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Hollywood Bowl keeps striking

The ten-pin bowling operator said it has a target of seven to ten investments in the current year, which started in line with expectations

Hollywood Bowl Group - Hollywood Bowl Group keeps striking

Hollywood Bowl Group PLC (LON:BOWL) rose as it announced the new financial year started in line with expectations as expansion continues.

The ten-pin bowling operator said in its preliminary results it has a target of seven to ten investments in the current year, as well as the opening of one new bowling centre and three mini-golf centres, plus further expenditure in technology.

READ: Hollywood Bowl tops expectations

In the year to 30 September, total revenues increased 8% to £129.9mln, while pre-tax profit jumped 15% to £27.6mln and net debt shrank 16% to £2.1mln.

Management boosted the dividend 13% to 11.93p due to the positive performance, as previously announced.

“We have made a solid start to the new financial year and we expect to make further progress in our ongoing refurbishment programme, investment in technology and continued roll-out of customer innovations,” Stephen Burns, chief executive, said in a release.

“I am confident that we will continue to deliver value for all of our stakeholders.”

Analysts at Shore Capital upped their 2020 profit before tax estimate to £28.3mln, rising to £29.8mln in 2021, based on like-for-like revenue growth of between 2% and 3%.

"We continue to view Hollywood Bowl as a core holding in the sector," they said in a note, "Its 60 strong estate is well located and invested, with an attractive pipeline secured and a well-positioned low ticket offering."

Shares rose 7% to 252p on Friday morning.

--Adds broker comment, shares--

Quick facts: Hollywood Bowl Group

Price: 302 GBX

LSE:BOWL
Market: LSE
Market Cap: £453 m
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