were paid to Barclays Bank plc on commencement of the new RCF on 8
May 2025. These costs are being amortised over the term of the facility and
are included within prepayments (note 14).
The terms of the Barclays Bank plc facility include a Group financial
covenants that each quarter the ratio of total net debt to Group adjusted
EBITDA pre-IFRS 16 shall not exceed 1.75:1.
The Group operated within the covenant during the year and the previous year.
17. Deferred tax assets and liabilities
30 September 2025 30 September 2024
£'000
£'000
Deferred tax assets and liabilities
Deferred tax assets - UK 5,409 5,934
Deferred tax assets - Canada 849 518
Deferred tax liabilities - UK (9,320) (7,247)
Deferred tax liabilities - Canada (1,641) (2,680)
(4,703) (3,475)
30 September 2025 30 September 2024
£'000
£'000
Reconciliation of deferred tax balances
Balance at the beginning of the year (3,475) (651)
Deferred tax credit for the year - in profit or loss (2,393) (1,950)
Deferred tax (charge)/credit for the year - in equity (108) 101
On acquisition - (20)
Effects of changes in tax rates 3 (17)
Effects of foreign exchange 173 213
Adjustment in respect of prior years 1,097 (1,151)
Balance at the end of the year (4,703) (3,475)
The components of deferred tax are:
30 September 2025 30 September 2024
£'000
£'000
Deferred tax assets
Fixed assets 5,548 5,192
Trading losses 88 29
Other temporary differences 937 895
6,573 6,116
Deferred tax liabilities
Property, plant and equipment (10,178) (8,205)
Intangible assets (1,098) (1,386)
(11,276) (9,591)
Deferred tax assets and liabilities are measured using the tax rates that are
expected to apply to the periods when the assets are realised or liabilities
settled, based on tax rates enacted or substantively enacted at 30 September
2025.
18. Related party transactions
30 September 2025 and 30 September 2024
During the year, and the previous year, there were no transactions with
related parties.
19. Dividends paid and proposed
30 September 2025 30 September 2024
£'000
£'000
The following dividends were declared and paid by the Group:
Final dividend year ended 30 September 2023 - 14,664
- 8.54 pence per ordinary share
Special dividend year ended 30 September 2023 - 4,688
- 2.73 pence per ordinary share
Interim dividend year ended 30 September 2024 - 6,828
- 3.98 pence per ordinary share
Final dividend year ended 30 September 2024 13,904 13,904
- 8.08 pence per ordinary share
Interim dividend year ended 30 September 2025 6,923 -
- 4.10 pence per ordinary share
Proposed for the approval by shareholders at AGM
(not recognised as a liability at 30 September 2025):
Final dividend year ended 30 September 2025 15,317 -
- 9.18 pence per ordinary share
Risk management
Our approach to risk
The Board and senior management are committed to embedding robust risk
management and internal control systems across the business. These systems are
reviewed regularly, at least twice a year, to ensure they remain effective and
aligned with our strategic objectives. Drawing on best-practice in our sector,
we recognise that effective risk management requires
a thoughtful balance between risk and reward, underpinned by assessed
judgements of likelihood and impact.
The Board has ultimate responsibility for ensuring an effective process is in
place and that reasonable assurance is provided that significant risks are
identified, understood and managed. Our review of risk considers the potential
effects on our business model, our organisational culture and our capacity to
deliver our long-term strategic purpose.
We consider both short-term and longer-term risks, and we organise them into
the following broad categories: financial, social, operational, technical,
governance and environmental.
Risk appetite
Our risk appetite statement sets out the amount and type of risk we are
willing to accept in pursuit of our strategic aims. We have a higher appetite
for risks that accompany clear opportunities to execute our strategy and
deliver value.
Conversely, we maintain a low tolerance for risks that are purely downside or
which could adversely impact health and safety, our core values, our culture
or our business model. This aligns with the approach of other hospitality
groups which emphasise low tolerance of risks to people, reputation and
operating continuity.
