Hollywood Bowl scores record sales as rainy summer boosts indoor leisure market

The group revealed revenues for the year to September of £215.1m, up by 4.5 per cent on a like-for-like basis compared with the previous year.

It said August was its busiest ever month in the UK, with rainy weather during the peak summer period encouraging people to seek indoor activities.

Consumers visiting its bowling alleys and entertainment venues spent more money per visit, including a 10 per cent jump in spending on food and a 7 per cent rise in spending on amusement machines.

But food prices on popular menu items remain at 2019 levels, it said.

The group, which runs 66 bowling centres in the UK, nine in Canada, as well as five mini-golf venues under the brand Puttstars, said consumer demand for low-cost entertainment has stayed strong as people continue to be squeezed by the higher cost of living.

A family of four can bowl at its venues for £25, the company said.

Meanwhile, pre-tax profits dipped by about 3 per cent to £45m.

But on an adjusted basis, which strips out certain one-off costs, earnings grew by about 11 per cent year-on-year.

Hollywood Bowl also revealed it could add up to 10 new venues in Canada over the next five years, and that it has a “strong pipeline” for growth for expansion including at least three new centres to open in the UK over 2024.

Stephen Burns, Chief Executive of Hollywood Bowl Group, commented:

"This is another excellent performance for the group, achieved against an exceptionally strong prior year. It reflects significant customer demand, as well as the success of our customer focused strategy.

"Innovation of our offer has led to growth across all our revenue lines while keeping our prices low. We have continued to invest in and grow our estate, opening new centres in the UK and Canada where we see significant potential.

“The strength of our balance sheet and our highly cash generative business model supports our profitable growth strategy in the UK and Canada.

"This includes continued investment in our estate, technology and enhancing our customer proposition, and the board's decision to increase the pay-out ratio for our ordinary dividend to 55 per cent from 50 per cent of adjusted profit after tax. Longer term, we see the opportunity to grow our estate to at least 130 centres.

“We have had an encouraging start to the year with people looking for ways to enjoy activities with families, friends and colleagues demonstrating the continued strong demand for high quality, great value leisure experiences.

“Finally, I would like to thank all our team members for their hard work and continued focus on delivering the best experiences for our customers in the UK and Canada."