Hollywood Bowl Group Plc · LSE:BOWL
Hollywood Bowl — H1 FY2020 Earnings Presentation
24 slides from Hollywood Bowl's earnings presentation, Jun 1, 2020
Slide 1: Interim Results Presentation Half Year Ended 31st March 2020
INTERIM RESULTS PRESENTATION HALF YEAR ENDED 31ST MARCH 2020 Hollywood Bowl Group plc
Slide 2: Welcome
WELCOME Hollywood Bowl Group plc
Slide 3: Agenda
AGENDA STEPHEN BURNS LAURENCE KEEN CEO CFO • Introduction • Financial performance • COVID-19 response • Q&A • FY2020 H1 highlights • Summary Hollywood Bowl Group plc Interim Results Presentation FY2020 1
Slide 4: Introduction
INTRODUCTION • Strong financial and operational performance since IPO in 2016 • H1 FY2020 performance, pre-COVID-19, notably ahead of prior year period with near double-digit like-for-like revenue and significant free cash flow • Positive start to the launch of the new Puttstars mini golf brand tria
Slide 5: COVID-19 Response
COVID-19 RESPONSE Credit: inspired media Hollywood Bowl Hollywood Bowl Group plc
Slide 6: Fast Reaction to Government COVID-19 Directives
FA S T R E A C T I O N T O G O V E R N M E N T C O V I D - 1 9 D I R E C T I V E S 16th March 20th March 23rd March • Government announces • Government announces • Government announces social distancing pub/gym/leisure full lockdown closures Government announcement HWB operational response 17th Marc
Slide 7: COVID-19 Response - Financial
COVID-19 RESPONSE- FINANCIAL The Group reacted with pace and urgency to government • Overheads: Non-employee restrictions in order to conserve cash flow overheads (excluding property • Employees: 98.6% of team members furloughed costs) are expected to reduce from c.£1.1m to c.£0.1m per • Portfolio p
Slide 8: COVID-19 Response - Operational
C O V I D - 1 9 R E S P O N S E - O P E R AT I O N A L The Group has focused on team member welfare during closure and in readiness for re-opening • 3 stage salary strategy to save cost, retain our top talent and financially support our team members • Regular virtual Q+A sessions with leadership tea
Slide 9: Robust Re-opening Strategy
R O B U S T R E - O P E N I N G S T R AT E G Y The internal size of our centres provide the required space to adhere to Government social distancing guidelines • Our adapted in-centre customer journey includes: • Only using alternate lanes/ golf holes/ amusement machines • Pre-booking only for peak
Slide 10: FY2020 H1 Highlights
FY2020 H1 HIGHLIGHTS Credit: inspired media Hollywood Bowl Hollywood Bowl Group plc
Slide 11: FY2020 H1 Highlights
FY2020 H1 HIGHLIGHTS FINANCIALS PORTFOLIO INNOVATION & ENGAGEMENT • Total revenue +3.3% vs. PY • 1 new centre opened (Puttstars • Pins on Strings now in 15 centres Leeds) • LFL revenue +8.6% vs. PY • New scoring system now in 40 centres • 3 centres refurbished • LFL growth driven through both game •
Slide 12: FY2020 H1 Financial Highlights
FY2020 H1 FINANCIAL HIGHLIGHTS REVENUE (£M) +3.3% GROUP ADJUSTED EBITDA (£M)* +2.4% 120.5 129.9 114.0 38.2 36.2 33.4 67.0 69.2 21.1 21.6 FY2017 FY2018 FY2019 H1 19 H1 20 FY2017 FY2018 FY2019 H1 19 H1 20 GROUP ADJUSTED EBITDA MARGIN %* -0.3%PTS EARNINGS PER SHARE (PENCE)* -8.7% 31.6% 31.3% 12.52 12.1
Slide 13: Centre Level EBITDA Growth +2.7%
CENTRE LEVEL EBITDA GROWTH +2.7% • LFL revenue growth of 8.6% • New centre performance in line with management expectations • All revenue lines in LFL growth with amusements in double digit • March centre level EBITDA impacted by Covid-19 • Centre level EBITDA up 18.9% in the period to Feb • Corpora
