Companies on the London Stock Exchange are being undervalued, according to Hollywood Bowl Group PLC (LSE:BOWL) boss Stephen Burns.
“Across the whole of the London Stock Exchange, lots of firms are undervalued it is an endemic problem,” Burns said.
Hollywood Bowl saw sales lift by 16% to £215 million and underlying profits jump by 11% to £82 million in the 2023 financial year.
Shares have lifted 20% since January and the market currently values the company at around £490 million.
The disparity between market and private valuations has grown recently and has been emphasised by the increasing amounts of listed companies being bought out at a premium.
Earlier this month, rival Ten Entertainment approved a takeover valued at a 35% premium to its then-market value.
Shareholders Wagamama owner The Restaurant Group, Franco Manca owner Fulham Shore and City Pub Group have also benefited from purchases at premiums to their market value.
Hollywood Bowl has not received any offers, but Burns said: “We’re a public company, we’re for sale every day so there’s nothing stopping anybody making an offer.”
Shares traded 0.8% higher on Monday after opening at 291p.