Hollywood Bowl Group
plc
("Hollywood Bowl" or the "Group")
Trading update for the year
ended 30 September 2024
and Notice of
Results
CONTINUED PROFITABLE GROWTH
AND FURTHER EXPANSION IN UK AND CANADA
Hollywood Bowl, the UK and Canada's
largest ten-pin bowling operator, announces a trading update for
the financial year ended 30 September 2024 (FY2024).
Key
highlights
Financial
· Record revenues of £230.4m,
up 7.2% compared to FY2023
o UK
total revenue up 3.8% on FY2023, to £199.7m
o Canada revenue up 42.2% on a constant currency
basis1, to CAD 53.0m (£30.7m)
· Total Group like-for-like
(LFL)2 revenue growth of 0.2%
o UK
total LFL: 0.0%, with UK bowling centres LFL of +0.3%
o Canada total LFL: +6.3%, with Canada bowling centres LFL of
+5.9%, on a constant currency basis1
· The Group expects to report
EBITDA pre-IFRS 16 ahead of market expectations4 and in
excess of £65.0m
Operational
· Seven
UK and four Canadian refurbishments completed
· Eight
centres added in the year, four in UK and four in Canada, including
first new Canadian development which opened in Waterloo, Ontario in
July
· Portfolio now stands at 72 UK centres3 (FY2023: 70)
and 13 Canadian centres (FY2023: 9)
· Strong
new centre pipeline for FY2025 and beyond
o Four
bowling centres due to open in the UK and two centres in Canada in
FY2025
o On
track to achieve target of 130 centres across the Group by
2035
· New
customer reservation system rolled in the UK in July; pilot
commenced in Canada
· £28.6m
net cash at year end, following record levels of capital investment
in FY2024 (FY2023: £52.4m)
· Undrawn £25m revolving credit facility
Note:
1. When reviewing in Canadian
Dollars (CAD) to allow for the disaggregation of foreign currency
effect
2. LFL revenue growth is total
revenue excluding any new centres and closed centres. New centres
are included in the LFL revenue growth calculation for the period
after they complete the calendar anniversary of their opening date.
Closed centres are excluded for the full financial year in which
they were closed. FY2023 LFL revenue excludes the VAT rebates of
£0.3m relating to prior periods.
3. York Hollywood Bowl and Puttstars
were amalgamated into one centre during the year and Surrey Quays
Hollywood Bowl closed on 3 September 2024 in line with the closure
of the wider leisure park in which it was located.
4. Based on
company compiled consensus average of analysts' expectations for
FY2024 where EBITDA pre IFRS 16 is £64.1m.
Trading performance
Hollywood Bowl delivered another
excellent financial and operational performance in FY2024 as a
result of the successful execution of its customer-led strategy,
generating record revenues of £230.4m and total Group LFL revenue
growth of 0.2%.
Total UK LFL revenues were flat in
the year, in line with expectations, with 0.3% LFL revenue growth in the Hollywood Bowl centres and
a decline in LFL revenues in the Puttstars trial concept centres.
The total UK LFL performance reflects the anticipated normalisation
in trading following three years of exceptional performance with
compound annual growth of over 6% delivered since 2019. Canada
continues its strong performance as LFL revenues grew 5.9% on a
constant currency basis in the bowling centres with total LFL
revenues (including Striker Bowling Solutions) up 6.3%.
Investment in the size and quality
of the Group's estate continues to drive strong returns and enhance
our customer proposition, resulting in increased dwell time and
higher spend-per-game.
The Group successfully completed the
rollout of its new, internally developed customer reservation
system to all UK centres in July 2024, resulting in increased
usability, reliability, speed, and sales conversion rates. The
technology is currently being piloted in Canada with a full roll
out expected in H1 FY2025.
The Group remains well insulated to
ongoing cost pressures with over 70% of revenue not subject to
cost-of-goods inflation, enabling it to maintain its value for
money pricing while continuing to invest in the customer
experience.
As a result of the successful
execution of its customer proposition and the continued strong
demand for high quality, great value leisure experiences, the Group
expects to report EBITDA pre-IFRS 16 ahead of market expectations
and in excess of £65.0m.
UK
Hollywood Bowl added four new
centres to the estate, including three new centres in Dundee,
Colchester, and Westwood Cross (Kent) as well as the acquisition of
Lincoln Bowl. The Group is on track to open four new centres in the
UK in FY2025.
The Group completed seven
refurbishments this year and Pins on Strings has now been rolled
out to 91% of the UK bowling estate.
The Group has continued to invest in
solar panels with 42% (30 centres) of the UK estate now fitted with
solar arrays, reducing reliance on bought-in energy and exposure to
energy prices.
Canada
The Group has made further progress
with its growth strategy in Canada. Four new centres were added
during the year with three acquisitions in the first half, Guelph
(Ontario), Richmond Riverport (British Colombia) and Saskatoon
(Saskatchewan), extending the Group's geographical presence, and
the opening of its first new, state of the art development in
Waterloo, Ontario in July.
The Group is on-site at two new
centres, in Creekside (Calgary) and Kanata (Ottawa), both of which
are due to open in H1 FY2025. The pipeline continues to build with
further sites in either legals or in negotiations.
The refurbishment programme is
progressing well. The first four completed refurbishments are
performing in line with expectations and receiving excellent
customer feedback, providing further confidence in the growth
opportunities within the Canadian market.
Stephen Burns, Chief Executive Officer,
said:
"We are pleased with our full year
performance, both financially and operationally. We have delivered
further profitable growth, demonstrating the success of our
proven, customer-led strategy. We have continued to grow our estate
in the UK and Canada and drive strong returns through the ongoing
investment in our centres. Our team's dedication to providing
consistently excellent customer experiences is reflected in
increased dwell time, higher spend per game and positive customer
feedback. We remain confident in the long-term opportunity for
future profitable growth across both the UK and Canada. Our strong
cash position means we are well placed to continue to invest in our
growth, increasing the size and quality of our estate and looking
to continually enhance the customer experience."
The Company expects to publish its
final results for the twelve months ended 30 September 2024 on 17
December 2024.
