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Tue 11th Apr 2023 - Update – Black Sheep Brewery reviews options, Hollywood Bowl reports record H1 revenue |
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Hollywood Bowl reports record H1 revenue: Hollywood Bowl, the UK’s largest ten-pin bowling operator, has reported record first half group revenue of £111.1m, up 10.9% vs H1 FY2022. The business said that it had experienced 3.5% like-for-like revenue growth in the six months to 31 March 2023 vs H1 FY2022. The company said that seven refurbishments were completed and two new centres opened during the period with a further two set to be under construction in the second half of FY2023. Its investment programme continued with the installation of pins on strings (seven completed in H1 FY2023) and solar panels (four completed in H1 FY2023). In the UK, Hollywood Bowl Speke and Puttstars Peterborough both opened in H1 FY2023 and are trading “ahead of management’s expectations”. Two further new UK centres are set to commence construction in H2 FY2023 – Hollywood Bowl Merry Hill and a combined Hollywood Bowl/Puttstars offering in Colchester. The business said that its simplified food menu and the introduction of the ‘snacks and sharers’ lane “resonated well with customers, increasing dwell time and spend as a result of the enhanced centre environment”. In Canada, as previously reported, the group acquired three entertainment centres in Calgary in February this year, which builds on the strong progress made by Splitsville, the group’s first Canadian acquisition, in May 2022. It said these sites are trading in line with management’s expectations and integration with Splitsville is going well. Furthermore, the pipeline is continuing to build with the group recently exchanging on a new build bowling centre in Ontario, which will take it to ten Canadian centres and is “well-positioned to capture further new centre opportunities, supported by its strong balance sheet”. Notwithstanding its ongoing commitment to invest in its UK and Canadian estate, the company said cash generation has been strong, with a net cash position of £44.1m as at 31 March 2023 (H1 FY2022: £49.6m). Stephen Burns, chief executive, said: “We are delighted with our record performance in the first half of the year. Our improvement on what was already an impressive prior year reflects the huge customer appeal of our great value for money offer at a time when many consumers are being more selective with their time and money. Our team members have been working tirelessly to deliver the best possible experiences for our customers and I am proud of the way they have stepped up. We are a people-focused business and a key priority for us is to support our teams, allowing them to thrive and develop their careers. We are excited about the significant growth opportunities ahead – our highly cash generative business model and insulation from cost of goods and energy inflationary pressures, leaves us well-placed to continue to expand and invest in our portfolio, both in the UK and Canada. We were thrilled to see so many families enjoying themselves at our centres during February half term and were pleased to welcome many more over the Easter break.”
Latest edition of Propel Turnover & Profits Blue Book shows 66% of companies in profit, up from 64% last month: The Propel Turnover and Profits Blue Book, to be sent to Premium subscribers on Friday (14 April), shows 66% of the 718 largest sector companies are now in profit. The Blue Book shows 475 companies in profit and 243 reporting losses. This is an improvement from last month, when 64% of companies were reporting a profit. The Blue Book is updated each month and ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. Premium subscribers also receive access to four other databases: the Propel Multi-Site Database, produced in association with Virgate; the New Openings Database; the Who’s Who of UK Food and Beverage; and the UK Food and Beverage Franchisor Database. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email jo.charity@propelinfo.com to upgrade your subscription. Premium subscribers are also to be given exclusive access to the recording and slides to Propel Multi-Club Conferences. Premium subscribers also receive their morning newsletter 11 hours early, at 7pm the evening before; regular video content and regular exclusive columns from Propel group editor Mark Wingett.
Black Sheep Brewery exploring options, which could include a sale: The Black Sheep Brewery, the award-winning Yorkshire brewery and pub operator, has announced that it has appointed Teneo as its financial adviser as it commences a strategic review to explore its funding options. The company said it plans to take the business forward with the further development of its core beers and new products to build on its strong brand in Yorkshire, the north and nationally. It said it is currently experiencing “good sales volumes of its beers”, however there remains a “significant constraint on funding in light of the prevailing economic conditions”. The business said it is currently considering all options, one such option being a merger or an acquisition of the company, in whole or in part, if such a solution offers the best outcome for shareholders and other stakeholders whilst providing a stable base for the future of the business. It said it is not currently in talks with any potential offeror and is not in receipt of any approach with regard to a possible offer, and that there can be “no certainty that any offer will be made nor as to the terms of any such offer”. Charlene Lyons, chair and chief executive said: “We are pleased to have seen so many customers enjoying Black Sheep beers over the Easter bank holiday weekend, one of our busiest trading periods of the year. However, we believe that now is the right time to conduct this Strategic Review to secure the best outcome for our valued shareholders and other stakeholders. The brewery has exciting and ambitious plans for the future and interesting projects in the pipeline. Forward funding is an issue for many businesses in the tight market brought about by the after-effects of covid-19 on the hospitality sector and this is exacerbated by the cost-of-living issues affecting consumer spending. We are confident that the wider investment market will see the opportunities presented by this well-established and highly regarded brand.”
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