Hollywood Bowl Group plc (LON:BOWL), the UK and Canada’s largest ten-pin bowling operator, has announced its results for the six months ended 31 March 2026.
| Financial Summary | H1 FY26 | H1 FY25 | Variance |
| Revenue | £141.5m | £129.2m | 9.5% |
| Like-for-like revenue growth total[i] | 2.3% | 1.6% | +0.7%pt |
| LFL – UK | 2.6% | 1.3% | +1.3%pt |
| LFL – Canada | 0.5% | 3.7% | (3.2%pt) |
| Group Adjusted EBITDA after rent[ii] | £42.2m | £38.8m | 8.9% |
| Group Adjusted PBT[iii] | £32.1m | £29.7m | 8.1% |
| Adjusted EPS[iv] | 14.51p | 13.04p | 11.3% |
| Dividend per share | 4.52p | 4.10p | 10.2% |
| Reported Profit before tax | £27.2m | £28.3m | (3.9%) |
| Reported Profit after tax | £19.5m | £20.6m | (5.3%) |
| Net cash | £26.0m | £22.7m | 14.3% |
| EPS | 11.70p | 12.00p | (2.5%) |
· Continued strong growth in revenue and Adjusted EBITDA after rent (pre IFRS16)
o Group revenue of £141.5m up 9.5% (H1 FY25: £129.2m)
o Group Adjusted EBITDA growth of 8.9% to £42.2m (H1 FY25: £38.8m)
· Group like-for-like (LFL) revenue growth of 2.3%
o UK LFL up 2.6% with spend per game (“SPG”) up 7.6%, growing in all categories
o Canada LFL up 0.5% on a constant currency basis impacted by snowstorms
· Group Adjusted Profit before tax up 8.1% to £32.1m (H1 FY25: £29.7m)
o Strong conversion of increased revenue through to increased profit
o Adjusting items of £3.3m from impairment and earn-out; adjusted for IFRS16
o Reported Profit after tax down (5.3%) to £19.5m (H1 FY25: £20.6m)
· Robust balance sheet and disciplined capital allocation support strong cash generation
o Maintained strong cost control across the Group
o £8.5m capex in H1 FY26, increasing in H2 FY26
o Closing net cash balance of £26.0m with undrawn RCF of £25.0m
o £5m Buyback programme for H2 FY26
· Proposed interim dividend of 4.52p, up 10.2% on H1 FY25
Targeted investment across UK and Canada delivering growth
· UK business benefiting from track record of strategic investment
o Prime location strategy driving returns – new centres exceeding expectations
o Norwich refurbishment completed with continued investment in maintenance
o Remain confident in target of 95 centres by 2035
· Canadian expansion continues at pace
o Largest branded operator in Canada with 16 centres
o New CEO, Canada, supporting team on delivering operational improvements
o New prime location in Edmonton opened in the period and trading well
o Refurbishment programme across legacy estate almost complete
o Targeting 35 centres in Canada by 2032 – acceleration on original 2035 target
Resilient business model and clear strategy supporting performance
· Proactive operational levers improving yield and revenue performance
o Dynamic pricing continues to improve yield and capacity management
o AI optimisation marketing driving increased conversion rates and order values
· Value proposition remains at heart of robust demand and increased spend
o Affordable proposition; family of four can bowl for £26 UK and CA$32 Canada
o Ongoing investment in F&B and amusements enhancing proposition and spend
· Disciplined cost control and insulation against inflationary pressures
o UK labour to revenue ratio of less than 20%
o c.70% of Group revenues not subject to cost-of-goods inflation
o 76% of electricity hedged to the end of FY29, supported by solar
Outlook
· The Group remains confident in delivering on expectations for FY26
· Two new UK centres and one Canadian centre due to open in H2 FY26
· Accelerated new centre pipeline for FY27
· Differentiated proposition and strategy ensures the Group, with its cash generative model, continues to be well-positioned to deliver long-term shareholder value
Stephen Burns, Hollywood Bowl Chief Executive Officer, commented:
“Our strong performance in the first half has been driven by continued demand from customers for our high-quality and affordable leisure experiences. Our clear strategy and targeted investment programme are delivering. Multiple strategic initiatives are underpinning increased spend per game across our estate, and our new and refurbished centres in the UK and Canada are driving robust returns.
“Looking ahead, we are confident in delivering on expectations for FY26, as customer appeal for our value offer remains robust, and we continue to maintain a tight grip on costs. We have an exciting pipeline of centres for H2 and expect this to accelerate in FY27 and beyond, positioning us for sustainable profitable growth over the long-term”
[1] Like-for-like (LFL) revenue is from centres which have traded in both periods and have comparable days in each period. LFL revenue excludes revenues from our non-centre business Striker which acts as a wholesaler and installer for bowling equipment in Canada. Canada LFL revenues are reported on a constant currency basis.
[1] Group Adjusted EBITDA after rent shows earnings before interest, depreciation and amortisation with an expense applied for property rent from leases. This rent replaces the depreciation and interest costs of the Right- of-Use property assets (ROU). This profit is before Adjusting items which management deem to be one-off in nature. The group has previously named this APM as EBITDA pre-IFRS16.
