The operator of leisure facilities and bowling alleys in both the UK and Canada published results for the first half this morning, which showed yet again that the company continues to plot a course for growth despite the perennial story of consumer spending being squeezed. Opening new sites was a significant driver for growth with revenues up 9.5%, adjusted pre-tax profits adding 8.9% and shareholders benefitting from a 10% uplift in dividends. Management added that margins remain strong and the fact labour costs are comparatively low as a percentage of income is also insulating against inflation to a degree. The Hollywood Bowl share price was up 9% in early trade.
The independent technology group Cohort issued a full year trading update this morning. The company’s share price has been faring well over the last ten days, rallying off multi month lows and today’s note to the market has again boosted that return. Revenue and adjusted operating profits both came in ahead of expectations, whilst margins improved by 170bps. The cash position is also significantly improved with increased order intake providing renewed confidence for the year ahead. The Cohort share price was up 15% at the time of writing.
Another update this morning from the engineering firm Melrose over the incident at its California facility. The company has confirmed that the remaining exclusion zone has been lifted whilst local officials reiterated that there had been no chemical spill. Work remains ongoing with customers to ensure supply plans are in place but is there an element here which will impact sales in the short term? The Melrose share price extended Tuesday’s losses, falling a further 3.5% shortly after the open.
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