Hollywood Bowl Group plc Annual report and accounts 2024

Hollywood Bowl Group plc

Annual report and accounts 2024

Growing through

investment in

the customer

experience

We continuously invest

Our unique purpose-led culture and proven customer-driven

investment strategy is enabling us to further develop our

market-leading position and capitalise on the growth opportunities

in the territories we operate in.

in the customerexperience

Strategic report

1 Highlights

2 Strategic roadmap

3 Investment case

4 At a glance

6 Chair’s statement

10 Growth

12 Our markets

20 Chief Executive Officer’s review

26 Our culture

28 Business model

30 Strategy and KPIs

38 Chief Financial Officer’s review

44 Section 172

45 Stakeholder engagement

48 Sustainability overview

64 TCFD

74 Risk management

75 Principal risks

80 Going concern and viability statement

81 Non-financial and sustainability

information statement

Governance report

82 Chairs introduction to governance

84 Board of Directors

86 Corporate governance report

93 Report of the Nomination Committee

99 Report of the Audit Committee

104 Report of the Corporate

Responsibility Committee

105 Report of the Remuneration Committee

109 Directors’ Remuneration Policy

119 Annual report on remuneration

128 Directors’ report

131 Statement of Directors’ responsibilities

Financial statements

133 Independent auditor’s report

141 Consolidated income statement and

statement of comprehensive income

142 Consolidated statement of financial position

143 Consolidated statement of changes in equity

144 Consolidated statement of cash flows

145 Notes to the financial statements

172 Company statement of financial position

173 Company statement of changes in equity

173 Company statement of cash flows

174 Notes to the Company financial statements

180 Company information

Highlights

Financial

performance

LFL revenue growth

+0.2%

28.3

2024

2023

2022

Profit after tax

£29.9m

34.2

29.9

37.5

2024

2023

2022

Adjusted profit after tax

£32.3m

36.6

32.3

39.4

2024

2023

2022

Revenue

£230.4m

215.1

230.4

193.7

2024

2023

2022

Total average spend

per game

£11.05

Earnings per share

17.42p

19.92

17. 42

21.91

2024

2023

10.82

11.05

10.68

2024

2023

2022

Adjusted earnings

per share

18.82p

21.37

18.82

23.07

2024

2023

2022

Group adjusted EBITDA

£87.6m

82.7

87.6

77.5

2024

2023

2022

Total revenue growth

+7.1%

11.0

169.5

2024

2023

2022

Total ordinary dividend

per share

12.06p

11.81

12.06

11.53

2024

2023

2022

Net cash

£28.7m

52.5

28.7

56.1

2024

2023

2022

1 Definitions for these measures are in

the key performance indicators section

(pages 36 and 37). 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 38 to 42). Management

believes providing these specific

financial highlights gives valuable

supplemental detail regarding the

Group’s results, consistent with how

management and investors evaluate

the Group’s performance.

Canadian growth

Find out how we are utilising our proven

Group operating model to develop our

business in Canada.

Read more on pages 12 to 15

Centres

Hollywood Bowl Group plc

Annual report and accounts 2024

Strategic report

Chair’s statement

Another year of

record performance

Our performance is testament

to the dedication of our team

members and proof of their hard

work in delivering outstanding

customer experiences.”

Peter Boddy, Non-Executive Chair

Read full biography on page 84

Hollywood Bowl Group plc

Annual report and accounts 2024

Hollywood Bowl Group has had another successful

year, delivering further revenue growth and making

excellent strategic progress, enhancing the quality

of our estate and expanding our footprint in the UK

and Canada.

The successful execution of our growth strategy, underpinned

by our customer-focused, value-for-money proposition, is

strengthening our position as a market-leader in both the ten-pin

bowling market and the wider competitive socialising market.

Group revenue grew by 7.1 per cent to £230.4m and 0.2 per cent on

a LFL basis, as we achieved another year of record revenues, in line

with expectations, against the very strong prior year comparative

and previous two years of exceptional growth. Our continued focus

on operational excellence and customer experience supported our

growth in Group adjusted EBITDA to £87.6m and delivered profit after

tax of £29.9m.

The strong performance in FY2024 is a testament to the continued

dedication of our team members and proof of their hard work in

delivering outstanding customer experiences, as demonstrated by

our record customer satisfaction levels achieved during the year.

We made further progress in our ESG strategy and our collective

efforts to embed a sustainable and responsible approach across all

of our operations are a real source of pride.

FY2024 was a year of further investments supporting the Group’s

growth strategy, including the record ongoing investment into our

existing assets and growing our estate, supported by our strong

liquidity. We have invested more than £50m into the estate in the

past year, maintaining the current centres, continuing to roll out Pins

on Strings, opening and acquiring new centres as well as completing

12 refurbishments across the UK and Canada. We added eight

centres to our estate during the year, bringing our total to 85, with

72 in the UK and 13 in Canada.

We have also continued to invest in technology to support our next

stage of growth, and in July launched a new modern and flexible

reservation platform. The system has been rolled out in the UK with

excellent results including improved usability, reliability, speed and

reduced operational costs. Already being piloted, we will be rolling

this system out in our Canadian operations in FY2025.

Further growth in the UK

UK families continue to face cost of living challenges, and against

that backdrop, delivering high-quality experiences that can be

enjoyed for great value is even more important. Our resilience to

inflationary pressures means that we have been able to keep our

prices affordable, a family of four being able to enjoy a game of

bowling with us for under £26. Our bowling prices in the UK rose by

just 20 pence in FY2024, well below inflation, to an average of £7.15

for adults and £6.21 for children, and with food, drink and amusement

price increases also kept low, meaning that, in real terms, it was

cheaper than the previous year for our customers to enjoy an outing

to Hollywood Bowl.

UK LFL performance was driven by increased spend per game in all

areas of the business and an overall spend per game increase of

3.3 per cent. Game volumes declined marginally, primarily as a result

of the difference in trading conditions compared to FY2023 when

unseasonal weather conditions during key trading periods drove

people indoors, compounded by the impact of a summer of major

sporting events in FY2024.

We are constantly innovating and improving our customer experience,

trialling new initiatives which, if successful, are introduced to our centres

as part of our ongoing refurbishment programme. We completed ten

UK centre refurbishments in the year, some of which are now

entering their second or third-generation cycle. We continue to

deliver impressive returns on investment for all generations of

refurbishments as well as receiving excellent customer feedback.

We have continued to grow our UK estate, adding four centres

during the year, including one acquisition, Lincoln Bowl, which

has since been rebranded and refurbished and is trading in line

with expectations.

Excellent progress in Canada

Our Canadian business continues to go from strength to strength.

Since entering the market in May 2022, through the acquisition of

Splitsville and its five centres, we have more than doubled the size

of our estate to 13 centres. In FY2024, we added four new centres

through the three acquisitions and opening of our first new,

state-of-the-art development in Waterloo, Ontario.

The refurbishment programme is progressing well and we completed

two during the year, leveraging our customer-led operating expertise,

technology and brand experience from the UK. We continue to test

and seek feedback when developing new ways to evolve the offer for

customers in Canada, allowing us to attract a wider customer base.

We have so far transferred four UK team members to Canada,

demonstrating the importance we place on the sharing of

knowledge between our UK and Canadian teams.

Group centres

(FY2023: 79)

70%

UK net promoter score in FY2024

Hollywood Bowl Group plc

Annual report and accounts 2024

Strategic report

Excellent progress in Canada continued

Splitsville is already the largest single branded operator in the

territory and, as the market remains under-invested and highly

fragmented, we are excited about the significant opportunity to

grow and add value to the Splitsville business. We have a pipeline

of acquisition opportunities and new development centres and by

the end of FY2025, we expect to have tripled our original size.

Capital allocation policy

Given our financial position and cash balance at year end, the Board

is pleased to declare a final ordinary dividend of 8.08 pence per

share in line with our capital allocation policy of 55 per cent of

adjusted profit after tax. Together with the interim dividend of

3.98 pence per share, this represents 2.1 per cent growth in the

ordinary dividend compared to the prior year. Total shareholder

returns for FY2024 will amount to £20.7m.

Social and environmental responsibility

We are progressing with our environmental and social agenda, with

oversight from the Corporate Responsibility Committee which we

established in FY2023. To support our wider pathway to achieving net

zero, we installed more solar panels in our centres, with 42 per cent of

our UK estate now fitted with nearly 15,000 solar panels, providing

clean energy to our centres and reducing our reliance on bought-in

energy and exposure to energy prices. We have also made progress

with our waste recycling levels, our responsible construction

approach and our supplier engagement programme. Furthermore,

we have also begun to introduce our sustainability strategy to our

Canadian operations and have set targets for FY2025.

Our people are our most important asset and are critical to our

customers receiving a consistently high-quality experience in our

centres. We are proud to support all our team members through our

industry-leading training and development programmes, as well as

financially through comprehensive bonus and incentive schemes.

We have made further progress through our updated employer brand

which was relaunched last year, enabling us to attract the best talent

but also to give our team members the opportunity to progress and

develop their careers. Our UK operation has a low staff turnover rate

compared to the wider hospitality sector, and we are delighted that

58 per cent of management appointments in FY2024 were filled by

internal talent. The efforts of our people team were recognised once

again, as the Group was named one of The UK’s Best Big Companies

to Work For.

We were pleased to continue to support the communities where we

operate, including increasing the number of concessionary discount

games played to over 1m and breaking our charity fundraising target

for our partner Macmillan by raising £85,000.

Board changes

Nick Backhouse, who served as the Group’s Senior Independent

Director (SID), retired by rotation from the Board at the Annual

General Meeting (AGM) in January 2024. Consequently, Rachel

Addison, appointed to the Board in July 2023, has stepped up as

SID and also taken on the position of Chair of the Audit Committee.

In line with the Group’s succession planning, I too will be retiring by

rotation from the Board after ten years as Non-Executive Chairman,

Chair of the Nomination Committee and member of the Corporate

Responsibility Committee at the AGM in January 2025.

Darren Shapland has been appointed as an independent

Non-Executive Director and Chair Designate, as well as a member

of the Nomination and Corporate Responsibility Committees,

effective 1 December 2024. Darren brings extensive experience

from his 40-year career in retail and consumer businesses and I

am confident he is the right person to lead the Board as the Group

enters its next stage of growth.

I am very proud of the Group’s many achievements since I joined in

2014, up to and including its inclusion in the FTSE 250 in March

2024, and look forward to following the Group’s continued growth.

Long‑term growth

Our continued strong performance demonstrates the robust

demand for fun, affordable, family-friendly leisure activities.

We remain resilient to inflationary pressures with over 70 per cent

of Group revenue not subject to cost-of-goods inflation, enabling us

to continue to meet this demand while reinforcing our reputation for

delivering high-quality, great value-for-money experiences.

The new measures announced by the UK Government in the

October Budget will disproportionately impact the hospitality

industry as a result of the significantly increased employment costs

for a sector powered by people. Even with these new changes,

Hollywood Bowl remains well positioned for future growth and to

mitigate the significantly increased labour costs while keeping our

bowling offer affordable for our customers.

The Group has a successful, proven strategy focused on growing

and improving the quality of the estate in the UK and Canada, and

enhancing the customer experience. The highly cash generative

nature of the business and strength of our balance sheet mean that

we are well placed to pursue opportunities to invest in our future

growth and meet our target of 130 centres by 2035, whilst continuing

to make returns to shareholders.

I would like to take the opportunity in this, my final Annual Report

as Chairman, to thank every team member and my fellow Board

members, past and present, for ten memorable and exciting years.

I also wish to thank the many and varying stakeholders for the

support and contributions they have made over the past ten years.

It has been a privilege to serve as the Group’s Chairman.

Hollywood Bowl Group has a very promising future, and I wish it

every success.

Peter Boddy

Non-Executive Chair

16 December 2024

Chair’s statement continued

Hollywood Bowl Group plc

Annual report and accounts 2024

Since the IPO, we have grown the Group estate from 54

to 85 centres, all the while continuing to innovate and

enhance our customer experience, creating value for both

institutional and employee shareholders. Entering Canada,

our first international steps, was a significant milestone for

the business and it is exciting to see the Group at the early

stages of its growth potential in this market.

Finally, spending time on the lanes and enjoying some

friendly competition with colleagues, investors and my

own family has been a major advantage of this role,

meeting our teams and getting to witness first hand our

amazing customer offer.

Where would you like to see the business in ten

years time?

I look forward to seeing the business continually evolve

and innovate its customer proposition, and grow the size

of the estate. Already the market leader in the UK and

Canada, the Group is well positioned to meet its growth

targets of at least 130 centres in those two markets, which

would be a significant achievement.

There may be opportunities to develop the business in

new ways, perhaps in new countries with attractive market

dynamics and returns potential. I am confident that the

Board will continue to weigh up any potential risks and

maintain its prudent approach. However, for now, the

Group has plenty of work to do in the UK and Canada.

We ask Chair Peter Boddy about

his highlights of FY2024 and future

ambitions for the Group

Q&A

with Peter

What were the key achievements in the year?

Our teams have once again delivered an outstanding

performance. Even after two years of exceptional

performances, underpinned by favourable trading

conditions, we have continued to again drive performance

from within our centres, without relying on price-led

growth, keeping the customer experience at the heart of

everything we do. This is largely due to the dedication and

hard work of our team members which is evidenced by the

positive customer feedback and record service levels

achieved in the year.

As a gateway employer, the fact that Hollywood Bowl

has one of the lowest staff turnover rates in our industry

is a continual source of pride, as is the quality of our

recruitment, training and talent development

programmes. This year saw 58 per cent of management

appointments filled by internal talent, as well as some of

our UK team members taking on new roles in our

Canadian business.

What have been your highlights in your ten

years as Chairman of the Board?

There are too many to count! It has been a pleasure

working with such fantastic people over the past ten years.

At the time of the IPO in 2016, I said that I firmly believed

that Hollywood Bowl Group had a very promising future.

How true that was. There have been many challenges

along the way, not least a global pandemic, but I am proud

of the way we have consistently risen to the occasion and

emerged in a stronger position.

Hollywood Bowl Group plc

Annual report and accounts 2024

Strategic report

Growth

Centres

Merger of selected AMF and

Hollywood Bowl centres

Acquisition of 11 Bowlplex

locations (rebranded to

Hollywood Bowl) growing the

estate to 54 centres

Group lists on LSE Main Market

£240m

Market capitalisation

Launch of Group

sustainability strategy

Estate investment continues

during COVID‑19 closure

Launch of Puttstars

mini‑golf brand

2010

2016

2020

2021

Our growth story

The Group was created in 2010 with

41 UK ten-pin bowling centres. It has

since significantly grown its presence

and scale in the UK market and, more

recently, in the Canadian market.

Centres

Group admitted to FTSE 250

Record levels of Group

capital investment

Launch of new customer

booking system

Acquisition of Splitsville –

a Canadian bowling operator

with five centres

130

Centres

Target combined estate scale

for the UK and Canada

2022

2024

2035

£215m

Revenue

Splitsville becomes

Canada’s market‑leading

ten‑pin bowling brand

2023

Hollywood Bowl Group plc

Annual report and accounts 2024

Strategic report

Our markets

The complete

entertainment experience

United Kingdom

Hollywood Bowl Group plc

Annual report and accounts 2024

1,607

Bowling lanes

(FY2023: 1,515)

Centres*

(FY2023: 70)

17.3m

Games bowled

(FY2023: 17.1m)

The clear market leader

Ten-pin bowling is a key constituent of the UK’s growing

and diverse competitive socialising sector, offering an

inclusive, fun, and affordable experience for friends,

families, and work colleagues.

Hollywood Bowl is the market-leading brand in the

UK, specialising in operating large, high-quality

bowling centres.

Our centres are predominantly located in prime

‘out-of-town’ multi-use leisure parks alongside cinemas

and casual dining sites.

The complete entertainment experience

In addition to bowling, we offer food, drink, and

amusements, providing a complete entertainment

experience that encourages longer visits and

increased secondary spending.

Our popular and simplified food menu offers value and

quality meals, snacks and sharer options, all served

quickly. This has helped achieve a 6.0 per cent increase

in diner spend per game vs prior year.

Our comprehensive drinks range also offers great value

for money and we saw a 0.6 per cent increase in bar

spend per game vs prior year supported by our at-lane

drink ordering technology which allows customers to

order from their phones.

Our best-in-class family-friendly games and

amusements areas are constantly evolving with

innovations and the introduction of new game formats.

A rolling machine upgrade programme allows us to

continue to improve the quality of our amusement

offering, with 578 new machines being introduced into

the estate in FY2024. Most amusements can still be

played for as little as £1, with Nayax ‘tap to play’ providing

digital coin credit and cash payment options.

Overall we saw a 6.1 per cent increase in amusement

spend per game vs prior year.

* Includes Putt & Play centres.

Hollywood Bowl Group plc

Annual report and accounts 2024

Strategic report

Our markets continued

New customer booking system

This scalable and flexible platform offers enhanced security

and is integrated with both operational and marketing

systems, serving as a core enabler of the Group’s growth

plans and enhanced digital capabilities.

Following a successful rollout in the UK, the system has

delivered increased performance and reliability, improved the

speed of interactions for both customers and team members,

and reduced processing and hosting costs.

The future roadmap includes rollout to Canada in FY2025,

and plans to test and refine new functionalities, such as

self-service features, and integration with best-of-breed

external software.

£24.5m

Expansionary capital in FY2024

(FY2023: £13.8m)

70%

Net promoter score

(FY2023: 64%)

Focusing on the elements our customers value

Our customer service is a true point of differentiation in a

competitive leisure market.

We focus on four critical customer satisfaction drivers: value for

money, cleanliness, team friendliness, and service speed.

Our customer experience feedback programmes provide valuable

insights into our customers’ preferences by digitally capturing

satisfaction levels following each visit.

We carefully monitor customer satisfaction and net promoter

scores, ready to react quickly to any operational issues or

customer feedback.

Team members’ bonuses are linked to these satisfaction drivers,

helping enhance centre performance, revenues, and yields.

Maintaining an affordable, value‑for‑money proposition

Offering ‘affordable fun’ is core to the Group’s purpose, and

management is focused on keeping price levels accessible.

The relative price of a game at Hollywood Bowl has fallen since 2021

relative to inflation and National Living Wage increases, with only

small annual increases applied to bowling and food and drink in

recent years.

Value-for-money customer feedback scores were at record

levels in FY2024, up four percentage points compared to FY2023,

and Hollywood Bowl remains the lowest-priced branded bowling

operator, with a family of four able to bowl for under £26.

Utilising marketing and technology

Our ongoing investment in technology and in-house specialist

marketing and development teams continues to enhance the digital

customer journey from pre-booking, to in-centre experience, to

post-booking communications.

We have evolved our digital brand and content, social media activity,

sales activation, and CRM campaigns, all which help drive our

website sales, with online bookings accounting for 61 per cent of

bowling revenue. We drive yields through dynamic pricing and

customer demand through targeted digital sales and marketing.

We increase engagement and dwell time in our centres with digital

content, such as our popular live leaderboards, and vary in-centre

content to target specific customers with relevant content and sales

messaging. For example, daytime content is more family focused

compared to evening content.

In H2 FY2024, we launched our new customer booking system,

designed to meet the needs of our growing and diverse business.

Delivered on time and on budget, this significant investment in

a modern and flexible technology platform supports the future

development and growth of the Group in multiple territories

(see case study opposite).

Case study

Hollywood Bowl Group plc

Annual report and accounts 2024

Market trends in the UK

The rise of competitive socialising

Link to strategy

Consumers are prioritising social experiences over

material possessions, influencing how they allocate

their discretionary budgets and leisure time.

Opportunity

The ‘competitive socialising market’ has evolved due to a strong

consumer appetite for unique and inclusive experiences,

including modern takes on traditional activities such as bowling,

mini-golf, table tennis and bingo.

Response

Through our active refurbishment programme, high service

standards, and the introduction of innovations such as advanced

scoring systems and leaderboards, we continue to set the

standard for competitive socialising in the UK. This enables us

to successfully compete with the fast-growing number of recent

entrants in the market.

Key to strategy

Driving revenue growth

Active asset refurbishment

New centres and acquisitions

Focus on our people

International expansion

See our strategy on pages 30 and 35

Link to strategy

Retail and leisure combining

Traditional high street and out‑of‑town retail outlets

are under increasing pressure from online channels

and the rise of the ‘experience economy’.

Opportunity

Many retail property landlords and developers are expanding

their leisure offerings to create a broader destination experience,

aiming to increase footfall and extend dwell time.

Response

Our strong track record of successful partnerships with landlords

and our unique customer offering position us as a key tenant.

This is either alongside other leisure and casual dining operators

or as a stand-alone leisure proposition in high-footfall,

predominantly retail schemes.

See case study on page 33

Ongoing investment in the core offer

Bowling is our core product and we continue to invest

in improving the customer experience at the lanes.

Pins on Strings technology is now in 91 per cent of

the UK estate and has helped improve the customer

experience by increasing the number of games

between faults, in addition to reducing our energy

usage and operational costs.

In our new centres we have enhanced the bowling

experience further with an upgraded music system,

digital screens and impact lighting to enhance and

vary the bowling atmosphere by time of day.

Optimising our assets

When refurbishing centres, we also reconfigure floor

areas to maximise revenue and centre yields.

Examples of this have included combining bar, diner

and reception areas to improve operational efficiency

and create a better customer journey in the centre.

We also look to extend our amusement areas to allow

the inclusion of more, and larger format machines.

Space reconfiguration can also sometimes provide

an opportunity to extend the number of bowling lanes

in a centre or to add an additional leisure offering to

our range.

