Hollywood Bowl Group Plc · LSE:BOWL
Hollywood Bowl — FY2018 Earnings Presentation
47 slides from Hollywood Bowl's earnings presentation, Dec 10, 2018
Slide 1: Hollywood Bowl Group plc Results Presentation
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Slide 2: Welcome
Slide 3: Agenda
Agenda FY2018 highlights Financial performance Evolution of key drivers Property update Summary and outlook 1
Slide 4: Delivering on our growth strategy
Slide 5: Continued delivery of our growth strategy in FY2018
Continued delivery of our growth strategy in fy2018 High quality profitable estate Record revenues and profits Affordable customer led proposition Two new centres and nine refurbishments Effective use of technology enhancing the customer offer Customer service scores improving across all key Changin
Slide 6: Key achievements
Slide 7: Key achievements and milestones
Key achievements and milestones Final 4 Bowlplex 2 AMF centres 3 centre centres rebranded to rebranded to refurbishments Hollywood Bowl Hollywood Bowl Pins on Strings now in Play for prizes now Hollywood Diner now 7 centres – V2 in in 47 centres in all 58 centres production Customer service Revenue
Slide 8: Financial performance
Slide 9: FY2018 highlights
FY2018 highlights Record revenue and profits TOTAL LFL SALES REVENUE All revenue lines in LFL growth GROWTH +5.8% +1.8% Total revenue growth driven through core estate, (£120.5M) investments and new centre openings 2 new centres opened with 8 exchanged for openings GROUP PROFIT ADJUSTED BEFORE befor
Slide 10: (A - JA4Z
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Slide 11: Financial highlights
Financial highlights Revenue (£m): +5.8% Group Adjusted EBITDA (£m): +8.3% 120.5 36.2 114.0 33.4 104.8 29.4 84.6 20.6 FY2015 FY2016 FY2017 FY2018 FY2015 FY2016 FY2017 FY2018 Operating Profit Margin %: +1.2%pts Earnings Per Share (pence): +2.9% 20.6% 19.5% 12.17 12.52 9.34 * 15.4% 13.7% 5.27 * FY2015
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Slide 13: EBITDA growth +8.3%
EBITDA growth +8.3% LFL revenue growth of 1.8% Continued EBITDA growth from Part year effect of new centres invested centres pre LFL Effective cost control throughout the year 20.7 0.3 1.3 0 1.7 0.5 36.2 11.1 33.4 Hollywood Bowl Group plc Investor Presentation FY2018 6
Slide 14: Slide 14
Slide 15: Income statement
Income statement (£m) FY2018 FY2017 Movement Revenue 120.5 114.0 +5.8% LFL revenue up 1.8% Gross profit 103.8 98.6 +5.3% Gross profit% 86.1% 86.5% -0.4%pts Administrative expenses / other income (78.9) (76.4) Gross profit % in line with Operating profit 24.9 22.2 +12.1% management expectations Opera
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Slide 17: Strong cash generation
Strong cash generation Group adjusted operating cash Proposed final dividend of 4.23p per flow of £24.7m (FY2017: £26.7m) share plus a special dividend of 4.33p Expansionary capex includes 9 per share refurbishments / rebrands and net Total proposed cash return to capex of 2 new centres shareholders
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Slide 19: Financial outlook
Financial outlook 7 – 10 refurbishments / rebrands to be completed in FY2019 2 new centres – Watford pre Christmas and Lakeside in H2 FY2019 Total expansionary capital expenditure expected to be £5.5m - £6.3m Maintenance capital expenditure expected to be £6.0m - £6.5m Expect to advance rollout of s
Slide 20: Evolution of key drivers
Slide 21: Growth strategy
Growth strategy Organic growth Investment led growth Constant focus on customer experience Maintaining a high quality, profitable estate Increasing dwell time through customer- Rolling refurbishment programme of 7-10 focused culture and innovation centres per year Increasing spend Development of new
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Slide 23: Operational innovation: Pins on strings and group scoring
Operational innovation Pins on strings Now in 7 centres Trial of both Qubica and Brunswick machines PINS ON STRINGS V2 of the Qubica machine now ROI in production, will be rolled out Games Per Stop (GPS) 1443 to four centres during FY2019 30% Will be implemented in centres where machines are end of
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Slide 25: Operational innovation: Food and drink, Amusements
