29th May 2025 10:11
(Alliance News) - Hollywood Bowl Group PLC shares fell on Thursday as it reported lower profit despite higher revenue in the first half of the year, and it noted a short-term hit from recent sunny weather in the UK that kept people out of bowling alleys.
The Hemel Hempstead, England-based ten-pin bowling operator said pretax profit declined 4.0% to GBP28.3 million in the six months to the end of March from GBP29.5 million a year ago.
Revenue grew 8.4% to GBP129.2 million from GBP119.2 million.
Shares in Hollywood Bowl were down 8.4% to 271.22 pence in London on Thursday morning.
The firm recorded a decline in profit as cost of goods sold climbed 11% to GBP22.0 million from GBP19.8 million and administrative expenses grew 15% to GBP49.2 million from GBP42.7 million.
The firm also faced finance expenses of GBP7.1 million, up 21% from GBP5.9 million a year prior.
Hollywood Bowl declared an interim dividend of 4.10 pence per share, up 3.0% on-year from 3.98p.
It said it is on track to open a total of five new bowling centres in financial 2025, with its three new centres in Swindon, Preston and Inverness all trading in line with expectations.
Looking ahead, Hollywood Bowl said it is on track to achieve its target of 130 centres by 2035.
Recent warm and dry weather from March to May has had a short-term impact on trading during, the company noted.
In response, Hollywood Bowl said it has "proactively managed margins and costs" to maintain strong operational performance.
Despite the headwind, the company remains confident in its outlook for the second half of the year. It said it is "well-prepared" for the July and August holiday period.
"We delivered another strong financial performance in the first half and made excellent progress with our growth strategy in the UK and Canada. Investment in new centres, our refurbishment programme and customer experience continue to deliver excellent returns and record customer satisfaction scores," said Chief Executive Officer Stephen Burns.
By Michael Hennessey, Alliance News reporter
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