Hollywood Bowl cheers record sales after wet summer
- Britain's largest bowling operator also owns Puttstars mini golf shops
- Hollywood Bowl achieved a very strong result in July and record turnover in August
- Rival Ten Entertainment recently agreed to an acquisition by Trive Capital Partners
Hollywood Bowl Group posted record sales last fiscal year as poor summer weather prompted families to seek affordable indoor entertainment.
Britain's largest bowling operator, which also owns Puttstars mini-golf shops, announced that sales rose 16.2 percent to £215.1 million in the year ended September.
The Hertfordshire-based company's UK operations achieved a particularly strong performance in July, one of the wettest in British history, and a record turnover of £20.2 million in August.
Impressive result: Bowling operator Hollywood Bowl achieved record sales last year as poor summer weather prompted families to seek affordable indoor entertainment
Hollywood Bowl also achieved its highest ever turnover in the first half of the year thanks to the group's acquisition and opening of new locations, and the introduction of a 'snacks and sharers' lane to boost food purchases.
Over the year, consumers spent an average of 9.9 percent more on food per game as prices for popular menu items remained at pre-pandemic levels.
Trading was further boosted as customers played more games and increased their spend on slot machines at the company's UK locations.
This helped Hollywood Bowl's annual revenue grow 4.5 percent on a comparable basis, as well as the robust performance of the company's Canadian operations.
“Our value-for-money customer proposition has attracted more visits over the past year from new and returning customers who choose to spend more time in our centres,” the group said.
However, pre-tax profits fell 3.4 percent to £45.1 million, partly as the UK government ended a temporary reduced VAT rate for the UK hospitality sector.
At the same time, the Canadian division's profitability was affected by lower margins on Striker's bowling equipment and facilities and the increased share of food and beverage sales at its bowling centers.
Hollywood Bowl plans to open one new center in Canada during the current fiscal year with the goal of adding 10 locations in the country over the next five years.
In Britain, the group plans to launch three locations and renovate a further seven locations this year.
Russ Mould, investment director at AJ Bell, said: 'Bowling remains an affordable treat that frees people from the worries of everyday life, and the performance of the emerging Canadian operation will only further encourage the company to continue its expansion plans. .'
Hollywood Bowl Group Shares were 2.5 percent higher at 289.5p early Monday afternoon and have risen by about a fifth since the start of the year.
The company's annual results come less than a fortnight after its biggest rival Ten Entertainment agreed to a £287 million takeover by US private equity house Trive Capital Partners.
Ten bosses urged shareholders to back the takeover, saying the company was 'not immune to the highly volatile national and international political outlook coupled with a volatile economic backdrop.'