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.
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.
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