1st Jun 2020 12:00
(Alliance News) - Hollywood Bowl Group PLC on Monday reported a lower interim profit but expressed confidence following the relaxation of the government's Covid-19 lockdown.
For the six months ended March 31, Hollywood Bowl posted revenue of GBP69.2 million, up 3.3% year-on-year from GBP67.0 million. However, pretax profit was 12% lower at GBP14.5 million from GBP16.4 million.
The fall in profit was attributed to an increase in finance expenses which totalled GBP4.8 million, compared to GBP482,000 the year prior.
No interim dividend was declared, as previously announced, in order to preserve liquidity amid Covid-19-related uncertainty. For comparison, an interim dividend of 2.03p per share was declared in the comparative period the previous year.
Turning to the ongoing pandemic, the Hertfordshire-based company said that in addition to cancelling the dividend payout, it raised GBP10.5 million through a placing, agreed with its lenders to waive covenants on its debt facility until the first half of 2021, and agreed a GBP10 million extension to its revolving credit facility provided by Lloyds Bank under the government's Coronavirus Large Business Interruption Loan Scheme.
Looking ahead, it outlined a re-opening strategy that includes reduced opening hours, cleaning and daily health monitoring for team members, and the re-launch of a marketing programme created to include digital advertising, CRM campaigns and website pre-visit information.
"Due to our highly cash generative business model and following a very successful trading period prior to the Covid-19 restrictions, the Group's balance sheet is strong. We remain very confident in our business model, and believe that we are well placed to successfully re-open our centres initially in a capacity restricted environment and as we start to emerge more fully from this crisis, to capitalise on the pent-up demand for out of home leisure experiences, and return to a growth trajectory," said Chief Executive Stephen Burns.
As at the end of March, Hollywood Bowl had cash of GBP15.6 million.
Shares in the ten-pin bowling operator were trading 0.3% lower at 181.05 pence each on Monday in London.
By Ife Taiwo; [email protected]
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