Hollywood Bowl Group PLC (LSE:BOWL) reports results buoyed by an upbeat update in October and with not just 10-pin bowling in its locker.
The Hemel Hempstead based company acquired Canadian bowling company Teaquinn Holdings Inc for approximately £10.6mln in May this year, but amid worries about the consumer squeeze and a big rise in energy costs, the shares were knocked to an 18-month low in August.
However, its year-end update revealed revenue rose 42% in the 12 months to September 30 to £184.9m, with underlying profit (EBITDA) expected to be up 40%.
“The group has continued its excellent momentum following a record first half with another period of strong trading and further growth”, it said.
Like-for-like revenue growth was 28.3% higher than pre-pandemic 2019.
Hedging electricity costs till September 2024 and simplifying food menus minimised inflationary pressure with food costs making up less than 10% of overall expenditure.
Dividends of 7.5p per share was also introduced following the organisation’s strong performance.
As well as being the UK's largest bowling operator it also owns Puttstars mini golf in the UK and the Teaquinn deal added a Canadian-based bowling business.
The outlook and recent trading will be of interest to investors, with directors having flagged “a significant opportunity to grow our business to more than 110 centres across our three experiential leisure brands” from a current estate of 73 sites.