Propel Newsletter Archive Page

Hollywood Bowl CEO – business rates revaluation will wipe out our reduction, reports fourth consecutive year of record revenue: Hollywood Bowl chief executive Stephen Burns has said the government’s business rates revaluation will “wipe out our reduction”, as the company reported a fourth consecutive year of record revenue. He also said the company will open two new UK locations in its current financial year, ending 30 September 2026, as it remains on course for 130 centres across the UK (95) and Canada (35) by 2030. Burns said: “Increases to living and minimum wages announced to the government’s Budget of November 2026 will have an impact on the group’s cost base. Also, whilst on the face of it the business rates multiplier appears to reduce business rates, the revaluation will wipe this reduction out, and therefore we will see an increase in business rates in FY2026. The highly cash-generative nature of the business and strength of our balance sheet mean that we are well placed to pursue opportunities to invest in our future growth and meet our target of 130 centres by 2035, whilst continuing to make returns to shareholders in line with our progressive dividend policy. We are well positioned for future growth, supported by a robust UK and international pipeline, ongoing capital investments, a high performing team and a differentiated and resilient business model. We continue to lead the competitive socialising market in both the UK and Canada, and we are confident about our prospects for another exciting year ahead.” Group revenue for the year to 30 September 2025 was £250.7m, up 8% from £230.4m in 2024. Group pre-tax profit was £46m, down 8.6% from £50.3m in 2024, while group pre-tax profit pre-IFRS16 was £49.4m, down 7.5% from £53.4m in 2024. Group Ebitda was £91.2m, up 4.2% from £87.6m in 2024, while group Ebitda pre-IFRS16 was £68.4m, up 0.9% from £67.7m in 2024. UK like-for-likes were up 1.1%, with spend per game (SPG) up 9.2%, while Canada like-for-likes were up 3.2% on a constant currency basis, with SPG up 14.8%. The company proposed a final dividend of 9.18p, giving a total dividend of 13.28p, while a £15m share buyback completed in the period. Hollywood Bowl opened a record five new sites in the UK and two in Canada during the year and said new sites and are refurbishments performing in line or above expectations. The company said dynamic pricing has been introduced to “stimulate bookings and optimise yield at centre level”, while a new group-wide booking system is “driving increased conversion and order values”. It has invested £11m in new amusement machines and is trialling new initiatives, including E-darts and cashless amusement payments. Hollywood Bowl said it is now the largest branded operator in Canada and that it is “successfully replicating the UK operating model in Canada”, with the market now accounting for 15% of group revenues. Burns said: “We delivered a fourth consecutive year of record revenue and adjusted Ebitda, against a backdrop of industry-wide challenges. We achieved double digit revenue growth in amusements and are the number one bowling operator in Canada. Our focus on the customer proposition and operational excellence yielded strong results, with uplifts in spend per game across all categories whilst maintaining accessible pricing. “his performance demonstrates the resilience of our model and the enduring appeal of bowling for consumers. As we look to 2026, we remain focussed on delivering sustainable growth, while generating the compelling shareholder returns we are known for. Despite the UK experiencing the hottest and driest spring and summer on record, which presented trading challenges for the indoor leisure sector, the resilience of our model, the investments we have made in technology, and our agile and proactive management approach, meant that we were able to stimulate demand through additional marketing spend, CRM and dynamic pricing, and manage costs effectively to drive efficiencies, which supported our performance. Over 70% of our UK revenue is not subject to cost-of-goods inflation, and labour costs represent less than 20% of UK revenue. These factors, combined with energy hedging through FY2027, provide a strong buffer against external pressures.”

Propel’s sector-leading guide to the UK’s 500 largest hospitality companies returns, to be made free to Premium subscribers on day of publication: The Propel 500 – 2026 report will analyse the companies leading the charge in hospitality, reporting on turnover, number of sites, and key staff. The guide will also include exclusive analysis to provide a full understanding of the market’s dynamics. Mark Wingett will delve into the mergers and acquisitions shaping the future of the top 500. Tim Street dissects the UK’s rapidly-developing franchise market and, as the experiential leisure sector becomes a cornerstone of modern hospitality, Katherine Doggrell will assess the rise of deals in the sector, as well as the shifts in the hotel industry. Data expert Mark Bentley, business development director at HDI, will look at emerging growth sectors and Meaningful Vision founder Maria Vanifatova will analyse the latest trends in the quick service restaurant market. Propel 500 – 2026 will be released on Friday, 9 January at 9am and will be available free to Premium Club subscribers. The report will be available to non-Premium Club subscribers for £595 plus VAT. A Premium Club subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or supplier. Email kai.kirkman@propelinfo.com today to sign up.

BaxterStorey reports record revenue as turnover passes £600m: Contract catering company BaxterStorey’s reported record revenue as its turnover passed the £600m-mark in the year to 31 December 2024. Its revenue was up from £572,774,000 in 2023 to £637,498,000. Of this, £549,992,000 came from the UK (2023: £492,455,000), £51,547,000 from Ireland (2023: £54,144,000) and £35,959,000 from Europe (2023: £26,175,000). Its pre-tax profit grew from £35,846,000 in 2023 to £43,222,000. Director Marc Bradley said: “During 2024, the group performed well, benefitting from the increased return to the office. These trends saw the group serve more consumers than previous years, driving higher transaction volumes and food consumption. Food inflation slowed during the year which eased some of the most severe cost challenges of previous periods. As financial pressures continue for our clients and end customers during this period of economic uncertainty, we are seeing a trend of clients looking for better value yet cost certainty from their outsourced catering services provider. The directors believe that the business is well positioned to support these clients and take advantage of increased competition in the market, as BaxterStorey benefits from greater operating scale and from the high quality of its food offering and service alongside the strong financial position of the business. In addition, we see an opportunity to grow sales through existing clients, by providing value-added services and structuring attractive offers for customers. Furthermore, while inevitably the government's changes to employers’ national insurance from April 2025 will present an increased challenge for us, we will work closely with our clients and teams to mitigate the impact, driving the business forward for the benefit of our customers and stakeholders.” No dividends were paid (2023: nil).

