Hollywood Bowl Group plc (LON:BOWL) has announced its Interim Results for the Six Months ended 31 March 2025.
STRONG PERFORMANCE AND PROFITS IN LINE DRIVEN BY INVESTMENT IN GROWTH STRATEGY AND CONTINUED DEMAND FOR FAMILY-FRIENDLY, AFFORDABLE LEISURE
Financial summary
| Adjusted results1 | Statutory results | |||||
| H1 FY2025 | H1 FY2024 | Mvt | H1 FY2025 | H1 FY2024 | Mvt | |
| Revenue | £129.2m | £119.2m | +8.4% | £129.2m | £119.2m | +8.4% |
| Group EBITDA pre-IFRS 162 | £38.8m | £38.6m | +0.5% | N/A | N/A | N/A |
| Group EBITDA2 | £49.7m | £48.3m | +2.9% | N/A | N/A | N/A |
| Group profit before tax2 | £28.0m | £30.9m | -9.4% | £28.3m | £29.5m | -4.0% |
| Group profit after tax | £20.6m | £23.3m | -11.6% | £20.9m | £21.9m | -6.0% |
| Earnings per share | 12.01p | 13.60p | -11.6% | 12.00p | 12.78p | -6.1% |
| Interim ordinary dividend per share | N/A | N/A | N/A | 4.10p | 3.98p | +3.0% |
Key highlights
· Record revenues and EBITDA with growth in UK and Canada
o Total Group like-for-like (LFL) revenue growth of 2.1%, negatively impacted by 0.9% due to movement of Easter and 0.2% due to the additional leap year trading day in 2024
o UK LFL total revenue up 1.3%, with bowling centres LFL of 1.5%
o Canada LFL total revenue up 13.6%, with bowling centres LFL of 3.7%, on a constant currency basis
o Group adjusted EBITDA pre-IFRS 16 up 0.5% to £38.8m
o Underlying group adjusted EBITDA pre-IFRS 16 grew by 8.8%, after taking account of prior year one off impacts totalling £3.0m2
o Good returns from investments in new centres and refurbishments in the UK and Canada
o Strong net cash position at 31 March 2025 of £22.7m; new undrawn £25m RCF signed with £5m accordion at improved margin
o Successful completion of £10m share buyback – equivalent to two years of special dividends based on historical payouts
o Interim dividend of 4.10 pence per share, up 3.0% vs H1 FY2024 (3.98 pence per share)
1 A reconciliation between adjusted and statutory is shown later in the report.
2 The Group’s adjusted EBITDA pre-IFRS 16 rose by 0.5% to £38.8m. Compared to the first half of FY2024, the Group faced negative impacts from one-off items totalling £3.0m, including business rates rebates (£1.1m), closures at Surrey Quays and Liverpool Edge Lane (£0.9m), and the Easter/leap year effect (£1.0m). Adjusting for these, the rebased H1 FY2024 Group adjusted EBITDA pre-IFRS 16 would be £35.8m, resulting in 8.8% growth for H1 FY2025. This £3.0m negative impact is also seen in the comparatives for H1 FY2024 on Group profit before tax (£2.2m on profit after tax).
UK (75 centres at period end)
· Driving returns through investment in UK estate – on track to open a record five new centres in FY2025
o Opened three new centres in Swindon, Preston and Inverness, all trading well and in line with expectations (at least 19% ROI)
o Completed four refurbishments, all trading above UK target hurdle rate of 33% ROI
o On track to open two new centres and complete one refurbishment in H2 FY2025
o Pipeline continues to grow with five new locations signed
Canada (15 centres at period end)
· Since acquiring our Canadian business in May 2022, it has trebled in size from 5 to 15 centres, with revenue and EBITDA more than tripling over the same period.
· Growing our market-leading presence in Canada and receiving excellent customer feedback from refurbished and new centres
o Two new “Hollywood Bowl style” centres opened in Kanata, Ottawa and Creekside, Calgary, both trading well and above expectations
o Two refurbishments completed in Meridian, Calgary and Glamorgan, Calgary, performing well and receiving excellent feedback
o On track to complete four refurbishments in H2 FY2025
o Starting construction at Christy’s Corner, Alberta in H2 FY2025, due to open in H1 FY2026
o Pipeline continues to grow with three new locations signed
· Continued investment in customer experience in the UK and Canada driving higher spend per game (SPG) and record NPS
o 6.3% higher UK SPG with 11.6% increase in amusement SPG following investment in new game formats and space optimisations
o 5.4% higher Canada SPG with 10.7% increase in food and drink SPG reflecting improvements to menu and service
o Pins on Strings roll out complete in the UK and underway in the Canadian estate, saving costs and enhancing the customer experience
o New reservation system roll out completed across the Group, significantly improving customer and team experience
Outlook
· Cash generative business model and strong balance sheet supports investment in future growth
o Strong pipeline for H2 and beyond, on track to achieve target of 130 centres by 2035
o Resilient demand for value for money leisure experiences
o Well-insulated from inflationary pressures with over 70% of revenue not subject to cost of goods inflation. Low labour-to-revenue ratio of under 20% in the UK; well-positioned to mitigate higher employment costs
o The recent warm and dry weather – marking the driest spring in over a century – has had a short-term impact on trading over that period. In response, we have proactively managed margins and costs, maintaining strong operational performance, which remains at historically high levels.
o Despite this temporary headwind, we remain confident in our outlook for the second half of the year. We are well-prepared for the key July and August holiday period and continue to expect full-year EBITDA to fall within the range of current analyst forecasts.
Stephen Burns, Hollywood Bowl Group Plc Chief Executive Officer, commented:
“We delivered another strong financial performance in the first half and made excellent progress with our growth strategy in the UK and Canada. Investment in new centres, our refurbishment programme and customer experience continue to deliver excellent returns and record customer satisfaction scores.
“The prolonged period of unprecedented dry and warm weather from March to May, has had a short-term impact on trading. However, we’ve responded quickly, managing margins and costs while maintaining strong operational performance, which remains as good as it’s ever been. Looking ahead, we’re well positioned for the key summer holiday period, and we remain confident that full-year EBITDA will be within the range of current analyst forecasts. The significant investments we have made in the estate over the last 12 months, put us on course to enhance future EBITDA returns.”
“We remain focused on our growth strategy, supported by our strong balance sheet. We have an exciting, growing pipeline in the UK and Canada and we remain on track to reach 130 centres over the next ten years.”