In FY2024, we added six duck-pin bowling lanes at

London O2, and added five extra bowling lanes at

Stockton, further enhancing the customer experience

and encouraging longer stays and increased spending.

Evolving our mini‑golf offer

We launched the Puttstars mini-golf brand in FY2020

operating five centres with a diverse entertainment

experience, including nine-hole mini-golf courses, bar,

diner, and amusements area.

We have gathered some excellent insights from

operating the five centres, which have led us to evolve

the customer offer and optimise space returns.

This has been achieved through the addition of duck-pin

bowling lanes in Leeds, extending amusements areas in

Harrow and Rochdale, and adopting a single operating

approach in York, which had Puttstars as a standalone

business above a Hollywood Bowl centre.

To better reflect the extended offer, leverage the

Hollywood Bowl brand association and marketing

channels, and provide operational efficiencies, the

remaining Puttstars centres have been rebranded

as ‘Putt & Play from Hollywood Bowl’.

Whilst bowling centres are the Group’s first choice

when entering new locations due to their heightened

returns, the customer appetite for other activities

remains strong.

We have consequently introduced mini-golf as a fourth

offer in our Hollywood Bowl centres in Leeds and

Stockton, as well as including in our new centre in

Colchester, to extend the venue appeal and increase

customer dwell time.

Hollywood Bowl Group plc

Annual report and accounts 2024

Strategic report

Our markets continued

A significant

growth opportunity

Canada

Hollywood Bowl Group plc

Annual report and accounts 2024

359

Bowling lanes

(FY2023: 254)

Large‑format centres in highly

populated locations

(FY2023: 9)

Splitsville is the largest branded

ten‑pin bowling operator in Canada

Excellent progress in a new market

Hollywood Bowl Group took its first steps into

international markets with the acquisition of the

Splitsville business in May 2022.

Extensive customer research confirmed that the

Canadian market is ready for an upgraded, branded,

family-friendly leisure proposition similar to Hollywood

Bowl’s UK model.

Since its acquisition, Splitsville has grown significantly

from originally operating five centres to now

comprising 13 large family entertainment centres

spread across the country.

In a short period of time, it is now established as the

ten-pin bowling market leader in Canada, with the

estate now including centres in Ontario, British

Columbia, Alberta and Saskatchewan.

Each centre features ten-pin bowling lanes, a large bar

and diner, and an amusements area, with some also

offering laser tag and indoor mini-golf.

Estate investment

FY2024 has been an exciting growth year, including

several existing centre acquisitions being made, and

our first newly built centre being opened in Waterloo.

The Splitsville brand framework has been further

evolved and all acquired centres (excluding Stoked -

see case study) have now been rebranded to Splitsville.

Our centre refurbishment programme has continued,

with Kingston and Glamorgan completed in FY2024

and five centres scheduled for completion in FY2025.

These renovations incorporate many features already

established in the UK such as VIP lanes, bowling lane

lighting, and enhanced bar and reception environments.

Since the FY2023 refurbishment (and market

relaunch under the Splitsville brand), of our large-scale

centre in Richmond Hill, it has exceeded revenue and

profitability expectations.

Importantly, Richmond Hill has also provided some

excellent operational and customer feedback insights

which have been taken into account in subsequent

centre refurbishments.

Hollywood Bowl Group plc

Annual report and accounts 2024

Strategic report

Our markets continued

Stoked ‑ a multi‑leisure offer

The Group continued its growth in Canada with the

acquisition of an entertainment centre in Saskatoon,

Saskatchewan, in June 2024.

In a centre measuring in excess of 55,000 sq. ft, ‘Stoked’

features an exciting line-up of activities including bowling,

arcade, indoor electric go-karts, ropes course and ziplines,

and offers guests an elevated dining experience in the Stoked

Kitchen & Bar.

The centre will be operated as a proof of concept to

understand the opportunity for Splitsville to add value

and assess the viability for future rollout of larger-scale

multi-offer entertainment centres in the Canadian market,

alongside smaller bowling-focused centres.

Exciting property pipeline

The Group has a robust new centre development and existing

centre acquisition pipeline across the Canadian market.

The opportunity for market consolidation is clear with almost

200 single-owned or multi-site Group-owned ten-pin bowling

centres across Canada.

The opportunity for new builds in prime footfall leisure and retail

locations is also significant. Overall we aim to expand the Splitsville

estate to 30 centres by 2035.

At the start of FY2025, we are on site with two new builds and

negotiating several other new build sites.

We maintain strict expansion criteria, with all acquisitions and

developments needing to adhere to the same return on investment

hurdle rate.

Strengthening operational foundations

As we have gained a more detailed understanding of the Canadian

operation, it has become clear that there are opportunities to

improve operational processes and help enhance the customer

experience through the introduction of many of the ways of working

from our UK business.

In FY2024 we started a significant programme to look to leverage

the experience and operational practices from the UK to help drive

a more consistent and structured approach.

Many operational practices from the UK business have now

been introduced to Splitsville, with the programme set to continue

into FY2025.

Key initiatives that were implemented in FY2024 were;

• the launch of a management development programme for centre

managers and assistant managers in training;

• a behavioural wheel and pin badge rewards programme;

• performance management training for all centre managers and

heads of departments;

• monthly 1:1’s for all team members and feedback sessions with

senior management;

• a new and improved benefits programme;

• a new careers website and employer brand;

• an annual centre manager and support centre conference;

• a new customer feedback programme which has helped identify

the key drivers of customer satisfaction; and

• new centre and refurbishment project management framework

Group support functions

Alongside the introduction of some UK ways of working, we have

extended our UK Hemel-based departments to provide support

for Canada, which in turn is helping us generate synergies and

implement best practice across the Group.

These include finance, recruitment, digital marketing, data and

business intelligence, IT support and development, as well as

using the Customer Contact centre to take customer calls for

the Canadian centres.

New centres added to the estate

(FY2023: 3)

5.9%

Increase in LFL Splitsville revenue

(FY2023: 15.1%)

Case study

Hollywood Bowl Group plc

Annual report and accounts 2024

Market trends in Canada

Key to strategy

Driving revenue growth

Active asset refurbishment

New centres and acquisitions

Focus on our people

International expansion

See our strategy on pages 30 and 35

Under investment in the sector

Link to strategy

Many bowling centres in Canada have historically

suffered from low levels of investment leading to a

decline in the standard of the customer experience.

Opportunity

Existing centre environments and customer experience are ripe

for upgrading to attract a new leisure clientele, following the

approach taken by recent entrants into the broader Canadian

leisure market.

Response

We are investing in upgrading the centre environments through

refurbishments and new centre builds, introducing features like

VIP lanes and digital signage. Our team member development

programmes are also aimed at improving the service experience.

Link to strategy

Sector consolidation

With over 170 single‑owned or small multi‑site ten‑pin

bowling operators, the opportunity for market

consolidation under a single brand is significant.

Opportunity

Well capitalised businesses like Hollywood Bowl Group can

increase their share of the ten-pin bowling and wider leisure

market as smaller operators become financially challenged,

unable to invest in capital projects, or seek to exit the market.

Response

Our centre acquisition model focuses on acquiring existing

centres in prime locations and adopting the subsequent rebrand

and refurbishment strategy that we have employed in the UK.

Where appropriate, we have moved to standard IT

systems across areas like finance, reporting, customer

data and marketing which will help to create a consistent

approach across the Group.

The next phase will see our new customer booking

system being rolled out in Canada in FY2025 and

further sustainability initiatives being introduced.

Investing in our people

Alongside the introduction of new talent development

programmes, we have also invested in the Canadian team.

We have established the structural foundations to

support a fast-growing business over the coming

years, including forming a new senior leadership team

and upskilling centre managers to drive sales and

service superiority.

Notably, several key roles have been filled by senior

UK team members, including a new VP of Splitsville,

centre managers, an HR Business Partner, and two

Regional Managers.

Product innovation

We are starting to trial some product innovation in

selected centres in the Splitsville operation to see if the

UK approach has relevance to Canadian customers.

Thi includes testing the removal of compulsory bowling

shoes (wear your own shoes), game formats, dynamic

pricing, new group party packages and a simplified

food menu.

Supporting the national bowling sector

Our Striker Bowling Solutions (SBS) operation

continues to support the wider Canadian bowling

industry as a primary supplier and installer of bowling

equipment across the country.

SBS is an important asset to the Group in Canada as it

supports Splitsville’s installation and equipment

requirements when we are refurbishing existing centres

and opening new centres.

Additionally, its established national network provides

us with access to a large section of Canadian operators

in the regional markets, giving SBS an unmatched

insight into wider industry trends and developments.

Hollywood Bowl Group plc

Annual report and accounts 2024

Strategic report

Chief Executive Officer’s review

Our proven strategy

has again delivered excellent results

Our highly cash generative

model and a strong balance

sheet underpin our ability to drive

returns through investment in

our growth strategy.”

Stephen Burns, Chief Executive Officer

Read full biography on page 84

Hollywood Bowl Group plc

Annual report and accounts 2024

Hollywood Bowl Group delivered another excellent

performance in FY2024. The continued investment in

the quality and expansion of the estate in the UK and

Canada, as well as further innovation of the customer

experience, led to impressive operational and

financial performance.

Group revenue grew 7.1 per cent to £230.4m and 0.2 per cent on a

LFL basis, with adjusted profit before tax of £45.0m, and adjusted

profit after tax of £32.3m. Statutory profit before tax was £42.8m

(FY2023: £45.1m) and profit after tax £29.9m (FY2023: £34.2m).

This includes the impact of an impairment in the year of £5.3m

(FY2023: £2.2m) in relation to the mini-golf centres.

Our continued growth has been achieved by executing our clear and

consistent customer-led strategy to provide great value-for-money,

family-friendly experiences in well-invested venues, and to grow the

size of our estate.

The Group’s robust financial position, characterised by a highly

cash generative model and no bank debt drawn, underpins our

ability to drive returns through investment in our growth strategy.

The Group’s capital investment in new centres, acquisitions and

refurbishments in FY2024 was over £50m. The Group grew to

85 centres, opening four new centres in the UK and four in Canada,

as well as completing ten UK and two Canada refurbishments in

FY2024. Net cash at the end of FY2024 was £28.7m.

In the UK, we are the established market leader delivering a

best-in-class experience while remaining the best value of the

branded bowling operators. Our progress in Canada means we

are now the largest branded bowling operator and, leveraging our

Group expertise, we are enhancing the standard of experience

for our customers.

None of this would be possible without our highly talented,

enthusiastic and motivated teams. I thank them for the hard work

that goes into providing our customers with an excellent customer

experience each day as evidenced by the record UK customer

satisfaction levels achieved during the year.

Outstanding UK performance

We delivered another outstanding result in the UK, particularly in the

context of the two previous years of exceptional performances.

Our FY2024 performance demonstrates the robust demand for

family-friendly, affordable leisure activities, as well as the success of

our growth strategy. As a result of our customer-focused operating

model, we grew average spend per game by 2.1 per cent to £11.05.

Total UK revenue grew 3.8 per cent year on year, with LFL revenue

flat year on year, with growth of 0.3 per cent in the Hollywood Bowl

centres offset by the decline seen in the Puttstars trial centres.

Adjusted EBITDA on a pre-IFRS 16 basis in the UK increased to a

record £62.3m and there is more detail on this in the Chief Financial

Officer’s review.

Value for money

UK families remain under pressure from cost-of-living challenges

and we are proud that we can still offer a family of four a game of

bowling for £26, even at peak times. Headline bowling prices have

increased by a CAGR of just 2.6 per cent since 2021, well

below inflation and National Living Wage increases. Our dynamic

pricing allows us to offer even better value for customers at

non-peak periods, helping to drive incremental volume alongside

carefully controlled yield enhancement.

Our simplified food menu and the focus on speed, quality,

consistency and value for money have supported a 2.4 per cent

increase in bar and diner spend per game, with value-for-money

scores also up compared to FY2023.

Our market-leading amusements continues to be key to our

attractiveness to customers. In FY2024 we saw spend per game grow

by 6.1 per cent with investment in new machines, as well as the use of

seamless payment technology, being fundamental in this performance.

Our play for prizes machines are a great way for our customers to play

and win, which provides an unmatched value-for-money experience.

Refurbishments

Our rolling refurbishment programme remains on track. Ten UK centre

refurbishments were completed during the year, some of which are

on their second or third generation refurbishment, benefiting from the

continuous learnings made over the last cycle of investment.

This constant innovation of our customer offer is a key driver of

higher spend in our centres. In addition to introducing the latest

digital signage and new brand environments, we are finding new

opportunities to optimise our space that complement our core

bowling offer and increase the yield per sq ft potential. This includes

increasing the density and range of our amusements, as well as

introducing new payment options, helping drive amusement SPG

by more than 6 per cent. In some centres, where space allows, we

have introduced extra full-size or compact-format bowling lanes,

such as duck-pin and five-pin, as well as including mini-golf courses.

£230.4m

Group revenue

(FY2023: £215.1m)

£87.6m

Group adjusted EBITDA

(FY2023: £82.7m)

Hollywood Bowl Group plc

Annual report and accounts 2024

Strategic report

Chief Executive Officer’s review continued

Outstanding UK performance continued

Refurbishments continued

All of the completed refurbishments are trading in line with or above

our expectations since the investment.

We have continued the roll out of Pins on Strings with eight installed

in the year and a further four have been completed since the end of

the financial year, meaning that all but two of our UK centres benefit

from this cost-saving and experience-enhancing technology at the

time of writing.

New centres

We added four centres in the UK during the year, taking our total UK

estate to 72. We acquired Lincoln Bowl in the first half of the year,

and opened three new centres in the second half, in Dundee,

Westwood Cross (Kent) and Colchester. We are pleased with the

performance of all the new centres, demonstrating the strength of

our new centre pipeline and our ability to secure opportunities in

prime locations in line with our strict investment criteria.

The highly anticipated Westward Cross centre, which saw a former

department store transformed into an anchor leisure destination,

set trading records in its opening weekend in August 2024 following

a two-year development.

The success of our recent openings is also helping to evolve our

framework of what creates a prime new centre location. This has

been demonstrated by the new Merry Hill and Westward Cross

centres which are both located in high-footfall shopping centre

schemes and are trading ahead of expectations. It was disappointing

to have to close our centre in Surrey Quays as part of a landlord

redevelopment, but we have added capacity to our centre at

London O2 as part of its refurbishment and are confident this will

be appealing to those customers.

We have an exciting pipeline of new opportunities with a further

four expected to open in FY2025 and we remain on track to meet

our target of six new UK centres by FY2026.

Puttstars

In FY2020, we launched a mini-golf leisure brand called Puttstars,

testing the concept in five centres. Whilst we have seen some good

performance, it has become clear that bowling centres offer higher

returns potential and will remain the Group’s first choice when

entering new locations.

The significant insights gained from the Puttstars centres have

allowed us to evolve our mini-golf customer offer and optimise

space returns through the addition of complementary duck-pin

bowling and amusement activities in four of the five centres. To

better reflect the extended offer, leverage the Hollywood Bowl brand

association and marketing channels, and deliver greater operational

efficiencies, these four Puttstars centres have now been rebranded

as ‘Putt and Play from Hollywood Bowl’. The fifth centre in York,

which had Puttstars as a standalone offer above a Hollywood Bowl,

was integrated into the Hollywood Bowl unit and operated as a

combined single unit, from July 2024.

Investment in technology

We have invested significantly in our customers’ digital journey

over the last year, developing our own new, modern and flexible

technology platform that we can further evolve and which will

support our next stage of growth.

We successfully launched the system in July 2024, resulting in

a more scalable, reliable and usable reservation system that

integrates with our marketing and data platforms. We are delighted

with the results so far. The booking experience has been significantly

improved for our customers and team members, with increased

usability, reliability, speed and an uptick in online conversion rates,

as well as reduced operational costs.

We have direct control of the system, having developed the

technology in-house, and therefore we can enhance functionality

over time. Following the success of this launch in the UK, we are

piloting the system in Canada and will make any locally relevant

adjustments before beginning the roll out in FY2025.

Exciting Canada opportunity

Our business in Canada performed well, with total revenue

increasing by 42.2 per cent to CAD 53.0m (£30.7m) and LFL

revenue on a constant currency basis up by 6.3 per cent.

Adjusted EBITDA on a pre-IFRS 16 basis increased by CAD 2.1m

to CAD 9.5m (£5.4m).

Acquisitions and new centre developments

The Canadian market remains highly fragmented and

underinvested, creating a significant opportunity for us to acquire

existing businesses that fit our strict criteria or extend our

geographic presence through new centre developments in

well-populated urban areas that are currently under-served by

family entertainment offers.

We added four new sites during the year, taking the total size of

the estate to 13 centres and making the Group the single largest

branded bowling operator in Canada.

We acquired two centres, Woodlawn Bowl in Ontario and Richmond

Riverport (Lucky 9) in British Columbia, in the first half, and Stoked

in Saskatchewan in June 2024, all of which are performing in line

with expectations.

Woodlawn Bowl is a 36,000 sq ft centre acquired for CAD 4.7m

(£2.8m). It offers 24 lanes of ten-pin and 8 lanes of five-pin bowling,

a large amusements area and a bar and diner. Richmond Riverport

was acquired for a total consideration of CAD 425k and included

the assets and lease of a family entertainment centre featuring

34 ten-pin and 6 five-pin lanes, a large bar and diner, and a small

amusements area.

Woodlawn Bowl and Richmond Riverport have had signage installed

rebranding them to Splitsville and essential maintenance capital

invested, prior to their full refurbishments which are due to be

completed in FY2025.

The Saskatoon centre is a high-quality indoor entertainment

complex operating as ‘Stoked’, a well-established brand in the

local area. In addition to 15 bowling lanes, the centre offers multiple

activities, including high ropes, zipline, go karting, arcade and a bar

and dining area. The centre, which will remain under the

management of its existing local team with support from the

Splitsville team, provides us with the opportunity to trial an

enhanced entertainment offer and other competitive socialising

activities in the Canadian market.

We were delighted to open our first custom-built centre in Waterloo,

Ontario, in July. Located in the heart of this tri-university city,

benefitting from a large local student population, the 43,000 sq ft

state-of-the-art Splitsville Waterloo is the first family entertainment

bowling centre in the area. Offering 24 bowling lanes, an arcade, a

bar and lounge, pool tables and sports games, it is well on its way to

Hollywood Bowl Group plc

Annual report and accounts 2024

achieving its return targets. Given the infancy of the Splitsville brand,

we expect new centres in Canada to take a little longer to get to

maturity than in the UK.

As we continue to open new centres in Canada, we are leveraging

our development expertise gained in the UK to ensure that future

construction and refurbishment projects are delivered on budget

and on time. We have exchanged on a further three new sites, two

of which are in Alberta and one in Ottawa; at least two of these are

expected to open in FY2025.

In addition to our organic growth pipeline, we continue to see

opportunity to grow the estate through the acquisition of single-

owned centres or small group-owned businesses.

Refurbishments

Our refurbishment programme has also progressed well, delivering

strong returns and excellent customer feedback. We completed

the refurbishment of two centres in FY2024, at Kingston and

Glamorgan, introducing new signage, upgraded environments,

new technologies and yield-enhancing space optimisations.

We are confident these investments will hit our 25 per cent hurdle

rate for refurbishments in Canada.

Leveraging our expertise

Our success to date demonstrates our ability to increase our market

share, enhance the customer offer through refurbishments and

innovation, and provide an industry-leading competitive socialising

experience to a wide customer demographic. As we continue to

learn more about our Canadian customers, we can do more to apply

our insights alongside our proven UK operating model to this market.

This will be evident in a number of different ways. We have already

begun sharing our best practice and knowledge, not least through a

number of our UK team taking up a variety of operational roles in our

Canada business. We are moving to align our technology and Group

support functions, increasing our operational efficiency and further

enhancing our returns in Canada.

Striker

Our Striker business continues to perform well and grow in line with

increased investment into bowling centres. Revenues in FY2024

totalled CAD 7.7m (£4.5m), with a good order book for multiple

installation and maintenance projects in FY2025.

Our ability to invest in bowling equipment and technology at cost

has significantly reduced our capital expenditure and lead times for

centre upgrades as we invest in the quality of the estate in Canada.

An industry-leading team

Our teams are at the heart of delivering an excellent customer

experience and key to the Group’s success.

We take great pride in our industry-leading, in-house training and

development programme. For the third year running, we ranked

among the UK’s Best Big Companies to Work For. We also retained

the top 3* ranking for our working practices at our Hemel

Hempstead Group support office.

This year, we achieved record attendance on our management

development programmes, and we were delighted that 58 per cent

of internal management positions were achieved through internal

appointments. These results explain why we have relatively low

team member turnover rates compared to the wider leisure market

and illustrate our record in home-growing talent.

For FY2024 we paid out over £1.0m in centre-level management

bonuses and £0.6m to hourly rate team members measured

against financial, environmental and customer satisfaction criteria.

Growing sustainably

Running and growing our business in a sustainable manner remains

a key focus for the Group, and we are making good progress against

our sustainability strategy and targets. We have recycled more

waste than ever before, an achievement supported by behavioural

programmes and the application of standard operating procedures.

The rollout of solar panels in the UK continues with 30 centres

benefiting from solar arrays at the year end, and two more currently

in progress.

Discussions with landlords and identifying opportunities to increase

the number of centres using renewable energy is a key priority as

we continue to seek to reduce our centre level carbon footprint

and reliance on purchased electricity. We are also installing more

low-carbon materials and energy-efficient technologies in

refurbishments and new centre builds.

