REG - XP Factory PLC - Trading Update and Notice of Results

XP FactoryAnnouncement

13/08/2025 07:00

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RNS Number : 0360V  XP Factory PLC  13 August 2025

13 August 2025

XP Factory Plc

 

("XP Factory", the "Company" or the "Group")

 

Trading Update and Notice of Results

 

XP Factory, one of the UK's pre-eminent experiential leisure businesses
operating the Escape Hunt(TM) ('EH') and Boom Battle Bar(TM) ('Boom') brands,
announces a trading update and provides notice of its full year results for
the year ending 31 March 2025 which will be released on 1 September 2025.

Highlights for the 19 weeks to 10 August 2025

·      The Group has made good progress against its strategic objectives
including:

o  opening two new sites (Boom Reading and EH Canterbury)

o  doubling capacity at EH Birmingham Resorts World

o  additional EH in build in Sheffield

o  a further five sites in advanced discussions

·      Group owner operated ('O&O') revenue was up 12% in the 19
weeks to 10 August 2025 compared with the prior year

·    Marked turnaround in like-for-like ('LFL') sales performance in both
brands following a challenging Q1, where unseasonally hot weather and economic
uncertainty saw the experiential industry suffer negative 10% LFL sales(1):

o  Escape Hunt UK LFL sales +0.4% year-to-date ('YTD'), with LFLs of +8.6% in
the six weeks to 10 August 2025 having fully offset the negative -3.5% in Q1

o  Boom UK LFL sales -5.6% YTD, excluding the impact of Euro 2024 LFLs
returned to +0.2% in the six weeks to 10 August 2025 vs -6.4% in Q1

·      Strong cost controls and benefits from supplier contract
renegotiations have largely offset YTD Group EBITDA impact driven by the
negative LFLs in Q1

·      New Boom site in Reading trading materially ahead of plan, and
positive early indications for new EH sites which are trading in line with
plan

·      Positive momentum on corporate bookings, which bodes well for the
all-important calendar Q4 trading period

·      The Board remains cautiously optimistic about meeting the
market's expectations for the full year

Recent trading

The challenges experienced by the hospitality industry as a whole since the
Group's year end have been widely publicised with increases in national
insurance and Minimum Living Wage (MLW), unseasonally hot weather and
significant economic uncertainty all having a negative impact. Reflecting
these factors, independent data suggests the experiential leisure industry
suffered negative LFL decline in the calendar quarter to 30 June of around
10%. Whilst XP Factory has not been immune to these external influences, the
Group has outperformed the industry and made further progress towards its
strategic objectives.

Both the Group's brands experienced further strong revenue growth overall in
the 19 weeks to 10 August 2025 driven by the Group's expansion strategy.

Escape Hunt revenue grew 11%.  New sites opened since the same period last
year added 15%, offset by a 4% decline from the closure of our site in
Birmingham Central after the landlord was instructed by the council to close
the shopping centre at short notice. Underlying UK LFL growth was +0.4% for
the period, but this masks an improving trend from trading, with summer
momentum building over recent weeks.  In the six weeks to 10 August 2025,
Escape Hunt delivered +8.6% LFL growth.

Boom revenue increased 13%. New sites opened or acquired since the same period
last year added 20%, offset by a 1% decline from the closure of our site in
Swindon. Underlying UK LFL sales were down 5.6%. Similar to Escape Hunt, the
13 weeks to 29 June 2025 saw a greater reduction with the effect of hot
weather and reduced corporate bookings having a more marked impact, as well as
tough comparables linked to England's run to the Euro 2024 final. Excluding
the week of the Euros final, in the six weeks to 10 August, performance has
improved with UK LFLs improving to +0.2%

The lower rate of growth in the 13 weeks to 29 June 2025 in both businesses
was impacted by the unseasonally hot spring which detracted from indoor
activities, together with significant economic uncertainty following national
insurance increases and MLW increases that came into effect in April, Trump's
tariff announcements and heightened tension in the wars in the Middle East and
Ukraine. Corporate bookings experienced a bigger decline than consumer for
both businesses, as corporate spending on entertainment reduced whilst
businesses came to terms with the impact of increased costs and greater
uncertainty.