Our risk management process
The Board has overall responsibility for ensuring that a robust risk
management process is in place, and that it is consistently applied throughout
the business. The main steps in our process are as follows:
Department heads
Every functional area of the Group maintains an operational risk register.
Senior management in that area identify and document the key risks facing the
department - both in the short term and over the longer term. Each register is
reviewed at least bi-annually. For each risk we assess:
- The potential impact on the department and on the Group as a
whole;
- The mitigating controls in place; and
- The estimated likelihood and impact of the risk, and whether
additional mitigation is required.
The Executive team
The Executive Team reviews all departmental risk registers. Those risks which
exceed our defined risk appetite are escalated to the Group Risk Register
(GRR). The GRR also includes strategic, cross-Group and emerging risks
identified at the Group level. The Executive Team proposes mitigation plans
for these escalated risks which are then submitted to the Board for review.
The Board
At least twice a year the Board formally reviews and challenges: All of the
Group's key risks; Our risk appetite and tolerance levels; The progress of
mitigation actions; and Emerging risks and changes in the business
environment.
These reviews feed into the Board's consideration of the Group's long-term
viability and are reflected in the Viability Statement.
Furthermore, the principal risks are presented by Department Heads / Directors
at Board meetings.
Risk management activities
Risks are identified through a range of activities including: operational
reviews by senior management; internal audit programmes; controls
self-assessments; our whistle-blowing helpline; and independent project
reviews.
The internal audit team provides independent assessment of the operation and
effectiveness of the risk framework and process in centres, including the
effectiveness of the controls, reporting of risks and reliability of checks by
management.
We continually review the organisation's risk profile to ensure that current
and emerging risks are identified, evaluated and considered by each head of
department.
Each risk is scaled and visualised through our risk-heat-map framework,
enabling clear prioritisation of risks by severity (impact × likelihood) and
monitoring of whether these are increasing or decreasing over time.
Principal risks
The Board has identified 12 principal risks. These are the risks which we
believe to be the most material to our business model, which could adversely
affect the revenue, profit, cash flow and assets of the Group and operations,
which may prevent the Group from achieving its strategic objectives.
We acknowledge that risks and uncertainties of which we are unaware, or which
we currently believe are immaterial, may have an adverse effect on the Group.
Financial risks
1. Economic environment
Risk and impact Mitigating factors
· Change in economic conditions, in particular a recession, as well · There is still a risk of a contraction on disposable income
as inflationary pressures from the wars in Ukraine and the Middle East. levels, impacting consumer confidence and discretionary income. The Group has
Macroeconomic growth in the UK and Canada is low and could present risk of low customer frequency per annum and also the lowest price per game of the
recession. branded operators in the UK. Therefore, whilst it would be impacted in such a
recession, the Board is comfortable that the majority of centre locations are
· Adverse economic conditions, including but not limited to, based in high-footfall locations which should better withstand a recessionary
increases in interest rates/inflation may affect Group results. decline.
· With an abundance of empty retail units across the UK, this · The impacts of the UK Government's Budget national insurance and
provides opportunities for less focused operators to open new locations in living wage increases have been considered and factored into the Group's
Hollywood Bowl markets which impacts on the revenue of our centres. financial planning.
· A decline in spend on discretionary leisure activity could · Continued focus on value for money as well as appealing to all
negatively affect all financial as well as non-financial KPIs. demographics.
· Along with appropriate financial modelling and available
liquidity, a focus on opening new centres and acquiring sites in high-quality
locations only with appropriate property costs, as well as capital
contributions, remains key to the Group's new centre-opening strategy.
· Electricity prices are hedged in the UK until September 2027.
Plans are developed to mitigate many cost increases, as well as a flexible
labour model, if required, in an economic downturn.
· The recently introduced customer booking system will provide more
detailed customer data and trends which should allow for further enhancement
of targeted offers in both the UK and Canada.
2. Covenant breach
Risk and impact Mitigating factors
· The banking facility, with Barclays Plc, has quarterly leverage · Financial resilience has always been central to our decision
covenant tests which are set at a level the Group is comfortably forecasting making and will remain key for the foreseeable future.
to be within.
