Half Year Trading Update

RNS Number : 7124V

Hollywood Bowl Group plc

11 April 2023

 

Hollywood Bowl Group plc

("Hollywood Bowl" or the "Group")

Half Year Trading Update

EXCELLENT PERFORMANCE DEMONSTRATING CONTINUED STRONG CUSTOMER DEMAND

Hollywood Bowl, the UK's largest ten-pin bowling operator, is pleased to announce a trading update for the six months ended 31 March 2023.

Key highlights

· Record first half Group revenue of £111.1m, up 10.9% vs H1 FY2022[1]

· 3.5% like-for-like revenue growth2 vs H1 FY2022

· Revenue of £12.2m³ (CAD 19.8m) from our Canadian businesses, in line with management's expectations

· Seven refurbishments completed and two new centres opened during the period with a further two set to be under construction in the second half of FY2023

· Investment programme continued with the installation of pins on strings (seven completed in H1 FY2023) and solar panels (four completed in H1 FY2023)

· Recently exchanged on 10th Canadian centre and well-placed to continue building the new site pipeline

· Net cash position at 31 March 2023 of £44.1m; undrawn £25m revolving credit facility

[1] Group revenue in H1 FY2022 included revenues relating to the reduced rate (TRR) of VAT on bowling for prior years (£5.8m) and TRR of VAT on bowling for H1 FY2022 (£3.0m).

2 Like-for-like (LFL) revenue growth is total revenue excluding any new centres. New centres are included in the LFL growth calculation for the period, after they complete the calendar anniversary of their opening date. LFL revenues in the comparative period H1 FY2022 exclude the impact of TRR of VAT on bowling.

3 Revenues in GBP based on an average foreign exchange rate over the relevant period of 1.62 CAD: 1 GBP.

Hollywood Bowl's continued strong trading in the first half of the year demonstrates the attractiveness of its high-quality and excellent value for money offer, which appeals to customers looking for inclusive leisure experiences to enjoy together.

The Group has continued to execute successfully against its new centre openings strategy. In the UK, Hollywood Bowl Speke and Puttstars Peterborough both opened in H1 FY2023 and are trading ahead of management's expectations. Two further new UK centres are set to commence construction in H2 FY2023 - Hollywood Bowl Merry Hill and a combined Hollywood Bowl/Puttstars offering in Colchester.

The Group's active refurbishment strategy and relentless focus on innovating to elevate the customer experience is driving further growth. The rollout of Pins on Strings is continuing at pace, with the total number of centres completed reaching 48 (75% of the Group's UK bowling centres). The Group has made further progress towards the completion of its solar panel installation programme, with c.37% of its UK centres completed or under construction. The simplified food menu and the introduction of the 'snacks and sharers' lane resonated well with customers, increasing dwell time and spend as a result of the enhanced centre environment.

In Canada, as previously reported, the Group acquired three entertainment centres in Calgary in February this year, which builds on the strong progress made by Splitsville, the Group's first Canadian acquisition, in May 2022. These sites are trading in line with management's expectations and integration with Splitsville is going well. Furthermore, the pipeline is continuing to build with the Group recently exchanging on a new build bowling centre in Ontario, which will take it to 10 Canadian centres and is well-positioned to capture further new centre opportunities, supported by its strong balance sheet.

Notwithstanding our ongoing commitment to invest in our UK and Canadian estate, cash generation has been strong, with a net cash position of £44.1m as at 31 March 2023 (H1 FY2022: £49.6m). 

The Group anticipates announcing its H1 FY2023 interim dividend alongside its Interim Results in May 2023.

The Group is confident about the prospects for the business in FY2023 based on the strong first half of the year and the continued attractiveness of its offering but remains mindful of the ongoing economic backdrop.

Stephen Burns, Chief Executive Officer, said:

"We are delighted with our record performance in the first half of the year. Our improvement on what was already an impressive prior year reflects the huge customer appeal of our great value for money offer at a time when many consumers are being more selective with their time and money. Our team members have been working tirelessly to deliver the best possible experiences for our customers and I am proud of the way they have stepped up. We are a people-focused business and a key priority for us is to support our teams, allowing them to thrive and develop their careers.  

We are excited about the significant growth opportunities ahead - our highly cash generative business model and insulation from cost of goods and energy inflationary pressures, leaves us well-placed to continue to expand and invest in our portfolio, both in the UK and Canada. We were thrilled to see so many families enjoying themselves at our centres during February half term and were pleased to welcome many more over the Easter break." 

The Group expects to report its Interim Results for the six months ended 31 March 2023 on Tuesday 30 May 2023.

Enquiries:	Via Teneo
Hollywood Bowl Group PLC
Stephen Burns, Chief Executive Officer
Laurence Keen, Chief Financial Officer
Mat Hart, Chief Marketing and Technology Officer
Teneo
Will Palfreyman	[e-mail]
James Macey White	[phone]
Laura Marshall

Notes to Editors:

Hollywood Bowl Group plc

Hollywood Bowl Group is one of the largest operators of bowling centres in the world, and the UK's largest ten-pin bowling operator, with a high-quality portfolio of 69 centres across the UK under the Hollywood Bowl and Puttstars (mini-golf) brands. The Group specialises in operating large, high quality bowling centres, predominantly located in out-of-town multi-use leisure parks (typically co-located with cinema and casual dining sites) and large retail parks. The centres are designed to offer a complete family entertainment experience with each centre offering bowling lanes or mini-golf courses alongside on-site dining, licensed bars, and state-of-the-art family games arcades.

In May 2022 the Group acquired Teaquinn, operator of Splitsville and Striker Bowling Solutions, which, following this acquisition, operates nine large entertainment centres in Canada, each with ten-pin bowling lanes, dining, bar, and amusement offers. In February 2023 the Group acquired three Canadian-based bowling businesses, HLD Investments, Mountain View Bowl and Wong and Lewis Investments.  

 

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