Hollywood Bowl strikes higher profits after new openings and refurbishments
Hollywood Bowl Group has seen shares push higher after it said new openings and refurbishments helped to drive profits ahead of expectations.
The entertainment business said it expects pre-tax profit for the year to September 30 to have risen by more than 10%, “slightly ahead” of market forecasts.
The company welcomed a “strong performance” for the year, as it was boosted by its significant investment programme.
Total revenue for the year jumped 7.7%, while like-for-like revenue growth increased by 5.5%.
The group, which runs 60 ten-pin bowling sites across the UK, said it has made progress with its “customer-led strategy” over the year.
It added that it has “delivered returns from product innovations” and benefited from new centre openings as well as its programme of refurbishment and rebrands.
During the year, the group opened new sites at Lakeside and Watford and also invested into rebranding its former AMF bowling sites.
Hollywood Bowl also currently has a pipeline of seven new bowling centres as well as three trial golf sites as it continues its expansion.
The group said it is committed to continue to invest in the business while also using capital to secure shareholder returns.
It said it is therefore “considering” returning capital to its shareholders after boosting profitability.
Stephen Burns, chief executive of Hollywood Bowl, said: “I am delighted to report another year of strong financial and operational performance for the group.
“Our positive like-for-like revenue, with growth seen in all revenue streams, is underpinned by the consistent execution of our customer-led strategy.
“We continue to create value for all of our stakeholders, through the evolution of our great value family entertainment offering and returns generated on our investment in people and centres alike.”
Shares in the company increased 1.8% to 231p in early trading on Tuesday.