RE: Interim Results1 Jun 2020 17:23
IC View:
Hollywood Bowl shored up its balance sheet with a £10.9m placing post period-end, and has also secured additional headroom with lenders. With a monthly cash burn of £1.2m versus estimated liquidity of around £35m, Peel Hunt analysts reckon the company has sufficient liquidity to survive the closure period into late 2021. But the bottom line is whether punters will be rolling in the aisles once trading resumes (hopefully in Q320). Some customers may be apprehensive about mingling in public, but we envisage that demographic factors will work in the company's favour. A forward PE multiple of 12 is not extravagant given the underlying performance. Buy for long-term growth.