Hollywood Bowl hails record FY earnings and revenue

(Sharecast News) - Shares in Hollywood Bowl rallied on Tuesday after the ten-pin bowling operator reported record full-year revenues and earnings. In a trading update for the year ended 30 September, the company said revenues rose 8.9% on the previous year to a record £250.9m, with total UK revenue 6.4% higher at £212.4m and revenue in Canada up 32.8% to CAD70m (£38.4m).

Total group like-for-like revenue growth was 0.6%, or 1.3% on a constant currency basis.

The company said full-year earnings before interest, tax, depreciation and amortisation were set to be in line with market expectations of £68m.

Chief executive Stephen Burns said: "We are very pleased with our full-year performance, both financially and operationally. We have again demonstrated the success of our proven, customer-led strategy and differentiated business model by delivering record revenues and further profitable growth.

"We have continued to drive strong returns through ongoing investment in our centres and the expansion of our estate in prime locations in the UK and Canada and we have an exciting pipeline of new centres that continues to grow. The strong cash generative nature of our business means we are well-placed to continue investing in the size and quality of our estate and to continue to enhance the customer experience through our service standards and the use of digital technology to drive returns. We remain confident in the long-term growth opportunities in the UK and Canada."

At 1110 BST, the shares were up 6% at 278.25p.

Berenberg retained its 'buy' rating and 440p price target on the stock after the update.

"With its leading position in the UK, ongoing progress in Canada and the strong financial position of the business, we remain positive about Hollywood Bowl's prospects," it said.