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Trending tickers: Hollywood Bowl l Hunting l Ocado | Unilever

A look at the stocks making headlines on Tuesday

Hollywood Bowl reports record revenue amid resilient customer demand. Photo: Getty.
Hollywood Bowl reports record revenue amid resilient customer demand. Photo: Getty (agrobacter via Getty Images)

Hollywood Bowl Group (BOWL.L)

Bowling alley operator Hollywood Bowl reported record first-half revenues of £111.1m ($138m), up 10.8% in the six months to 31 March 2023, compared to the same period last year, with 3.5% like-for-like growth.

“We are excited about the significant growth opportunities ahead — our highly cash generative business model and insulation from cost of goods and energy inflationary pressures, leaves us well-placed to continue to expand and invest in our portfolio, both in the UK and Canada,” chief executive Stephen Burns said.

The Hertfordshire-based firm said trading at recently-opened venues in Speke and Peterborough had performed ahead of bosses' forecasts, as did sites in Calgary in Canada.

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Shares in Hollywood Bowl rose around 1% on Tuesday.

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“Hollywood Bowl looks to have scored a strike with its 2022 acquisitions in Canada, judging by its latest first half results which revealed a strong contribution from this part of the business,” AJ Bell investment director Russ Mould said.

“There is a genuine bowling culture in Canada which may well be receptive to Hollywood Bowl’s approach of reviving tired and grimy bowling alleys and giving them a bit of shine.

“The 9% hike in the dividend is a genuine display of faith in the company’s prospects and suggests it sees demand for ten-pin bowling remaining resilient [in the UK].

“While the pressures on consumer spending are clear people still need an escape from the day-to-day grind and bowling remains a relatively inexpensive and family-friendly option.”

Hunting (HTG.L)

Shares in Hunting soared nearly 17% on Tuesday after the company increased its earnings guidance and said its Asia Pacific arm has won a significant new oil country tubular goods contract with Cairn Oil & Gas, Vedanta Ltd, for its operations in India.

The London-based energy services group said the contract is worth up to $91m and is for an estimated 100 wells. As a result, Hunting's sales order book rose to around $575m.

The group also raised its earnings before interest, taxes, depreciation and amortization (EBITDA) forecast for the full-year 2023 to $92-$94m.

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It represents a further increase to the guidance issued at its 2022 full-year results in March 2023.

“US market activity remains stable and with the orders received for China, Guyana, Brazil and now India, Hunting continues to see a strong growth profile given our standing and recognition with major energy companies, coupled with the strong international market sentiment being reported in many regions,” chief executive Jim Johnson said.

Ocado Group (OCDO.L)

Shares in Ocado fell nearly 3% in morning trade in London as the grocery business faces demotion from the FTSE 100 (^FTSE).

The online food delivery company saw its sales boom during the COVID-19 lockdown as shoppers avoided supermarkets and restrictions prevented usual visits. However, the market has since returned to pre-pandemic habits.

As a result, Ocado's losses ballooned to over £500m last year.

Analysts are expecting Ocado to be relegated from the FTSE 100 and take a position in the FTSE 250 (^FTMC) instead. Closing prices on Wednesday will be used to calculate the reshuffle.

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In April, the company announced plans to shut its customer fulfilment centre in Hatfield, Hertfordshire, in a move impacting around 2,300 workers.

The online retailer said its Hatfield site was the oldest in the network and was responsible for handling around 20% of its weekly orders.

The FTSE demotion would come as another blow for Ocado’s co-founder and chief executive Tim Steiner who has seen the value of his 2.4% stake in the group fall by £105m in the past year.

Unilever (UL)

Unilever announced that its chief financial officer Graaeme Pitkethly will retire from the consumer goods company by the end of May 2024.

The group said it will now proceed with a formal internal and external search for Pitkethly's successor.

The announcement of his departure comes as Unilever continues to grapple with significant cost inflation and pressure on its margins due to high prices for energy and other commodities.

Unilever also announced that Conny Braams, its chief digital and commercial officer, had decided to leave the company in August.

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