MIDAS SHARING TIPS UPDATE: Investing in Hollywood Bowl Could Boost Your Score

Canada is the second largest country in the world, covering almost four million square miles, 40 times larger than the United Kingdom.

However, not many people live in the land of elk and maple syrup: fewer than 40 million, compared to almost 70 million here.

These statistics are important for a company like Hertfordshire. Hollywood BowlBritain’s premier bowling group.

In May 2022, with many businesses still recovering from the pandemic, Hollywood Bowl moved to Canada and acquired five established sites for £10.6 million.

Today there are 13 centers and two more will become operational in February. Revenue has tripled and growth is on the agenda.

CEO Stephen Burns has been at the helm of Hollywood for ten years, alongside CFO Laurence Keen. His career inspires confidence.

Hollywood listed on the stock exchange eight years ago with 54 centers and a valuation of £240m.

Today, there are 85 sites and the value of the business has more than doubled to £570m. More locations will open in the coming months and there are plans to build up to 130 centers in the coming years, 95 here and the rest in Canada.

Sites must be selected carefully. Bowling alleys work best when they are close to where people live, shop, or play. This is relatively simple here, but not so easy in a country where the nearest city may be hours away.

Hollywood Bowl already has venues in Toronto, Vancouver and Calgary. As it becomes better known, more attractive locations are offered, leading to expansion and sales growth.

Last week, Burns said revenue for the year to September 30 will exceed £230 million, boosted by a strong performance from Canada.

Full-year results will be published just before Christmas, but brokers expect profits to rise 3 per cent to £49.3m and a dividend of 12p.

Special payments are a feature of Burns and Keen, so it is possible that they will receive extra money in the coming months, as they are both confident in the long-term prospects.

Bowling is a healthy pastime that appeals to families and co-workers alike. It’s cheap too, under £7 for adults and under £6 for children. Food, drinks and arcade games bring the average spend to just over £11, still below the national living wage per hour.

Midas Verdict: Midas recommended the Hollywood Bowl in 2017 when shares were £1.89. Covid-19 hit the stock but it has since recovered to £3.30. There should be more to come.

Burns and Keen know what it’s about, there is a clear strategy for growth and bowling offers fun for everyone at a time when doom and gloom seems omnipresent.