Driving our
growth strategy
Hollywood Bowl Group plc
Annual report and accounts 2022
Hollywood Bowl Group plc Annual report and accounts 2022
Strategic report
2 Highlights
3 Investment case
4 At a glance
6 Chairman’s statement
10 Our brands
16 Canadian acquisition
18 Chief Executive Officer’s review
24 Business model
26 Section 172
27 Stakeholder engagement
30 Our market environment
32 Strategy
38 Key performance indicators
40 Chief Financial Officer’s review
46 Sustainability overview
59 TCFD
69 Risk management
70 Principal risks
74 Going concern and viability statement
Corporate report
76 Chairman’s introduction to governance
78 Board of Directors
80 Corporate governance report
86 Report of the Nomination Committee
91 Report of the Audit Committee
96 Report of the Remuneration Committee
101 Annual report on remuneration
114 Directors’ report
117 Statement of Directors’ responsibilities
Financial statements
119 Independent auditor’s report
127 Consolidated income statement and
statement of comprehensive income
128 Consolidated statement of
financial position
129 Consolidated statement of changes
in equity
130 Consolidated statement of cash flows
131 Notes to the financial statements
157 Company statement of financial position
158 Company statement of changes in equity
158 Company statement of cash flows
159 Notes to the Company
financial statements
165 Company information
Driving our
growth strategy
Our unique purpose-led culture and proven investment-led strategy are enabling us
to capitalise on the significant growth opportunities in the markets we operate in.
Text to be provided
Our purpose is bringing families and
friends together for affordable fun
and safe, healthy
competition
enabling us to create value for our stakeholders
Continually enhancing our
customers’ experience
Building energetic and
engaging teams who share
our values and are proud
to be part of our culture
Maintaining support of
our investors to help us grow
the business and consistently
deliver returns
and strong market fundamentals…
Growth of competitive
socialising
Combined retail and
leisure experiences
Low market
penetration
Sector consolidation
opportunities
is underpinned by our commitment to sustainable growth…
Safe and inclusive
leisure destinations
Outstanding
workplaces
Sustainable
centres
Our strategy…
Delivering
like‑for‑like
revenue growth
Actively
refurbishing
our assets
Developing new
centres and
acquisitions
Focusing on
our people
Leveraging our
indoor leisure
experience
Read more on pages 32 to 37
Read more on pages 46 to 58
Read more on pages 30 and 31
Read more on pages 27 to 29
1
Hollywood Bowl Group plc
Annual report and accounts 2022
Highlights
+28.3%
LFL revenue growth
1
(2021: +28.6%)
£193.7m
Revenue
(2021: £71.9m)
+169.5%
Total revenue growth
(2021: -9.6%)
£7 7.5m
Group adjusted EBITDA
1
(2021: £30.6m)
£37.5m
Profit after tax
(2021: £1.7m)
8.53p
Final ordinary dividend
per share
21.91p
Earnings per share
(2021: 1.05p)
3.0p
Special dividend
per share
£39.4m
Adjusted profit after tax
1
(2021: £1.7m)
23.07p
Adjusted earnings
per share
1
(2021: 1.05p)
1 Definitions for these measures are in the key performance indicators section (pages
38 and 39). A reconciliation between key adjusted and statutory measures, as well
as notes on alternative performance measures, is provided in the Chief Financial
Officer’s review (pages 40 to 45). Management believes providing these specific
financial highlights gives valuable supplemental detail regarding the Group’s results,
consistent with how management evaluates the Group’s performance. Due to the
restrictions in FY2020 and FY2021, like-for-like (LFL) calculations above are compared
to the last uninterrupted year of trading in FY2019.
Our financial performance
2
Hollywood Bowl Group plc
Annual report and accounts 2022
Investment case
Reasons to invest
Hollywood Bowl Group is the UK’s market leader with national scale, and
the second largest operator of ten-pin bowling centres in the world.
We operate a high-quality, well-invested estate with diverse revenue streams
and multiple levers, including our expansion into Canada, to drive further growth.
Our highly motivated and engaged operational teams
deliver our customer-focused experiences, and are led
by a stable and experienced management team who is
committed to sustainable growth
Read more on pages 51 to 54
People and leadership
Top 25
UK’s Best Big Companies to
Work For in 2022
By driving revenues, achieving healthy margins and
maintaining a strong balance sheet, we continue to invest
appropriately in enhancing and scaling our business
Read more on pages 18 to 22
Balance sheet strength
£56.1m
Net cash at year end
Alongside our ongoing centre refurbishment plan, we are
targeting more new centres for our Hollywood Bowl,
Puttstars and Splitsville brands, which is backed by our
rigorous and disciplined location selection process
Read more on page 35
Exciting growth pipeline
15-20
Target range of new openings
before the end of FY2025
Our ten-pin bowling and mini-golf centres provide fun and
safe environments for people of all ages, and their experiences
are enhanced by research led insight and a culture of
continuous improvement
Read more on pages 12 to 15
Customer focus
61%
UK net promoter score
As the clear leader in both the UK ten-pin bowling and the
competitive socialising markets, we are best placed and
have the experience to capitalise on the growth opportunities
available in the markets we operate in
Read more on pages 30 and 31
Market opportunities
9
Centres added to the Group
estate in FY2022
Strategic report
3
Hollywood Bowl Group plc
Annual report and accounts 2022
At a glance
Our UK ten-pin bowling brand, with centres
typically offering 24 bowling lanes, situated
in prime locations on leisure or retail parks.
Providing great value
entertainment experiences
Through our customer focus and insight-led service, product and technological
innovation, we are on a mission to continually enhance our customers’ experience of
the inclusive competitive socialising activities of ten-pin bowling and indoor mini-golf.
Our centres offer bowling lanes or mini-golf courses, a licensed bar, a diner and an
amusements zone featuring the latest games designed to keep everyone entertained.
Our brands
Our Canadian ten-pin bowling brand with
centres typically offering 29 bowling lanes,
located in standalone locations or co-
located with retail units.
Our UK indoor mini-golf brand with centres
offering three mini-golf courses, situated in
prime locations on leisure or retail parks.
Centres
64
*
Centres
5
Centres
6
* Includes two remaining AMF centres which will be rebranded in FY2023
Read more on pages 12 and 13
Read more on pages 16 and 17Read more on pages 14 and 15
Market leader
in UK ten-pin bowling
market
Challenger brand
in UK mini-golf
market
Established brand
in Canadian ten-pin
bowling market
4
Hollywood Bowl Group plc
Annual report and accounts 2022
Our locations
UK
Hollywood Bowl is the UK’s largest ten-pin bowling brand
with 64 centres nationwide. Puttstars is our emerging
indoor mini-golf brand, which opened its first centre
in 2020
Canada
Splitsville is our first overseas ten-pin bowling brand and
was acquired by the Group in May 2022
75
Centres open as at 16 December 2022
15‑20
Target range of new centres opening before
end of FY2025
Canada
Splitsville: 6
Central support office: 1
UK
Hollywood Bowl: 64
Puttstars: 5
Central support office: 1
Read more on pages 12 to 15
Read more on page 16
Strategic report
5
Hollywood Bowl Group plc
Annual report and accounts 2022
Chairman’s statement
I salute our team members’ effort
in delivering on our purpose and
providing consistently excellent
customer experiences.”
Peter Boddy, Non-Executive Chairman
6
Hollywood Bowl Group plc
Annual report and accounts 2022
The Group’s excellent
performance has
exceeded expectations