Hollywood Bowl Group Plc · LSE:BOWL
Hollywood Bowl — FY2021 Earnings Presentation
31 slides from Hollywood Bowl's earnings presentation, Dec 15, 2021
Slide 1: Hollywood Bowl Group plc Financial year ended 30 September 2021
Hollywood Bowl Group plc Financial year ended 30 September 2021
Slide 2: Agenda
Agenda Stephen Burns Chief Executive Officer • FY2021 financial and operational highlights • COVID-19 impact and mitigation • Reigniting growth • Summary and outlook Laurence Keen Chief Financial Officer • FY2021 financial review • Investment led growth Hollywood Bowl Group plc 2
Slide 3: FY2021 financial performance
FY2021 financial performance LFL Revenue growth (post 17 May*) LFL average spend per game (post 17 May*) +28.6% +9.6% (£10.29) Total revenue Gross profit margin £71.9m 85.7% (2020: £79.5m) (2020: 85.5%) Operating profit margin Group EBITDA 13.3% £30.6m (2020: 12.4%) (2020: £29.8m) Net cash / (debt)
Slide 4: Operational highlights
Operational highlights • Excellent FY2021 performance when open » 28.6% LFL revenue growth from May 2021 and significant free cash flow generation » Significantly ahead of non COVID-19 FY2019 comparable • Well managed reopening, capitalising on the post lockdown tailwinds » Mitigated the impact from
Slide 5: FY2021 COVID-19 impact
FY2021 COVID-19 impact
Slide 6: COVID-19 impact
COVID-19 impact • October 2020 restrictions in Wales and % of estate Capacity Table service 10pm curfew Face mask Group size Revenue vs Sales Scotland before the national November restrictions only mandatory restrictions FY2019 open 2020 lockdown for 4 weeks October 95% 50% Yes Yes Yes Yes (26.3%) •
Slide 7: COVID-19 mitigation
COVID-19 mitigation Operational readiness • March £30m equity raise unlocked growth opportunities and helped facilitate an immediate recovery to pre-pandemic performance • Proactive talent banking, full retraining for all team members and launch of sales, service and environmental incentive • Extens
Slide 8: Financial review
Financial review
Slide 9: Financial performance
Financial performance Revenue (£m) -9.6% Group Adjusted EBITDA pre-IFRS 16 (£m) +2.5% 129.9 120.5 38.2 114 36.2 104.8 33.4 29.4 79.5 71.9 14.0 15.1 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 Statutory Operating Profit Margin (%) +0.9pts Earnings Per Share (Pe
Slide 10: Record summer revenue performance
Record summer revenue performance • LFL revenue growth (vs FY2019) of 28.6% since 17 May driven by • H2 revenues of £61.3m growth in spend per game and number of games played • Record revenue of £20m in August, LFL revenue growth of 50% vs • Headline price per game increased by 1.8% since FY2019 FY2
Slide 11: Income statement
Income statement (£m) FY2021 FY2020 Movement • LFL revenue up 28.6% vs FY2019 since Revenue 71.9 79.5 (7.6) reopening in May Gross profit 61.6 67.9 (6.3) • Trading for only 25.6 weeks Gross profit % 85.7% 85.5% +0.2%pts • Gross profit margin 85.7% in line with management expectations Government gran
Slide 12: Strong trading driving free cash flow
Strong trading driving free cash flow • Group adjusted operating cash flow of £22.0m (FY2020: £14.8m) • Equity placing net proceeds of £29.2m • Strong trading and cost management drove significant cash inflow • Debt fully paid down with new facility agreed Sep 2021 • Working capital benefit due to r
Slide 13: Financial outlook for FY2022
Financial outlook for FY2022 • Strong start to FY2022 » First two months 38.1% like for like revenue growth vs FY2019 » Mindful of ongoing uncertainties regarding COVID-19 restrictions » Strong balance sheet – net cash £40.1m as at Nov 2021 » Remain optimistic for at least high single digit LFL sale
Slide 14: Reignited growth
Oo Reignited growth
Slide 15: Strategy for growth
Strategy for growth Organic growth Investment led growth Constant focus on customer experience Maintaining a high quality, profitable estate • Increasing dwell time through customer focused culture and • Rolling refurbishment programme which prioritises spend on innovation strong returns • Focus on
