Hollywood Bwl Regulatory News (BOWL)

Hollywood Bowl Group plc

("Hollywood Bowl", the "Company" or the "Group")

AGM Trading Update

STRONG START TO FY2025 AND FURTHER STRATEGIC PROGRESS

Hollywood Bowl Group plc, the UK and Canada's largest ten-pin bowling operator, issues the following trading update for the financial year starting 1 October 2024 to 12th January 2025 ("the period") to coincide with the Company's Annual General Meeting (AGM) taking place later today.

As announced in October 2024, Peter Boddy will retire as Chair of the Board and step down as a director following today's AGM. Darren Shapland will succeed Peter as Chair of the Board and Nomination Committee Chair, pending his election as a director at the AGM.

Current trading

Trading over the period has been strong, including a record revenue month in both the UK and Canada in December. Total revenue growth over the period was up 11.3% and in line with Board expectations.

Total UK revenue was up 8.0% with LFL revenues up 4.5% over the period. Total Canada revenue (on a constant currency basis) was up 40.8% (LFL revenues up 14.2% over the period), with Splitsville centres up 37.2% and Splitsville LFL centres revenue up 7.0% over the period.

This performance reflects the continued demand for affordable, fun and family-friendly competitive socialising in both the UK and Canada.

Driving returns through investment in growing and enhancing the quality of the estate

The Group is on track to meet its target of 130 centres by 2035 and has a strong new centre pipeline in FY2025:

UK - Hollywood Bowl centres

· Currently on site at two new centres due to open in in H1 FY2025 (Preston and Inverness)

· Starting on site at two locations in February 2025 due to open in H2 FY2025 (Uxbridge and Reading)

· Swindon opened in November 2024 and is performing well and in line with expectations

· On track to deliver five refurbishments in FY2025

Canada - Splitsville centres

· On site at two new centres due to open in H1 FY2025 (Kanata, Ottawa and Creekside, Calgary)

· Starting on site at Christy's Corner, Alberta in H2 FY2025, due to open H1 FY2026

· Glamorgan, Calgary refurbishment completed in November 2024 and is performing well and in line with expectations

· On track to deliver five refurbishments in FY2025

Outlook

We remain resilient to inflationary pressures with over 70 per cent of Group revenue not subject to cost-of-goods inflation. We are well positioned to mitigate the effects from the increases to National Insurance contributions and National Living and Minimum Wages given our strong cost culture and relatively low labour-to-revenue ratio of under 20 per cent in the UK. As UK families continue to face cost of living challenges, great value for money will be a true point of differentiation with a family of four being able to enjoy a game of bowling with us for under £26.

The Group remains confident in the outlook for the financial year. Our strong cash position means we are well placed to continue to invest in the significant growth opportunity ahead in both the UK and Canada and we remain focused on continuing to execute our customer-led strategy to generate attractive returns.

Stephen Burns, Chief Executive Officer, commented:

"We are pleased to report a strong period of trading, building on the momentum from the previous financial year, including our highest ever monthly revenue in December and our biggest ever day of trading on New Year's Eve. This successful start to the year underlines the continued strength of our value-for-money, family-friendly customer proposition. Looking ahead, we are confident in the outlook and our ability to further develop our market-leading position in the UK and Canada, enhancing the customer experience and seizing the significant growth opportunity ahead."