Hollywood Bowl Group PLC (LSE:BOWL) shares rose 5.4% to 294.5p on the back of a fourth consecutive year of record revenue and underlying profit.
Group revenue in the year to September rose 8.8% to £250.7 million, as like-for-like revenue increased 1.1% in the UK and 3.2% in Canada, supported by higher customer spend per game.
Adjusted EBITDA increased 4.2% to £91.2 million and adjusted profit before tax fell 8.6% to £46 million.
Stephen Burns, chief executive officer, said the increases in revenue and EBITDA were "against a backdrop of industry-wide challenges".
He added: “Our focus on the customer proposition and operational excellence yielded strong results, with uplifts in spend per game across all categories whilst maintaining accessible pricing.”
The company opened seven new centres and completed 12 refurbishments during the year. Net cash declined by £13.5 million to £15.2 million after dividend payments and share buybacks.
Broker Peel Hunt said it intends to cut our 2026 PBT forecast to reflect a rising lease interest charge, due largely to extending six leases.
"Extending leases on very favourable terms is the right thing to do, even if it does not make financial sense under IFRS 16".
"As usual, LFL sales remain the key catalyst to forecasts and the rating, and, with investments paying off, there is a good chance LFL sales will start to re-build."