Slide 16: A valued experience
A valued experience Simplicity driving success Amusement innovation • Simplified food menu focused on speed, quality, • Refreshed machine offer, the very latest product and consistency and value with low kitchen skill requirement removing the barriers to play supported significant growth in the amus
Slide 17: Technical excellence and innovation
Technical excellence and innovation The bowling experience Keeping pace with the digital world • Continued investment in the bowling experience has • Continued investment in strategic digital software, driven reliability and improved customer experience infrastructure and marketing programmes • Six
Slide 18: Attracting and retaining top talent
Attracting and retaining top talent • Financial support for all team members reinstated for closure periods • Relaunch of the Company ways of working and values, attended by all team members during the closed periods • New, more rewarding incentive programmes launched, aligning every team member wit
Slide 19: Our evolving approach to sustainability
Our evolving approach to sustainability • Comprehensive materiality review undertaken, identifying highest • ESG strategy evolved into a three-pillar approach which addresses impact areas as shown in the matrix below priority issues and supports Group strategic objectives Hollywood Bowl Group plc 19
Slide 20: Three pillar ESG strategy
Three pillar ESG strategy Safe and inclusive leisure destinations Outstanding workplaces Sustainable centres • Health and safety • Talent attraction and retention • Waste management • Accessibility and wellbeing • Diversity and inclusion • Energy efficiency • Responsible food and beverage • Training
Slide 21: Puttstars: On the right course
Puttstars On the right course
Slide 22: Solid performance versus investment case
Solid performance versus investment case • Solid start for the Puttstars brand giving us confidence for future targeted expansion Delivers a ROI of 19% Appeals to a wide demographic Works in compromised building configuration Can co-locate with bowling centre Works in tier 2 locations TBC Multiple l
Slide 23: A profitable business model
A profitable business model • 19% ROI projected - as a brand it is on target • Customer service scores and NPS in line with Hollywood Bowl with higher games per visit • Learnings and opportunities » Rounds vs holes » Changes to some hole designs, lighting and music » Introduce dynamic pricing » Deve
Slide 24: Investment led growth
Investment led growth
Slide 25: Successful revenue generating capital investments
Successful revenue generating capital investments Pins on Strings Refurbishments New centres Minimum 30% ROI Minimum 33% ROI 19% ROI hurdle rate • 25 centres benefiting from installs • A further three completed in • Resorts World opened 10 FY2021 expected to meet hurdle December » £250k investment i
Slide 26: Strong new centre pipeline to FY2024
Strong new centre pipeline to FY2024 • 11 new centre openings for Hollywood Bowl and Puttstars brands currently signed in high quality leisure and retail schemes • A further 4-6 locations are targeted for openings before 2025 • FY2022 • Northern Ireland – 1 centre West Midlands – 1 centre • North We
Slide 27: Summary and outlook
Oo Summary and outlook
Slide 28: Well positioned for the future
Well positioned for the future • Market leader with high quality, well-invested estate led by experienced management team • Continued strong demand for family focused, affordable leisure experiences • Strong balance sheet supports ability to invest in future growth and take advantage of market oppor
Slide 29: Appendices
Appendices
Slide 30: Balance sheet
Balance sheet (£m) FY2021 FY2020 Movement Assets Intangible assets 78.0 78.2 78.2 Property, plant and equipment 49.0 48.2 48.2 Right-of-use assets 138.6 140.5 140.5 Inventories 1.5 1.3 1.3 Trade, other receivables and corporation 4.0 2.0 2.0 tax debtor Cash and cash equivalents 29.9 20.8 20.8 Total
Slide 31: 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 health an