Hollywood Bowl Group PLC (LSE:BOWL) dropped 7% as it warned of a significant impact from the government’s hike in national insurance costs for employers.
The bowling alley operator said the national insurance cost for someone working 20 hours per week and on national living wage has jumped from around £400 a year to £1,155 with a total cost of £1.2 million.
Stephen Burns said it is working to mitigate the cost challenges presented by the Chancellor's recent budget.
The comments overshadowed a year of record revenues for the FTSE 250-listed leisure business.
Revenues rose 7% to a record £230.4 million, while adjusted profits fell by 5.2% to £45 million (this included a £5.3 million impairment of its Puttstars mini-golf centres).
Burns added the company has also committed to its expansion programme. Hollywood Bowl intends to grow by four sites in the UK and two in Canada in the current year.
Shares fell 23p to 310p.