Hollywood Bowl Share Discussion Threads

[daz] 12/4/2023 14:15

Shares9876

After checking back what they said in the finals in December you make a very fair point, this is the relevant paragraph

Well insulated from inflationary pressures

· UK electricity usage costs are hedged to the end of FY2024, and the solar panel installation programme remains on track with 22 centres now completed or under construction (c.30% of Group's UK centres)

· Over 74% of revenues are not subject to inflation in cost of goods sold

· Food and drink costs represent less than 10% of overall costs with simplification of the menu minimising exposure to supply chain and food inflation

· Labour costs account for less than 20% of revenue at a centre level

It was food and staff costs that were my main concern.
Food inflation is running at over 10%, so even if they have simplified their menu, they will still be affected. So if food and drink is 10% of costs and they have gone up 10%, that adds 1% to overall costs.

Likewise staff costs have also increased and with the minimum wage being increased by 10%, I'd guess their costs must be around 8% higher. So if staff costs are 20% of revenue, then that adds 1.6% to overall costs.

Adding those costs together, you get overall inflation of 2.6%, which is below the like for like sales growth of 3.5%, which is the point you were making.

The finals also say that solar is expected to contribute up to 20% of energy used. meaning they have so far reduced energy consumption by up to 6% (probably a bit less), which will reduce the impact of any increase post 2024

[togglebrush] 12/4/2023 12:46

FWIW
Stockopedia really likes it too - note the StockRank almost on maximum now - after the recent trade update their analyse, with some critical comments,
in their Small Capital Value Report, find that they have upped the BOWL rating to 96 out of 100

[yump] 11/4/2023 18:40

To what extent it a consumer cyclical, as that is a lazy catch-all term ?

If there is evidence of slowdown in bowling from the last recession, then its valid.

[shares9876] 11/4/2023 18:24

Daz - Surely inflation at 10% is only relevant if they have seen costs increase by 10% or increased their prices by 10%? Think they said bowling pricing was pretty static when they reported in Dec 22 and food was lower? Or did I misread it? Great set of LFLs when they are rolling 25% + from last year

[kalai1] 11/4/2023 14:27

Hollywood Bowl Group plc issued a HY trading update for the six months ended 31 March 2023.The Group posted record first half Group revenue of £111.1m, up 10.9% vs H1 FY2022 which included Revenue of £12.2m (CAD 19.8m) from BOWL’s Canadian businesses. On the operational front 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. The balance sheet remains very healthy with net cash position at 31 March 2023 of £44.1m. Valuation looks reasonably attractive with forward PE ratio under 14x and top third for the sector. Share price is also building some near-term momentum and is not yet back to pre-COVID peaks. The weakening macro outlook is the main risk to both business performance and share price performance for Consumer Cyclicals, particularly with the BoE still hiking interest rates. Certainly a share worth owning for the longer run, but perhaps one to still monitor for the time being...

...from WealthOracle

[daz] 11/4/2023 14:03

I think 3.5% like for like growth is creditable but inflation is running at 10%, so really this is a slowdown. Also, H2 FY2022 showed a significant increase in admin costs, mainly due to outperformance bonuses and it's not clear whether these will recur to the same level this year.
Set against that capital expenditure in FY2022 totalled £21.8m, including £7.7m on 3 centre openings and £3.6m on refurbishments, which distorts underlying profitability, although some level of refurbishment costs could be said to be ongoing,
The company have also hedged energy costs until the end of 2024
Perhaps some of these concerns are why the shares have fallen after the initial mark up

[edited after finding details of opening and refurbishment costs in the annual results]

[togglebrush] 11/4/2023 07:32

Update in brief
'
Record first half Group revenue of £111.1m, up 10.9% vs H1 FY2022
'
3.5% like-for-like revenue growth2 vs H1 FY2022
·
Revenue of £12.2m(3) (CAD 19.8m) from our Canadian businesses,
'
Seven refurbishments completed and two new centres opened
'
Recently exchanged on 10th Canadian centre

Net cash position at 31 March 2023 of £44.1m; undrawn £25m revolving credit facility

INTERIMS Tuesday 30th May

[cravencottage] 11/4/2023 07:23

Another good set of Metrics from BOWL.

[pyemckay] 29/3/2023 21:18

.

wps.

[giltedge1] 29/3/2023 09:09

Great financials, cashflow & management have a big holding all pluses. I am sure they are getting great deals on property leases at the moment. A London Investment Manager where I work (in admin), has a big holding.
But unfamiliar with bowling as an industry, can anyone convince me has a future growth path?.

[chutes01] 06/3/2023 11:42

Look at plexus news
POS
Bowl
Massive recovery on the way

[togglebrush] 25/2/2023 07:45

Nice dividend banked .... next scheduled event
'
Tuesday, May 23rd 2023
Half Year 2023 Hollywood Bowl Group PLC Earnings Release

[togglebrush] 16/2/2023 07:34

Three new 10 lane centres in Calgary (wife's University and In Laws home town). Bowling centres are haunting me. I had an office close to Tolworth Bowl when it ran the World Championship with its tnen 40 lanes.
'
Personal issues aside ... this RNS shows a lot of Keeness Enthusiaum and Drive

[hiddendepths] 03/2/2023 17:11

Interesting little mark-up at the end - and a closing UT price (auction) of a decent slug of shares at 269p, which was above the 1630 closing offer price of 268.

Could be a weekend press tip coming! May be lively on Monday morning.

[togglebrush] 31/1/2023 13:49

Special Divi of 3p approved at AGM
'
If memory serves me right the "Charrington or Tolworth Bowl" London held the World Championships back in the late 1970's when it had 40 lanes.

[judge grinder] 23/1/2023 10:29

EAAS
bowl forming, worth a small punt

[chutes01] 20/1/2023 13:39

plexus - pos - moving now, check out chart from 300p to 1.5p
increased orders and offer, schlumberger/technip/aramco working closely with IP
shorters took this down 20p, market wakening up now, huge recovery coming

[shares9876] 17/1/2023 18:06

BOWL sites in better locations, lower rent per sq ft, higher EBITDA per centre, international opportunity now, large cash balance at year end of over £55m and a management team that have some real skin in the game - and CFO + CEO own nearly 4.5m shares between them

[adamb1978] 11/1/2023 08:40

How do people on here view the relative multiples of BOWL vs TEG?

BOWL on 14x Sept-23, TEG on just under 10x Dec22

I recently bought the latter; once held the former, though a while back

BOWL is 30% bigger, TEG a bit later in clearing covid debt but welcome views on that differential

[return_of_the_apeman] 08/1/2023 00:26

Nano bowl to £2, current price 55p

Out of court settlement with Samsung to complete within 30days is the catalyst. Figures quoted by the company, brokers and the press suggest £2 is a possible outcome

Lombard have a 20% stake that they have decided to reduce. Liquidy on the news has given them opportuniy to realise the significant gains they have made but is suppressing the price

Just my opinion but looks like it is setting up nicely

We shall see

[yump] 16/12/2022 10:28

Its like chocolate which is pretty much recession-proof. People spending on smaller treats, not giving up completely.