Hollywood Bowl Group (BOWL) H2 2016 earnings summary

Executive summary

• FY16 revenue rose 23.9% to £106.6m and Group Adjusted EBITDA rose 42.6% to £29.4m; like-for-like sales grew 6.8%.

• Bowlplex integration, refurbishments and customer-focused investment supported growth; current trading was in line with Board expectations.

Financial highlights

• Revenue £106.6m, up 23.9% YoY; gross profit £89.4m, up 25.8%; gross profit margin 83.9%, up 1.3 percentage points.

• Operating profit increased 10.3% to £14.4m; Adjusted EBITDA increased 42.6% to £29.4m.

• Profit after tax was £1.2m vs £3.6m; reported EPS was 1.12p, while adjusted underlying EPS was 9.3p.

• Exceptional items were £5.2m, including IPO costs and the cost to exit the Liverpool lease.

Outlook and guidance

• Current trading was in line with Board expectations; the Board expressed confidence in long-term prospects.

• Southampton opened in December 2016 and Derby was scheduled to open in April 2017; two additional centres were planned for FY18, with five opportunities in advanced stages.

• Refurbishment and rebranding remained on track, with a plan to refurbish and rebrand three Bowlplex centres per year.