REG - XP Factory PLC - Trading Update

XP FactoryAnnouncement

14/01/2025 07:00

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RNS Number : 1586T  XP Factory PLC  14 January 2025

14 January 2025

XP Factory Plc

 

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

 

Trading Update

 

"Strong Christmas and New Year trading"

 

XP Factory, one of the UK's pre-eminent experiential leisure businesses
operating the Escape Hunt and Boom Battle Bar brands, is pleased to provide an
update on trading for the third quarter of its financial year to 31 March 2025
including the important Christmas and New Year period.

Highlights:

 ·             Very strong seasonal performances recorded by both Escape Hunt™ and Boom
               Battle Bar™ brands

               ·      17.4% LFL sales delivered in Boom in the five weeks to January
               2025

               ·      14.3% LFL sales delivered by Escape Hunt in the same period

               ·      8.5% LFL sales delivered by the Group in the 14 weeks to 5
               January 2025 (Q3 FY 25) - up from 3.9% in H1 FY25
 ·             20 Boom sites and 8 Escape Hunt sites delivered record sales weeks over the
               Christmas period
 ·             New site in Cambridge opened particularly well for both brands

 

XP Factory enjoyed strong performances from both Escape Hunt and Boom Battle
Bar over the crucial Christmas and New Year period, boosted by excellent
corporate bookings.

Like-for-like sales from the Escape Hunt owner operated business grew 14.3% in
the five weeks to 5 January 2025, with the division achieving its highest ever
sales week in the period between Christmas and New Year.   Total sales from
the Escape Hunt owner operated segment in the 40 weeks to 5 January 2025 were
£11m, representing 5.3% like-for-like growth year to date.

Like-for-like sales from the Boom Battle Bar owner operated business grew
17.4% in the five weeks to 5 January 2025.  This was particularly pleasing
given the strong comparative performance in 2023. Sales in the Boom owner
operated segment in the 40 weeks to 5 January 2025 totalled £31m,
representing 5.9% like-for-like growth year to date.

The Group opened its newest unit in Cambridge in the first week of December,
which represents the culmination of its best thinking for both brands.
Performance has so far exceeded our expectations, and the customer reception
has been outstanding. Although very early in its journey, the Board has been
delighted to see both Cambridge Boom and Cambridge Escape Hunt sales
performance sitting so highly in the rankings relative to the other owner
operated sites.

Summary and outlook

The strong recent performances from both brands have offset the relatively
softer period of trading in the summer and the Group is currently on track to
meet current year market expectations.

The Board is cognisant of the continuing macroeconomic uncertainty and
associated nervousness in consumer confidence and remains focused on
optimising performance in the final quarter of the financial year, whilst
laying the foundations for the accelerated openings programme to come.

Good progress has also been made on bringing new sites into legals which
underpin the Group's accelerated growth strategy to be funded by the new bank
facility as outlined in the recent interim results. The Board's vision is to
deliver £90m of sales and £13m Group EBITDA within four years, with an
underlying run-rate revenue of £100m and a 15% Group EBITDA margin.

 

Commenting, Richard Harpham, Chief Executive of XP Factory plc said "We are
delighted with the exceptional performances achieved in both our brands over
the important Christmas period.  The recent performance coupled with our
accelerated growth strategy provide an exciting and clear path to value
creation, capitalising on the growing and positive long-term trends in favour
of experiential leisure. "

 

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

 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 Chandler

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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