Slide 14: Income Statement
I N C O M E S TAT E M E N T IFRS 16 IAS 17 IAS 17 IAS 17 (£m) H1 FY20 H1 FY20 H1 FY19 Movement • Total revenue up 3.3% Revenue 69.2 69.2 67.0 +3.3% • LFL revenue up 8.6% Gross profit 59.3 59.3 57.5 +3.0% Gross profit% 85.6% 85.6% 85.9% -0.3%pts • Gross profit 85.6% in line with Administrative expens
Slide 15: Strong Cash Generation
S T R O N G C A S H G E N E R AT I O N • Maintenance capex includes £1.5m on new scoring • Dividends of £14.5m paid in H1 FY2020 rollout and £1.0m on Pins on Strings being installed in • Net debt at £14.6m (H1 FY2019: £5.3m) a further 4 centres • No interim dividend due to the Covid-19 impact • Expa
Slide 16: Balance Sheet
BALANCE SHEET IFRS 16 IAS 17 (£m) H1 FY20 H1 FY19 Movement • Increase in PP&E driven in H1 Assets through investment in new centres, Intangible assets 78.4 78.5 (0.1) refurbishments, Pins on strings and Property, plant and equipment 48.2 45.0 3.2 scoring, netted off by IFRS 16 Right-of-use assets 14
Slide 17: Puttstars Launch
P U T T S TA R S L A U N C H Leveraging our experience to extend our leisure offer • Puttstars provides challenging, fun and engaging mini golf in a safe environment with a family focus • Innovative technology and customer focus Successful opening of Leeds centre • £2.5m centre opened on 6th March •
Slide 18: Excellent Capital Returns
E X C E L L E N T C A P I TA L R E T U R N S • Refurbishment revenue performance +11.1% vs rest • On site at two refurbishments which will complete this of estate financial year • Average return on investment of 47.3% for last 10 • Installed Pins on strings in 4 further centres, with ROI refurbishme
Slide 19: Strong New Centre Pipeline to FY2024
STRONG NEW CENTRE PIPELINE TO FY2024 YORK – FY2020 YORK – FY2020 LIVERPOOL – FY2021 BELFAST – FY2022 NOTTINGHAM - FY2023 COLCHESTER – FY2023/4 PUTTSTARS HOLLYWOOD BOWL HOLLYWOOD BOWL HOLLYWOOD BOWL HOLLYWOOD BOWL HOLLYWOOD BOWL • Leisure extension • Leisure extension • Relocation of existing • First
Slide 20: Well Positioned for the Future
WELL POSITIONED FOR THE FUTURE • Market leader with high quality, well-invested estate led by experienced management team • Customer focused business ready to capitalise on the pent-up demand for out of home entertainment • Low ticket all-inclusive family experience better equipped to weather a rece
Slide 21: Appendix
APPENDIX Hollywood Bowl Hollywood Bowl Group plc
Slide 22: Business Overview and History
BUSINESS OVERVIEW AND HISTORY MULTIPLE REVENUE STREAMS NATIONAL SCALE CUSTOMER FOCUSED INDUSTRY LEADER • Market leader in size, profitability and margin Other • Customer focused, value for money family (0.3%) experience Amusement • High quality property portfolio machines (23.4%) • Refurbishments de
Slide 23: Growth Strategy
G R O W T H S T R AT E G Y ORGANIC GROWTH INVESTMENT LED GROWTH Constant focus on customer experience Maintaining a high quality, profitable estate • Increasing dwell time through customer–focused • Rolling refurbishment programme of 7-10 centres culture and innovation per year • Attracting and reta
Slide 24: Management
MANAGEMENT STEPHEN BURNS - CHIEF EXECUTIVE OFFICER • Appointment: Stephen joined the Group as Business Development Director in 2011. He was promoted to Managing Director in 2012 and became Chief Executive Officer in 2014. • Skills and experience: Before joining the Group, Stephen worked within the h
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