Hollywood Bowl Group plc

Annual report and accounts 2024

Strategic report

Growing sustainably continued

Our centres continue to play an important social role in our local

communities, and we were pleased to have beaten our targets for

concessionary discount and school games played and for charity

fundraising for our new charity partner, Macmillan.

We will be more closely aligning our Canadian operations with our

UK sustainability strategy from FY2025, so that we can further

improve our environmental and social performance.

Resilient to inflationary pressures

Our unrelenting focus on service and delivering value for our

stakeholders, alongside managing costs, has continued and we

have hedged our energy costs through FY2027. In addition, we are

well insulated from inflationary pressures with over 70 per cent of

our revenue not subject to cost-of-goods inflation. We also have

relatively low exposure to National Living Wage increases

compared to other leisure operators, given our labour cost in the

UK is less than 20 per cent of revenue at centre level.

Update following UK Government Budget

The recent changes announced by the Government in the Budget

to Employers’ National Insurance contributions and threshold levels,

coupled with ongoing wage increases will have a significant impact

on the hospitality industry. It will be felt most keenly by smaller

operators across the country for whom the increased costs will be

unsustainable and therefore could be at risk of closure. There are

likely to be further consequences following the Government

changes with potential for higher inflation, and future job creation,

and growth investment at risk.

While we are not immune from these changes, as a bowling business

with an average customer frequency of around once a year,

significant scale advantages, strong cost culture and a relatively

low labour-to-revenue ratio of under 20 per cent in the UK, we are in

a better position than many to mitigate the effect of increased costs.

The Employers National Insurance cost for an average UK hourly paid

team member working 20 hours per week, on national living wage, will

increase from just under £400 per annum, to £1,155 per annum. We

expect the cost impact to be c. £1.2m on an annualised basis from when

the changes are implemented in April 2025.

As a people-led business, our success hinges on having great people

who deliver the best possible experience to our customers. We are

working to mitigate the cost challenges presented by the

Chancellor’s recent budget, and our commitment to prioritising

investment in attracting and retaining top talent won’t change as a

result of these new measures.

Outlook

The recent changes announced by the Chancellor to employers’

National Insurance, coupled with ongoing wage increases, pose

challenges for many businesses. We had expected the increase

to wages, but the increased tax burden now falls heavily on

labour-intensive sectors, like hospitality.

The competitive socialising market has evolved in recent years

due to a strong consumer appetite to share unique and inclusive

experiences, shaping how consumers spend their discretionary

income. Whilst many new and different concepts have launched in

recent years, we believe that bowling retains its unique position with its

ability to appeal to a wide demographic with anyone able to take part.

In a growing market, and against the backdrop of upcoming inflationary

pressures off the back of the new Government measures,

customer service and great value for money will be a true point of

differentiation. We are committed to supporting our teams to deliver

outstanding customer service, whilst maintaining an affordable price

point for our customers.

Our performance in FY2024 demonstrates our ability to execute

our customer-led strategy and generate attractive returns through

investment, supported by our strong balance sheet and highly cash

generative business model.

We have ten refurbishments planned across the UK and Canada

in FY2025 as we continue to prioritise maintaining our well-

invested estate with further innovation of our customer offer,

setting industry standards.

The Group is on track to reach our target of 130 centres by FY2035

and plan to open four new centres in the UK and at least two in

Canada, in FY2025.

We are in an excellent position for future growth, with our strong UK

and international pipeline, capital investment programme and our

highly resilient business model. We remain confident in the outlook

for the business as the market leader in competitive socialising in

both the UK and Canada, and we are well positioned for another

successful year ahead.

Stephen Burns

Chief Executive Officer

16 December 2024

7.1% 100 30

Group revenue growth Hollywood Bowl centre estate

target opportunity by 2035

Splitsville centre estate target

opportunity by 2035

Chief Executive Officer’s review continued

Hollywood Bowl Group plc

Annual report and accounts 2024

However, this does not mean that we are standing still!

Our refurbishment programme keeps our centres looking

their best, whether that is through improving the quality

of our amusement machines or introducing mini-golf in

an existing Hollywood Bowl to give customers more

reasons to stay with us for longer. We are starting to share

our customer innovations with our Canadian colleagues

as we continue to build a recognisable brand in this new

and exciting market.

What are you looking forward to in the

coming year?

As always, we have a busy year ahead and our main

focus will be on our ambitious growth plans both in

the UK and Canada.

We have learnt a great deal from our expansion in Canada

and we will be further integrating our UK ways of working

within our Canadian operations. One of the best parts

of my job is working with such dedicated, enthusiastic

colleagues and we were very pleased to sponsor more UK

team members to move to Canada to take up a variety of

operational management roles.

I am excited about the pipeline of opportunities ahead

and working to capture these with our outstanding team

members who work hard each day to deliver the best

possible experiences for our customers.

We ask CEO Stephen Burns about

performance in FY2024 and future

growth opportunities.

Q&A

with Stephen

How do you see the use of technology evolving

for the Group?

We are always thinking about how we can enhance the

customer experience and keep our offer fresh and

relevant – and technology of course plays a key role in

this. We are extremely excited about our new customer

booking system, which has been our biggest technology

investment yet. We built this in house and rolled this out

in July across our UK centres. We are already seeing

excellent results and, crucially, it gives us additional

resilience and future development flexibility. Our next

step is to roll this out in Canada next year, following the

completion of the pilot phase.

Technology has really helped us increase engagement

in our centres and it has been fantastic to see how much

our digital content adds to the customer experience,

for example our live leaderboards which promote

friendly competition. Similarly, we are always making

enhancements to our ordering systems – customers

can have food and drink delivered directly to their lane

so that there are no interruptions during a crucial game!

With increased competition from other indoor

leisure operators, what plans do you have to

offer additional or new experiences?

It is a positive time for the industry, with consumers

continuing to prioritise high-quality experiences rather

than buying material items. We are pleased to continue

to set the standard for competitive socialising and we

know that by remaining true to our core purpose,

bringing families and friends together for affordable

and fun competition, we will deliver strong results.

Strategic report

Our culture

Our people

and culture

Company culture

Our culture defines the environment in which our teams work. It

encompasses our mission, values, expectations, and goals. At

Hollywood Bowl Group, we are a purpose-led, performance-driven

business that places our people at the heart of everything we do.

When asked to describe our culture, our team members say they

love working with colleagues in a respectful, welcoming environment

that creates great memories for our customers, offers lots of

development opportunities, feels like family, treats everyone as

equal, and is enjoyable, honest, and supportive.

Ways of working

In 2010, we developed our ways of working models centred around

service. By 2013, we introduced our behavioural “Wheel”, which has

become fundamental to our DNA and culture. Post COVID-19, we

took the opportunity to retrain all of our team members on our

cultural and behavioural ways of working, resulting in improved

service scores. This year, we extended our ways of working to the

Splitsville teams in Canada, leading to further increases in service

scores.

Diversity and inclusion

Embedding our Diversity and Inclusion (D&I) strategy is crucial to

Hollywood Bowl Group because it ensures that every team member

feels valued, respected, and included, which in turn fosters a positive

and productive work environment.

Supported by five dedicated D&I champions, our strategy promotes

a culture of equality and belonging, which is essential for attracting

and retaining top talent, driving innovation, and enhancing customer

experiences. As a result of these efforts, D&I has become one of

our highest-rated categories on external review sites, reflecting our

commitment to creating an inclusive workplace where everyone

can thrive.

Engagement and development

We ensure our culture is embedded in everything we do by checking

in with our team members at least once per month in 1:1 meetings.

Developing our teams is also extremely important and in FY2024,

11 per cent of our team members participated in one of our top

talent programmes.

Communication

We use Fourth Engage to communicate

regularly, celebrate success, and bring

our culture to life on a daily basis. This

year we shared over 8,500 pieces of

content with our team.

Celebrating success

We love to celebrate success and recognise team members

displaying the right behaviours through our pin badge

programme. In FY2024, we issued over 1,500 pin badges

in the UK and more than 250 in Canada which are proudly

displayed on team member lanyards. Over 60 per cent of UK

hourly paid team members received an additional 50 pence

bonus per hour worked, for meeting monthly service

standards, marking a 9 per cent increase from last year.

Recognition and achievement

We measure team engagement twice a year to ensure we

are providing fun, supportive, and rewarding careers. In 2024,

we were recognised as the 12th Best Big Company to Work

For and the 19th Best Company in Leisure by Best

Companies. More recently, we received a 2* high-quality

employee experience rating from WorkL in the UK, and

celebrated a 4 percentage point improvement in team

engagement scores in Canada.

Case study

Hollywood Bowl Group plc

Annual report and accounts 2024

We ask CPO Melanie Dickinson

about her highlights in FY2024

and future areas of focus

Q&A

with Mel

What were some of your highlights over the past

12 months?

Our team members are our greatest asset, and as a

people-led business, our success hinges on having great

people. This year, we’ve enhanced our learning journey

by introducing a more engaging and interactive learning

management system to support our team’s ongoing

development. We continued to invest in our top talent

programmes, with 11 per cent of our team members

benefiting from a development programme last year.

This investment led to 58 per cent of all UK management

appointments being made internally, a record-breaking

achievement for us!

The evolution of our employer brand has resulted in

a 33 per cent increase in job applications through

social media channels. We were thrilled to launch our

employer brand in our Canadian business, receiving

very positive feedback.

Our focus on team engagement has kept us in the UK

Best Companies rankings as the 12th Best Big Company

To Work For and we received a 2* high-quality employee

experience rating from WorkL. We’ve also made significant

progress in launching our development programmes and

training every team member on our culture and ways of

working in Splitsville.

What does the people strategy look like for the

year ahead?

Recruiting, developing, engaging, and retaining top talent

remains a top priority at Hollywood Bowl Group in both

the UK and Canada. To support this, we’ve strengthened

our People Partner teams in both countries, ensuring

consistent delivery of our people strategy across all

centres. In light of the New Deal for Working People in the

UK, we’re focusing on preparing for these changes and

ensuring we have the right processes and ways of working

in place. Our diversity strategy also remains a top priority,

with significant progress made in establishing diversity

working groups and champions last year.

What initiatives do you have to ensure

continuous employee engagement?

To keep our teams engaged and ensure their job

satisfaction, we actively seek their input at every

opportunity. We conduct bi-annual engagement

surveys in both the UK and Canada and hold

listening groups led by our CEO.

Every team member has a monthly 1:1 with their

manager to regularly check in on what’s working

well and where improvements can be made. We also

gather feedback informally through team meetings,

centre visits, and by fostering an open culture where

feedback is welcomed and encouraged.

Each centre and support department in both the

UK and Canada has an engagement action plan

that we review monthly to continuously improve

team engagement. This year, we’ve partnered with

a new external engagement partner, WorkL, to

further enhance our team engagement and

workplace happiness.

Q Q

A A

Strategic report

Business model

Value creation

through continuous investment in

enhancingthe customer experience

What sets us apart What we do

Our successful brands

We operate an extensive portfolio of

bowling centres across the UK and Canada

under our Hollywood Bowl and Splitsville

brands.

A high-quality estate

Our centres are predominantly located in

prime out-of-town, multi-use leisure and

retail parks, alongside cinemas and casual

dining sites.

Motivated and engaged teams

Our teams are the face of our business,

dedicated to delivering the best brand

experience for our customers.

The customer experience

Our entire operation is focused towards

delivering a memorable experience for

customers every time they visit.

Our landlord relationships

We maintain excellent relationships with

developers, agents, and landlords,

ensuring a strong pipeline of potential

new high-quality sites.

High levels of cash generation

By driving revenues and achieving healthy

margins in all of our product areas.

A strong balance sheet

By maintaining a strong cash and liquidity

postion, we can invest appropriately in all

areas of our business, creating value for our

stakeholders.

Our centres offer a complete entertainment experience for

customers of all ages.

In addition to our core offering of ten-pin bowling, customers

can enjoy amusements, food and drink, and in some centres

mini-golf or duck-pin bowling.

These additional offerings not only enhance their experience

and provide more reasons to visit, but also increase dwell time

and secondary spending.

Multiple

revenue

streams

See our strategy on pages 30 to 35

Hollywood Bowl Group plc

Annual report and accounts 2024

Where we invest

Our customers

We are committed to delivering exceptional experiences through

outstanding service in unique, contemporary, safe, and exciting

environments, all at a highly accessible price point.

70%

UK net promoter score

Our people

Our team is dedicated to achieving commercial success, customer

satisfaction, and operating in a sustainable manner.

We implement management programmes to attract, retain, and nurture top

talent, ensuring our customers receive the best possible experience.

58%

Of UK management vacancies filled internally

Our partners

We support a diverse ecosystem of partners and suppliers through commercial

arrangements designed to foster mutually beneficial long-term relationships.

New centres added to the Group estate in FY2024

Our communities

Alongside community employment opportunities, the inclusive nature of

bowling significantly contributes to social wellbeing. To facilitate greater access,

we provide subsidised rates for concessionary users and educational groups.

1m+

Discounted concession games played

Our investors

We focus on sustainable, profitable growth by driving revenues and managing

our margins and cash position to deliver attractive returns.

£20.7m

Total shareholder returns in FY2024

The value we create

The customer experience

• Safe and secure environments

• Technology to enhance the

customer journey

• Centre maintenance and upgrades

• Centre refurbishments and

reconfigurations

• Customer insight programmes

Link to strategy

Delivering revenue growth

Actively refurbishing our assets

Our people

• Attracting and retaining the best

people in the leisure industry

• A fair deal for our team members

with comprehensive bonus and

incentive schemes

• Extensive training and development

• Team engagement and wellbeing

programmes

Link to strategy

Focusing on our people

Enabling growth

• New centre developments

• Broadening the appeal to new and

existing customers through digital

marketing programmes and

environment upgrades

• Centre acquisitions

• UK and international market expansion

Link to strategy

Developing new centres

and acquisitions

International expansion

Hollywood Bowl Group plc

Annual report and accounts 2024

Strategic report

Driving revenue growth

Active asset

refurbishment

New centres and

acquisitions

Focus on our people

International expansion

Strategy and KPIs

Our proven

growth strategy

See our principal risks on pages 75 to 79

See our markets on pages 12 to 19

Hollywood Bowl Group plc

Annual report and accounts 2024

Best in class amusements

A £5.5m investment across the UK estate has enhanced

the quality of our offer with many new machines

introduced. We have introduced new payment options

and increased the price of play on selected machines.

Additionally, we have improved the standards and

reliability of our games areas through our amusement

training academies. This has resulted in an increase in UK

amusements spend per game of 6.0 per cent compared

to FY2023.

We drive revenue growth by attracting new

customers, increasing the frequency of visits,

and encouraging higher ancillary spending.

Our approach:

• Sales, service, and safety excellence: We focus on superior

sales, service, and safety to improve centre performance.

• Outstanding customer experience: We prioritise four key

drivers of customer satisfaction: value for money, cleanliness,

team friendliness, and service speed.

• Extended dwell time: We offer a diverse entertainment

experience to increase customer dwell time.

• Technology investment: We invest in technology to enhance the

digital customer journey, driving sales and engagement.

• Targeted digital marketing: We maximise customer awareness

and engagement through targeted digital marketing campaigns.

• Enhanced food and beverage: We evolve our menus and

remove barriers to ordering.

• Accessible amusement options: We enhance our amusement

offer and focus on making them affordable and accessible.

• Minimised downtime: We reduce bowling-lane downtime

through the rollout of Pins on Strings technology.

Achievements in FY2024:

• Net Promoter score: Achieved a record score of 70% in the UK.

• Customer satisfaction: 62% of UK customers were

highly satisfied.

• Team member incentives: Bonus schemes linked to our four

critical customer satisfaction drivers.

• New booking system: Launched our new customer booking

system to support further growth in the UK and Canada.

• Marketing: Drove customer engagement rates and revenue

generation through our customer data platform.

• Online experience: Refined functionality to simplify the customer

website journey and improve product presentation, promotions,

and dynamic pricing.

• Food and beverage: Enhanced our value snacks and sharers

menu, increasing at-lane orders.

• Space optimisation: Added extra bowling lanes and extended

amusement areas where possible in our refurbishments.

Future plans:

• Refurbishment programme: Continue refurbishments in the

UK (approx. 33% ROI) and Canada (approx. 25% ROI).

• Innovation and technology: Maintain focus on product

innovation and technology investment.

• Data-driven marketing programmes: Continue to utilise

data and technology solutions to further optimise marketing

campaign performance.

Driving revenue growth

Case study

Links to risks

Economic environment

Food and drink suppliers

Amusement supplier

Management recruitment and retention

0.3%

UK LFL Hollywood Bowl revenue growth

5.9%

Canada LFL Splitsville revenue growth

7.1%

Total Group revenue growth

Hollywood Bowl Group plc

Annual report and accounts 2024

Strategic report

Active asset refurbishment

Strategy and KPIs continued

Investment in our centres enhances the

customer experience and drives sales,

satisfaction levels and profitability.

Our approach:

• Refurbishment programme: We run a five-to-seven-year

refurbishment programme in the UK with an average spend of

c.£400k per centre, ensuring our centres remain in top condition

and allow us to introduce upgrades. Canada refurbishments are

costing more initially as we combine upgrades with required

maintenance spend to save time and further disruption.

• Space optimisation: We reconfigure centres to optimise space

and drive revenues, such as combining bar and diner areas to

create more amusement space and introducing mini-golf

courses in under-utilised areas.

• Enhanced amusement offerings: We increase the space,

density, and quality of family games and amusement machines,

driving ancillary revenues.

• Digital content upgrades: We upgrade in-centre digital content

systems to improve customer engagement and encourage food

and beverage spending.

• Sustainability investment: We invest in solar panels and Pins

on Strings to reduce our environmental impact

Achievements in FY2024:

• Centre refurbishments: Completed the refurbishment or

rebranding of 12 centres (ten in the UK and two in Canada),

investing £11.5m in improvements.

• Amusement space expansion: Added extra amusement space

during refurbishments, creating more ways for our customers to

spend, as well as higher pricepoint machines, dirving spend per game.

• Digital installations: Continued the rollout of in-centre

digital screens.

• Nayax ‘Tap to Play’: Continued the rollout of Nayax ‘Tap to Play’.

• Pins on Strings: Completed the rollout of Pins on Strings in eight

more centres, now in 64 UK centres at the end of FY2024.

• Solar panel installation: Installed solar panels at three more

centres in FY2024, bringing the UK total to 30 centres.

• Brand updates: New brand framework introduced for Hollywood

Bowl and new Canadian centres migrated to the Splitsville brand.

Future plans:

• Upcoming refurbishments: Complete at least seven

refurbishments in FY2025.

• Pins on Strings rollout: Continue the rollout of Pins on Strings

in the UK to improve games per stop (GPS).

• Solar panel expansion: Ongoing negotiations with landlords

to continue the solar panel rollout.

Stockton centre expansion

We secured a new lease and extended the centre into an

adjacent building. The investment included refurbishment

of the exterior and interior, extra bowling lanes, a mini-golf

course and an expanded amusements offer.

At a cost of £1.9m and with a 12-week fit-out, the project

completed in March 2024. Since completion, we have

experienced record trading levels for the centre.

Case study

Links to risks

Economic environment

Amusement supplier

Climate change

UK centres refurbished or rebranded in FY2024

8.5%

LFL spend growth in first year after refurbishment

33%

Target average ROI on UK refurbishment

capital expenditure

Hollywood Bowl Group plc

Annual report and accounts 2024

New centres and acquisitions

We actively pursue growth opportunities in

new local markets by building additional

centres and acquiring existing sites.

Our approach:

• Quality openings: We focus on high-quality locations, setting

a minimum 19 per cent ROI on net capital expenditure.

• Strategic acquisitions: We seek acquisitions that meet strict

investment criteria, both overseas and in the UK, where we can

add value and achieve sustainable, profitable growth.

Achievements in FY2024:

• New centres: Opened three new Hollywood Bowl centres and

one new Splitsville centre.

• Acquisitions: Acquired one centre in the UK and three centres

in Canada.

• Construction: Commenced construction on four new centres

in the UK and two new centres in Canada.

Future plans:

• Expansion: Open at least four additional centres in the UK and

two in Canada, by the end of FY2025.

• Value addition: Leverage our customer-led operating model,

technology, and digital marketing expertise to further enhance

expansion of the Canadian business.

• Pipeline development: Continue to build the pipeline of new

Canadian site opportunities, with plans for more than ten

additional sites or acquisitions before FY2030.

Transforming retail space

Merry Hill Shopping Centre near Birmingham, met

our strict investment criteria, with excellent local

demographics, a high-performing cinema and a new

leisure area under development in ex-retail space.

This centre was the first to feature our new brand identity

and is projected to achieve a 40 per cent ROI on gross

capital spend. It has been credited with increasing footfall

levels in the wider Merry HIll scheme.

Case study

New centres added in the UK in FY2024

Centres added in Canada in FY2024

New Group centres targeted by end of FY2025

Links to risks

Economic environment

Covenant breach

Expansion and growth

Management recruitment and retention

Hollywood Bowl Group plc

Annual report and accounts 2024

Strategic report

Focus on our people

Strategy and KPIs continued

Our dedicated, dynamic, and diverse teams

are key to fulfilling the Group’s purpose.

Our approach:

• Positive culture: We foster a positive, inclusive, fun, and

high-performance culture.

• Clear purpose: We ensure our purpose is well understood and

underpins the way our teams work.

• Training and development: We provide industry-leading training

and development programmes.

