Proactive Investors - Companies on the London Stock Exchange are being undervalued, according to Hollywood Bowl Group PLC (LON:BOWL) boss Stephen Burns.
“Across the whole of the London Stock Exchange, lots of firms are undervalued it is an endemic problem,” Burns said.
Hollywood Bowl saw sales lift by 16% to £215 million and underlying profits jump by 11% to £82 million in the 2023 financial year.
Shares have lifted 20% since January and the market currently values the company at around £490 million.
The disparity between market and private valuations has grown recently and has been emphasised by the increasing amounts of listed companies being bought out at a premium.
Earlier this month, rival Ten Entertainment approved a takeover valued at a 35% premium to its then-market value.
Shareholders Wagamama owner The Restaurant Group (LON:RTN), Franco Manca owner Fulham Shore and City Pub Group have also benefited from purchases at premiums to their market value.
Hollywood Bowl has not received any offers, but Burns said: “We’re a public company, we’re for sale every day so there’s nothing stopping anybody making an offer.”
Shares traded 0.8% higher on Monday after opening at 291p.