Hollywood Bowl Group PLC (LSE:BOWL), the UK's largest ten-pin bowling operator, rolled back into the black as it made more revenue than before the pandemic in the first half of its current fiscal year, while also announcing a new acquisition in Canada.
Revenue came to £100.2mln for the half-year to 31 March, a new record for the firm and 36.3% higher than the first half of 2019.
To further expand internationally, the company has acquired Splitsville, a Canadian bowling chain for C$17mln (£10.6mln).
The deal will have an initial cash payment of C$13.6mln and a deferred consideration of C$3.4mln.
Canada-based Teaquinn Holdings, which incorporates five Splitsville bowling centres and the Striker Bowling Solutions business, provides a strategic entry point into a fragmented and underinvested market, the London-listed company said.
With Teaquinn reporting net income of C$1.9mln in 2021, the UK firm said the deal is expected to enhance earnings for fiscal 2023.
Reflecting on its own performance, Hollywood Bowl said "exceptional pent-up demand" drove profit with the group's profit after tax 53% higher than 2019 levels at £27.0mln, and compared to a £11.6mln loss in the first half of last year.
Like-for-like revenue grew 26.8% versus 2019.
The company reinstated its dividend at 3p.
Chief executive Stephen Burns said the group's balance sheet strength "supports our ability to continue to invest in our growth strategy, including growing our portfolio in the UK as well as our entry into the Canadian market. While we are aware of the financial challenges many of our customers are facing, we continue to provide a great value for money experience."
Shares rose 2.9% to 245p on Wednesday morning.