• Career progression: We offer all team members opportunities

to progress and develop their careers.

• Competitive compensation: We offer competitive pay, benefits,

and bonus schemes.

• Engagement and communication: We actively engage and

regularly communicate with all team members.

Achievements in FY2024:

• Increased remuneration: Raised salaried centre teams’

remuneration by 5.3 per cent.

• Performance bonuses: Rewarded more than 60 per cent of our

hourly paid team members with performance-related bonuses.

• Employer brand: Promoted our employer brand to attract top

talent, a more diverse workforce, and increase job applicants.

• Careers website: Increased visits by 26 per cent YOY.

• Training programmes: Increased the number of Assistant

Centre Manager and Centre Manager in Training programmes,

and held talent programmes for technicians and contact

centre teams.

• Leadership development: 14 team members completed the

Senior Leadership Development Programme.

• Internal promotions: Filled 58 per cent of management

vacancies from our internal talent pipeline.

• Recognition: Ranked 12th in the UK’s Top 25 Best Big Companies

to Work For in 2024 and achieved a 2* high-quality employee

experience rating from WorkL.

Future plans:

• Incentive schemes: Continue to run market-leading incentive

schemes for our teams.

• Canada development programmes: Continue to extend the UK

framework of team member programmes to Splitsville.

• Graduate training programme: Welcome our second cohort

of graduates onto our graduate training programme.

• Employer brand: Continue to develop and utilise our employer

brand in the Canadian operation.

Top talent attraction

Over the past twelve months, we have continued to build

up the visibility of our employer brand by externally

promoting to prospective employees about what it is

like to work at Hollywood Bowl Group.

Our social media campaigns have led to more than

25% of our applications coming directly through these

channels, and our workplace review site ratings have

seen year-over-year rating increases.

Case study

Links to risks

Economic environment

Core systems

Management recruitment and retention

58%

UK management vacancies filled internally

60%+

UK hourly paid team members receiving bonuses

£1.6m

Bonuses paid to UK centre teams

Hollywood Bowl Group plc

Annual report and accounts 2024

International expansion

We explore and evaluate international growth

opportunities in the indoor leisure sector.

Our approach:

• Extensive research: We undertake customer and market

research to evaluate market opportunities.

• Investment criteria: We target fragmented and underinvested

international markets that are ripe for consolidation and apply

strict investment criteria before entering new markets.

• Trials: We conduct trials to test centre environments and

customer propositions.

Achievements in FY2024:

• Expansion of the Splitsville brand: From nine to 13 centres

consolidating its position as the largest branded ten-pin bowling

operator in Canada.

• Refurbishments and rebrands: Refurbished two Canadian

centres and rebranded acquired centres to Splitsville.

• Strengthened the senior leadership team: Expanded the

Canadian leadership team and initiated an ongoing upskilling

programme for Centre Managers.

• UK team members: Recruited to support roles in the Canadian

team, facilitating cross-learning and improved ways of working.

Future plans

• Customer-led operating model: Continue to leverage

our technology and operating model to add value to the

Canadian business.

• Canadian estate expansion: Continue to develop a pipeline of

new centre opportunities with plans for more than ten additional

sites or acquisitions over the next five years.

• Multi-leisure centre trial: Gain insights from the ‘Stoked’

centre trial in Canada to evaluate a wider range of leisure offers

in a single facility.

• International market expansion: Evaluate further opportunities

in new territories through the acquisition of high-quality indoor

leisure operators.

Guest contact centre

We were able to utilise the UK contact centre to help

support our Canadian centres.

Sales and enquiry calls were historically taken in the

Splitsville centres, but by directing them to the UK team

we allowed our local reception teams to better focus on

serving our customers.

We have subsequently opened a small contact centre

in Canada to allow us to extend the call coverage when

the UK contact centre is closed.

Case study

Canadian centres added to the portfolio in FY2024

Target size of the Canadian estate by 2035

Splitsville is the market-leading

ten-pin bowling brand in Canada

Links to risks

Covenant breach

Expansion and growth

Core systems

Hollywood Bowl Group plc

Annual report and accounts 2024

Strategic report

Strategy and KPIs continued

We systematically monitor our performance through regular reviews

of key performance indicators (KPIs). This approach enables us to

gain a comprehensive understanding of the factors influencing our

performance, operational efficiency, and financial health.

Financial KPIs

Revenue

(£m)

+7.1%

Definition

Revenue is generated from customers

visiting our centres to bowl or play mini-golf,

and spending money on one of the ancillary

offers, amusements, diner or bar. It also

includes revenue generated by our Striker

Installations business in Canada.

Comment

Revenue increased by 7.1 per cent, to

£230.4m, driven through LFL growth

and new centres.

215.1

45.1

13.8

4.5

82.7

52.5

230.4

42.8

31.0

0.2

87.6

28.7

193.7

46.7

12.5

28.3

77.5

56.1

71.9 3.6

28.6

30.6

29.9

Profit before tax

(£m)

-5.2%

Definition

Profit before tax as shown in the

financial statements.

Comment

Profit before tax decreased to £42.8m

due to a higher depreciation, impairment

and amortisation charge, offset in part by

higher revenues in centres.

Revenue generating capex

(£m)

+124.5%

Definition

Capital expenditure on refurbishments,

rebrands and new centres (excluding

maintenance capex).

Comment

Revenue generating capex increased to

£31.0m, due to a higher spend on

completing more refurbishments and new

centres in the year than FY2023.

Group adjusted EBITDA

(£m)

+5.9%

Definition

Group adjusted EBITDA is calculated as

operating profit before depreciation,

impairment, amortisation, loss on disposal

of property, plant, equipment and software

and exceptional items. A reconciliation

between Group adjusted EBITDA and

statutory operating profit is on page 40.

Comment

Group adjusted EBITDA increased

by £4.9m to £87.6m, largely due to

revenue growth.

Like-for-like revenue growth

(%)

+0.2%pts

Definition

LFL revenue growth is total revenue

excluding any new centres and closed

centres. New centres are included in the

LFL revenue growth calculation for the

period after they complete the calendar

anniversary of their opening date. Closed

centres are excluded for the full financial

year in which they were closed.

Comment

LFL revenue has increased 0.2 per cent

when compared to FY2023.

Net cash/(debt)

(£m)

-45.3%

Definition

Net cash/(debt) is defined as cash and cash

equivalents (£28.7m) less borrowings from

bank facilities (£nil) excluding issue costs.

Comment

Net cash reduced in FY2024 compared to

the prior year due to the significant capital

investment in the year as well as the

dividends paid.

2024 2024 2024

2023 2023 2023

2022 2022 2022

2021 2021 2021

2021 2021 20210.5

Hollywood Bowl Group plc

Annual report and accounts 2024

38.5 10.82

82.6 52.0 25.1

38.0 11.05

83.0 57.9 23.2

40.0 10.68

84.8 55.9 28.6

42.5 9.98

85.7 22.1 13.3

Gross profit margin on cost of goods

sold (%)

+0.4%pts

Definition

Gross profit margin on cost of goods sold

is calculated as revenue minus the cost of

good sold (COGS) and any irrecoverable

VAT, divided by revenue. COGS excludes

any labour costs. This is how gross profit

margin is reported monthly by the Group

and how Centres are managed.

Comment

Adjusted gross profit margin increased

year on year due to a combination of higher

margin in UK amusements, as well as a

stronger margin in the Canadian business

as Splitsville revenue represented a larger

proportion of the business in FY2024.

Group adjusted operating cash flow

(£m)

+11.2%

Definition

Group adjusted operating cash flow is

calculated as Group adjusted EBITDA

less working capital, maintenance capital

expenditure and corporation tax paid.

A reconciliation of Group adjusted

operating cash flow to net cash flow is

provided on page 41.

Comment

Group adjusted operating cash flow

increased due to a higher Group adjusted

EBITDA combined with lower maintenance

capital, netted off in part by higher tax in

the year.

Group adjusted EBITDA margin

(%)

-0.5%pts

Definition

Group adjusted EBITDA margin is

calculated as Group adjusted EBITDA

divided by total revenue.

Comment

Group adjusted EBITDA margin was

38.0 per cent (FY2023: 38.5 per cent), in line

with management expectations. Group

adjusted EBITDA margin on a pre-IFRS 16

basis was 29.4 per cent (FY2023: 30.2 per

cent) declining year on year given the greater

impact of the Canadian centres as well as

the inflationary cost increases in the year.

Total average spend per game

(£)

+2.1%

Definition

Total average spend per game is defined

as total revenue in the year, excluding any

exceptional items, divided by the number

of bowling games and golf rounds played

in the year.

Comment

Average spend per game increased by

2.1 per cent, to £11.05, due to customers

continuing to spend more during their visits.

Group operating profit margin

(%)

-1.9%pts

Definition

Operating profit margin is calculated

as operating profit per the Financial

Statements divided by revenue.

Comment

Operating profit margin decreased year

on year to 23.2 per cent, due in the main

to a higher depreciation, impairment and

amortisation charge, offset in part by

higher revenues.

1 Some of the measures described are not financial

measures under Generally Accepted Accounting

Principles (GAAP), including International Financial

Reporting Standards (IFRS), and should not be

considered in isolation or as an alternative to the IFRS

Financial Statements. These KPIs have been chosen

as ones which represent the underlying trade of the

business and which are of interest to our shareholders.

2024 2024 2024

2024 2024

2023 2023 2023

2023 2023

2022 2022 2022

2022 2022

2021 2021 2021

2021 2021

Hollywood Bowl Group plc

Annual report and accounts 2024

Strategic report

Chief Financial Officer’s review

Continued growth

and strong returns

On the back of record revenues

in FY2023, it was encouraging

to continue to see revenue

growth in both the UK and

Canada in FY2024.”

Laurence Keen, Chief Financial Officer

Read full biography on page 84

Hollywood Bowl Group plc

Annual report and accounts 2024

Group financial results

FY2023

Movement

FY2024 vs

FY2024 FY2023

Revenue £230.4m £215.1m

+7.1%

Gross profit on cost of goods sold

£191.2m £177.6m +4.5%

Gross profit margin on cost of goods sold

83.0% 82.6% +40bps

Administrative expenses

£137.7m £123.5m +11.5%

Group adjusted EBITDA

£87.6m £82.7m +5.9%

Group adjusted EBITDA

pre-IFRS 16 £67.7m £64.9m +4.3%

Group profit before tax £42.8m £45.1m -5.2%

Group profit after tax £29.9m £34.2m -12.4%

Group adjusted profit before tax

£45.0m £47.5m -5.2%

Group adjusted profit after tax

£32.3m £36.6m -11.8%

Free cash flow

£16.9m £29.5m -42.6%

Total ordinary dividend per share 12.06p 11.81p +2.1%

1 Gross profit on cost of goods sold is calculated as revenue less directly attributable cost of goods sold and excludes any payroll costs. This is how we report in the business

monthly and at centre level, as labour costs are judged as material and thus reported separately within administrative expenses. Administrative expenses also includes a

settlement payment from the landlord resulting from the closure of Hollywood Bowl Surrey Quays (£0.6m).

2 Group adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) is calculated as statutory operating profit plus depreciation, amortisation, impairment, loss

on disposal of property, right-of-use assets, plant and equipment and software and any exceptional costs or income, and is also shown pre-IFRS 16 as well as adjusted for IFRS 16.

These adjustments show the underlying trade of the overall business which these costs or income can distort. The reconciliation to operating profit is set out below.

3 Adjusted group profit before /after tax is calculated as group profit before/after tax, adding back acquisition fees of £0.9m (FY2023: £0.7m), the non-cash expense of £1.9m

(FY2023: £2.0m) related to the fair value of the earn out consideration on the Teaquinn acquisition in May 2022 and deducting the £0.6m received in compensation for the

closure of our Surrey Quays centre. Also, in FY2023 it included the removal of the reduced rate (TRR) of VAT benefit on bowling of £0.3m.

4 Free cash flow is defined as net cash flow pre-exceptional items, cost of acquisitions, debt facility repayment, RCF drawdowns, dividends and equity placing.

5 Group revenue in FY2023 includes £0.2m in respect of TRR of VAT.

6 Revenues in GBP based on an actual foreign exchange rate over the relevant period, unless otherwise stated.

Following the introduction of the lease accounting standard IFRS 16,

the Group continues to maintain the reporting of Group adjusted

EBITDA on a pre-IFRS 16 basis, as well as on an IFRS 16 basis. This is

because the pre-IFRS 16 measure is consistent with the basis used

for business decisions, a measure that investors use to consider the

underlying business performance as well as being a measure

contained within the group’s available loan facility. For the purposes

of this review, the commentary will clearly state when it is referring to

figures on an IFRS 16 or pre-IFRS 16 basis.

All LFL revenue commentary excludes the impact of TRR of VAT

on bowling. New centres in the UK and Canada are included in LFL

revenue after they complete the calendar anniversary of their

opening date. Closed centres are excluded for the full financial year

in which they were closed.

Further details on the alternative performance measures used are

at the end of this report.

Revenue

On the back of record revenues in FY2023, it was encouraging to

continue to see revenue growth in both the UK and Canada. Total

Group revenue for FY2024 was £230.4m, 7.1 per cent growth

on FY2023.

UK centre LFL revenue growth was flat with spend per game growth

of 3.3 per cent, taking LFL average spend per game to £11.19, and a

3.2 per cent decline in LFL game volumes. The LFL revenues,

alongside the performance of the new UK centres, resulted in record

UK revenues of £199.7m and growth of 3.8 per cent compared to the

very strong underlying revenues in the prior year. Since FY2019 the

UK business has seen 5.9 per cent compound annual revenue growth.

Canadian LFL revenue growth, when reviewing in Canadian Dollars

(CAD) to allow for the disaggregation of the foreign currency effect

(constant currency), was 6.3 per cent. Alongside this strong LFL

revenue growth, new centres performed well and resulted in total

revenue of CAD 53.0m (£30.7m), growth year on year in Canada of

42.2 per cent on a constant currency basis. Splitsville bowling centre

revenue was up CAD 15.2m (50.4 per cent) to CAD 45.3m.

Gross profit on cost of goods sold

Gross profit on cost of goods sold is calculated as revenue less

directly attributable cost of goods sold and does not include any

payroll costs. Gross profit on cost of goods sold was £191.2m,

7.7 per cent growth on FY2023 with gross profit margin on cost

of goods sold at 83.0 per cent in FY2024, up 40bps on FY2023.

Gross profit on cost of goods sold for the UK business was £167.6m

with a margin of 83.9 per cent, up 20 bps on FY2023.

Gross profit on cost of goods sold for the Canadian business was

in line with expectations at CAD 40.7m (£23.6m), with a margin of

76.8 per cent (FY2023: 73.6 per cent). This margin increase is due

in part to the significant revenue growth seen in the Splitsville

bowling centres which make up a significantly larger proportion

of total revenue in Canada versus our Striker equipment business.

Splitsville had a gross profit margin on cost of goods sold of

84.8 per cent, in line with expectations. Striker generated revenue

of CAD 7.7m (FY2023: CAD 7.1m) in the year.

Administrative expenses

Following the adoption of IFRS 16 in FY2020, administrative

expenses exclude property rents (turnover rents are not excluded)

and include the depreciation of property right-of-use assets.

Total administrative expenses, including all payroll costs, were

£138.3m. On a pre-IFRS 16 basis, administrative expenses were

£144.3m, compared to £130.0m in FY2023.

Hollywood Bowl Group plc

Annual report and accounts 2024

Strategic report

Administrative expense continued

Employee costs in centres were £45.7m, an increase of £5.0m when

compared to FY2023, due to a combination of the impact of the

higher than inflationary national minimum and living wage increases

seen compared to the prior year, the impact of higher LFL revenues,

new UK centres, as well as the significant revenue growth in

Canadian centres.

Total centre employee costs in Canada were CAD 13.6m (£7.8m),

an increase of CAD 4.1m (£2.2m), whilst UK centre employee costs

were £37.9m, an increase of £2.9m when compared to FY2023.

Total property-related costs, accounted for under pre-IFRS 16, were

£42.0m, with £37.4m for the UK business (FY2023: £33.9m). Rent

costs account for nearly 50 per cent of total property costs in the

UK and increased to £18.3m (FY2023: £17.6m) and were up less than

one per cent on a LFL basis. We received business rates rebates in

the second half, in relation to claims made in respect of the 2023

revaluation being agreed. These rebates resulted in business rates

in the UK being flat year on year, at £5.6m. Underlying business

rates for H2 FY2025 are expected to increase by 1.7 per cent on a

LFL basis.

Canadian property centre costs were in line with expectations at

CAD 7.9m (£4.6m), an increase of CAD 3.4m due to the increased

size of the estate when compared to FY2023.

Utility costs increased compared to the same period in FY2023, by

£1.9m, with UK centres accounting for £1.7m of this increase due to

a combination of an increase in the cost per unit and the hedge sell

off during FY2023, with the balance in relation to the increased

number of centres in Canada.

Total property costs, under IFRS 16, were £47.6m, including £13.8m

accounted for as property lease assets depreciation and £11.6m

in implied interest relating to the lease liability.

Total corporate costs decreased marginally year on year, by

£0.4m, to £24.9m. UK corporate costs reduced by £2.0m to

£20.6m. As we continue to build out our support team in Canada

for growth, corporate costs increased to CAD 6.5m (£3.8m) from

CAD 3.9m (£2.4m).

The statutory depreciation, amortisation and impairment charge

for FY2024 was £32.2m compared to £26.1m in FY2023. This

increase is in part due to the continued capital investment

programme, including new centres and refurbishments.

We undertook detailed impairment testing which resulted in an

impairment charge in the year of a total of £5.3m (FY2023: £2.2m).

This impairment primarily relates to our Puttstars mini-golf centres.

Whilst these centres were intended to explore customer interest in

mini-golf based entertainment alongside a food, drink and

amusement offering, the results have indicated that customer

demand for mini-golf centres is lower than anticipated. These results

support the decision to focus on the continued expansion of our

Hollywood Bowl and Splitsville locations, as well as rebranding of

Puttstars mini-golf centres to ‘Putt & Play from Hollywood Bowl’.

The impairment reflects a discounted cash flow analysis of future

cash flows, resulting in a reassessment of the carrying value of

property, plant and equipment (PPE) and right-of-use (ROU) assets

associated with the mini-golf centres on the balance sheet. The

discount rate used for the weighted average cost of capital (WACC)

was 12.4 per cent pre-tax (FY2023: 12.7 per cent) in the UK.

See note 12 to the Financial Statements for more information.

Canadian performance

The Group has continued to grow its footprint in Canada, with

13 centres at the end of FY2024 (FY2023: 9). During FY2024 the

Group acquired three centres – in November 2023 it acquired

Woodlawn Bowl in Ontario and Lucky 9 Bowling Centre Limited

as well as its associated restaurant and bar, Monkey 9 Brewing

Pub Corp (‘Riverport’) in British Columbia. Both of these centres

will benefit from investment in FY2025, with Riverport having a

significant refurbishment costing over CAD 3.0m, which will include,

but not be limited to, the introduction of a full amusement offer as

well as the installation of Pins on Strings.

In June 2024, the Group acquired Stoked, a multi-activity family

entertainment centre in Saskatoon. All three acquisitions are

trading in line with management expectations. We were also

pleased to open our first greenfield centre, in Waterloo, Ontario.

The Canadian business continues to trade strongly, with total

revenues in Canada of CAD 53.0m (£30.7m), and just over

CAD 9.4m (£5.4m) of EBITDA on a pre-IFRS 16 basis. Bowling

centres contributed CAD 45.3m of revenues with EBITDA on

a pre-IFRS 16 basis of CAD 14.7m, an increase of CAD 4.4m on

the same period in FY2023.

Exceptional costs

Exceptional costs in FY2024 totalled £2.3m (FY2023: £2.4m) and

relate to three areas. The first is the acquisition costs in relation to

the acquisition of four centres – one in the UK and three in Canada,

which totalled £0.9m. The second is the earn out consideration for

Teaquinn President Pat Haggerty, which is an exceptional cost of

£1.9m, of which £1.5m is in administrative expenses and £0.4m is

in interest expenses. See the table below for the exceptional items

included in the Group adjusted EBITDA and operating profit

reconciliation. We also received £0.6m in compensation for the

closure of our Surrey Quays centre. More detail on these exceptional

costs is shown in note 5 to the Financial Statements.

Group adjusted EBITDA and operating profit

Group adjusted EBITDA pre-IFRS 16 increased 4.3 per cent, to

£67.7m. The increase is due to a combination of LFL revenue

performance in both the UK and Canada as well as the new centre

growth across both territories when compared to the same period

in FY2023. The reconciliation between statutory operating profit

and Group adjusted EBITDA on both a pre-IFRS 16 and under-

IFRS 16 basis is shown in the table below.

FY2024

£’000

FY2023

£’000

Operating profit

53,506 54,085

Depreciation 25,919 23,107

Impairment 5,316 2,210

Amortisation 935 820

Loss on property, right-of-use assets, plant

and equipment and software disposal 88 306

Exceptional costs excluding interest 1,823 2,203

Group adjusted EBITDA under IFRS 16 87,587 82,731

IFRS 16 adjustment (19,838) (17,799)

Group adjusted EBITDA pre-IFRS 16 67,749 64,932

1 IFRS 16 adoption has an impact on EBITDA, with the removal of rent from the

calculation. For Group adjusted EBITDA pre-IFRS 16, it is deducted for comparative

purposes and is used by investors as a key measure of the business. The IFRS 16

adjustment is in relation to all rents that are considered to be non-variable and of a

nature to be captured by the standard.

