Hollywood Bowl (LSE:BOWL) delivered a solid set of first-half results that have rightly driven a sharp rise in the share price, so commented Adam Vettese, market analyst at eToro.
Vettese points to revenue up 9.5% and spend-per-game gains of 7.6% in the UK and 9.7% in Canada as evidence that pricing, upselling and estate investment are working at the bowling-centre operator.
The analyst,in a note, highlighted the 10% rise in the interim dividend to 4.52p, a planned £5 million share buyback and net cash of £26 million as signs of strong cash generation and capital discipline, while noting like-for-like sales were more modest at 2.3% and margins faced wage and national insurance pressure.