Operational innovation Food and drink Hollywood Diner rolled out across the estate FOOD SPG Cost inflation largely mitigated +5.4% Drinks menu refreshed and rolled out BAR SPG Duty increases offset protecting margin +7.0% i-Serve lane ordering system Amusements rolled out across the estate Amusement
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Slide 27: Technology initiatives: Digital and dynamic pricing
Technology initiatives 1.7m email contacts post GDPR Digital Driving up to 20% of revenue in challenging trading conditions ONLINE REVENUE New automated campaigns and Online Revenue % Mix 34% customer segmentation +27% 29% Single central social accounts – 24% 23% 20% increase in followers YOY MOBILE
Slide 28: Ro ee ven
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Slide 29: Investment led growth: Capital spend
Investment led growth Refurbishments Rebrands Return on investment of 44.8% Return on investment of 54.9% LFL revenues continue to outperform at 7.1% up LFL revenues continue to outperform at 14.9% vs non invested estate up vs non invested estate Game volumes up 6.5% vs non invested Game volumes up
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Slide 31: Investment led growth: Refurbishment and rebrand examples
Investment led growth Hollywood Bowl refurbishment - Cribbs Causeway AMF Bowling rebrand - Peterborough Return on investment of 84.6% on £300k capital Rebranded and refurbished to Hollywood Bowl All areas of the centre upgraded including Return on investment of 58.9% on £310k Hollywood Diner and bar
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Slide 33: Our people – a key enabler for growth
Our people – a key enabler for growth Training and development Reward and recognition Over £260k invested in developing our team Sector leading centre manager incentive scheme enhanced 86 graduated assistant manager training programme Centre managers and assistant managers LTIP scheme 17 graduated c
Slide 34: Property update
Slide 35: New centre - Dagenham
New centre - Dagenham NET CAPEX Secured from landlord having traded as Namco £391k Destination leisure park Opened October 2017 Play for prizes introduced SQ.FT Trading well and in line with 31k expectations since opening On track to pay back in under 15 months LANES 20 Hollywood Bowl Group plc Inve
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Slide 37: New centre - Yeovil
New centre - Yeovil NET CAPEX Secured from landlord having traded as one of the few £630k profitable MFA centres Destination leisure park Opened March 2018 SQ.FT Pins on strings installed 23k Play for prizes introduced Trading well and in line with expectations since opening On track to pay back in
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Slide 39: Strong new centre pipeline
Strong new centre pipeline Watford – FY2019 Lakeside – FY2019 Liverpool – FY2021 Key anchor in the new Largest bowling centre to Relocation of existing centre to a intu extension open in UK or over 10 years newly developed leisure/retail park Alongside Cineworld and Major anchor of new leisure Co-lo
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Slide 41: York FY2020
Growth in line with medium term strategy New bowling centre secured for York FY2020 FY2020 in a first class location Co-located with cinema in a leisure extension to a retail GROUND FLOOR scheme 28,000 sq.ft. ground floor unit 24 Significant capital contribution LANES and 12 months rent free FIRST F
Slide 42: Summary
Slide 43: Outlook
Outlook Group continues to perform in line with the Board’s expectations for the current year Refurbishment programme driving strong returns and excellent customer feedback Market leader with high quality, well invested estate led by experienced management team Customer focused business leading the
Slide 44: Appendix
Slide 45: Management
Management Stephen Burns - Chief Executive Officer Laurence Keen - Chief Financial Officer Appointment: Stephen joined the Group as Business Appointment: Laurence joined the Group as Development Director in 2011. He was promoted to Finance Director in 2014. Managing Director in 2012 and became Chief
Slide 46: Balance sheet
Balance sheet (£m) FY2018 FY2017 Non current assets 119.7 118.6 Cash at bank 26.0 21.9 Other current assets 7.8 8.3 Creditors and provisions (30.1) (29.0) Gross debt (28.5) (30.0) Net assets 94.9 89.8 Hollywood Bowl Group plc Investor Presentation FY2018
Slide 47: Hollywood Bowl Group
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