Chief Financial Officer’s review continued

Hollywood Bowl Group plc

Annual report and accounts 2024

Segmentation

Year ended 30 September 2024

£’000

Canada

£’000

Total

£’000

Revenue 199,696 30,703 230,399

Group adjusted EBITDA

pre-IFRS 16 62,308 5,441 67,749

Group adjusted EBITDA

79,715 7,872 87,587

Depreciation and

amortisation 23,490 3,364 26,854

Impairment of PPE

and ROU assets 5,316 — 5,316

Loss on property,

right-of-use assets, plant

and equipment and

software disposal 88 — 88

Exceptional costs /(income)

excluding interest (591) 2,414 1,823

Operating profit 51,412 2,094 53,506

Finance (income) (1,580) (142) (1,722)

Finance expense 10,425 2,045 12,470

Profit before tax 42,567 191 42,758

Share-based payments

During the year, the Group granted further Long-Term Incentive Plan

(LTIP) shares to the senior leadership team as well as starting a new

save as you earn (SAYE) scheme for all team members. The LTIP

awards vest in three years providing continuous employment during the

period, and attainment of performance conditions as outlined in the

FY2024 Annual Report. The Group recognised a total charge of £1.8m

(FY2023: £1.2m) in relation to the Group’s share-based arrangements.

Share-based costs are not classified as exceptional costs.

Financing

Finance costs (net of finance income) increased to £12.5m in

FY2024 (FY2023: £10.4m) comprising mainly of implied interest

relating to the lease liability under IFRS 16 of £11.6m.

During the year, the Group agreed a 12-month extension to the £25m

RCF and £5m accordion, resulting in a margin rate reduction to 1.65

per cent above SONIA effective from 22 March 2024. The RCF term

now runs to the end of December 2025 and remains fully undrawn.

Cash flow and liquidity

The liquidity position of the Group remains strong, with a net cash

position of £28.7m as at 30 September 2024. Detail on the cash

movement in the year is shown in the table opposite.

Capital expenditure

During the financial year, the Group invested a record net capex of

£52.7m, including £13.8m on the acquisition of four centres, one of

which, Lincoln Bowl, was in the UK.

On 2 October 2023, the Group purchased the assets, including the

long leasehold, of Lincoln Bowl for total of £4.5m, of which £2.0m

was allocated to the long leasehold.

In Canada, three centres were acquired in FY2024. The first was a

family entertainment centre in Guelph, Ontario, for CAD 4.7m

(£2.8m), on 7 November 2023. The second was the acquisition of

the assets and lease of a centre in Vancouver, for consideration of

CAD 0.4m (£0.3m). The final acquisition was ‘Stoked’ in

Saskatchewan, for a total consideration of CAD 10.8m (£6.2m).

More information on all of these acquisitions is provided in note 32 to

the Financial Statements.

A total of £11.5m was invested into the refurbishment programme,

with ten UK centres refurbished as well as investments into the

Canadian estate.

A significant proportion of the refurbishment spend in the UK, £1.9m,

was in relation to the extension and refurbishment of our centre in

Stockton. This centre was already one of the most successful in the

estate and we have now increased its potential. In conjunction with a

new lease for a period of 15 years and investment into the existing

space, the Group also extended into the adjacent unit, adding an

extra five lanes, a Puttstars mini-golf course and a large

amusements area. The refurbishment was completed in time for

Easter trading and results are very encouraging.

Despite inflationary pressures, returns on the UK refurbishments

continue to exceed the UK hurdle rate of 33 per cent return on

investment.

New centre capital expenditure was a net £19.5m.

The Group’s strong liquidity ensures it can continue to invest in

profitable growth with plans to open more locations during FY2024

and beyond.

The Group spent £8.0m on maintenance capital, including continued

spend on the rollout of Pins on Strings technology (£1.8m) and solar

panels as well as extensions of current installations (£1.0m).

We expect total capital expenditure for FY2025 to be in the region

of £40m to £45m.

Cash flow and net debt

FY2024

£’000

FY2023

£’000

Group adjusted EBITDA under IFRS 16 87,587 82,731

Movement in working capital 1,097 (1,103)

Maintenance capital expenditure (7,973) (9,072)

Taxation (10,536) (9,100)

Payment of capital elements of leases (12,305) (11,419)

Adjusted operating cash flow (OCF)

57,870 52,037

Adjusted OCF conversion 66.1% 62.9%

Expansionary capital expenditure

(30,952) (13,786)

Disposal proceeds — 10

Net bank interest received 1,616 1,008

Lease interest paid (11,615) (9,808)

Free cash flow (FCF)

16,919 29,461

Exceptional items (436) (343)

Acquisition of centres in Canada (9,283) (7,716)

Cash acquired in acquisitions 78 319

Acquisition of centres in UK (4,474) —

Share (buyback)/issue (378) 6

Dividends paid (26,180) (25,338)

Net cash flow (23,754) (3,611)

1 Adjusted operating cash flow is calculated as Group adjusted EBITDA less working

capital, maintenance capital expenditure, taxation and payment of the capital

element of leases. This represents a good measure for the cash generated by the

business after considering all necessary maintenance capital expenditure to ensure

the routine running of the business. This excludes exceptional items, net interest

paid, debt drawdowns and any debt repayments.

2 Expansionary capital expenditure includes refurbishment and new centre capital

expenditure.

3 Free cash flow is defined as net cash flow pre-exceptional items, cost of acquisitions,

debt facility repayment, debt drawdowns, dividends and equity placing.

Hollywood Bowl Group plc

Annual report and accounts 2024

Strategic report

Taxation

The Group’s tax charge for the year is £12.8m arising on the

profit before tax generated in the period. The increase in the

Group’s tax charge is due to the increase in the UK corporation tax

rate from 19 per cent to 25 per cent from April 2023.

Earnings

Statutory profit before tax for the year was £42.8m (FY2023: £45.1m),

with an impairment charge of £5.3m, which was higher by £3.1m than

the previous year.

The Group delivered profit after tax of £29.9m (FY2023: £34.2m)

and basic earnings per share was 17.42 pence (FY2023: 19.92 pence).

Group adjusted profit before tax is £45.0m, whilst Group adjusted

profit after tax is £32.3m and basic adjusted earnings per share of

18.82 pence per share (FY2023: 21.37 pence per share).

These adjustments are adding back the exceptional costs

highlighted earlier in the report. For more detail see note 5 to the

Financial Statements.

It is also noteworthy to highlight Group adjusted profit before tax

adding back impairments, is £50.3m (FY2023: £49.9m).

Dividend and capital allocation policy

In line with the Group’s capital allocation policy, the Board has

declared a final ordinary dividend of 8.08 pence per share.

Subject to approval at the AGM, the ex-dividend date will be 30

January 2025, with a record date of 31 January 2025 and a payment

date of 21 February 2025.

Going concern

As detailed in note 2 to the Financial Statements, the Directors are

satisfied that the Group has adequate resources to continue in

operation for the foreseeable future, a period of at least 12 months

from the date of this report.

UK Government Budget

As outlined in the Chief Executive Officer’s review, the changes to

Employers National Insurance Contributions and Thresholds will

result in significantly increased employment costs, impacting the

hospitality industry in particular.

We expect to see an increase in employee costs in UK LFL centres

in excess of 8 per cent for the second half of FY2025 given the

National Living and Minimum Wage announcement, with the National

Insurance increase costing in excess of £1.2m on an annualised basis.

Laurence Keen

Chief Financial Officer

16 December 2024

Note on alternative performance measures (APMs)

The Group uses APMs to enable management and users of the financial

statements to better understand elements of the financial performance

in the period. APMs referenced earlier in the report are explained as

follows. These are not intended to replace statutory financial measures

UK like-for-like (LFL) revenue for FY2024 is calculated as:

• Total Group revenues £230.4m, less

• New UK centre revenues for FY2024 that have not

annualised £7.8m, less

• Closed centres for the full year of £3.1m, less

• Canada revenues for FY2024 of £30.7m (CAD 53.0m)

Canada like-for-like (LFL) revenue for FY2024 is calculated as:

• Total Canada revenues CAD 53.0m, less

• New Canada centre revenues for FY2024 that have not

annualised CAD 13.4m

New centres are included in the LFL revenue after they complete

the calendar anniversary of their opening date. Closed centres are

excluded for the full financial year in which they were closed. LFL UK

comparatives for FY2023 are £188.8m. LFL Canada comparatives

for FY2023 are CAD 37.3m

Gross profit on cost of goods sold is calculated as revenue less

directly attributable cost of goods sold and excludes any payroll

costs. This is how we report in the business monthly and at centre

level, as labour costs are judged as material and thus reported

separately within administrative expenses. These amounts are

presented separately on the consolidated income statement for

ease of reconciliation.

Group adjusted EBITDA (earnings before interest, tax, depreciation

and amortisation) reflects the underlying trade of the overall business.

It is calculated as statutory operating profit plus depreciation,

amortisation, impairment, loss on disposal of property, right-of-use

assets, plant and equipment and software and any exceptional costs or

income, and is also shown pre-IFRS 16 as well as adjusted for IFRS 16.

The reconciliation to operating profit is set out in this report.

Free cash flow is defined as net cash flow pre-dividends,

exceptional items, acquisition costs, bank funding and any equity

placing. Useful for investors to evaluate cash from normalised trading.

LFL spend per game is defined as LFL revenue in the year divided

by the number of bowling games and golf rounds played.

Adjusted operating cash flow is calculated as Group adjusted

EBITDA less working capital, maintenance capital expenditure,

taxation and payment of the capital element of leases. This

represents a good measure for the cash generated by the business

after considering all necessary maintenance capital expenditure

to ensure the routine running of the business. This excludes

exceptional items, acquisitions, share buyback/issue, dividends paid,

net interest paid, debt drawdowns and any debt repayments.

Expansionary capital expenditure includes all capital on new

centres, refurbishments and rebrands only. Investors see this as

growth potential.

Group adjusted profit after tax is calculated as statutory profit

after tax, adding back the acquisition fees of £0.9m (FY2023: £0.7m),

the non-cash expense of £1.9m (FY2023: £2.0m) related to the fair

value of the earn out consideration on the Canadian acquisition in

May 2022 and deducting the £0.6m in compensation received for the

closure of our Surrey Quays centre. This adjusted profit after tax is

also used to calculate adjusted earnings per share.

Constant currency exchange rates are the actual periodic

exchange rates from the previous financial period and are used to

eliminate the effects of the exchange rate fluctuations in assessing

certain KPIs and performance.

Chief Financial Officer’s review continued

Hollywood Bowl Group plc

Annual report and accounts 2024

Hollywood Bowl Group plc

Annual report and accounts 2024

Strategic report

Section 172

Effective

stakeholder engagement

andcollaboration

Engaging and collaborating with all stakeholder groups

is crucial to the Board’s strategic decision-making

process. Aligning stakeholder engagement with

our culture and supporting our goal of maintaining

industry leadership is essential for the Group’s long-

term sustainable success.

Section 172 of the Companies Act 2006 mandates that directors

act in good faith and in a manner most likely to promote the

company’s success for the benefit of its stakeholders.

Consequently, the Board must consider how decisions balance

the needs of various stakeholders and their impact on long-term

performance. Operating a large-scale business often involves

making decisions amidst competing stakeholder priorities, where

positive outcomes for all stakeholders may not always be achievable.

Our stakeholder engagement processes enable us to understand

stakeholder priorities, consider all relevant factors, and choose the

best course of action for the Group’s long-term success.

S172(1) statement:

In accordance with section 172(1) of the

Companies Act 2006, a director of a

company must act in the way he or she

considers, in good faith, would be most

likely to promote the success of the Group

for the benefit of its members as a whole

and, in doing so, have regard, amongst

other matters, to:

a. the likely consequences of any decision

in the long term;

b. the interests of the Group’s employees;

c. the need to foster the Group’s

business relationships with

customers and suppliers;

d. the impact of the Group’s operations

on the community and the environment;

e. the desirability of the Group maintaining

a reputation for high standards of

business conduct; and

f. the need to act fairly between members

of the Group.

The following disclosure describes how

the Directors of the Group have taken

account of the matters set out in section

172(1) (a) to (f) and forms the Directors’

statement required under section 172 of

the Companies Act 2006.

How we engage with

our key stakeholders

Here, we outline the Board and Group’s

approach to considering and engaging with

our key stakeholder groups. In addition to

our ongoing engagement activities, we

regularly receive and respond to specific

feedback and provide updates on important

issues to our stakeholders.

The Board reserves certain matters for its

own decision-making, as outlined on page

86.

We take steps to enhance our

communication, collaboration, and

information sharing with stakeholders

regarding our actions and their potential

impacts. This approach has been adopted

in the UK, and we are starting to extend

these engagement and collaboration

methods to our Canadian operations as

our Group’s ways of working become more

embedded in this business.

On the following pages we outline the details

of the activities we undertook in FY2024

and the outcomes of our engagement with

stakeholder groups.

Our key stakeholders

The Board identifies the Group’s key

stakeholders as:

Customers

Team members (employees)

Communities

Investors

Environment

Suppliers and partners

Lending banks

For more information, refer to:

Business model on pages 28 and 29

Sustainability on pages 48 to 59

Governance on pages 82 to 131

Hollywood Bowl Group plc

Annual report and accounts 2024

Team members

Customers

Our team members

are essential to our

business success

and the driving

force behind our

fun-filled customer

experiences

What is important to them

• Regular, relevant, and clear communication

• Engagement with all levels of management

• Opportunities to provide feedback

• Career and skills development pathways

• Attractive salary, benefits, and opportunities

to share in the Group’s success

• Working for an inclusive employer that

embraces diversity at all levels

Our core focus is

providing a great

experience every

visit, with ongoing

feedback serving as

the best indicator of

our success

What is important to them

• A great value visit every time

• A clean and safe environment

• Correct pace of experience in all centre areas

• Excellent customer service from friendly

team members

• Fully working, fault-free equipment

Stakeholder engagement

How the Board considers

their interests

• Directors visit multiple new, refurbished

and existing centres, each year

• Attendance at the annual

management conference

• Bi-annual feedback sessions between

management and team members

• Diversity is a key consideration in the Board’s

succession planning

Engagement in FY2024

• New training system, Thrive, introduced

based on team member feedback

• Used Fourth Engage to communicate key

messages, enabling team interaction (over

8,500 internal social posts in the year) and

delivering wellbeing initiatives

• Conducted employee engagement surveys

and pulse surveys

• Maintained a Whistleblowing policy, with all

cases reported at every Board meeting

• Published our annual Gender Pay Gap report

How the Board considers

their interests

• Reviews customer satisfaction scores at

every Board meeting

• Includes customer satisfaction scores in

bonus schemes from team members

to senior leadership

• Uses customer feedback to identify

improvements to operational ways of

working and to guide investment in new

centres and refurbishments

Engagement in FY2024

• Conducted post-visit customer

satisfaction surveys

• New customer feedback programme

introduced in Canada

• Monitored social media and customer

queries submitted via the contact centre

• Regular feedback and monitoring to meet

safety standards and expectations

Outcomes of this engagement

• Team member monthly 1:1s

• Updated our learning platform to

include more user-generated content

and encourage self-led learning

• The Board and senior leadership

considered team member

engagement survey outputs resulting

in identified actions

• Recognised as one of the UK’s

Top Best Big Companies to Work

For in 2024 and achieved a 2*

high-quality employee experience

score from WorkL.

Outcomes of this engagement

• Record number of customer

surveys returned

• Record levels of customer

satisfaction scores in UK

• Further enhancements to the

Hollywood Bowl and Splitsville

brand and service propositions

Hollywood Bowl Group plc

Annual report and accounts 2024

Strategic report

Communities

Investors

We are proud to be

an active part of

our communities

as an employer and

provider of leisure

amenities

Our investors

provide valuable

feedback on our

business model and

future growth plans

What is important to them

• Relevant and timely information on Group

performance and strategic plans

• Regular engagement with management

• Growth of share price and dividend returns

• Capital allocation policy

• Information on ESG strategy

and performance

• Information on Remuneration policy

Stakeholder engagement continued

What is important to them

• Positive contributions to local communities

through employment and amenity provision

• Ongoing support for local and national charities

How the Board considers

their interests

• Considers the impact of local operations as part

of its sustainability strategy

Engagement in FY2024

• New national charity partner appointed

• Over 100 new jobs created in our new

centre openings

• Progress with our ESG strategy and initiatives

(Sustainability report on pages 48 to 59)

How the Board considers

their interests

• Receives feedback from shareholder

meetings and through the Group’s brokers,

Investec and Berenberg

• Welcomes questions from shareholders at

any time

• The Remuneration Committee Chair consults

shareholders on any major policy changes

(Report on pages 105 to 118)

• Focuses on the Group’s ESG initiatives

(Sustainability report on pages 48 to 59,

Corporate governance on pages 86 to 92)

Engagement in FY2024

• Held the AGM in January 2024

• Conducted investor relations meetings with

current and prospective shareholders and

presented annual and interim results

• Attended and presented at investor

conferences

• Disclosed climate reduction performance

via CDP

Outcomes of this engagement

• Increased uptake of UK concessionary

discounts compared to FY2023

• Supported Macmillan as our UK

national charity partner and other

community-based charities

• Made further progress in our ESG

strategy and initiatives

Outcomes of this engagement

• Outlined the Board’s view on

dividends in the Chief Financial

Officer’s review (pages 38 to 43)

• Made further progress with our ESG

strategy (pages 48 to 59)

• Won the Investor Relations Society

Best Practice Award for Small Cap

PLC Website

Hollywood Bowl Group plc

Annual report and accounts 2024

Suppliers and partners

Lending banks

Environment

Our partnerships

include landlords,

construction

companies, suppliers

of amusements and

food and beverage

What is important to them

• Clear and concise communication that

demonstrates integrity and reliability

• Strong listed covenant

• Responsible tenancy holders

Our lending banks

provide funds for

growth and working

capital when required

What is important to them

• Regular monthly reporting, including

rolling 12-month forecasts

• Invitations to new openings and

refurbishment launches

We always consider

the environmental

impacts of our

operations and strategy

What is important to them

• Energy efficiency and minimising

environmental impacts of our direct

operations and supply chains

• Sustainable building and

refurbishment practices

How the Board considers their interests

• Commitment to high ethical standards

• Expectation of high ethical standards from

all suppliers and partners

• Regular discussions between Executive

Directors and main suppliers

• Zero-tolerance approach to bribery, corruption,

and modern slavery, with regular reviews of

supplier and partner policies

Engagement in FY2024

• Executive Directors engaged closely with

landlords to agree on extensions and revised

terms as needed

• Actively managed supplier relationships to

handle costs and supply chain disruptions

• Published the Payment Practices Report

twice in the year

• Conducted annual audits of suppliers for

compliance with modern slavery and human

trafficking legislation

• Communicated with key suppliers as part of

our ESG supplier engagement programme

How the Board considers

their interests

• Bank representatives attend half-year and

full-year results presentations

• Forward-looking forecasts provided at

every monthly Board meeting to ensure

covenant compliance

Engagement in FY2024

• Provided regular monthly updates on company

performance and debt covenant forecasts

• Attended half yearly meetings with lending bank

as well as others interested in future lending

How the Board considers

their interests

• Considers the impact of the Group’s direct

operations and supply chains as part of its

sustainability strategy

• Focuses on improving energy efficiency in

the estate

Engagement in FY2024

• Supplier engagement programme launched

to gain increased understanding of net zero

ambitions and access to primary data

• Canadian climate risks and opportunities

analysis undertaken

Outcomes of this engagement

• Maintained positive relationships with

major suppliers and landlords

• Gained access to increased supplier

primary data for Scope 3 emissions

Outcomes of this engagement

• The £25m revolving credit facility

(RCF) remains available to the Group

until Decmber 2025

Outcomes of this engagement

• Continued investment in solar panels,

with three installations completed

• Energy-efficient Pins on Strings

technology is now in 91% of our UK

bowling centres

• Launched a supplier engagement

programme

Hollywood Bowl Group plc

Annual report and accounts 2024

Strategic report

Sustainability overview

A responsible

and sustainable business

At Hollywood Bowl Group, we are committed

to placing sustainability at the heart of

everything we do.

We are always looking for ways

to make a positive difference

– for our team, our customers,

our communities and our planet.”

As a people-focused business, we prioritise employment and community

engagement at our centres. We are dedicated to reducing our

environmental impact both locally and globally as we continue to grow.

We take our responsibility seriously, with a strong track record

of supporting our teams, our communities, and implementing a variety

of carbon-saving initiatives.

Introduction to the sustainability report

As the Chair of the Corporate Responsibility Committee (see page 104), I

am immensely proud to be part of a business that prioritises sustainability.

We are always looking for ways to make a positive difference – for our

team, our customers, the communities in which we operate and our

planet. We have always conducted our operations with integrity

because what we do, and how we do it, really matters.

The Group is committed to building on the strong foundations that

we have established with our three sustainability pillars, including the

introduction of these into our Canadian operations.

Our teams have set challenging targets and built operational initiatives

to deliver them, and we are pleased to share an update on

our progress in the following pages.

We recognise that there is still much to accomplish, but we are confident

in our ability to make a significant impact for all our stakeholders.

Ivan Schofield

Chair of the Corporate Responsibility Committee

This report refers to UK operations

only unless otherwise stated.

Our ambition

We create welcoming centres

where health and safety, responsible

eating and drinking, accessibility for

all, and positive community relations

are prioritised.

