Hollywood Bowl Group plc, the UK's market leading ten-pin bowling operator, has posted interim results, and revealed that it has upped its new opening target to14-18 new centres by 2024,
The results, for the six-month period ended 31 March 202, reflect the impact of lockdowns during the first half in which the business was fully closed for 75% of the period and operated with trading restrictions for the remainder.
Strong customer demand expected to continue upon May reopening
· Profitable trading after the first lockdown with solid performance in October
· October £10.16 average spend per game in line with pre-COVID levels despite trading restrictions (H1 FY20: £10.29)
· Lane seating dividers in all centres allows all lanes to be available from reopening with continued Covid-secure measures
Extending the new centre pipeline in prime locations
· Two new high-quality locations agreed for a Hollywood Bowl in Resorts World Birmingham and Puttstars in Harrow
· Three new Hollywood Bowl and eight Puttstars sites at an advanced stage of negotiation
· Overall target doubled to 14-18 new centres by 2024
Investing in the existing estate
· Two new refurbishments completed in Stevenage and Basildon
· Three planned refurbishments during 2021 (Glasgow Quay, Cheltenham and Glasgow Coatbridge)
· ROI expected to be in line with pre-pandemic levels
Continued innovation of the customer offer
· New version of Pins on Strings technology installed in two centres, bringing the total completed to 20 with four more planned in H2 and six per year going forward
· Roll out of new scoring system on track to complete in H2 - integrated into CRM system
· New CRM platform and web booking engine, expected to improve customer targeting and online booking experience, due to launch in H2
Cash conservation and strengthened balance sheet
· Equity placing raising gross proceeds of £30m to take advantage of new centre opportunities and restart organic investment programme
· Covenant changes agreed with its lending bank, Lloyds, to ensure the Group could open with the ability to continue to invest, as well as providing additional headroom in the event of further prolonged closures
· Negotiations with landlords resulted in reduced cash rent for H1FY21 to £3.6m, a decline of £4.6m compared to H1 FY2020
Stephen Burns, Chief Executive Officer of Hollywood Bowl Group, commented, 'We are excited to be reopening and welcoming our customers and team members back.
'We are emerging from this challenging year of continuous lockdowns in a strong position to capitalise on the opportunities to invest in and significantly grow our portfolio of ten-pin bowling and mini-golf centres in prime locations and are pleased to be starting construction on three new centres later this year.
'The considerable demand we saw from customers when we reopened after the first lockdown and the strength of our pre-bookings for May gives us confidence that we can recover to pre-pandemic performance levels as families flock back for fun, celebrations and affordable activities.'