Former Greene King CFO joins Greggs as non-executive director: Richard Smothers, former chief financial officer at brewer and retailer Greene King, has joined Greggs as a non-executive director, effective from 1 February 2026. Smothers will assume the role of chair of the audit committee from 6 March 2026 and will join the audit, nominations and remuneration committees on appointment. He served as chief financial officer of Greene King until early 2025. His other prior experience includes holding the position of chief financial officer at Mothercare and serving as director of group finance for Rexam, preceded by 14 years at Tesco in senior finance roles both in the UK and internationally. He is currently a non-executive director on the board of RM, where he chairs the audit and risk committee, and a non-executive director of Greene King. Kate Ferry, non-executive director and current chair of the audit committee, will retire from the board on 6 March 2026. Matt Davies, chair of Greggs, said: “As previously noted, Kate has made an exceptional contribution to the board over the last six years, and she will be truly missed. We are delighted that Richard has accepted our invitation to join the board. He has extensive financial expertise in a listed company environment and great experience in retail which will be of significant benefit to our business.”

Beavertown sees losses mount: London brewer Beavertown saw its losses mount in the year to 31 December 2024. A pre-tax loss of £831,546 in 2023 widened into a loss of £2,728,853, as administrative expenses rose by more than £800,000. Its turnover was down from £105,149,415 in 2023 to £104,623,877. Of this, £102,849,318 came from the UK (2023: £102,690,430), £1,610,785 from Europe (2023: £2,112,261) and £163,774 from the rest of the world (2023: £346,724). No dividends were paid (2023: nil). Director Denise Martin said: “Domestic top-line performance in 2024 improved despite a number of challenges to the trading environment, while export top line performance declined due to distribution partner rationalisation. In response to these challenges, the company committed to invest in the brand and customer relations, increase brand awareness and drive growth in the company's portfolio through innovation. The company has continued to further develop its operations during the financial year, including investment in brewing facilities, marketing, personnel and innovation. This investment is a commitment to the company’s growth plans. The company also undertook an export distribution partner rationalisation exercise during the financial year, with an aim of taking a considered approach to brand repositioning in other markets. In 2024, Beavertown held 2.3% value share in the on trade (2023 2.3%) and 0.83% in the off trade (2023 0.69%) for total beer.”

‘Stealth tax’ on small firms will see thousands of village pubs hit with business rates for the first time: Thousands of struggling village pubs are set to be hit with business rates for the first time – amid claims that the sector is facing a new ‘stealth tax’. Outrage is mounting after chancellor Rachel Reeves promised lower tax rates for hospitality operators in the Budget – only for many publicans to discover their bills will rise sharply, reports the Daily Mail. Analysis by tax advice firm Colliers shows that 3,157 smaller taverns, many vital to rural communities, have been dragged into the tax net. John Webber, head of ratings at Colliers, said: “The government boasted about levelling up and permanently helping small businesses in the retail and hospitality sector, including pubs. But over 3,000 small pubs, who previously were eligible for 100% small business relief – and therefore who didn’t pay a penny in business rates – will now be facing a full liability.” These pubs will also lose the covid-era 40% discount for retail, hospitality and leisure firms, as Labour is scrapping it next year. Webber said: “It’s going to be an expensive time for many. No wonder MPs are being banned from pubs. Unfortunately, it would appear they spend too much of their time in the House of Commons’ subsidised bar to understand what is happening in the real world.”

South east London McDonald’s franchisee sees turnover fall following ‘general decline in ‘high street retail sales’: McDonald’s franchisee Beap Restaurants, which operates nine sites across south east London, saw its turnover fall in the year to 31 December 2024 following a “general decline in ‘high street retail sales”. The company’s turnover fell from £36,486,327 in 2023 to £35,033,468. Its pre-tax profit was down from £765,754 in 2023 to £113,348. Director Kapila Perera said: “Turnover is down by 3.98%. The decrease is attributable to two factors: firstly, a two-month closure of one of the restaurants operated bu the business while a major refurbishment was carried out, and secondly, as a general decline in retail sales in the high street affecting number of customers visiting the restaurants operated by the business. Gross margin has increased from 66.14% to 67.28%. The improvement in gross margin arises from increases to selling prices and some lower raw ingredient costs. Operating profit margins have decreased from 2.6% in 2023 to 0.80% in 2024. The benefit from the improved gross margin has been eroded by higher labour costs relative to turnover, and that is the main reason for the fall in operating profit margin. The business finished the year with cash reserves of £2,309,796 compared to £2,117,969 at the end of 2023, net current liabilities at 31 December 2024 were of £1,833,394 compared to £1,452,484 at the end of 2023. After deducting the provision for taxation and dividends paid, the company has reduced reserves by £454,464. Shareholder funds at the year-end are £163,328 compared to £617,792 at the end of 2023.”