Read more on pages 54 to 55

Strategic objectives

Active asset refurbishment

New centres and acquistions

Investing in

people and the planet

Our purpose:

Bringing families and friends together for

affordable fun and safe, healthy competition

Hollywood Bowl Group plc

Annual report and accounts 2024

Strategic report

Outstanding

workplaces

Safe and inclusive

leisure destinations

Sustainable centres

Sustainability overview continued

Safe and inclusive destinations

Target progress

£85k

Raised for national charity

partner Macmillan

FY2024 target £50,000

FY2023 £58,000

FY2022 £28,000

FY2022 750k FY2022 132k FY2022 48%

1m+

Concessionary discount

games played

FY2024 target 950k

FY2023 963k

170k

Schools games played

49%

Of soft drinks sold were sugar free

FY2024 target 160k FY2024 target 50%

FY2023 155k FY2023 50%

Local investment

As we grow our business, our commitment to positively impacting

the local communities in which we operate remains a priority.

Each new centre we open represents a significant investment in the

region of £3 million into the local economy, enhancing footfall to the

wider location and significantly benefiting surrounding leisure and

retail businesses.

Additionally, we create approximately 30 jobs per centre,

contributing to local employment, and importantly providing a

gateway first job to many of our team members. In FY2024 we

opened four new centres in the UK creating in excess of 100 new

jobs.

Inclusivity and community relations

We are dedicated to providing inclusive and enjoyable activities

that bring families and friends of all ages and abilities together in

a welcoming environment.

Participation in ten-pin bowling promotes wellbeing and social

interaction through its unique blend of healthy competition.

1 2

Our centres are designed to be accessible to everyone, featuring

disabled access, moveable ramps for lane access, bowling

assistance, and disabled toilet facilities.

We work hard to create strong community relations through initiatives

like offering concessionary discounts and active local engagement,

including charity fundraising events, junior sports team sponsorship

and local school partnerships.

For the first time in FY2024, more than 1 million discounted

concession games were bowled in a year. This highlighs the

importance that our safe and inclusive venues and activities plays in

the lives of these groups of customers.

We were delighted to partner with Macmillan as our new national UK

charity in FY2024 following a selection process driven by team

member voting for their favourite charity causes.

This new partnership has already resulted in a record £85,000 being

raised through our local centre teams and central Hemel support

office team. We have extended the partnership into FY2025.

Our centres are important social venues for the local communities they serve

Hollywood Bowl Group plc

Annual report and accounts 2024

Macmillan meet-ups

We were delighted to launch a new initiative this year with

Macmillan. Cancer Community Meet-ups are an opportunity

to meet with other people living with cancer from the local

area in a relaxed and comfortable space, and to connect over

a free game of bowling.

These events are giving people the opportunity to express

what they are going through and can offer reassurance to

meet others with similar thoughts and feelings.

Following a successful pilot the scheme is being rolled out to

more centres in FY2025.

Health and safety

The health and safety of our teams and customers is paramount.

We continuously measure and monitor performance across all of our

locations to ensure that we provide safe and healthy environments in

all aspects of our operations, which is a crucial foundation to our

business performance and customer experience.

Our policies and practices are regularly reviewed with external

agencies to ensure compliance with safety legislation. All incidents

involving customers or team members are reported and addressed

promptly. Internal audits, including safety reviews, are conducted

and reviewed by the Board.

Responsible food and beverage

We are committed to providing transparent information to help

customers make informed choices about our food and beverage

choices, including providing allergen details.

In collaboration with our suppliers, we offer menu options with

reduced salt and sugar content in our food and beverage ranges.

We also promote a variety of sugar-free soft drinks which account

for just under half of our soft drink sales (a ratio which has been

consistent in the last three years), and ensure fresh water is readily

available to our customers.

We continue to review and streamline our supply chain and ordering

practices to further reduce the number of food and drink deliveries

to our centres.

Health and safety are integral to our daily hospitality operations,

with team members undergoing food safety and allergen

awareness training.

Our centres consistently achieve high food hygiene ratings

through regular audits by internal food safety auditors or external

environmental health officers.

3 4

Hollywood Bowl Group plc

Annual report and accounts 2024

Strategic report

Case study

Outstanding workplaces

Attracting and retaining top talent

Our team members are the centre of our business and key to delivering

our purpose of bringing friends and family together for affordable fun

and safe, healthy competition.

They have been instrumental to our performance in FY2024 which

can be demonstrated through the achievement of record customer

satisfaction scores. Our strategic pillar; “focusing on our people”

reinforces our recognition of our people as a key driver of our

ongoing success.

Our people focused activities are designed to attract and retain the

best talent in a competitive labour market. Despite the ongoing

challenges of recruitment and retention in our sector, our

industry-leading training programmes and limited exposure to EU

labour and the London market enable us to continue to outperform

our hospitality and leisure peers in terms of team turnover rates.

Sustainability overview continued

Target progress

58%

Of our management appointments

from internal candidates

2 star

High-quality employee experience

rating from WorkL

11%

Of our team members

participating in development

programmes

94%

Team members completing online

development modules

FY2024 target 47% FY2024 target 1 star

FY2023 45% FY2023 1 star

FY2022 40% FY2022 1 starFY2022 97%

FY2022 5.6%

FY2024 target 7%

FY2023 11%

FY2024 target 92%

FY2023 94%

We foster a high-performance, purpose-led culture that recognises

individual contributions which are often promoted through our

internal social media channels and in our annual awards programme.

Our generous perks and benefits programme includes team

member discounts, top talent development programmes, and

performance-related pay. We paid out £636k in bonuses to centre

teams, with 60.3% of our hourly paid team members receiving an

additional 50 pence per hour bonus in recognition of excellence.

With inflation impacting team members’ finances, we increased

average pay in April by 9.2% for salaried team members and by

5.3% for Centre Managers and Assistant Centre Managers. We are

committed to paying a living wage to our hourly-rate team members.

Training and development

Working with us is more than just a job – we have a high-performance

culture where teams are nurtured through exceptional training and

where defined behaviours are rewarded. We know that some of these

jobs will turn into long-term careers in leisure and hospitality, and we

support our people to grow with us and become future leaders.

Our team members are key to delivering great customer experiences

and we strive to provide them with a great work experience

1 2

Hollywood Bowl Group plc

Annual report and accounts 2024

We believe that anyone with the right drive and training can become

progress in our organisation. In FY2024 we saw record attendance

on our team development programmes with 11% of our team

participating in one of our top talent programmes.

Our graduate training programme will see graduates develop into

Centre Managers within three years. Additionally, our Senior

Leadership Development Programme (SLDP), which equips future

leaders with the management skills and business knowledge to join

the senior leadership team, has 12 colleagues enrolled.

With many roles filled internally in FY2024 and with our planned

new centre openings, we again increased the number of Assistant

Manager in Training and Centre Manager in Training programmes.

We were delighted that a record 58% of management vacancies

were filled internally in FY2024.

We launched a new training portal called Thrive to further

improve our ongoing team member training, compliance and

professional development.

Team wellbeing

Team member wellbeing is of vital importance to us, and we have

well-established initiatives in place. This includes Mental Health

First Aiders, regular communications on Fourth Engage (our internal

social media platform) to highlight events such as World Mental

Health Day, wellbeing modules in our training programmes, and our

Employee Assistance Programme (EAP), which provides free

support services and resources for physical and mental health,

wellbeing, financial, legal, or bereavement issues.

Team engagement has further improved, and we received a WorkL

2* high quality employee experience in our centres, 3* rating for the

support centre and increased scores on employee review websites.

Diversity and inclusion

We value and celebrate differences, reflecting the people and

communities we serve, and ensuring we provide experiences that

are relevant, accessible, and welcoming. We promote a culture that

fosters diversity and inclusion, committing to non-discrimination on

the grounds of gender, race, ethnicity, religious belief, political

affiliation, sexual orientation, age, or disability. Our careers website

and marketing activity is designed to reach and appeal to a broad

range of talent and we saw a 69 per cent increase in applications

being originated from social media activity.

International careers

To help develop the culture and ways of working in our

Canadian business, we have sponsored a number of

experienced UK Hollywood Bowl team members to take up

roles in the Splitsville business.

To date these have included regional support roles (including

Regional Manager; Adam West pictured above), centre

managers, human resources and executive management.

In addition we are centralising some Group support functions

which gives UK based team members the opportunity to

support our Canadian business.

Case study

We continue to host focus groups to make our business more

attractive to a diverse workforce. Team members are invited to join

and lead these groups, resulting in highly productive sessions

focused on age, gender, heritage, ethnicity, the LGBTQ+ community,

and culture. Feedback from these sessions is helping us to continue

to evolve our diversity strategy, and we have representatives for

each group who publish updates in our D&I newsletters.

We continue to encourage women to apply for senior roles by

offering flexible working structures and enhanced maternity,

paternity, or shared parental leave. Our approach has resulted in

a significant increase in females on our talent programme, with

51 Assistant Managers in Training, 8 Centre Managers in Training,

and 4 on our SLDP.

3 4

Hollywood Bowl Group plc

Annual report and accounts 2024

Strategic report

Sustainable centres

Increasingly efficient centres

We understand that our business has an impact on climate, the

environment and nature; including land, forests and water ecosystems

and we are committed to reducing the impacts from operations.

We also recognise biodiversity loss as an emerging risk, so

protecting this is important to ensure the resilience of our business

and the communities where we operate.

The burning of fossil fuels is damaging to the environment, and we

seek to reduce our impact through reducing the energy we consume

in our centres, on-site generation of renewable electricity and

improving energy efficiency through a variety of initiatives:

• Our directly purchased electricity in UK and Canada is from 100%

renewable sources (backed in the UK by REGOs and from

1 October 2024 in Canada by RECs)

• Promoting energy saving behavioural change within our centre teams

• Implementing energy-efficient air handling systems

Sustainability overview continued

Target progress

82.9%

Of waste recycled, with 100

per cent diverted from landfill

100%

Of our UK directly

purchased energy from

renewable sources

UK centres with

solar arrays installed

56.8

UK Intensity ratio Scope 1

and 2 emissions

FY2024 target 82%

FY2023 82.7%

FY2022 77.7% FY2022 0% FY2022 17

FY2023 61.0

FY2022 61.7

FY2024 target 100%

FY2023 100%

FY2024 target 30

FY2023 27

FY2024 target 58.0

1 2

Building, refurbishing and operating our centres to minimise

their impact on the environment is a priority

• In FY2024, we installed solar panels in three more UK centres,

with our estate now having 5,918 kWp of solar power, producing

5,020,003 kWh per year

• We continue to negotiate with landlords to add extra solar arrays

where possible

• Continuing the roll out of energy efficient Pins on Strings technology,

now in 91% of the UK estate

• Our teams have also played their part with our recent travel

survey showing a reduction in commuting petrol and diesel miles

and an increase in bus usage

Waste, plastics and water

We are committed to enhancing waste reduction and recycling through

team member behavioural change incentives, including linking waste

management performance to team members’ bonus allocations.

In our UK operations we have increased the percentage of waste

recycled in the centres we manage, from 67.3% in FY2019 to 82.9%

in FY2024, with all waste diverted from landfill.

Sustainability overview continued

Hollywood Bowl Group plc

Annual report and accounts 2024

We have a strong track record in minimising food and drink wastage,

targeting less than 1% of food and drink waste as a percentage of

revenue. In FY2024, we achieved 0.6%, demonstrating our progress.

We are committed to changing the way we use, and reuse plastics

in line with the three principles of a circular economy for plastics:

eliminate, innovate, and circulate. We reduced the amount of plastic

in our food and drink packaging by over 61% compared to 2019 and

the total weight of food and drink packaging by over 13%.

We are also reducing the amount of water each centre uses – in

the UK down from 3.38m³ per centre per day in FY2023 to 3.21m³

in FY2024, but also looking at the wastewater that we emit.

We have now installed grease traps into 84% of centres which

reduce the fats and grease emitted from our centres.

Building sustainable centres

Our development teams prioritise sustainability in estate additions

and upgrades, partnering with contractors to deliver greener and

more efficient buildings.

The challenge to reach net zero intensifies our focus on “building

better”, from adopting a re-use, re-cover, and recycle approach

to fitting carbon-neutral carpets and 100% recycled vinyl flooring

in refurbishments.

All the timber used for refurbishments and new builds is

FSC accredited.

For new builds, we fit out all our new centres using 100% renewable

energy, adopt a fabric-first approach to enhance energy efficiency

and improve EPC ratings, and install technologies that reduce long-term

environmental impacts.

Climate change and Net Zero

We were pleased to become a member of the Zero Carbon

Forum (ZCF) in FY2024 which is enabling us to better understand

our strategy and performance when benchmarked to similar

hospitality businesses.

We are also working with ZCF on a number of future carbon

reduction initiatives. We have also continued our participation in

the UK Hospitality Sustainability Committee.

The Group has made progress this year in further reducing our

Scope 1 and 2 intensity ratios in the UK. We are gaining a more

accurate understanding of our Scope 3 emissions in the UK with the

use of more primary data which has been accessed as a result of

our supplier engagement programme.

3 4

Case study

Building better

For new builds, contractors use 100% renewable energy for

fit-outs and we have transitioned from gas-fired to direct

electric water heating to generate fewer emissions. All LED

lights are on timers, large fixtures and fittings are

manufactured off-site, and design occupancy has been

reduced to lower ventilation and cooling requirements.

Additionally, the cooled area in cellars has been minimised

by introducing plastic curtains or cold-rooms.

For the first time we are reporting Scope 3 emissions for our

Canadian business which has helped us to establish a baseline

as we start to evolve our climate action plan in Canada.

Details of Group climate-related risks and mitigations under TCFD

are provided on pages 60 to 69.

Our climate transition plan continues to evolve. It will help guide us

on a process of transition over the coming years and is outlined on

pages 58 and 59.

Net zero is defined in this report as the point where the Group can

reduce its net GHG emissions to zero.

If it is not feasible to completely abate Scope 1, 2, and 3 emissions

by 2050, the Group will offset residual emissions through actions

like carbon removals or ecosystem restoration.

Hollywood Bowl Group plc

Annual report and accounts 2024

Strategic report

Sustainability overview continued

UK performance against sustainability targets

Safe and inclusive leisure destinations

FY2023

actual

FY2024

target

FY2024

actual

FY2024

vs target

FY2025

target

Concessionary discount games played 963,161 >750,000 1,088,000 +45.0% 1,000,000

Funds raised for national charity partner £58,220 £40,000 £85,000 +14.6% £100,000*

Centres passed food and drink audit 100% 100% 97% -3pts% 100%

Soft drinks sold that are sugar free 50.5% 50% 49.3% +0.7pts% 50%

Team in food and drink-related roles to have completed food safety

and allergen training within three months of passing probation 97.7% 97% 97.7% +0.7pts% 97%

Outstanding workplaces

FY2023

actual

FY2024

target

FY2024

actual

FY2024

vs target

FY2025

target

Management appointments from internal candidates 45% 45% 58% 47% 47%

Team members participating in development programmes 11% 5% 11% +6.0pts% 10%

Team members completing online development modules 94% 92% 94.5% 2.5pts% 96%

Rating in externally verified team survey (WorkL from FY2025) 1* 1* 1* 1* 2*

Annual team wellbeing survey score 70% 73% 3pts% 70%

Outstanding workplaces – background data

Male % Female %

Board 67 33

Senior managers 67 33

Centre managers 67 33

Assistant managers/technicians 49 51

Contact centre team 45 55

Hemel team 63 37

Team members 47 53

Total 47 53

Sustainable centres

FY2023

actual

FY2024

target

FY2024

actual

FY2024

vs target

FY2025

target

Waste recycled percentage with 100% diversion from landfill 82.7% 82% 82.9% +0.9pts% 82%

Food and drink wastage as a percentage of food and drink revenue 0.65% 1% 0.6% -0.4pts% 1%

Number of centres with solar arrays 27 30 30 0 33

Electricity usage generated from on-site renewables 12% 15% 12.7% — N/A

Directly purchased electricity from renewable sources 100% 100% 100% — 100%

UK estate percentage of bowling centres with Pins on Strings 83.1% 100%

by FY2028

90% -10pts% N/A

Scopes 1 and 2 intensity ratio (tCO2e/number of centres) 61.0 58.0 56.8 -1.2pts% 55.0

Sustainable centres – background data

UK waste

General waste

volume

Recycled waste

volume

Total waste

volume

Percentage of total

waste recycled

Waste intensity

(total waste/centre)

FY2019 7,096.24 14,577.34 21,673.58 67.3% 361.23

FY2020* 4,160.00 8,775.86 12,935.86 67.8% 202.12

FY2021* 2,536.16 6,387.16 8,923.32 71.6% 139.43

FY2022 4,517.24 15,713.02 20,230.26 77.7% 293.19

FY2023 3,824.22 18,334.74 22,158.96 82.7% 316.55

FY2024 3,922.52 19,888.92 23,811.44 82.9% 332.05

Waste data is supplied by Biffa for the UK only and excludes data from centres where the landlord manages waste streams.

* Impacted by COVID-19 shutdowns.

Hollywood Bowl Group plc

Annual report and accounts 2024

Solar Installs

The 30 roof arrays that we currently have 5918.29 kWp and have a

yield of 5,020,003 kWh.

Greenhouse Gases

Greenhouse Gas (GHG) emissions for FY2024 have been measured

as required under the Large and Medium-Sized Companies and

Groups (Accounts and Reports) Regulations 2008 as amended in

2013. The GHG Protocol Corporate Accounting and Reporting

standards (revised edition) and the electricity and gas consumption

data has been provided by IMServ Datavision, Schneider Electric

and Total. Conversion factors taken from: https://www.gov.uk/

government/publications/greenhouse-gas-reporting-conversion-

factors-2024

The conversion factors for Canada are taken from: https://www.

canada.ca/en/environment-climate-change/services/climate-

change/pricing-pollution-how-it-will-work/output-based-pricing-

system/federal-greenhouse-gas-offset-system/emission-factors-

reference-values.html#toc5. For Canada, the 2024 emission factors

have been used.

UK – Scope 1 + 2

This is made up of natural gas, company cars (there are no ICE

company cars in the UK), refrigerant gas losses (F gas losses),

electricity, electric company vehicles and solar export.

Natural Gas:

Total natural gas consumption = 1,876,123 kWh.

Emission factor = 0.1829 kgCO

e per kWh.

Emissions = 343.14 tCO

F Gas Losses:

Emissions = 52.75 tCO

Total Scope 1:

Emissions = 395.90 tCO

Electricity (location-based):

Total electricity consumption = 18,805,491 kWh (this excludes

electricity consumption at our Hemel support centre where data

was not available).

Emission factor = 0.20705 kgCO

e per kWh. In the 2024 update,

the UK Electricity CO

e factor has remained at a similar level to the

factor for 2023.

Emissions = 3,893.68 tCO

Electric Company Vehicles:

Total mileage is 247,912 miles and the electric company vehicles

are classed as ‘luxury battery electric vehicles’.

247,912 x 0.08501 = 21.08 tCO

247,912 x 0.00751 = 1.86 tCO

Emissions = 22.94 tCO

Solar Export:

1,311,379 kWh electricity exported back to the grid as a result of the

solar arrays on our roofs. This equates to a saving of 271.52 tCO

Total Scope 2:

Emissions = 3,645.09 tCO

Total Scope 1 + 2:

Emissions = 4,040.99 tCO

Location based Market based

Category tCO

e Category tCO

Gas (Scope 1) 343.13 Gas (Scope 1) 343.13

F Gas (Scope 1) 52.75 F Gas (Scope 1) 52.75

Total (Scope 1) 395.9 Total (Scope 1) 395.9

Elec (Scope 2) 3,893.68 Elec (Scope 2) 28.59

Elec Cars (Scope 2) 22.94 Elec Cars (Scope 2) 22.94

Solar (Scope 2) -271.52 Solar (Scope 2) -271.52

Total (Scope 2) 3,645.09 Total (Scope 2) -219.99

Total (Scope 1

+ Scope 2)

4,040.99 Total (Scope 1

+ Scope 2)

175.90

UK – Scope 3

We have calculated Scope 3 emissions for all Scope 3 categories

applicable to Hollywood Bowl Group. This includes a total of

11 categories in addition to water supply and wastewater treatment.

Category Category Name tCO

C01 Purchased Goods and Services 20,035.55

C02 Capital Goods 7,001.75

C03 Fuel- and Energy-Related Activities Not

Included in Scope 1 or Scope 2

(Transmission and Distribution Losses)

1338.65

C04 Upstream Transportation and

Distribution

586.46

C05 Waste Generated in Operations 13.52

C06 Business Travel 263.89

C06 Business Travel (Hotel Stays - Optional) 33.41

C07 Employee Commuting 1,558.14

C07 Employee Commuting

(Homeworking – Optional)

17.74

C10 Processing of Sold Products 20.23

C11 Use of Sold Products 2.46

C12 End-of-life Treatment of Sold Products 83.22

C15 Investments 420.00

Other Wastewater Treatment 14.85

Other Water Supply 12.88

FY2024 Total Scope 3 31,402.75

FY2023 Total Scope 3 40,760.71

FY2024 Scope 3 intensity ratio 438

FY2023 Scope 3 intensity ratio 590

Hollywood Bowl Group plc

Annual report and accounts 2024

Strategic report

Sustainability overview continued

Greenhouse Gases continued

UK – Scope 3 continued

In FY2024, 86% of our total UK Scope 3 emissions were in categories

1 and 2 (Purchased Goods & Services and Capital Goods). In

FY2023, we calculated all emissions from these two categories using

a spend-based method. However, in FY2024, we calculated 22% of

our emissions from categories 1 and 2 using a supplier-specific

method due to improved data quality from some of our suppliers. We

envisage that as we move towards a 100% supplier-specific method

over the years, our Scope 3 footprint will become more accurate as

data quality will continue to improve. We are not restating prior years

data (FY2023) until we achieve 100% supplier-specific data, and we

will then review which year we use as our base year.