Encouragingly, after the challenging start to the year, corporate bookings
have since rebounded strongly, with YTD LFL bookings growth back in positive
territory at +2%. The B2B pipeline has accelerated markedly, with the pipeline
balance of "expected" bookings driven by in-bound enquiries now materially
ahead of the comparable time last year, giving cause for optimism for the
all-important Q4 of the calendar year.

Our site expansion strategy remains on track to meet our medium-term targets
for March 2028.  A new Boom site opened in Reading on 6 June 2025 and, to
date, has been trading materially ahead of plan. A new Escape Hunt site opened
in Canterbury on 30 April 2025, and on 1 August 2025 we opened the expansion
to our site in Birmingham Resorts world, doubling capacity. Both sites have
opened well. We have commenced build on a new Escape Hunt site in Sheffield
and have a further, well advanced pipeline of five Escape Hunt sites in
addition to a number of other sites in discussion across both brands. The roll
out of sites is influenced by the pace at which the business generates cash
and, as such is expected accelerate towards the back end of our three-year
plan.

Outlook

Whilst the tough first quarter coupled with increased labour costs in both
businesses have presented some operational challenges, significant progress
has been made in other areas which is helping to mitigate these issues.  Most
notably, we have secured materially improved terms on several Boom supplier
contracts, based on increased scale which is expected to significantly offset
YTD headwinds. Despite the challenging conditions in Q1, the combination of
improved trading, cost savings, and positive B2B momentum has driven a
stronger performance trajectory. Subject to the continuation of these trends
and a robust corporate season, the Board remains cautiously optimistic the
Group will meet market expectations for the 12 months ending 31 March 2026.

Notice of Results

The Group will announce its full year results covering the 12 months ended 31
March 2025 on 1 September 2025. Further details on current trading and outlook
will be provided in the results announcement at this time.

(1) Source: CGA Hospitality Tracker

Enquiries:

 XP Factory Plc                                                          +44 (0) 20 7846 3322

 https://www.xpfactory.com/ (https://www.xpfactory.com/)

 Richard Harpham (Chief Executive Officer)

 Graham Bird (Chief Financial Officer)

 Singer Capital Markets, NOMAD and Broker                                +44 (0) 20 7496 3000

 https://www.singercm.com (https://www.singercm.com)

 Peter Steel

 James Todd

 IFC Advisory - Financial PR                                             +44 (0) 20 3934 6630

 https://www.investor-focus.co.uk/ (https://www.investor-focus.co.uk/)

 Graham Herring

 Florence Staton

Notes to Editors:

About XP Factory plc

 

The XP Factory Group is one of the UK's pre-eminent experiential leisure
businesses which currently operates two fast growing leisure brands.  Escape
Hunt is a global leader in providing escape-the-room experiences delivered
through a network of owner-operated sites in the UK, an international network
of franchised outlets in five continents, and through digitally delivered
games which can be played remotely.

Boom Battle Bar is a fast-growing network of owner-operated and franchise
sites in the UK that combine competitive socialising activities with themed
cocktails, drinks and street food in a high energy, fun setting.  Activities
include a range of games such as augmented reality darts, Bavarian axe
throwing, 'crazier golf', shuffleboard and others.  The Group's products
enjoy premium customer ratings and cater for leisure or teambuilding, in small
groups or large, and are suitable for consumers, businesses and other
organisations. The Company has a strategy to expand the network in the UK and
internationally, creating high quality games and experiences delivered through
multiple formats and which can incorporate branded IP content.
(https://xpfactory.com/ (https://xpfactory.com/) )

 Facebook:   EscapeHuntUK       BoomBattleBar
 Twitter:    @EscapeHuntUK      @boombattlebar
 Instagram:  @escapehuntuk      @boombattlebar

 

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