Hollywood Bowl Group PLC (LON:BOWL) has hiked its dividend by almost 2,000% after it saw profits jump last year.
Pre-tax profits at the UK’s largest bowling operator soared from £2.6mln to £21.1mln in the 12 months ended 30 September, after a 9% rise in sales to £114mln.
The figures were flattered by various one-off costs associated with last September’s initial public offering and the £22mln acquisition of rival Bowlplex, both of which dented profits a year earlier.
Strong first year as a public company
As a result, the company – which has 58 locations across the UK – said it would pay out a special dividend of 3.33p per share while it will also raise its final ordinary dividend to 3.95p from just 0.19p last time around.
Those, combined with an interim dividend of 1.8p, mean Hollywood will have returned £13.6mln to shareholders over the past 12 months.
“I am delighted to report a strong operational and financial performance for our first full year since IPO,” said chief executive Stephen Burns.
“Our rebrands and refurbishments have delivered significant returns and new centres opened in the year have performed ahead of expectations.”
Three new Hollywood Bowl centres opened over the past 12 months including one at London’s o2 arena, and more are planned for the current year with one having opened already.
Chairman Peter Boddy said the company has carried on where it left off, with trading in the new year remaining strong and in line with expectations.
Boss dismisses impact of Brexit
A lot has been said about the impact of Britain’s exit from the European Union on businesses and consumers alike.
But boss Burns rubbished any fears that his company might be adversely affected by the events.
“We do not believe that the exit of the United Kingdom from the EU will have an impact on the underlying performance of our business because Hollywood Bowl, and the activities we offer, have great customer appeal throughout the country and through all economic cycles.”
Shares rose 8.8% to 206.8p on Monday morning.