Excluded Categories:

• C08 Upstream Leased Assets – Hollywood Bowl Group does not

have any upstream leased assets, and therefore reporting for this

category is not required.

• C09 Downstream Transportation and Distribution – Hollywood

Bowl Group does not carry out any downstream transportation

and distribution, and therefore reporting for this category is

not required.

• C13 Downstream Leased Assets – Hollywood Bowl Group does

not have any downstream leased assets, and therefore reporting

for this category is not required.

• C14 Franchises – Hollywood Bowl Group does not own or

operate any franchises, and therefore reporting for this category

is not required.

UK Scope 3 Intensity Ratio:

Total Scope 3 emissions =31,402.75 tCO

Total Centres =71.71

Scope 3 Intensity Ratio = 437.9 tCO

e per centre

Verification and assurance

The UK greenhouse gas inventory has undergone a third-party

verification, with methodology checked, aligned, and verified by

the Zero Carbon Forum. Key material areas within the carbon

footprint were closely scrutinised and estimation techniques and

assumptions were validated for consistency and transparency.

Limited assurance has been provided on the accuracy and integrity

of the reported data.

Canada – Scope 1 + 2

The conversion factors for Canada are taken from: https://www.

canada.ca/en/environment-climate-change/services/climate-

change/pricing-pollution-how-it-will-work/output-based-pricing-

system/federal-greenhouse-gas-offset-system/emission-factors-

reference-values.html#toc5

Note: Canadian data for emissions is provided in CO

for gas and no

data is provided that make up the other greenhouse gases so this

number is also used as CO

e. Also, the emission factors for natural

gas and electricity varies by province.

Total natural gas consumption = 319,748 m³ = 3,373,344 kWh

(assuming 1 m³ = 10.55 kWh)

Emissions =619.81 tCO

Total Scope 1:

Emissions =619.81 tCO

Electricity (location-based):

Total electricity consumption =5,050,583 kWh

Emissions =744.31 tCO

Total Scope 2:

Emissions =744.31 tCO

Total Scope 1 + 2:

Emissions =1,364.12 tCO

Canada FY2024

Total (Scope 1 + Scope 2) (tCO

e) 1,364.12

Number of centres 11.08

Intensity Ratio (tCO

e per centre) 123.1

Canada – Scope 3

We have calculated Scope 3 emissions for 11 Scope 3 categories

applicable to Hollywood Bowl Group’s operations in Canada, in

addition to water supply and wastewater treatment.

Category Category Name tCO

C01/2 Purchased Goods and Services and

Capital Goods

19,564.85

C03 Fuel- and Energy-Related Activities Not

Included in Scope 1 or Scope 2

(Transmission and Distribution Losses)

255.69

C04 Upstream Transportation and Distribution 199.06

C05 Waste Generated in Operations 10.56

C06 Business Travel 180.95

C06 Business Travel (Hotel Stays - Optional) 11.57

C07 Employee Commuting 417.95

C07 Employee Commuting (Homeworking

– Optional)

4.61

C09 Downstream Transportation

and Distribution

615.59

C11 Use of Sold Products 3,026.42

C12 End-of-life Treatment of Sold Products 0.58

C15 Investments 323.0

Other Wastewater Treatment 7.98

Other Water Supply 6.93

Total 24,625.73

Excluded Categories:

• C08 Upstream Leased Assets – Hollywood Bowl Group’s

Canadian operations does not have any upstream leased assets,

and therefore reporting for this category is not required.

• C10 Processing of Sold Products – No data available

• C13 Downstream Leased Assets – Hollywood Bowl Group’s

Canadian operations does not have any downstream

leased assets

• C14 Franchises – Hollywood Bowl Group’s Canadian operations

does not own or operate any franchises

Canada Scope 3 Intensity Ratio:

Total Scope 3 emissions = 24,625.73 tCO

Total Centres = 11.28

Scope 3 Intensity Ratio = 2,183.8 tCO

e per centre

Hollywood Bowl Group plc

Annual report and accounts 2024

Canada Scope 3 – split by Xtreme Bowling Entertainment, Striker

Installations Inc, Striker Bowling Solutions

Total Scope 3

Emissions

(tCO

tCO

e per

centre

Xtreme Bowling Entertainment 15,054.20 1,335

Striker Installations Inc 8,890.65

Striker Bowling Solutions 680.88

Total 24,625.73 2,183.8

Group totals tCO

Scope UK Canada Total

Scope 1 395.90 619.81 1,015.71

Scope 2 3,645.09 744.31 4,389.40

Scope 1+2 4,040.99 1,364.12 5,405.11

Scope 3 31,402.75 24,625.73 56,028.47

Total 35,443.74 25,989.84 61,433.58

Electricity and Gas Usage

Electricity (kWh) Gas (kWh)

FY2016 17,380,346 4,866,065

FY2017 18,581,702 4,384,837

FY2018 18,849,729 5,260,995

FY2019 19,573,573 4,104,855

FY2020* 11,560,010 2,830,792

FY2021* 12,192,555 1,932,559

FY2022 17,857,086 2,945,207

FY2023 16,713,202 2,415,585

FY2024 18,805,491 1,876,123

• Electricity excludes solar generated electricity exported to

grid and electricity from our Hemel support office where data

is unavailable.

• FY2020 and FY2021 were impacted by COVID-19 shutdowns.

• We have seen our electricity consumption naturally increase

compared to FY2023 due to the opening of new centres (Dundee,

Lincoln, Merry Hill, Westwood Cross, Colchester). We have also

included data from 3 x landlord centres in FY2024 which has

previously not been included (Belfast, Bracknell and London O

Scope 1 Scope 2 Scope 1+2 Intensity Ratio

FY2016 895.7 8,195.0 9,090.7 162.3

FY2017 807.5 6,532.6 7,340.1 132.9

FY2018 967.8 5,335.6 6,303.4 113.7

FY2019 773.6 5,003.0 5,776.6 102.6

FY2020* 568.4 2,695.0 3,263.4 55.1

FY2021* 560.0 2,588.8 3,148.8 50.8

FY2022 541.5 3,373.8 3,915.3 61.7

FY2023 647.45 3,377.00 4,024.44 61.0

FY2024 395.90 3,645.09 4,040.99 56.8

FY2020 and FY2021 were impacted by Covid shutdowns.

Canada

Electricity (kWh) Gas (kWh)

FY2022 953,709 248,467

FY2023 3,619,113 2,589,139

FY2024 5,050,583 3,373,344

Scope 1 Scope 2 Scope 1+2 Intensity Ratio

FY2022 45.20 26.90 72.10 34.30

FY2023 473.76 402.64 876.40 97.40

FY2024 619.81 744.31 1,364.12 123.08

Electricity Usage

Our commitment to efficiently and ethically use natural resources

is ongoing.

In the UK, all our directly purchased electricity is 100% renewable

and is fully backed by REGOs (Renewable Energy Guarantees of

Origin). In Canada, all directly purchased electricity starting from

1 October 2024 is 100% renewable and is fully backed by RECs

(Renewable Energy Certificates).

We have reduced our UK Intensity Ratio for Scope 1+2 by 45.8

tCO

e per centre or by 44.6% for FY2024 compared to FY2019.

The original target that we set was to bring the UK Intensity Ratio

down below 100 and this has now been achieved. The target is now

to bring down below 55 tCO

e per centre by FY2025.

UK Waste Recycling

We recycle the waste that we produce as this is part of our

commitment to mitigate against the environmental impacts of our

operations. In FY2019 we recycled 67.3% of our waste and this has

increased to 82.9 % for FY2024. All of our waste is 100% diverted

from landfill.

* Waste volumes were impacted by the COVID-19 lockdown for FY2020 and FY2021.

General Glass

Mixed

Recycling /

Organic

FY2016 7,334.14 1,477.80 11,164.04

FY2017 7,443.72 1,621.44 12,695.88

FY2018 6,770.04 1,652.26 12,978.86

FY2019 7,096.24 1,831.92 12,745.42

FY2020* 4,160.00 1,215.12 7,560.74

FY2021* 2,536.16 914.40 5,472.76

FY2022 4,581.06 2106.72 13,542.48

FY2023 3,824.22 2,107.44 16,227.30

FY2024 3,922.52 2,298.62 17,590.30

General Recycling Total Waste

Recycling

Percentage

FY2016 7,334.14 12,641.84 19,975.98 63.3%

FY2017 7,443.72 14,317.32 21,761.04 65.8%

FY2018 6,770.04 14,631.12 21,401.16 68.4%

FY2019 7,096.24 14,577.34 21,673.58 67.3%

FY2020* 4,160.00 8,775.86 12,935.86 67.8%

FY2021* 2,536.16 6,387.16 8,923.32 71.6%

FY2022 4,581.06 15,649.20 20,230.26 77.4%

FY2023 3,824.22 18,334.74 22,158.96 82.7%

FY2024 3,922.52 19,888.92 23,811.44 82.9%

All waste data supplied by Biffa

This excludes data from centres where the landlord manages the

waste streams.

Waste data is for UK only

Hollywood Bowl Group plc

Annual report and accounts 2024

Strategic report

Sustainability overview continued

2025 -2030

Targets

Actions

2025

Scope 1 and 2 planned actions

1. Commitment to SBTi and validation of 1.5°C

pathway targets

2. UK Solar panel rollout (subject to landlord agreements)

3. Increased efficiency of plant in new builds

3. Extended centre manager eco-efficiency

incentive scheme

4. Team member behavioural change training in Canada

5. Contracting 100% renewable electricity across

the Group (currently backed in the UK by REGOs

and from 1 October 2024 in Canada by RECs)

6. Evaluation of Canadian solar panel introduction

7. Contracting 100% renewable gas in UK

8. Achieve carbon neutrality in UK (based on

market-based intensity ratio)

9. Modelling cost of Scope 1+2 climate action plan

10. Rollout of energy efficient equipment in Canada

50%

Of UK supplier spend

to suppliers committed

to SBTi pathway or

have net zero climate

transition plans in place

S3 S3

S1 S2S1 S2S1 S2

50%

Of Canada supplier

spend to suppliers

committed to SBTi

pathway or have net zero

climate transition plans

in place

100%

UK centres with Pins

on Strings

Progress in FY2024

Continued UK solar panel roll out

We now have solar panels in 30 of our UK

centres and have also increased the volume

of solar arrays in a number of previously

installed centres.

UK intensity ratio reduction

Our UK centre intensity ratio fell to 56.8 in

FY2024 (from 61 in FY2023), and is on a

trajectory to achieve our short term target

of 55 in FY2025.

UK supplier engagement programme

We have engaged with all of our major

suppliers in the UK and are developing an

increased understanding of their carbon

reduction plans and access to primary data.

100%

Renewable energy in UK

(directly purchased gas

and electricity)

100%

Renewable

electricity in Canada

(directly purchased)

There is a clear case for action to address climate change across the entire economy, and this

is equally relevant for Hollywood Bowl Group.

By implementing effective decarbonisation strategies, we can help safeguard our stakeholders from risks and contribute to society’s goal

of achieving net zero. Additionally, we can leverage our influence to collaborate with our team members, suppliers, and industry bodies to drive

broader systemic change.

2026

Transitioning

to net zero

Hollywood Bowl Group plc

Annual report and accounts 2024

Climate

action plan

Our goal is to become a net zero business by 2050 in line with the goals of the Paris Agreement.

We are currently in the early stages of this important journey and recognise that our understanding and strategy will evolve over the coming

years. We are committed to working with our stakeholders to achieve this goal and have established a number of targets and initiatives to

reduce Scope 1, 2 and 3 emissions across our operations and supply chain, which are outlined in our climate action transition plan.

Scope 3 planned actions

1. Commitment to SBTi and validation of 1.5°C pathway targets

2. Ongoing UK supplier engagement programme to encourage

increased participation in SBTi and commitments to net zero

transition plans

3. Commencement of Canadian supplier engagement programme

4. Improved accuracy of Scope 3 data evaluation and target

setting (subject to improved supplier data availability)

5. Cross industry intiatives and implemetation of best practice

supply chain management via Zero Carbon Forum membership

6. Modelling costs of delivering Scope 3 climate action plan

7. Review of calculation models to ensure Group best practice

8. Evaluating offsetting activity to mitigate residual emissions

Climate action plan dependencies

The delivery of our climate action transition plan depends upon

comprehensive system-wide changes including electrifying

national grids, supporting decarbonisation policies, advancing

carbon markets, commercialising climate technologies and

materials, sourcing alternative materials like recycled plastics,

and adapting to shifts in consumer preferences.

S1 S2 S1 S2 S3S1 S2 S3 S3

42%

2030 Target reduction versus 2023 base

Zero

2035 Gas usage in estate

90%

2045 Target reduction versus 2023 base

90%

2045 Target reduction versus 2023 base

Net zero

Achieved by 2050

2050

Scope 1

Scope 2

Scope 3

Canadian initiatives underway

Whilst we are still at the start of our journey

in Canada, we have started our programme

with team member energy saving training

and the installation of Pins on Strings in

two centres.

Canadian Scope 3 emmissions

We were pleased to be able to report on our

Canadian Scope 3 emissions for the first

time in FY2024.

UK Scope 3 measurement

Greater access to supplier primary data has

given us a more accurate picture of our UK

Scope 3 emissions than achieved in

prior years.

2030

Strategic report

Hollywood Bowl Group plc

Annual report and accounts 2024

Corporate Responsibility

Committee

Hollywood Bowl Group Board

UK operations Canada operations

Corporate Responsibility

Steering Group

Group Finance

Climate action transition plan - Group governance, organisation and reporting

The Board has overall accountability for the Group’s climate action transition plan. It is supported by the Corporate Responsibility Committee

who oversees the Group’s environmental and social sustainability strategy.

Sustainability overview continued

Hollywood Bowl Group plc

Annual report and accounts 2024

Our suppliers Our industry Our team members

Scope 3

With 91 per cent of our total emissions

coming from Scope 3, it is imperative

that we work closely with our supply

chain to reduce these in line with our

Net Zero targets

Engagement programmes

We have launched a supplier

engagement programme in the UK,

initially targeting our biggest suppliers

in food and drink, amusements and

construction. This will be extended to

a wider range of suppliers and our

Canadian operations.

Primary data

We have gained access to more

supplier primary data in FY2024 and

we expect this to continue over the

coming years, allowing us to develop

a more accurate understanding of

our Scope 3 emissions.

Shared challenges

Many of the climate challenges we

face are mirrored by other

businesses in the leisure sectors and

we have shared insights into the

success of our climate initiatives with

members of the UKTBO (Ten pin

bowling operators trade body)

The Zero Carbon Forum (ZCF)

Hollywood Bowl Group is a member

of the ZCF, which is a non-profit

organisation, empowering hospitality

industry members to reach

sustainability targets with more

speed, efficiency, and profit as a

united effort.

Behavioural change

We equip and empower our team

members to help reduce the energy

used in our operations through

behavioural change programmes in

the UK and Canada

Incentives

Energy and waste measures are

included in team member incentive

schemes with monthly league tables

published of centre level performance.

Reward and recognition

Our leading centres are recognised

at our annual conference with a

sustainability award which looks at

performance across a variety of

measures including climate impact.

In FY2024 the award went to our

Springfield Quay centre in Glasgow.

How we partner

Collective action is key to making progress on the journey to Net Zero. We are working ever more closely with a wide range of our stakeholder

groups to set ourselves up for success in overcoming the climate challenges we are facing together.

Strategic report

Hollywood Bowl Group plc

Annual report and accounts 2024

Task Force on Climate‑related

Financial Disclosures statement

TCFD

TCFD summary disclosure

TCFD pillar

Recommended disclosure

Relevant section

within this report

Governance

Board oversight Describe the board’s oversight of climate-related risks and opportunities

page 66

Management’s role Describe management’s role in assessing and managing climate-related

risks and opportunities

page 66

Risk management

Risk identification and

assessment process

Describe the organisation’s processes for identifying and assessing

climate-related risks

page 67

Risk management process Describe the organisation’s processes for managing climate-related risks

page 67

Integration into overall

risk management

Describe how processes for identifying, assessing, and managing climate-

related risks are integrated into the organisation’s overall risk management.

page 67

Strategy

Climate-related risks and

opportunities

Describe the climate-related risks and opportunities the organisation has

identified over the short, medium, and long term.

pages 68 to 71

Impact on the Company’s

businesses, strategy, and

financial planning

Describe the impact of climate-related risks and opportunities on the

organisation’s businesses, strategy, and financial planning

pages 68 to 71

Resilience of the

Company’s strategy

Describe the resilience of the organisation’s strategy, taking into consideration

different climate-related scenarios, including a 2°C or lower scenario.

page 70

Metrics and targets

Climate-related metrics in

line with strategy and risk

management process

Disclose the metrics used by the organisation to assess climate-related risks

and opportunities in line with its strategy and risk management process

pa ges 56 to 59 and

Scope 1 and 2, (and 3) GHG

metrics and the related risks

Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas

(GHG) emissions and the related risks

pages 56 to 59 and

68 to 71

Climate-related targets and

performance against targets

Describe the targets used by the organisation to manage climate-related risks and

opportunities and performance against targets

pages 72 to 73

Disclosure consistent with the

TCFD recommendation

Disclosure consistent with the TCFD recommendation

but with improvement opportunities for FY2025

This climate-related financial disclosure report has been prepared to meet the requirements outlined by the

Task Force on Climate-related Financial Disclosures (TCFD) and the mandatory reporting requirements set

out in the Companies Act related to Climate-related Financial Disclosures (CFD).

In accordance with the LSE Listing Rule 9.8.6R(8), and the

Companies (Strategic report) (Climate-related Financial Disclosure)

Regulations 2022, we present our 2024 TCFD compliance

statement and confirm that we have made climate-related financial

disclosures for the year ended 30 September 2024 which are:

a) consistent with the following TCFD recommendations and

recommended disclosures:

• governance – (a) and (b);

• strategy – (a) and (c);

• risk management (a), (b) and (c);

• metrics and targets (a); and

b) partially consistent with the following TCFD recommendations

and recommended disclosures:

• strategy – (b);

• metrics and targets (b) and (c).

A summary of our TCFD compliance statement is set out in the

following table.

Further details regarding how we have aligned to the TCFD

recommendations are set out in the subsequent pages and in

relevant sections of this Annual Report.

Hollywood Bowl Group plc

Annual report and accounts 2024

FY2022-2023 FY2024 Coming in FY2025

• First TCFD disclosure and associated

scenario analysis on material areas for

our business developed with external

partner

• First CDP submission

• Formation of Corporate Responsibility

Committee (CRC)

• Board member workshop and climate

training sessions

• Climate related targets included in

Executive incentive plans

• The Group joined the Zero Carbon

Forum (UK hospitality orientated alliance)

• CDP submission

• The Board reviewed Canadian

climate-related matters

• We undertook a qualitative scenario

analysis on selected Canadian climate

risks and opportunities

• Detailed analysis of our Canadian

business including Scope 3 emissions,

• Board review and approval of

updated climate action transition plan

and associated targets

• Launched a UK supplier engagement

programme to better understand our

major suppliers commitments to net

zero and to gain access to primary

Scope 3 data

• Launched an operational behavioural

change programme for our Canadian

team members

• Continued to roll out energy efficient

Pins on Strings technology.

• Validation of climate targets by SBTi

• CDP submission

• Update scenario analysis for

UK operations

• Conduct first quantitative scenario

analysis for Canadian operations

• Increase use of supplier primary

data to improve understanding of

Scope 3 emissions

• Increased reporting on plastics strategy

• Develop financial modelling to include

Canada, the cost of transitioning to net

zero and linkages to our climate action

transition plan

• Board review of the cost of

transitioning to net zero in line with

outputs of planned financial modelling

and agreement of any strategic

changes required

• Consideration of Group business

impacts on nature and biodiversity and

evaluation of use of TNFD framework

TCFD progress

Hollywood Bowl Group plc

Annual report and accounts 2024

Strategic report

TCFD continued

Governance

Board oversight

The Board has overall responsibility for climate-related matters and gives

full and close consideration of ESG factors, including climate-related

factors, when assessing the impact of decisions it makes.

Our governance structures support the PLC Board, committees and

senior management to ensure that climate change is integrated into our

strategy, business process and decision making. For more information on

climate governance, see the Risk Management section on page 74

The Corporate Responsibility Committee (CRC), chaired by

Non-Executive Director Ivan Schofield (see page 104) is responsible

for updating the Board on climate issues on a bi-annual basis.

As part of the bi-annual ‘climate change’ agenda item at the Board meeting,

the Board discussed climate change topics, including progress against

relevant pre-existing goals (e.g. renewable energy sources) and future

planned activities and targets. It also considered whether strategic

decisions needed to be made as a result of climate scenario analysis

performed in FY2022 on the most significant climate risks to the business,

namely changing customer behaviour, business interruption and damage

to assets, carbon taxes, cost of transitioning operations to net zero

and energy sources.

It was agreed, based on the findings of the scenario analysis, that the

Group had limited short-term risk exposure at this time but agreed to keep

this under periodic review. The cost of transitioning to net zero risk was

discussed and it was agreed that this would stay under closer review in line

with greater future visibility provided by the ongoing Scope 3 emissions

analysis and the ongoing development of a Group climate transition plan.

