Hollywood Bowl's half-timers show best-value-for-money works, shares up 15% at 299p.

In the last year, the shares of the Hollywood Bowl Group (LON:BOWL) have been up to 309p and down to 227p.

Last night, the £500m-capitalised bowling group’s shares closed at 260p; this morning, they have traded up to 299p in reaction to the leisure facilities and bowling alley operator’s first-half results being announced.

The Business

The Hollywood Bowl Group is the UK’s and Canada's market leader, and one of the largest operators of ten-pin bowling centres in the world. 

Its centres are equipped with bowling lanes, a licensed bar, a diner and an amusement zone featuring the latest games designed to keep everyone entertained.

Interim Results

The company reported a strong first half for FY26, with revenue increasing by 9.5% to £141.5m and Group Adjusted EBITDA after rent rising 8.9% to £42.2m, driven by robust demand for affordable leisure.

Adjusted Profit Before Tax grew 8.1% to £32.1m, and the company proposed an interim dividend of 4.52p per share, up 10.2%.

The company also announced a £5m share buyback program for H2 FY26, reflecting confidence in its performance and strategy, with plans for further expansion in both the UK and Canada.

Management Comment

CEO Stephen Burns stated that:

"Our strong performance in the first half has been driven by continued demand from customers for our high-quality and affordable leisure experiences.

Our clear strategy and targeted investment programme are delivering. Multiple strategic initiatives are underpinning increased spend per game across our estate, and our new and refurbished centres in the UK and Canada are driving robust returns.

Looking ahead, we are confident in delivering on expectations for FY26, as customer appeal for our value offer remains robust, and we continue to maintain a tight grip on costs.

We have an exciting pipeline of centres for H2 and expect this to accelerate in FY27 and beyond, positioning us for sustainable profitable growth over the long-term."

Brokers Views

Milo Bussell and Peter Renton, analysts at Cavendish Capital Markets, have a Buy note out on the group's shares, with a Target Price of 380p.

For the full-year to end-September, they look for revenues of £271.7m (£250.7m), with adjusted pre-tax profits of £51.7m (£46.0m), earnings of 23.0p (21.4p) and paying a dividend of 12.7p (13.3p) per share.

For the coming year they estimate £291.8m revenues, £55.3m profits, 24.6p earnings and a 13.6p dividend per share.

"With its leading position as the best-value-for-money branded bowling UK operator, we reiterate our Buy recommendation."

My View

I can see these shares, now 299p, soon breaking above my most recent Target Price of 335p.

(Profile 14.11.19 @ 240p set a Target Price of 300p*)

(Profile 23.04.25 @ 267.50p set a Target Price of 335p)