Hollywood Bowl sees revenues jump
The UKs largest 10 pin bowling firm, Hollywood Bowl, has seen a revenue jump of 9.3 per cent in the first half of the financial year. The company also posted a like-for-like revenue growth of four per cent for the last six months ending 31 March 2018. Shares in the bowling firm jumped over two per cent after the figures were announced.
The increase in sales follows the opening of stores in Dagenham and Yeovil, taking the company to 59 stores across the country after it launched venues in Southampton, Derby and the O2 last year. The company also has plans to open in Swindon and Southend.
“Hollywood Bowl has issued an encouraging half year trading update with strong revenue growth and a further strengthening of its site pipeline,” said Greg Johnson, research analyst at Shore Capital. “Hollywood Bowl is an exceptionally well-run business in an attractive space of the UK consumer market.”
The company's strong revenue performance follows a jump in its share price of almost nine per cent last December after the leisure company reported rapid growth for the year. Revenues grew eight per cent to £114m, with like-for-likes improved 3.5 per cent. Underlying earnings grew 13.7 per cent to £33.4m.
"Hollywood Bowl is expected to generate over £20m of free cash flow in the current year (building to £30m within five years)," said Johnson of the company's latest figures. "We believe that this cash flow supports both new build investment and dividends (ordinary and special) with scope to return up to half the market cap over five years."