Hollywood Bowl rolls straight in first half

Ten-pin bowling operator Hollywood Bowl updated the market on its trading for the six months to 31 March on Wednesday, saying it traded well through the first half of the financial year with total revenue growth of 7.8% and like-for-like revenue growth of 1.2%.

The London-listed firm said that was in spite of the Easter trading period falling in the second half for 2017, compared to the first half for 2016.

Based on historic performance, that switch in the Easter trade reduced like-for-like in the first half by 2.0%.

That continued strong like-for-like performance was driven by the ongoing successful execution of the company’s organic growth strategy, the board said.

It continued to invest in improving the customer experience through transformational centre refurbishments - a total of six were expected to be completed in 2017, with one completed in H1 - and its rebrand programme

Rebrands for four Bowlplex centres had now successfully completed and those centres, along with the other refurbishments, were continuing to trade ahead of original expectations.

A further three Bowlplex centres were due to rebrand to 'Hollywood Bowl' by the end of 2017 with the four remaining centres being completed by the end of 2018.

The group said it continued to benefit from strong cash generation, which combined with lower average net capital investment requirements for the secured pipeline left the group in a “strong” financial position.

Assuming that cash generation remained in line with expectations for the remainder of the current financial year, the board said it would consider the “most appropriate” use of the Group's financial position to enhance shareholder returns.

“This is another strong trading and operational performance from the group which goes to underline the strength of our business model, the great teams in our centres and the success of our capital investment programme,” said chief executive Stephen Burns.

“The group had its most successful Christmas period ever, with like-for-like sales growth for the fifth consecutive year despite extremely tough comparators.”

Since the firm’s last announcement, Burns said the firm successfully opened Southampton, with Derby opening this week, and it also signed a further four sites which will open over the next two financial years.

“We are on track at the half year and are focussed on delivering our goals and maximising the opportunities being created by our refurbishment programme and our strong new centre and acquisition pipeline.”