When tenpin bowling operator Hollywood Bowl (BOWL) reported record trading in the first half (29 May) to the end of March, the shares fell by around a tenth reflecting a prolonged period of unprecedented dry and warm weather from March to May.

The scorching temperatures in June appear to have added to the group’s woes with the shares dropping a further 13% over the last month, meaning they are down 20% so far this year and 25% over the last 12-months.

At the half-year update, chief executive Stephen Burns made reassuring noises about how the business was responding to the short-term challenges. ‘We’ve responded quickly, managing margins and costs while maintaining strong operational performance, which remains as good as it’s ever been,’ insisted Burns.

Burns also said the firm was well prepared for the key July and August holiday period and he expected it to meet analysts’ full year EBITDA (earnings before interest, tax, depreciation, and amortisation) forecasts.

Consensus earnings per share forecasts for the year to September have drifted down, but analysts at Berenberg remain optimistic about the outlook for operating performance with FY26 estimates implying high single digit EBITDA growth and double-digit EPS growth.

‘Given the elevated level of investment in the business for refurbishments and new openings in recent years, we remain confident in management’s ability to deliver sustained profitable growth.’

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