With a 31 March period-end, Hollywood Bowl’s (BOWL) half-year figures do not reflect the worst effects of the lockdown. Excluding the fortnight commencing 16 March, which was impacted by the roll-out of social distancing protocols, like-for-like turnover rose by 8.6 per cent, against a growth rate of 4.4 per cent for the corresponding period in 2019.
Given the level of lease liabilities, it is reassuring that the leisure group has secured some relief from its landlords, which means that second quarter rent will be reduced significantly. Free cash flow nearly halved to £5.2m, largely due to the inclusion of £3.7m in lease interest payments, while the continued roll out of its new ‘Pins on Strings’ scoring system pushed capital expenditure up by 24 per cent to £10.7m.
While they won't be forced to wear a hazmat suit, returning customers can expect social distancing measures including alternate lanes and pre-booking for peak periods. The costs of reopening sites under these conditions, which include covering screens and globes, will probably come to around £150,000.
Peel Hunt forecasts full-year 2020 adjusted pre-tax profits and EPS of £8.1m and 4.3p respectively, rising to £18.4m and 9.5p in 2021.
| HOLLYWOOD BOWL (BOWL) | ||||
| ORD PRICE: | 183p | MARKET VALUE: | £ 288m | |
| TOUCH: | 180.5-183p | 12-MONTH HIGH: | 312p | LOW:70p |
| DIVIDEND YIELD: | 2.8% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 48p* | NET DEBT: | £191m** | |
| Half-year to 31 March | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2019 | 67.0 | 16.4 | 8.92 | 2.27 |
| 2020 | 69.2 | 14.5 | 7.68 | nil |
| % change | +3 | -12 | -14 | - |
| Ex-div: | na | |||
| Payment: | na | |||
| *Includes intangible assets of £78.4m, or 50p a share **Includes lease liabilities of £176m | ||||
