Hollywood Bowl Shares Rise 6% as Yearly Profit Meets Expectations

Hollywood Bowl shares rose 6% after the company confirmed its full-year profit remains on track. This performance occurred despite a decline in second-half UK revenue caused by a record-breaking heatwave. The operator of bowling centers reported record group revenue for the year ended Sept. 30, showing stability during difficult weather conditions.

Group adjusted profit before tax is expected to align with market expectations, which currently sit at a mean forecast of £51 million. Analysts had projected a range between £48 million and £53.2 million for the period.

"Demand remained resilient during the extended period of record hot weather in the UK," said Stephen Burns, Chief Executive of Hollywood Bowl, in a statement. He noted that the company is currently operating in an environment where consumers are closely watching what they spend.

Impact of Weather on Performance

The UK's exceptionally long, hot, and dry weather impacted foot traffic, causing like-for-like revenue in the region to fall 5.6% during the second half of the fiscal year. Despite this, group revenue for the full year climbed 4.3% to reach a record £261.6 million.

Unlike the UK, the company’s Canadian operations provided a buffer against the domestic slowdown. Total revenue in Canada grew 9.0% to £41.7 million, with like-for-like revenue increasing 1.5% for the year and accelerating to 2.7% growth in the second half.

Expansion and Financial Position

Hollywood Bowl ended the fiscal year with a net cash position of £13.5 million. The company used its capital to return value to shareholders and pursue physical expansion, completing a £2.9 million share buyback during the second half of the year.

The firm opened four new centers, bringing its total footprint to 95 locations. Management maintains its growth strategy, which targets a pipeline of 130 centers by 2033. This expansion plan remains a focus as the company manages regional weather volatility alongside its portfolio growth.