Agend enda FY2018 highlights Financial performance Evolution of key drivers Property update Summary and outlook 1
Conti ntinued ued delive livery ry of our growt wth h stra rategy egy in fy 2018 Record revenues and High quality profitable estate profits Affordable customer led Two new centres and nine proposition refurbishments Effective use of technology enhancing the customer offer Customer service scores improving across all key Changing perceptions and measures growing the market Special dividend for Attractive financial model second year running 2
Key ey achie hieve vement ents and nd miles leston ones es 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 from online VIP lanes in 47 scores improving bookings up 27% centres across all key measures 3
FY FY2018 highl hlig ight hts 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 before the end of FY2022 EBITDA TAX +8.3% +13.4% Over 13 million games bowled with increased total spend per game up from £8.70 to £9.22 (£23.9M) (£36.2M) Team member development programme: 103 completed FINAL training programmes, 10 promoted to centre manager SPECIAL ORDINARY DIVIDEND DIVIDEND 4.33P Free cash flow of £18.3m 4.23P (+30.0%) (+7.1%) Earnings per share 12.52 pence Total cash returned to shareholders since IPO: £29.8m Hollywood Bowl Group plc Investor Presentation FY2018 4
Fi Fina nanc ncial ial highl hlig ight hts 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 Earnings Per Share (pence): +2.9% Operating Profit Margin %: +1.2%pts 20.6% 12.52 19.5% 12.17 9.34 * 15.4% 13.7% 5.27 * FY2015 FY2016 FY2017 FY2018 FY2015 FY2016 FY2017 FY2018 Hollywood Bowl Group plc Investor Presentation FY2018 5 * Adjusted for pre IPO financing and IPO related costs
EBI BITDA TDA growth th +8.3% LFL revenue growth of 1.8% Continued EBITDA growth from invested centres Part year effect of new centres pre LFL Effective cost control throughout the year 20.7 0.3 1.3 0 0.5 1.7 36.2 11.1 33.4 Hollywood Bowl Group plc Investor Presentation FY2018 6
Inco come e sta tateme ement (£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 Gross profit % in line with Administrative expenses / other income (78.9) (76.4) Operating profit 24.9 22.2 +12.1% management expectations Operating profit margin % 20.6% 19.5% +1.2%pts Operating profit up 12.1% and Depreciation 10.5 10.0 margin at 20.6% Amortisation 0.5 0.5 Fixed asset disposal 0.1 0.6 Exceptional items 0.1 0.0 Adjusted EBITDA up 8.3% due Adjusted EBITDA 36.2 33.4 +8.3% to strong revenue growth and Adjusted EBITDA margin % 30.0% 29.3% +0.4%pts effective cost controls Finance expenses (1.0) (1.1) Movement financial instruments – 0.1 +13.4% Profit before tax 23.9 21.1 Record profit before tax of £23.9m Tax expense (5.1) (2.8) Profit after tax 18.8 18.3 +2.9% Statutory EPS up 2.9% Statutory EPS (pence) 12.52 12.17 +2.9% Profit after tax – excluding ATCA 19.4 18.3 +6.0% Hollywood Bowl Group plc Investor Presentation FY2018 7
Stro rong cash sh gen enera erati tion 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 per share Expansionary capex includes 9 refurbishments / rebrands and net Total proposed cash return to capex of 2 new centres shareholders of £15.9m in relation to FY2018 (10.59p per share) 0.3 6.7 14.9 5.0 11.1 10.9 36.2 4.3 0.2 1.5 0.6 24.7 14.0 18.3 4.1 Hollywood Bowl Group plc Investor Presentation FY2018 8
Fi Fina nanc ncial ial outlo tlook 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 scoring technology in FY2019 at a cost of £2.0m Effective tax rate expected to be 20.4% in FY2019 IFRS 16 adoption will be implemented in FY2020 Hollywood Bowl Group plc Investor Presentation FY2018 9
Growth th str trat ategy egy 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 Development of new centres and acquisitions Increasing spend Target of 2 new centres per year on average Improved F&B and amusement offering on retail / leisure parks - with landlord contributions Leveraging technology to unlock growth Growing market share through customer Increasing ecommerce sales and yield engagement performance Refocusing the proposition towards family Broadening the appeal to new customers leisure, improving ancillary product offerings Maximising engagement through targeted Strategic profit enhancing acquisitions marketing Opportunities that suit the Group‘s locations and demographic criteria Hollywood Bowl Group plc Investor Presentation FY2018 10
Opera erati tional al inn nnovati vation 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 30% Games Per Stop (GPS) to four centres during FY2019 1443 Will be implemented in centres where machines are end of life and new centre openings 396 356 Group (FY2017) Group (FY2018) POS* (FY2018) Group scoring Single, stable technical platform for our core product Deliver consistent, high quality SCORING EMAIL customer experience – UX and OPEN RATES OVER 80% GPS Increased customer engagement through CRM programme Rolling out to the estate over next 2 years Hollywood Bowl Group plc Investor Presentation FY2018 11
Opera erati tional al inn nnovati vation Food and drink Hollywood Diner rolled out across the estate FOOD SPG +5.4% Cost inflation largely mitigated Drinks menu refreshed and rolled out BAR SPG Duty increases offset protecting +7.0% margin i-Serve lane ordering system Amusements rolled out across the estate Amusement enhancements AMUSEMENT SPG +8.3% driving continued growth Enhanced commercial terms improving margin Play for prizes in 47 centres Hollywood Bowl Group plc Investor Presentation FY2018 12
Techn chnol olog ogy initiat nitiatives ves 1.7m email contacts post GDPR Digital Driving up to 20% of revenue in challenging trading conditions ONLINE REVENUE New automated campaigns and +27% Online Revenue % Mix customer segmentation 34% 29% Single central social accounts – 24% 20% increase in followers YOY 23% MOBILE REVENUE Digital performance advertising +37% revenues up 37% FY2015 FY2016 FY2017 FY2018 Dynamic pricing Price elasticity based on booking lead time and capacity BOWLING SPG +5.3% Value drivers now on dynamic pricing model with no negative customer feedback V3 in production, to include larger differential on super peak and off peak time slots Hollywood Bowl Group plc Investor Presentation FY2018 13
Inve nvestmen ment led growth h Refurbishments Rebrands Return on investment of 54.9% Return on investment of 44.8% LFL revenues continue to outperform at 14.9% LFL revenues continue to outperform at 7.1% up up vs non invested estate vs non invested estate Game volumes up 6.5% vs non invested Game volumes up 1.5% vs non invested estate estate 6 refurbishments planned in FY2019 Estate comprises of 50 HWB and 8 AMF centres Plans to rebrand 2 AMF centres in FY2019 11.1 10.9 90% £700,000 ROI Capital Spend 80% 20.7 £600,000 70% £500,000 60% Capital Spend £400,000 50% RO I 40% £300,000 30% £200,000 20% £100,000 10% 0% £0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Hollywood Bowl Group plc Investor Presentation FY2018 14
Inve nvestmen ment led growth Hollywood Bowl refurbishment - Cribbs Causeway AMF Bowling rebrand - Peterborough Rebranded and refurbished to Hollywood Bowl Return on investment of 84.6% on £300k capital Return on investment of 58.9% on £310k All areas of the centre upgraded including capital Hollywood Diner and bar Enlarged amusement area as well as combined LFL revenues up 17.9% post investment bar and Hollywood Diner Game volumes up 15.9% vs non invested estate LFL revenues up 14.6% post investment 14.9 11.1 10.9 20.7 Hollywood Bowl Group plc Investor Presentation FY2018 15
Recommend
More recommend
