Hollywood Bowl taps investors for £30m to expand in UK
Hollywood Bowl has successfully tapped investors for £30m, which it will use to invest in its chain of UK bowling alleys.
The leisure firm this morning completed a share placing to raise the cash ahead of its reopening date.
Hollywood Bowl will use the proceeds of the raise to invest in its new centre pipeline, refurbish some of its venues and roll out new initiatives.
Shore Capital Markets analysts said the pandemic had created “additional opportunities for ten-pin bowling and mini-golf in ‘prime’ locations in the UK.
“We see mini-golf, through its new Puttstars concept, as especially attractive (given flexibility) as more sites become available.”
The company has is in negotiations on a further nine new centres, with gross capital expenditure requirements of around £2.4m per venue.
It could be on site at three centres before the end of the year, implying a total investment of £7m to £8.5m, Shore Capital Markets said in a note to investors.
Stephen Burns, chief executive of Hollywood Bowl Group, said: “Today’s successful placing allows us to reignite our customer-led growth strategy as we look ahead to the reopening of our estate, enabling investment in our exciting new centre pipeline, our ongoing refurbishment programme, as well as the rollout of initiatives to enhance our customer proposition.
“We look forward to welcoming our customers and team members back to our centres in May.”