[1] Group Adjusted PBT is the Profit before tax subject to Adjusting items which management consider to be one-off in nature and using property rent instead of ROU Asset depreciation and interest costs under IFRS16. Adjusting items for H1 FY26 are £3.3m of costs, comprising: £0.5m cost for contingent consideration of the Canadian business and a £2.8m non-cash cost for the impairment of an under-performing centre. Adjusting items for H1 FY25 were £0.4m of income, comprising £1.2m cost relating to contingent consideration on the Canadian acquisition and £1.6m of net income from a Covid-19 related insurance claim. Property rent is £1.6m lower than the ROU depreciation and interest charge (H1 FY26: £1.8m lower)
[1] Adjusted EPS uses Group Adjusted PBT and applies the reported tax charge, less tax specifically related to the Adjusting items. This Group Adjusted Profit after tax is then attributed over the weighted average number of shares in issue to generate an earnings per share.
Chief Executive Officer’s Review
The Group delivered an excellent first half performance, achieving record revenues of £141.5m, a 9.5% increase on the prior year, with like-for-like (“LFL”) revenues up 2.3%. This result is a direct reflection of the returns generated from our investment strategy, the quality of our proposition, the discipline of our operational model and the commitment of our teams across both our UK and Canadian territories. Against a challenging backdrop, the resilience of our business model, and ongoing appeal of our value offer for customers is clear.
UK revenue grew 9.4% to £118.4m, with LFL revenue up 2.6%, representing a strong performance that reflects both our continued investment in the customer experience and the robust appeal of affordable, experience-led leisure. In Canada, revenue increased 12.8% to CA$42.9m (£23.2m), with LFL revenue up 0.5%, on a constant currency basis, demonstrating meaningful progress as we apply our proven playbook in a highly fragmented and underserved market.
Group adjusted EBITDA after rent increased to £42.2m, up 8.8% on the prior year. Group adjusted PBT increased to £32.1m, up 8.1% on the prior year, a result that reflects disciplined cost management, and the structural resilience of our business model and strong conversion of increased revenues to profits.
Reported profit after tax for the period was £19.5m (H1 FY25: £20.6m). The strong trading performance of the business, combined with the highly cash-generative nature of our model, resulted in net cash of £26.0m at the period end, after payment of the FY25 final ordinary dividend of £15.3m.
In line with our capital allocation policy, the Board has declared an interim dividend of 4.52 pence per share; representing 34% of the FY25 final ordinary dividend and 10% growth on the comparable period last year, with a record date of 26th June 2026. In addition, we will be undertaking a £5m share Buyback programme in the second half of FY26. This reflects our confidence in the ongoing strength of the business and our commitment to delivering attractive returns for shareholders.
Revenue Performance
Our revenue performance in the first half demonstrates the effectiveness of our strategy across both territories. We remain firmly focused on driving revenue through complementary investment levers: enhancing the customer experience, improving the quality of our centres, and expanding our estate through prime location new centre openings, in both the UK and Canada.
Consumers continue to prioritise experiences and shared social occasions over discretionary retail spend, and bowling’s broad, multigenerational appeal positions the Group, with its prime locations and well-invested proposition, strongly within the competitive socialising market.
In the UK, total revenue grew 9.4% to £118.4m, with LFL revenue up 2.6%, a strong result achieved despite ongoing pressure on household budgets. In Canada, revenue grew 12.8% on a constant currency basis to CA$42.9m (£23.2m), with LFL revenue up 0.5%, impacted by unseasonably heavy snowfall in certain key periods.
Our Canadian business accounts for 16% of Group revenue, up from 9% in FY22, and this is set to increase further in the coming years, reflecting the scale and momentum we are building in that market.
Value proposition
We are the largest branded bowling operator in both territories, and whilst the level of competitive socialising operators has increased in a number of catchments in recent years, our scale, proven operating model and first-mover advantage continue to translate into meaningful commercial benefits; through revenue resilience in competitive markets, prime locations, supplier relationships, customer reach and capital efficiency.
Affordability remains central to our proposition and is increasingly important as households remain selective with their discretionary spending. A family of four can bowl at peak times for £26 in the UK and CA$32 in Canada; a compelling value position that continues to resonate with customers across a broad demographic base. This accessibility, combined with a consistently high-quality experience, reinforces brand loyalty and our position as the most affordable branded bowling operator.
Proactive levers to drive demand
Our increasingly sophisticated approach to yield management continues to be a key strength and differentiator. Dynamic pricing allows us to balance value-led accessibility during off-peak periods with carefully controlled capacity management at peak demand, supporting revenue quality while protecting the integrity of our value proposition. Each initiative is executed with precision at a centre and day-part level rather than through a broad, one-size-fits-all approach.
