Ten pin bowling operator Hollywood Bowl (BOWL:AIM) said it will open all but one of its centres today, in line with the government’s reopening roadmap, and insisted it is well positioned to reach pre-pandemic levels of performance.
The shares fell 1.3% to 233.5p.
The company said it was encouraged by the strong trading seen when it could open, noting the business reached 86% of prior year trading at half-term last October despite having only 67% of lanes available.
ACCELERATED INVESTMENT
During the latest lockdown, Hollywood Bowl has accelerated investment in the estate completing two refurbishments in the first half to 31 March 2021 and a further three planned for the second half.
With more lane dividers now installed, the business will be able to operate at 100% of lane capacity, albeit with a reduced headcount.
After raising £30 million in March 2021, the company has more than doubled its growth plans from six sites to 14-18 new sites a year by 2024.
Hollywood Bowl said the pandemic had presented increased opportunities for bowling and mini golf centres in prime locations and that landlords were more receptive to offering longer rent-free periods and rant based on turnover.
Shore Capital said it would expect ‘an improved performance on reopening, given the vaccine rollout, further investment in lane seating dividers and the eventual further withdrawal of social distancing measures.’
TOUGH FIRST HALF
Hollywood Bowl also reported a first-half pre-tax loss of £14.5 million to 31 March 2021 impacted by the estate only operating for 25% of the period.
Net cash was £37.4 million at the end of the period.
