MIDAS SHARE TIPS UPDATE: Investing in Hollywood Bowl can increase your score

Canada is the second largest country in the world, with an area of ​​almost four million square kilometers, 40 times larger than Great Britain.

However, not many people live in the land of elk and maple syrup: fewer than 40 million, compared to almost 70 million here.

These statistics are important for a company like Hertfordshire Hollywood bowlthe best bowling group in Britain.

In May 2022, with many businesses still recovering from the pandemic, Hollywood Bowl made a move into Canada, acquiring five established venues for £10.6 million.

There are currently thirteen centers and two more will be operational in February. Revenues have tripled and growth is on the agenda.

CEO Stephen Burns has been at the helm of Hollywood for ten years, together with financial director Laurence Keen. Their track record inspires confidence.

Hollywood was listed on the stock market eight years ago with 54 centers and a valuation of £240 million.

Today there are 85 locations and the value of the company has more than doubled to £570 million. More locations will open in the coming months and there are plans to build up to 130 centers in the coming years, with 95 here and the rest in Canada.

Sites must be selected carefully. Bowling centers work best when they are close to where people live, shop or have fun. That’s relatively easy here, but less so in a country where the nearest city can be hours away.

Hollywood Bowl already has locations in Toronto, Vancouver and Calgary. As awareness increases, more attractive locations are offered, leading to expansion and revenue growth.

Last week, Burns said revenues for the year to September 30 will be more than £230m, fueled by strong performance from Canada.

Full year results will be published just before Christmas, but brokers expect a 3 per cent rise in profits to £49.3 million and a 12p dividend.

Special payouts are a hallmark of Burns and Keen, so additional money could come in in the coming months as both feel confident about the long-term prospects.

Bowling is a healthy pastime, attractive to both families and colleagues. It’s cheap too: less than £7 for adults and less than £6 for children. For food, drink and arcade games, the average spend is just over £11 – still less than the national living hourly wage.

Midas judgment: Midas recommended Hollywood Bowl in 2017 when shares were at £1.89. Covid-19 has ravaged the shares but have since bounced back to £3.30. There should be more to come.

Burns and Keen know what they are talking about, there is a clear strategy for growth and bowling offers fun for all at a time when doom and gloom seem all too ubiquitous.