Danni Hewson, head of financial analysis at AJ Bell, said: “Appropriately enough, investors were bowled over by the latest results from Hollywood Bowl.
“The bowling alley operator is successfully navigating cost-of-living pressures amid strong UK demand for affordable leisure pursuits. A dynamic pricing model based on demand is playing its part in keeping sites full. This helps drive additional revenues as some customers splash out on VIP packages or use the arcade machines which surround the lanes.
“Hollywood Bowl’s model has been built on sprucing up its venues and making them attractive places for people to visit. This has allowed the brand to strike a chord with people looking for somewhere to unwind which is not dependent on the notoriously unreliable UK weather.
“The 10% increase in the dividend and £5 million share buyback is a show of confidence on the part of management, and it continues to roll out new sites both in the UK and in Canada.
“CEO Stephen Burns had some gloomy news for younger workers as he noted that changes to employers’ national insurance and the national living wage have seen the company hire more experienced staff who require less training, instead of entry-level employees.”
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