Hollywood Bowl reports improved EPS amid strong pent-up demand

Hollywood Bowl reported revenues of £71.9m in its final results on Wednesday, down from £79.5m year-on-year, although the company cited “strong pent-up demand” following the reopening of leisure in England in May.

The London-listed firm said its gross profit for the 12 months ended 30 September was £61.6m, down from £67.9m year-on-year, while group adjusted EBITDA was £30.6m, up from £29.8m a year earlier.

Its operating profit was broadly stable at £9.6m, compared to 2020’s £9.9m, while group profit after tax rose to £1.7m from £1.4m.

Basic earnings per share improved to 1.05p from 0.9p a year ago, as the company swung to net cash at year end of £29.9m, from net debt of £8.7m in the 2020 financial year.

“The past year has been challenging but also rewarding,” said chief executive officer Stephen Burns.

“I am delighted about the excellent performance since reopening, including delivering record activity for both a single day and an entire month, exceeding our 2019 financial year trading levels on a like-for-like basis, and delivering a profit for the year.

“I am proud of all of our team members who have worked hard to achieve this success.”

Burns said that, notwithstanding ongoing uncertainties around pandemic restrictions, Hollywood Bowl was “confident” in the continued strong ongoing demand for “fun, safe and family-friendly” leisure activities.

“Our strong balance sheet and highly cash generative business model means we are well positioned to continue our refurbishment programme and rollout of both the Hollywood Bowl and Puttstars brands.”

At 1109 GMT, shares in Hollywood Bowl were down 0.65% at 228p.