Hollywood Bowl’s (BOWL) investment in its customers’ experience is paying off, helping to drive like-for-like sales 4% higher in the six months to 31 March.
Overall sales growth is 9.3% over the same period.
The ten-pin bowling operator is investing in its outlets to improve customers' bowling experiences to draw in both new and existing bowlers.
Part of this strategy has included the refurbishment of Bradford Hollywood Bowl and the Bowlplex centres in both Birmingham and Dunfermline.
Chief executive officer Stephen Burns has revealed a good Christmas performance after delivering like-for-like sales growth for the sixth consecutive year over the vital trading period.
Hollywood Bowl has six new centres in its pipeline between September 2019 and 2021, including Swindon and Southend.
Shore Capital analyst Greg Johnson expects the bowling operator to generate over £20m of free cash flow in the year to 30 September. This is anticipated to rise to £30m within five years.
‘We believe that this cash flow supports both new build investment and dividends with scope to return up to half the market cap (£153m) over five years,’ comments Johnson.