Digital marketing and our evolving ecommerce platform are playing an increasingly important role in both revenue performance and demand management. AI-enhanced improvements to our online booking journey and marketing tools have supported improved conversion rates, higher average booking values, and greater effectiveness in demand stimulation. These tools also enable more personalised customer communication, supporting upsells and cross-sells in a way that feels relevant and tailored rather than transactional. They also provide us with richer visibility of customer behaviour to support more informed decision-making across pricing, promotion and capacity planning.
Investing in growth
Our diversified product mix continues to underpin revenue quality and spend-per-game performance, which increased to £12.77 in the UK, up 7.6%, and CA$19.10 in Canada, up 9.7%. Ongoing investment to refresh and innovate within our second largest category – amusements – continues to enhance the overall customer experience while supporting incremental spend, with amusement spend per game increasing to £3.69 in the UK, up 12.7%, and CA$3.34 in Canada, up 17.6%. Selective trials of new ancillary products including E-Darts, alongside improvements in payment technology, ensure that our total customer proposition evolves to changing customer expectations, and remains dynamic, engaging and relevant.
With the support of newly appointed Canadian CEO, our Canadian management team are making tangible impacts on operational performance, with our full range of demand generation and operational levers increasingly being deployed to good effect across both territories.
Cost Control
Disciplined cost control is a core organisational priority and continues to support margin resilience and strong cash generation. In a period characterised by persistent inflationary pressure, including labour and utilities costs, we have proactively managed these headwinds through detailed operational management and a business model that is structurally well-insulated against external cost volatility.
Approximately 70% of Group revenues are not subject to cost-of-goods inflation, providing meaningful protection. Energy commodity costs are largely hedged, with 76% of electricity requirements secured through to the end of FY29; including 12% from on-site solar, significantly reducing our exposure to market volatility and providing excellent forward visibility on a key cost line.
Labour productivity continues to be managed at a granular, centre-level basis, ensuring service standards are delivered while controlling payroll costs, with UK centre payroll remaining below 20% of UK revenue and Canada below 26%. Ongoing investment in team member training, engagement and operational capability has supported the consistent delivery of our leading customer experience, and we are proud to have achieved record levels of both customer satisfaction and team member engagement, maintaining our Sunday Times Best Places to Work award and our Great Place to Work accreditation in Canada. These achievements are a direct reflection of the quality of our teams and the culture we have built across the Group.
Strategic Progress
Our growth strategy is progressing well, with strong momentum across both territories.
Canada
In Canada, our expansion programme continues at pace, with a clear focus on opening high-quality greenfield locations in prime, high-footfall destinations. Our three most recently opened centres; Kanata, Creekside and Edmonton, the latter opening in H1 of this year, are all performing well and are progressively improving average estate returns as the portfolio evolves from the platform Splitsville estate we acquired in FY22. The refurbishment programme across the legacy estate is now largely complete. Our new centre pipeline in Canada continues to develop well, and we remain on track to open one centre in H2, with five planned to open in FY27 and 40 further potential locations identified. The Canadian market remains highly fragmented, and as the largest branded operator, we are well positioned to capture future growth opportunities subject to them meeting our strict investment criteria. We are now targeting an estate size of 35 centres by 2032, an acceleration on our original target of 2035, reflecting both the strength of our pipeline and the confidence we have in the market opportunity.
UK
In the UK, our new centres continue to perform well. Our completely rebuilt Liverpool Edge Lane centre reopened in FY26 in addition to our new Reading centre, and both have exceeded expectations since launch, a further endorsement of our site selection discipline and our ability to deliver an excellent customer experience from day one. Our UK pipeline remains robust, with two openings planned for H2, four centres committed across FY27 and FY28 and a further 20 potential locations identified. We remain confident in reaching a UK estate size of 95 centres by 2035.
Our new Cardiff centre will open in the second half to extend our presence in the Cardiff market ahead of the planned closure of our existing centre in FY31. The new centre will be our largest UK venue to date, positioned in the city’s prime retail destination and featuring E-karting and other new ancillary products alongside our core bowling offer. We also completed a refurbishment in Norwich in the half, alongside continued investment in our maintenance programme across the estate.
Disciplined investment
Our strong cash generation and robust balance sheet provide the financial flexibility to continue investing in estate growth and deliver value to shareholders, while ensuring that every investment decision remains grounded in a clear strategic rationale and robust returns criteria.
Outlook
The Group enters the second half in excellent shape, and with confidence. In this uncertain environment, our sector-leading proposition remains accessible and is underpinned by consumer trends supporting demand for affordable leisure. Our market-leading position and scale continue to provide a clear and sustainable competitive advantage across both territories.
We are well positioned to manage costs while continuing to invest, supported by strong cash generation, protection from energy costs, proven operational discipline and a robust balance sheet that offers significant capital flexibility. With a high-quality pipeline of new centres in both the UK and Canada, ongoing investment in our existing estate and a highly disciplined approach to capital allocation, we remain confident in the outlook for the full financial year.
The fundamentals of our business are strong, our strategy is clear, and our teams are executing with skill and purpose. The Group remains well positioned to deliver sustainable growth and attractive long-term returns for shareholders.
Stephen Burns
Chief Executive Officer
27 May 2026
