The ten-pin bowling operator has been sending down special dividends to its shareholders since joining the London Stock Exchange in September 2016.
In a trading statement, the company said profit before tax growth for the year to 30 September is estimated to be in excess of 10%, slightly ahead of expectations, with total revenue growth of 7.7% and like-for-like (LFL) revenue growth of 5.5%.
Shore Capital Markets raised its forecasts for revenue and profit before tax by £2mln and £600,000 to £129.8mln and £26.5mln respectively, with a special dividend of 4.3p bringing the total payment for the financial year just ended to 11.2p. Based on the current share price, the shares are yielding 4.75%.
“We continue to view Hollywood Bowl as a core holding in the sector,” the broker said in a note, reiterating its “buy” recommendation.
“Its 60 strong estate is well located and invested, with an attractive pipeline secured and a low-ticket offering well positioned against a backdrop of continued weak consumer sentiment.”
Shares were up 5.73% to 240p in the early morning.