· The current RCF is £25m, margin of 130ps above SONIA as well as
· Covenant breach could result in a review of banking arrangements an accordion of £5m. The facility is currently undrawn, which under the
and potential liquidity issues. agreement, results in a cost of less than £200k per annum.
· Net cash position was £15.1m at the end of September 2025.
· Appropriate financial modelling has been undertaken to support
the assessment of the business as a going concern. The Group has headroom on
the current facility with leverage cover within its covenant levels, as shown
in the monthly Board packs. We prepare short-term and long-term cash flow,
Group adjusted EBITDA (pre-IFRS 16) and covenant forecasts to ensure risks are
identified early. Tight controls exist over the approval for capital
expenditure and expenses.
· The Directors consider that the combination of events required to
lower the profitability of the Group to the point of breaching bank covenants
is unlikely.
3. Expansion and growth
Risk and impact Mitigating factors
· Competitive environment for new centres results in less new Group · The Group uses multiple agents to seek out opportunities across
centre openings. the UK and Canada.
· New competitive socialising concepts could appear more attractive · We keep future opportunities confidential until launch and
to landlords. continue with non-compete clauses where appropriate.
· Higher rents offered by short-term private businesses. · Strong financial covenant provides forward-looking landlords with
both value and future letting opportunities.
· Given the success of Hollywood Bowl, other operators are prepared
to enter its markets for a share of the catchment area, in less desirable · Continued focus with landlords on initial investment, innovation,
locations, but still impacts our revenue opportunity. as well as refurbishment and maintenance capital.
· Competitors could look to open centres in Canada following the · Attended key property conferences in the UK and Canada, with
success of Splitsville. positive feedback, resulting in a number of opportunities in negotiation.
· New landlord marketing prospectus in circulation in the UK and
Canada to promote awareness of our requirements and recent successful
openings.
· Demographic modelling enhanced with new customer reservation data
as becomes available.
· Launch of a new site location finding platform which will support
decision making to ensure we are selecting only the best locations in Canada,
and will help improve the pace of expansion which will maintain our head start
on any competitor expansion strategy in Canada.
Operational risks
4. Core systems
Risk and impact Mitigating factors
· Failure in the stability or availability of information through · All core systems are operated and hosted by enterprise scale
IT systems could affect Group business and operations. providers with external back-up to immutable storage in an independent
security domain.
· Technical or business failure in a critical IT partner could
impact the operations of IT systems. · These providers are robust organisations with the highest levels
of security, compliance and resilience guarantees, as is our payment services
· Customers not being able to book through the website is a provider.
significant risk given the high proportion of online bookings.
· Our Compass reservations system is deployed to the Group estate.
· Inaccuracy of data could lead to incorrect business decisions This system has been built in house and has improved performance, resilience
being made. and future development flexibility.
· The CRM/CMS and CDP system is hosted by a third party utilising
cloud infrastructure with data recovery contingency in place.
· Our core Canadian systems are continuing to evolve to towards
parity and common platforms shared with UK systems.
· All Group technology changes which affect core systems are
subject to authorisation and change control procedures with steering groups in
place for key projects.
5. Food and drink services
Risk and impact Mitigating factors
· Operational business failures from key suppliers. · The Group has key food and drink suppliers under contract with
tight service level agreements (SLAs). Alternative suppliers who know our
· Unable to provide customers with a full experience. business could be introduced, if needed, at short notice. UK centres hold
between 14 and 21 days of food and drink product. Canadian centres hold
· The cost of food and drink for resale increases due to changes in marginally more food and drink stock due to their supplier base and potential
demand, legislation or production costs, leading to decreased profits. for missed deliveries.
· Regular reviews and updates are held with external partners to
identify any perceived allergen risks and their resolutions. A policy is in
place to ensure the safe procurement of food and drink within allergen
controls.
· Regular reviews of food and drink menus are also undertaken to
ensure appropriate stockturn and profitability.
