Hollywood Bowl Group (BOWL) H2 2024 earnings summary

Executive summary

• Achieved record Group revenue of £230.4m in FY24, up 7.1% year-over-year, with strong growth in both UK and Canada.

• Group adjusted EBITDA pre-IFRS 16 reached £67.7m, a 4.3% increase; net cash at year-end was £28.7m after significant CapEx and dividend payments.

• Opened eight new centers (four in UK, four in Canada), refurbished multiple sites, and maintained a strong investment pipeline.

• Maintained a progressive dividend policy, proposing a total ordinary dividend of £12.06 per share, up 2.1% from the prior year.

• Adjusted earnings per share declined to 18.82p, reflecting higher costs and impairments.

Financial highlights

• UK revenues grew 3.8% to £199.7m; Canada revenues up 42.2% (constant currency) to CAD 53m, driven by new center openings and acquisitions.

• Like-for-like revenue CAGR of 5.9% in UK since FY2019; Canadian like-for-like revenues up 6.3%.

• Gross profit margin rose to 83% (UK: 83.9%, Canada: 76.8%).

• Free cash flow generated: £16.9m; £26.2m paid in dividends.

• Adjusted profit after tax was £32.3m, down from £36.8m year-over-year.

Outlook and guidance

• Positive outlook for FY25 with early like-for-like growth in UK and higher revenue growth expected, supported by new center openings and refurbishments.

• At least ten refurbishments and six new centers planned for FY25; CapEx forecasted at £40–45m.

• Confident in achieving low single-digit like-for-like growth in UK, with high single-digit total growth including new centers.

• Well positioned to manage inflationary pressures due to favorable P&L structure and hedged electricity costs until end FY2027.

• National insurance and living wage increases to impact input costs, but robust balance sheet supports investment.