Hollywood Bowl Group PLC on Friday said it will reinstate its dividend after a record first half.

The ten-pin bowling operator expects to report revenue for the first half to March 31 of £91.3 million, a marked rise from £12 million from a Covid-19-hit year prior.

It represents a ‘record’ interim revenue figure, the company explained.

Compared to pre-pandemic times, revenue was up 36% and climbed 27% on a like-for-like basis.

Hollywood Bowl said: ‘The strong, sustained financial performance and significant cash generation from the group’s operations since reopening, means that the board intends to reinstate a dividend.’

Four of its best five months ever for revenue came during the half, Hollywood Bowl added.

‘The group’s strong performance was driven by the ongoing demand for high-quality and affordable experiential leisure. As previously reported, the group started the financial year very well and despite a small impact from Omicron midway through the period, trading in February and March continued to be strong as customers sought out great value for money experiences,’ Hollywood Bowl said.

The company tips annual results to be ahead of market expectations.

Hollywood Bowl added: ‘The group continues to drive returns through investment in the quality of the estate via the accelerated new centre openings strategy and the active refurbishment programme. Three refurbishments in Glasgow, Birmingham and Shrewsbury were completed in the first half, with at least three further refurbishments planned for the remainder of the current financial year. Two new centres opened in the first half - Hollywood Bowl Resorts World, Birmingham and Puttstars, Harrow - with two further centres on track to open in the second half.’

It added that cost control ‘remains a focus’. Hollywood Bowl is not ‘immune from inflationary pressures’, it cautioned.

‘Centre level labour accounts for less than 20% of sales and the group has taken a number of mitigating actions, including maintaining a simplified food menu introduced during the pandemic. The main potential exposure is energy costs, which the group has hedged out to the end of FY2024,’ Hollywood Bowl added.

Hollywood Bowl shares were 6.1% higher at 277.00 pence each in London on Friday morning.

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