· Key food and drink contracts have cost increase limits negotiated
into them. A new soft drink supplier was contracted in the UK with improved
terms.
· Splitsville uses Xtreme Hospitality (XH), a group buying company,
Gordon Food Service and Molson Coors, to align itself with tier one suppliers
in all service categories including food and drink.
6. Amusement services
Risk and impact Mitigating factors
· Any disruption which affects Group relationship with amusement · Namco is a long-term partner that has a strong UK presence and
suppliers. supports the Group with trials, initiatives and discovery visits.
· Customers would be unable to utilise a core offer in the centres. · In the UK, regular key supplier meetings are held between
Hollywood Bowl's Head of Amusements and Namco. There are half-yearly meetings
· Any internal failure of data cabling or Wi-Fi could impact on the between the CEO, CFO, MD and the Namco UK leadership team.
customer and their ability to play. This is most notable in Canada where it is
a "non-cash" playcard system. · Namco also has strong liquidity which should allow for a
continued relationship during or post any consumer recession.
· Appointment of a Head of Amusements in Canada to ensure a focus
and accountability for a growing part of the business in Canada.
· The Canadian supplier is now also Namco in all but two centres -
these centres will move over when their Player1 contracts end.
· New connectivity has been rolled out to all centres in Canada and
this will continue to be tested on a frequent basis.
7. Management retention and recruitment
Risk and impact Mitigating factors
· Loss of key personnel - centre managers. · The Group runs a suite of future leader programmes including
Centre Manager in Training (CMIT) and Assistant Manager in Training (AMIT). In
· More challenging recruiting high calibre Centre Managers in the UK this has been expanded to include a Graduate Manager in Training
Canada. Programme, Degree Apprenticeship offering and Support Manager in Training
programme, which identifies centre talent and develops Team Members ready for
· Lack of direction at centre level with effect on customer management roles. Centre Managers in Training run centres, with assistance
experience. from their Regional Support Manager as well as experienced Centre Managers
from across the region, when a vacancy needs to be filled at short notice.
· More difficult to execute business plans and strategy, impacting
on revenue and profitability. · Total reward statements are issued every year to all managers, we
include training investment as part of these.
· Increase in Team Member absence impacting on operational
delivery. · We have transitioned to an international group structure to
better support our centres and proactively offer Group-wide opportunities
· Impact of employment law changes. including international relocation support for Centre Managers and Support
Team Members with over 12 months experience in their role.
· Increase in NMW/NLW or other payroll costs.
· Listening groups are held across the Group biannually, alongside
our surveys to measure engagement and act on feedback.
· Employment Bill working group established to proactively tackle
pending employment law changes.
· The bonus schemes are reviewed each financial year in the UK and
Canada, to ensure they are still a strong recruitment and retention tool.
· The hourly bonus scheme has paid out to over 50% of the UK team
in each month in FY2025.
· Aligned ways of working for People Operations across the Group to
support engagement and retention.
8. Health and safety
Risk and impact Mitigating factors
· Significant injury / death from accidents, incidents or fire · Group Health and Safety Manager oversees the programme and
associated reporting.
· Damage to property from fire
· Monthly Board review of accident/incident and claims data.
· Major food incident including allergen or fresh food issues.
· UK Primary local authority partnership in place with South
· Loss of trade and reputation, potential closure and litigation. Gloucestershire covering health and safety, as well as food safety.
· Internal audits undertaken to review compliance to Company and
legal standards
· Fire risk assessments completed bi-annually by external
contractor.
· Fire code compliance review completed by external contractor for
all Canadian centres.
· Insurance centre surveys completed in both UK and Canada by
insurer to support our management of H&S / Fire Safety risk.
· 97% of UK centres have been converted to Pins on Strings (POS)
and 60% of Canadian ten pin machines have been converted. This change reduces
the risks associated with machine maintenance.
· Team member food allergen training and customer information on
menus.
