Hollywood Bowl offers a cash-generative, net-cash compounding platform with a major Canadian runway, trading at low-double-digit forward earnings despite attractive five-year upside.
Overview
Hollywood Bowl Group is the world’s second-largest ten-pin bowling operator, the UK market leader, and Canada’s largest branded operator. Its out-of-town, multi-use leisure locations benefit from high footfall, favorable landlord relationships, and a value proposition that makes a family-of-four bowling outing cost less than £26 in the UK and CA$32 in Canada. Revenue is diversified across bowling and mini-golf, amusements, and food and beverage, with dynamic pricing and cashless technology supporting resilient customer spend. **H1 FY2026 revenue rose 9.5% to £141.5m and adjusted EBITDA after rent increased 8.9% to £42.2m**, while adjusted EPS rose 11.3% to 14.51p (£0.1451). The group maintained FY2026 revenue guidance of £267m–£275m, held £26.0m of net cash, and had a fully undrawn £25.0m revolving facility. At £2.93, the shares trade at 12.74x forward P/E and 7.73x EV/EBITDA. The investment case rests on Canada’s consolidation runway, continued pricing and margin discipline, the £5.0m H2 FY2026 buyback, and a probability-weighted five-year value of £4.43 per share.