Hollywood Bowl Group has said it remains well positioned to carry out its growth strategy despite the ongoing impact of the coronavirus.

Having experienced a successful trading period prior to the coronavirus lockdown – like for like sales grew 8.6% during H1 – and since implementing a series of liquidity-securing measures, the group has said that it is in a good position to reopen on limited capacity, and “capitalise on the pent up demand for out of home leisure experiences.”

In response to the crisis, the group secured a new £10m revolving credit facility through the CLBILS, suspended payment of the interim dividend and placed an additional 7,500,000 shares, raising net proceeds of £10.5m.

As a result of these actions, the Group has said its monthly net cash burn through closure is approximately £1.2m, but it remains confident in its ability to pursue its growth strategy of an average of two sites per year.

Two new centres were signed during H1, in Reading and Bracknell, and ten centres have been secured to open over the next four years.

Having launched its first Puttstars mini golf concept in March, the group’s second Puttstars trial centre in York is due to open in July, alongside a new Hollywood Bowl in the city.

Ahead of reopening, the business has outlined a number of measures to ensure the safety of staff and customers.

Alternate lanes will be used to ensure social distancing, as well as reduced operating hours for off-peak periods, a reduced food and drink menu and a new visual guidance campaign – “Have fun – Play Safe” – to educate and encourage responsible behaviour.

“Our priority is to make sure that, once we reopen, our teams and customers can enjoy our unique leisure experience once again while feeling reassured that we will be taking every possible precaution for their health and continued welfare,” said Stephen Burns, CEO.

“We remain confident in the long-term strength of our business model and our ability to deliver our simple customer focused growth strategy.”

For the half year to 31 March 2020, total revenue grew by 3.3%, but pre-tax profits reduced 6.7% to £14.5m.

Topics