Hollywood Bowl Group PLC (LSE:BOWL) shares racked up a 5% gain in early trading before the pins were knocked back down again as investors and analysts mulled its half-year results.
Adjusted profit before tax PBT came to £30.9 million in the six months ended 31 March, up 11.7%.
This performance was slightly better than expected, analysts said.
Like-for-like sales rose by 1.6%, with a 1.3% increase in the UK and an 8% surge in Canada.
In the UK, the average spend per game grew by 3.2% to £11.21, despite a 1.6% drop in LFL volumes. Headline prices saw a modest 1.4% uptick.
Net cash fell £11 million to £41.4 million at the half-year stage, following a £19 million dividend payment, the acquisition of a site in Lincoln for £4 million, £3 million invested in two sites in Canada, investment in new sites as well as three UK refurbishments.
Chief executive Stephen Burns said: "We continue to expect further, modest like-for-like growth, even with the very strong prior year comparative, as a result of our customer-led innovation and investment in our profitable growth strategy."
He also expressed confidence in the outlook and to grow the estate to over 130 centres in the next ten years.
Broker Peel Hunt upgraded its 2024 PBT forecast by 2%, assuming 1.4% LFL sales and allows for a 8-9% increase in LFL employee costs in the second half.
"We believe there is further upside to forecasts in 2H, despite the big summer of televised sport and tough weather comps in 4Q. Our forecasts assume £1.7m EBITDA reduction in 2H, in part due to the one-off rates rebates in 2H23, whereas a flat outcome could be possible.
"We expect investment in the company to be prioritised over share buybacks."