Hollywood Bowl Group (BOWL) H2 2019 earnings summary

Executive summary

• Record FY2019 revenue of £129.9m and profit before tax of £27.6m; LFL revenue grew 5.5%.

• Continued investment in refurbishments, technology and new centres supported customer engagement and spend growth.

• FY2020 trading remained in line with the Board’s expectations.

Financial highlights

• Revenue rose 7.8% to £129.9m; gross profit increased 7.3% to £111.4m, with gross margin of 85.7%.

• Operating profit increased 14.3% to £28.4m; operating margin reached a record 21.9%, up 1.3 pts.

• Adjusted EBITDA rose 5.7% to £38.2m; adjusted EBITDA margin was 29.4%.

• Profit before tax increased 15.3% to £27.6m; profit after tax rose 18.6% to £22.3m.

• Statutory EPS increased 18.7% to 14.86p.

Outlook and guidance

• FY2020 plans include 7–10 refurbishments/rebrands and four new openings: one bowling centre and three mini-golf centres.

• FY2020 expansionary capex expected at £9m–£10m; maintenance capex expected at ~£8m.

• Effective tax rate expected to be 19.0% in FY2020.

• A further 677 scoring lanes across 32 centres are scheduled for FY2020 installation; six centres are due to receive Pins on Strings.