Hollywood Bowl Group PLC (LSE:BOWL) rolls up to the line with full-year results on Monday, 18 December, fresh from its close sector peer having just agreed a takeover offer.
The bowling alley operator will be among the few firms reporting during what is otherwise a quiet run-up to Christmas, though it comes not long after rival Ten Entertainment received a £300 million takeover offer by private investors earlier this month.
“That’s put Hollywood Bowl under the spotlight,” according to AJ Bell analyst Russ Mould, “particularly as it is considered to be a higher quality”.
A bid for Ten Entertainment has also highlighted “the underappreciated value in the sector,” he added, given that bowling has proved to be a resilient leisure activity during the cost-of-living crisis.
Hollywood Bowl itself has been throwing rocks this year, with the group hinting it would beat market expectations for pre-tax earnings growth in preliminary figures in October.
Revenue of £215 million for the year has also already been recorded, up 11%, with the upcoming update tipped to provide more clarity around capital allocation.
This should include a dividend of “at least” 7p per share, according to Hollywood Bowl, though a further update will be given.
Strategic initiatives to support growth will also be keenly awaited, Mould added, given existing assurances that the results will be strong.
“Ten Entertainment falling into private equity hands effectively puts pressure on Hollywood Bowl to up its game,” he said.
“Any news on further growth initiatives could go down well with the market.”
Shares in Hollywood Bowl are up almost 20% so far this year and sit just 9% off all-time highs of 309p, recorded in January 2020.