Technical risks
9. Cyber security
Risk and impact Mitigating factors
· Risk of cyber-attack/terrorism could impact the Group's ability · The area is a key focus for the Group, and we adopt a
to keep trading and prevent customers from booking online. multi-faceted approach to protecting IT networks through protected firewalls
and secure two-factor authentication passwords, as well as the frequent
· Non-accreditation can lead to the acquiring bank removing running of vulnerability scans to ensure the integrity of the firewalls.
transaction processing.
· An external Security Operations Centre is in place to provide
24/7/365 monitoring and actioning of cyber security alerts and incidents. We
have additional retained services via our Cyber Insurers and Broker to work
with the Group on a priority basis to provide proactive incident response
services should a breach occur. As noted below, full integration of Canada
into the SOC is complete.
· Advancements in the internal IT infrastructure have resulted in a
more secure way of working. Our overall IT estate utilises widely accepted
security solutions and configurations. The Group website hosting enforces a
high level of physical security to safeguard its data centres, with military
grade perimeter controls.
· We have achieved PCI compliance across our payment channels, with
robust controls in place externally audited and verified through the
submission of the annual PCI Report on Compliance (ROC) to both the PCI
Council and our acquiring bank. We maintain compliance through a rigorous,
ongoing programme of continuous improvement and continuous development to
address new and emerging risks.
· Canadian systems operate in line with UK operations including
full integration with the UK 27/7 SOC (Security).
· Cyber Essentials Plus certification achieved, verifying controls
such as secure access and vulnerability management).
· Broad cyber insurance coverage policy is in place which includes
cover for Canadian systems.
· In FY2026, the Group will strengthen its approach to third-party
risk management through enhanced due diligence process, and continuous
monitoring of supplier security postures.
· Administrative account control aligns with Cyber Essentials Plus
and PCI DSS princilples..
· Business continuity plans are being reviewed and refined.
· A structured change management process is in place to review,
approve, and document all high-impact system changes.
Regulatory risk
10. GDPR
Risk and impact Mitigating factors
· Data protection or GDPR breach. Theft of customer email · A Data Protection Officer has been in position for several years
addresses, staff emails and other personal information - all of which can in the UK supported by a Head of IT Security and Compliance who oversees our
impact on brand reputation in the case of a breach. strategy, applications and activity in this area with periodic updates given
to the Board.
· GDPR controls and documentation have been externally assessed and
validated assuring us of no areas of non-compliance.
· GDPR breach protocols aligned with ICO guidance and integrated
into Incident Response playbooks.
· Sensitivity labelling and data loss prevention rules are being
rolled out to control data flow beyond the organisation.
11. Compliance
Risk and impact Mitigating factors
· Failure to adhere to regulatory requirements such as listing · Expert opinion is sought where relevant. We run regular training
rules, taxation, health and safety, planning regulations and other laws. and development to ensure we have appropriately qualified staff.
· Potential financial penalties and reputational damage. · The Board has oversight of the management of regulatory risk and
ensures that each member of the Board is aware of their responsibilities.
· Compliance documentation for centres to complete for health and
safety, (including food safety), are updated and circulated twice per year.
Adherence to company/legal standards is audited by the internal audit team.
12. Climate change
Risk and impact Mitigating factors
· Utility non-commodity cost increases. · UK solar panel installations in 34 centres, transitioning energy
contracts to renewable sources and improving the energy efficiency of our
· Business interruption and damage to assets. existing centres and new builds. We have started to introduce our climate
impact strategy and initiatives into our Canadian operations as appropriate.
· Cost of transitioning operations to net zero.
· We undertake a supplier engagement programme with key suppliers to
· Sales impact due to increased summer temperatures moving customers away understand their carbon reduction plans.
from indoor leisure.
· The Group is a member of the Zero Carbon Forum and UK Hospitality
· Increased environmental legislation. Sustainability Committee which both facilitate collaboration and best
practice.
· The Corporate Responsibility Committee monitors and reports on
climate-related risks and opportunities.
· Our TCFD disclosure includes scenario analysis to understand the
materiality of climate risks. The latest analysis from November 2025 did not
identify any material short to mid-term financial impacts for the Group.
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. END FR ZELFFELLEFBQ
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