Hollywood Bowl Group PLC 

Hollywood Bowl Group PLC (LSE: BOWL) is an FTSE 250 index listed bowling entertainment operator in the United Kingdom. The Company is engaged in the operation of ten-pin bowling centres, as well as the development of new centres and other associated activities. This Report covers the Key Recommendation Rationale, Conclusion, and Recommendation on the stock.

Key Recommendation Rationale – Sell at GBX 284.00

• Resistance near Current levels: BOWL’s stock price has breached Resistance (R1) which was stated in the previous report on 10 October 2025 therefore, there can be a possibility of a decline from resistance levels. Considering the market conditions and the price action, it is prudent to exit the stock.
• Profitability Growth Lags Behind Revenue Increase - While the Group achieved record revenue and a modest rise in EBITDA, profit before tax and earnings per share saw a year-on-year decline. Adjusted profit before tax dropped by 9.4% and adjusted EPS fell by 11.6% during H1 FY25. This suggests that cost pressures or operational inefficiencies may be impacting the bottom line, even as top-line performance improves. The gap between revenue growth (+8.4%) and profit decline raises questions about scalability and margin preservation in a high-growth phase.
• Impact of External Factors on UK Performance - The UK business saw a 4.5% decline during H1 FY25 in like-for-like game volumes, attributed partly to seasonal timing (Easter shift and leap year) and notably to prolonged warm and dry weather during peak months. This exposure to weather fluctuations highlights a potential vulnerability in footfall-driven locations, especially given the competitive pressure from emerging leisure offerings. It may indicate a need to diversify demand drivers or enhance indoor appeal during unfavourable periods.

Valuation Methodology: Price/ Earnings Approach

Share Price Chart  

 BOWL Daily Technical Chart, Source - Refinitiv

Conclusion

BOWL is expected to trade at a discount, considering Profitability Growth Lags Behind Revenue Increase and fears of global slowdown. For conducting the valuation, the following peers have been considered - GYM Group PLC (LSE: GYM), Mitchells & Butlers PLC (LSE: MAB) and others.

Given its current trading levels, Impact of External Factors on UK Performance, recent rally in the share price, relative valuation, and associated risks, it is prudent to exit the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the Current Market Price of GBX 284.00 as of 14 October 2025 at 08:30 AM GMT+1.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 14 October 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.