Hollywood Bowl : Annual Report - Year Ending 30 September 2022

Driving our growth strategy

Hollywood Bowl Group plc

Annual report and accounts 2022

Driving our growth strategy

Our unique purpose-led culture and proven investment-led strategy are enabling us to capitalise on the significant growth opportunities in the markets we operate in.

Strategic report	Corporate report
2	Highlights	76	Chairman's introduction to governance
3	Investment case	78	Board of Directors
4	At a glance	80	Corporate governance report
6	Chairman's statement	86	Report of the Nomination Committee
10	Our brands	91	Report of the Audit Committee
16	Canadian acquisition	96	Report of the Remuneration Committee
18	Chief Executive Officer's review	101	Annual report on remuneration
24	Business model	114	Directors' report
26	Section 172	117	Statement of Directors' responsibilities

1. Stakeholder engagement

1. Our market environment

1. Strategy

1. Key performance indicators

1. Chief Financial Officer's review

1. Sustainability overview

1. TCFD

1. Risk management
2. Principal risks

1. Going concern and viability statement

Financial statements

119 Independent auditor's report

1. Consolidated income statement and statement of comprehensive income
2. Consolidated statement of financial position
3. Consolidated statement of changes in equity
4. Consolidated statement of cash flows
5. Notes to the financial statements

1. Company statement of financial position
2. Company statement of changes in equity

1. Company statement of cash flows
2. Notes to the Company financial statements

165 Company information

Our purpose is bringing families and friends together for affordable fun and safe, healthy competition

Our strategy…

Delivering

like-for-like

revenue growth

Actively	Developing new
refurbishing	centres and
our assets	acquisitions

Read more on pages 32 to 37

Focusing on

our people

Leveraging our indoor leisure experience

is underpinned by our commitment to sustainable growth…

Safe and inclusive leisure destinations

Outstanding workplaces

Read more on pages 46 to 58

Sustainable

centres

and strong market fundamentals…

Growth of competitive

socialising

Combined retail and	Low market
leisure experiences	penetration

Read more on pages 30 and 31

Sector consolidation

opportunities

enabling us to create value for our stakeholders

Continually enhancing our

customers' experience

Building energetic and

engaging teams who share our values and are proud to be part of our culture

Read more on pages 27 to 29

Maintaining support of

our investors to help us grow the business and consistently deliver returns

Hollywood Bowl Group plc	1
Annual report and accounts 2022

Highlights

Our financial performance

+28.3%	£193.7m	+169.5%	£77.5m
LFL revenue growth1	Revenue	Total revenue growth	Group adjusted EBITDA1
(2021: +28.6%)	(2021: £71.9m)	(2021: -9.6%)	(2021: £30.6m)

£37.5m	21.91p
Profit after tax	Earnings per share
(2021: £1.7m)	(2021: 1.05p)
8.53p	3.0p
Final ordinary dividend	Special dividend
per share	per share

£39.4m	23.07p
Adjusted profit after tax1	Adjusted earnings
(2021: £1.7m)	per share1
	(2021: 1.05p)

1 Definitions for these measures are in the key performance indicators section (pages 38 and 39). A reconciliation between key adjusted and statutory measures, as well as notes on alternative performance measures, is provided in the Chief Financial Officer's review (pages 40 to 45). Management believes providing these specific financial highlights gives valuable supplemental detail regarding the Group's results, consistent with how management evaluates the Group's performance. Due to the restrictions in FY2020 and FY2021, like-for-like (LFL) calculations above are compared to the last uninterrupted year of trading in FY2019.

2	Hollywood Bowl Group plc
Annual report and accounts 2022

Investment case

Reasons to invest

Hollywood Bowl Group is the UK's market leader with national scale, and the second largest operator of ten-pin bowling centres in the world.

We operate a high-quality,well-invested estate with diverse revenue streams and multiple levers, including our expansion into Canada, to drive further growth.

Strategic report

People and leadership

Our highly motivated and engaged operational teams deliver our customer-focused experiences, and are led by a stable and experienced management team who is committed to sustainable growth

Read more on pages 51 to 54

Top 25

UK's Best Big Companies to Work For in 2022

Balance sheet strength

By driving revenues, achieving healthy margins and maintaining a strong balance sheet, we continue to invest appropriately in enhancing and scaling our business

Read more on pages 18 to 22

£56.1m

Net cash at year end

Market opportunities

As the clear leader in both the UK ten-pin bowling and the competitive socialising markets, we are best placed and have the experience to capitalise on the growth opportunities available in the markets we operate in

Read more on pages 30 and 31

Exciting growth pipeline

Alongside our ongoing centre refurbishment plan, we are targeting more new centres for our Hollywood Bowl, Puttstars and Splitsville brands, which is backed by our rigorous and disciplined location selection process

Read more on page 35

9

Centres added to the Group estate in FY2022

15-20

Target range of new openings before the end of FY2025

Customer focus

Our ten-pin bowling and mini-golf centres provide fun and safe environments for people of all ages, and their experiences are enhanced by research led insight and a culture of continuous improvement

Read more on pages 12 to 15

61%

UK net promoter score

Hollywood Bowl Group plc	3
Annual report and accounts 2022