Business
Further actions in response to COVID-19
Further actions in response to COVID-19.
About this update from Hollywood Bowl Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 4835I\n Hollywood Bowl Group plc\n 02 April 2020\n \n \n \n Hollywood Bowl Group\n \n FURTHER ACTIONS IN RESPONSE TO COVID-19\n \n Hollywood Bowl Group plc (\"Hollywood Bowl\" or the \"Group\"), the UK's market leading ten-pin bowling operator, today provides an update on its strong financial and liquidity position and its actions taken in response to COVID-19 since its previous announcement on 17 March 2020. \n \n \n \n \n Centre closures\n \n \n The Group actioned the temporary closure of its centres on 20 March, in line with Government guidance. Management had prepared for this scenario well in advance and was therefore able to implement its close-down plans with minimal disruption for both customers and team members. \n \n \n \n \n \n Government support initiatives & management actions\n \n \n The Group has welcomed the one-year exemption granted from business rates and the VAT payments deferral announced by the Government, which combined is expected to result in cash savings of £6m for the current financial year (FY2020). \n \n \n \n \n \n A key priority for management is the welfare of its team members and with the support from the Coronavirus Job Retention Scheme, the Group intends to keep its team members at full salary levels for as long as is practicable. \n \n \n \n \n \n Alongside this Government support, management have taken several actions regarding capex and opex. These include the pausing of refurbishments and new centre fit outs as well as the renegotiation of supplier contracts and payment terms, which will reduce costs and conserve cash while the COVID-19 situation continues. However, management remain confident in the long-term prospects of Hollywood Bowl and will ensure that the Group is well positioned for when it is appropriate to re-open centres. \n \n \n \n \n \n Financing and liquidity\n \n \n Management has always adopted a prudent approach to its cost base and capital expenditure and, with the benefit of its cash generative business model, has maintained a strong financial position. \n \n \n \n \n \n As at 31st March 2020, Hollywood Bowl had approximately £15.6m of cash and £30.25m of debt, drawn from its £35m facility. This takes into account full rents paid to all landlords for the March quart...