Two CRC meeting were held in the year, the first in April where updates were

given on performance against H1 FY2024 metrics and targets and progress

with the ongoing analysis of Scope 3 emissions in the UK and Canada.

The second CRC meeting was held in September, where the Committee

reviewed progress against FY2024 targets and set targets for FY2025.

With the expansion of our Canadian business, the Committee discussed

the differences in the energy usage and efficiency versus the UK

operations and approved the completion of a qualitaitve risk and

opportunity scenario analysis using an external partner.

The Chair of the CRC provides updates to the main Board on the

discussions, decisions and actions arising from these meetings. Minutes

of the meetings are also made available to all Board members through

our electronic Board portal.

A climate-related target is included in Executive Long Term Incentive

Plans, relating to the achievement of UK emission intensity ratios for

Scope 1 and 2. For more detail see pages 120 to 121 and 127.

Priorities for FY2025

• Board review of refreshed quantitative scenario analysis, which will

include Canadian operations

• Board review of performance against FY2025 climate targets

• Board review of cost of transitioning to net zero in line with outputs of

planned financial modelling and agree any strategic changes required.

• Board review and approval of updated Group climate action transition

plan and associated targets.

Corporate Responsibility Committee

Board of Directors

Corporate Responsibility Steering Group

Operational departments

Audit Committee (Risk)

Climate risk - Group governance, organisation and reporting

Management’s role

Responsibility for climate change issues at a management level sits with

our Chief Marketing and Technology Officer, Mathew Hart, who chairs the

Corporate Responsibility Steering Group (CRSG).

Members of the CRSG also include the Chief Operating Officer, Chief People

Officer, Energy & Safety Manager and relevant heads of department.

The CRSG is responsible for the identification, management and reporting of

climate-related risks and opportunities. The CRSG meets on a quarterly basis

to discuss environmental and social strategies and performance against

targets, including climate change, and updates the CRC on a bi-annual basis.

Following the launch of a supplier engagement programme in the UK,

we have been able to access primary data from some of our key

suppliers which has given us a more accurate picture of our UK scope 3

emissions data.

Scope 3 emissions were also calculated for Canadian operations for

the first time.

Now that we have started to gather more climate-related data for our

expanding Canadian operations, it is now resultantly forming a greater part

of the CRSG priorities with Canadian management attending the CRSG

from Q2 FY2024.

We made progress this year towards our climate-related operational and

capital investment targets for our UK business. Additionally, we

successfully delivered increasingly energy-efficient builds of our new

centres.

Priorities for FY2025

• More detailed analysis of our Canadian business including Scope 3

emissions, with the ambition to have Canadian climate targets

integrated into a Group transition plan

• Continued operational energy saving behavioural change programme

for our Canadian team members

• Continue to roll out energy efficient Pins on Strings technology.

• Validation of our UK climate transition plan targets from SBTi.

• Financial modelling to include Canada, to evaluate the cost of

transitioning to net zero and linkages to our climate transition plan.

• Launch a Canadian supplier engagement programme to promote the

adoption of science-based targets among our key suppliers.

• Further analysis of Scope 3 emissions data as more primary data

becomes available from our suppliers.

Hollywood Bowl Group plc

Annual report and accounts 2024

Risk management

Strategy

The Board is ultimately responsible for ensuring that a robust risk management process is in place and that it is being adhered to,

including for climate risk. The significance of climate risk is aligned with other risks, given climate risk is identified and assessed in line

with the existing risk processes and is included in our principal risks register. More information on our risk management process is to

available in the Risk management section on pages 74 to 75.

Identifying, assessing and managing climate-related

risks and opportunities

In FY2022 we conducted a detailed climate risk assessment,

across our UK business. Climate scenario analysis was performed

on selected potentially material climate risks and opportunities

to assess the potential quantitative financial impact on the UK

business. External experts, PwC UK, were engaged to support and

assist us with this process; however, we retained ownership over the

assessment, process and output.

As our expanding Canadian business is now considered material in

size, in FY2024 we conducted a climate risk identification and

assessment exercise across the Canadian business. As part of this

exercise, qualitative scenario analysis was performed on selected

potentially material climate risks and opportunities.

The Board reviews identified climate risks and impacts on a bi-annual

item basis. Following a presentation from the CRSG at the Board

meeting in June 2024, the Board determined that as there had been

no material changes to the UK business since the FY2022 scenario

analysis was undertaken and therefore the UK climate risk profile

identified then was still relevant to the Group and could therefore be

relied on for FY2024 reporting.

This climate risk assessment has been complemented by

subsequent horizon scanning to identify external trends, such as legal

and regulatory developments, and emerging science/expert opinion.

The Group plans to update its quantitative climate scenario analysis

on a three-yearly basis, with the next assessment planned for

FY2025. This analysis will include a refresh of the FY2022 analysis

performed for the UK, and an update to the qualitative scenario

analysis performed this year for the Canadian business.

Priorities for FY2025

Review the identified climate risks and opportunities and climate

transition plan and update where necessary. This will be done in line

with our wider risk management and monitoring processes.

Further integrate Canadian operations into the climate risks and

opportunities analysis, and develop an ongoing processes for

monitoring specific risks relating to the Canadian business.

Climate-related risks and opportunities have the potential to

impact our business over the short, medium and long term. In

considering our climate risks and opportunities, we define short,

medium and long-term horizons as follows:

We face potential physical risks including extreme weather events

as well as risks resulting from the transition to a lower carbon

economy including the cost of transitioning products and services

to lower emissions options.

The following climate risks and opportunities have been

identified to be those that have the potential to be material for

the UK and/ or the Canadian business over the short, medium

and long term horizons.

Short term (0–5 years):

aligns to the Group’s financial planning

and modelling horizon

Medium term (5–15 years):

represents the interim period between the

Group’s financial planning horizon and the

longest centre leases

Long Term (15+ years):

aligns with the longest time frame for the

Group’s leasing agreements for properties

Hollywood Bowl Group plc

Annual report and accounts 2024

Strategic report

TCFD

category Geography Potential impact/outcomes for the Group Adaptation and mitigation or promotion strategies

Financial metrics

and targets

Time

horizon

Risk

Change in

customer

behaviours and

preferences away

from indoor leisure

in reaction to

increasingly warm

summers

Physical

Chronic

UK and Canada

Outcome

Typically ‘busy’ seasons become shorter with shoulder periods becoming less busy

Increased number of high temperature days lasting for an extended period of time

Greater variability in rainfall leading to more dry days

Impact

Loss of boosted revenues during winter period to make up for slower summer months

The fixed energy costs associated with keeping centres open remain

irrespective of lower footfall that may be experienced

Reduced footfall as customers prioritise outdoor leisure activities in fair

weather conditions

Financial impact

Revenue loss/Increased costs

Scenario analysis was conducted in the UK and Canada to assess the extent to which

changing customer behaviours, as a result of changing weather patterns caused by climate,

will impact revenue.

It was found that the impacts of this climate risk were relatively low across all scenarios.

In FY2024 revenues were deflated due to a prolonged unseasonable period of dry

weather in the UK school summer holidays, but the Group holds the current view that on

a rolling basis the impacts of unseasonable wet or hot weather present a low risk as

identified in the scenario analysis.

The Group does targeted marketing and offers discounts in order to attract more

customers during warmer periods. Despite customers potentially shifting to outdoor

activities, Canada has the benefit that bowling leagues are more prevalent, which

provides some level of footfall stability where weather becomes more variable.

We will continue to monitor this risk going forward and our annual financial planning

will take these findings into account.

Metric – internally monitored

revenue reduction in

high-temperature periods

No material revenue impacts

identified in FY2024

Risk

Business

interruption and

damage to assets

due to increased

frequency and

severity of extreme

weather events

(e.g. flooding/

extreme heat)

Physical

Acute

Outcome

While the type and severity of hazards will vary by location and season, and

change over time, it is expected that the frequency and severity of events such

as flood events will increase

Impact

These extreme events may impact the Group in three ways:

1) physical damage to operating sites which require repair;

2) disruption to business operations due to temporary closure; and

3) inability of customers to get to the sites

These events may also have further financial impacts, for example, via increased

insurance premiums

Financial impact

Revenue loss/Increased costs

Scenario analysis was conducted to assess the extent to which our UK sites are at risk

of business interruption and damage as a result of extreme events such as flooding.

Overall, it was found that only a low number of sites were assessed to be at risk of

flooding under a 4°C scenario.

These sites will continue to be monitored and further assessments will be conducted

to explore mitigation options.

Furthermore, our wide location base limits the scale of exposure caused by localised events.

In FY2024 no centres suffered business interruption or damage due to flood events and

no new UK centres were developed in areas of high flood risk.

Metric – proportion

of revenue located

in areas subject to flooding

No flood impacts in FY2024

and no new centres opened

in flood risk areas

Risk

Carbon taxes

increasing costs

due to pricing of

GHG emissions

being applied to

own operations and

embodied carbon

in supply chain and

transportation/

distribution

Policy and

legal

Outcome

The scope and level of carbon pricing to date have had little impact on the Group

but this could lead to increased costs in the future

Impact

1) increasing energy and other operating costs;

2) leading the Group to retire assets or investment to reduce emissions; and

3) increasing supply chain costs as carbon prices are passed on by suppliers

Financial impact

Revenue loss/Increased costs

Scenario analysis was conducted to assess the extent to which our UK operations are

at risk of increased costs with the potential introduction of carbon pricing.

Overall, it was found that there was limited exposure to carbon pricing as the Group

continues to address our operational emissions through our investments in energy

efficient equipment, the installation of solar panels where possible at our sites and

renewable energy contracts.

We are working with suppliers to further reduce the emissions of our supply chain and we

launched an engagement programme in FY2024 to encourage more of our major partners

to adopt SBTi or develop transition plans and provide us with access to primary data.

We have subsequently undertaken further analysis of our UK Scope 3 emissions in

FY2024 using more supplier primary data.

Our regular schedule of contract renewals and reviews allows us the opportunity to

benchmark and adjust suppliers based on their carbon intensity and stated transition

plans if appropriate.

Metric – % of directly purchased

energy from renewable sources

Target – 100% by end of FY2025

Achieved 100% in UK in FY2024

TCFD continued

Climate-related risks and opportunities

The climate risk profile identified for the UK in FY2022 is still relevant to the business and therefore continues to be relied on

for FY2024 reporting. We undertook analysis for Canada in FY2024 and have considered this when assessing the overall

climate risk profile for the Group.

Risk/opportunity

Hollywood Bowl Group plc

Annual report and accounts 2024

TCFD

category Geography Potential impact/outcomes for the Group Adaptation and mitigation or promotion strategies

Financial metrics

and targets

Time

horizon

Risk

Change in

customer

behaviours and

preferences away

from indoor leisure

in reaction to

increasingly warm

summers

Physical

Chronic

UK and Canada

Outcome

Typically ‘busy’ seasons become shorter with shoulder periods becoming less busy

Increased number of high temperature days lasting for an extended period of time

Greater variability in rainfall leading to more dry days

Impact

Loss of boosted revenues during winter period to make up for slower summer months

The fixed energy costs associated with keeping centres open remain

irrespective of lower footfall that may be experienced

Reduced footfall as customers prioritise outdoor leisure activities in fair

weather conditions

Financial impact

Revenue loss/Increased costs

Scenario analysis was conducted in the UK and Canada to assess the extent to which

changing customer behaviours, as a result of changing weather patterns caused by climate,

will impact revenue.

It was found that the impacts of this climate risk were relatively low across all scenarios.

In FY2024 revenues were deflated due to a prolonged unseasonable period of dry

weather in the UK school summer holidays, but the Group holds the current view that on

a rolling basis the impacts of unseasonable wet or hot weather present a low risk as

identified in the scenario analysis.

The Group does targeted marketing and offers discounts in order to attract more

customers during warmer periods. Despite customers potentially shifting to outdoor

activities, Canada has the benefit that bowling leagues are more prevalent, which

provides some level of footfall stability where weather becomes more variable.

We will continue to monitor this risk going forward and our annual financial planning

will take these findings into account.

Metric – internally monitored

revenue reduction in

high-temperature periods

No material revenue impacts

identified in FY2024

Risk

Business

interruption and

damage to assets

due to increased

frequency and

severity of extreme

weather events

(e.g. flooding/

extreme heat)

Physical

Acute

Outcome

While the type and severity of hazards will vary by location and season, and

change over time, it is expected that the frequency and severity of events such

as flood events will increase

Impact

These extreme events may impact the Group in three ways:

1) physical damage to operating sites which require repair;

2) disruption to business operations due to temporary closure; and

3) inability of customers to get to the sites

These events may also have further financial impacts, for example, via increased

insurance premiums

Financial impact

Revenue loss/Increased costs

Scenario analysis was conducted to assess the extent to which our UK sites are at risk

of business interruption and damage as a result of extreme events such as flooding.

Overall, it was found that only a low number of sites were assessed to be at risk of

flooding under a 4°C scenario.

These sites will continue to be monitored and further assessments will be conducted

to explore mitigation options.

Furthermore, our wide location base limits the scale of exposure caused by localised events.

In FY2024 no centres suffered business interruption or damage due to flood events and

no new UK centres were developed in areas of high flood risk.

Metric – proportion

of revenue located

in areas subject to flooding

No flood impacts in FY2024

and no new centres opened

in flood risk areas

Risk

Carbon taxes

increasing costs

due to pricing of

GHG emissions

being applied to

own operations and

embodied carbon

in supply chain and

transportation/

distribution

Policy and

legal

Outcome

The scope and level of carbon pricing to date have had little impact on the Group

but this could lead to increased costs in the future

Impact

1) increasing energy and other operating costs;

2) leading the Group to retire assets or investment to reduce emissions; and

3) increasing supply chain costs as carbon prices are passed on by suppliers

Financial impact

Revenue loss/Increased costs

Scenario analysis was conducted to assess the extent to which our UK operations are

at risk of increased costs with the potential introduction of carbon pricing.

Overall, it was found that there was limited exposure to carbon pricing as the Group

continues to address our operational emissions through our investments in energy

efficient equipment, the installation of solar panels where possible at our sites and

renewable energy contracts.

We are working with suppliers to further reduce the emissions of our supply chain and we

launched an engagement programme in FY2024 to encourage more of our major partners

to adopt SBTi or develop transition plans and provide us with access to primary data.

We have subsequently undertaken further analysis of our UK Scope 3 emissions in

FY2024 using more supplier primary data.

Our regular schedule of contract renewals and reviews allows us the opportunity to

benchmark and adjust suppliers based on their carbon intensity and stated transition

plans if appropriate.

Metric – % of directly purchased

energy from renewable sources

Target – 100% by end of FY2025

Achieved 100% in UK in FY2024

Key to time horizon:

Short Medium Long

Hollywood Bowl Group plc

Annual report and accounts 2024

Strategic report

TCFD continued

TCFD

category Geography Potential impact/outcomes for the Group Adaptation and mitigation or promotion strategies

Financial metrics

and targets

Time

horizon

Risk

Cost of

transitioning

operations to net

zero in order to be

compatible with the

UK and Canada’s

net zero carbon

targets

Technology UK and Canada

Outcome

The UK and Canada’s commitments to reach net zero emissions by 2050

has several implications for the Group.

Namely, as regulations and standards are adopted to support this ambition,

there may be direct and indirect impacts on our operations. Regulatory or

reputational pressures may increase to reduce Scope 1 , 2 and 3 emissions.

Impact

Installation of new technologies may cause disruption or even temporary

closure to facilities.

Increased operational costs associated with upgrading buildings and assets

to incorporate more energy efficient technology.

Engagement with supply chain to encourage emissions reduction, or find

suppliers with lower emissions

Financial impact

Revenue loss/Increased costs

Scenario analysis was conducted to assess the extent to which our UK and Canadian

operations are at risk of increased costs associated with achieving Net Zero

The highest impacts are expected to be in the medium term, where there will be pressure

to decarbonise the Group’s Canadian centres. This could include additional costs for

purchasing and installing low carbon technology as well as other investments in training,

and the collection and monitoring of additional emission data.

Our purchased goods and services (Scope 3 category 1) accounts for 91 per cent of our

UK Scope 3 emissions and for 79 per cent of our Canadian Scope 3 emissions, and it is

essential that we align our supply chain with the required transition to a low carbon

economy, as demonstrated with our target of suppliers committed to a SBTi pathway

or a net zero transition plan

This Scope 3 analysis is enabliing us to evolve a pathway to net zero transition plan with

the ultimate ambition to achieve net zero in 2050. Further details of the targets and

initiatives to help us achieve this are outlined on pages 60 to 61 and 72 to 73.

We will continue to gather Scope 3 data in both the UK and Canada as more detailed primary

data becomes available from our suppliers and update our targets and financial modelling

including the requirement for residual offsetting in meeting our long-term ambitions.

Metric – Scope 1 and 2

emissions intensity ratio

Target – 55 by end of FY2025

Achieved 56.8 in FY2024

Metric – % of goods for resale

supply chain expenditure that

have a carbon reduction plan

and net zero target defined

Target – 50% of UK supplier

spend to suppliers committed to

SBTi pathway or with net zero

transition plans in place by end

of FY2025

Opportunity

Energy sources:

increased

investment in and

use of lower

emission sources

of energy,

Energy

source

UK and Canada

Outcome

As the UK and Canada shifts to a low-carbon economy and transitions away

from fossil fuels, it is expected that prices for these energy sources will

increase with the introduction of carbon taxes and become more volatile.

Impact

Reduced exposure to volatility in fossil fuel and energy prices, and future

carbon taxes

Financial impact

Reduced costs

Scenario analysis was conducted to assess the extent to which our UK and Canadian

operations have an opportunity to reduce costs through the use of lower emission

sources of energy.

The Group has already installed operational solar panels in 30 of our UK centres and

contracted renewable energy for our UK operations which helps to mitigate exposure the

energy price volatility.

If the Group implements solar panels at its Canadian centres, on-site generation of

renewable energy (as well as purchased renewable energy) will reduce its exposure to

energy price volatility from fossil fuels in the medium to long term.

Metric – % of total UK electricity

generated from on-site

renewables

Achieved 12.7% in FY2024

Metric – % of UK directly

purchased energy from

renewable sources

Target – 100% by end of FY2025

Climate-related risks and opportunities continued

Resilience to climate change

The climate-related risks and

opportunities analysis indicates that

our business is not at high risk of

significant financial impacts arising

from climate-related risks in the

short-term to mid-term. Any climate-

related risks with a medium-risk

financial impact are either projected

to occur in the long-term or are being

addressed through our mitigating

actions. As a result, we do not

anticipate the need for major changes

to our strategy in order to respond to

these risks. In the medium and

long-term, we will need to consider

transition risks. The transition to a

low-carbon economy could have

financial implications for the Group.

However, these risks can be mitigated

if we achieve our carbon reduction

targets across all scopes.

Climate-related scenario analysis

Climate-related scenario analysis has

helped us evaluate the potential

impacts of climate-related risks and

opportunities. In FY2022, we

conducted our first quantative analysis

to better understand these risks and

opportunities and their effects on our

existing UK business model. The

insights gained from this analysis have

informed our strategy and planning.

We undertook a qualitative scenario

analysis for our Canadian business in

FY2024 using the same scenarios as

per the UK analysis in FY2022. The

Publicly available climate scenarios,

sourced from the Network for

Greening the Financial System (NGFS)

and the Intergovernmental Panel on

Climate Change (IPCC), were selected

for our analysis as outlined in the

adjoining table.

Assumptions made in the analysis:

Current mitigating actions were not

included in any of the scenarios. Each

scenario was modeled independently,

with no assumed correlation between

different risks and opportunities.

Investment costs required to realise

opportunities were not considered.

While many scenario models and

techniques are advanced, we

acknowledge that this field is

continually evolving. We anticipate

that models and pathways will improve

over time. However, models have

limitations, and certain areas remain

challenging to model accurately.

Risk/opportunity

Hollywood Bowl Group plc

Annual report and accounts 2024

Key to time horizon:

Short Medium Long

Climate risk/opportunity Scenarios Data sources

Transition risk/opportunity

Energy sources NGFS scenarios: IEA

– Carbon intensities

Scenario 1: Early action NGFS

– Carbon prices

Scenario 2: Late action

Scenario 3: No additional action

Physical risk

Business interruption and damage

to assets

IPCC pathways:

Scenario 1: SSP1 – 2.6 (<2°C)

Scenario 2: SSP2 – 4.5 (2–3°C)

We obtained localised climate data to a 90m

resolution based on

the latest IPCC CMIP6 global climate models, providing projections

for each of our scenarios and time horizons for flood exposure

Changing customer behaviours Scenario 3: SSP5 – 8.5 (>4°C)

World Meteorological Organization

– temperature, wind speed

and precipitation (historical data)

Climate Analytics

– temperature, wind speed and precipitation

(scenario data)

1 International Energy Agency (2022), Global Energy and Climate Model, IEA, Paris https://www.iea.org/reports/global-energy-and-climate-model, Licence: CC BY 4.0.

2 Network for Greening the Financial System (NGFS) (2021), NGFS Scenario Data Downscaled National Data V2.0, https://www.ngfs.net/ngfs-scenarios-portal.

3 World Meteorological Organization (2022), https://public.wmo.int/en.

4 Climate Analytics (2022), Climate Impact Explorer, https://climate-impact-explorer.climateanalytics.org.

The scenarios were selected due to their prominence within climate change discourse. This enables the selected risks and opportunities to

be assessed in line with scenarios that represent the collective market’s understanding of the range of possible outcomes as a result of the

effects of climate change and society’s response.