TIDMXPF
RNS Number : 0623A
XP Factory PLC
18 January 2024
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED
UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014
WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL)
ACT 2018, AS AMENDED. ON PUBLICATION OF THIS ANNOUNCEMENT, THIS
INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.
18 January 2024
XP Factory Plc
("XP Factory", the "Company" or the "Group")
Trading Update
"Very strong December trading underpins confidence for financial
year to 31 March 2024"
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 52 week period to
31 December 2023.
Highlights:
Substantial growth sees XPF double revenues for the second year
in a row
-- Group turnover of circa GBP44.5m was 95% ahead of prior
year (2022: GBP22.8m)
-- Exceptional like for like sales growth delivered across
both brands in the 52 weeks to 31 December 2023:
-- Boom: up 29%
-- Escape Hunt: up 17%
-- Record corporate sales at Christmas drove strong like-for-like
sales in December 2023 :
-- Boom: up 50%
-- Escape Hunt: up 20%
-- Performance provides confidence of meeting market expectations
for the financial year to 31 March 2024
Operating metrics being delivered
-- Boom's continuing maturity profile, combined with strong
operating leverage in H2 2023, delivered site level EBITDA
margins in line with management's expectations (mature
target of 20% - 25%)
-- Escape Hunt site level EBITDA margins continue to exceed
40%
-- Both businesses continue to enjoy the highest customer
ratings in the industry
Strategic progress continuing
-- Boom former-franchise sites in Liverpool, Glasgow and
Watford all acquired in Q4 2023
-- New Boom owner-operated sites opened in Dubai, Canterbury
and Southend in H2 2023
-- New Escape Hunt owner-operated site opened in Woking in
H2 2023
Trading
The Group experienced a particularly strong end to the calendar
year, buoyed by robust corporate sales in December across both
brands. Group turnover for the twelve months to 31 December 2023
almost doubled to exceed GBP44.5m (2022: GBP22.8m). This notable
increase reflects robust like-for-like growth, the full year
inclusion and maturing of sites opened in the latter part of 2022,
and expansion of the owner operated estates of both Boom and Escape
Hunt. The performance is a culmination of the significant
operational and strategic progress made throughout the year which
has focused on implementing learnings from the rapid roll-out of
sites in 2022 in Boom, and further optimisation of performance in
Escape Hunt. The Group benefitted from operational leverage in the
final months of the year, supporting improved EBITDA margins in H2,
in line with management's expectations.
Escape Hunt
Escape Hunt had an exceptional twelve months. Like for like
sales growth within the Group's owner-operated estate was 17%(1)
for the twelve months to 31 December 2023, (19%(1) in the UK) which
rose to 20% in the final five weeks of the calendar year. Total
sales within the owner operated estate are expected to exceed GBP13
million, an increase of well over 30% on 2022. With the benefits of
operating leverage, site level EBITDA margins are once again
expected to exceed 40%, well above the internal benchmarks set for
the business.
A new site in Woking was opened in July 2023, bringing the owner
operated estate to 24 sites.
The Escape Hunt international franchise business is expected to
show a modest decline in revenue given the estate has reduced in
size.
Boom Battle Bar
Sales from the Boom owner operated estate exceeded GBP27.5m, a
near threefold increase on 2022 (2022: GBP9.5m), with like for like
sales up 29% in the 52 weeks to 31 December 2023. The maturing
nature of the young sites, combined with significant operational
focus, saw performance improve month on month, culminating in an
extraordinary Christmas period which delivered 50% like for like
sales in the final five weeks of the year. As sales continue to
grow, operating leverage continues to improve, and accordingly site
level EBITDA margins are expected to be significantly ahead of H1
2023 and in line with the board's expectations for the twelve
months to December 2023.
Three new owner operated sites were opened in the six-month
period to 31 December 2023; Dubai in July, Canterbury in September
and Southend in October. In addition, franchise sites in Liverpool
and Glasgow were bought back in November 2023 and Watford in
December 2023. As at 31 December 2023, the owner operated estate
comprised 19 sites.
Franchise revenue for the twelve month period is expected to be
broadly flat year on year (2022:GBP2.8m), reflecting underlying
growth offset by the smaller estate as sites have been bought
back.
Group
Overall performance is expected to be in line with market
expectations for the twelve months to 31 December 2023, and
provides confidence of achieving market expectations for the 15
month financial year to 31 March 2024.
The Company will publish an interim report for the 12 months to
31 December 2023 in March 2024, and audited financial statements
for the 15 months to 31 March 2024 during the summer.
Commenting, Richard Harpham, Chief Executive of XP Factory plc
said "We are delighted with the performance of the Group over
Christmas and for the twelve months to December 2023. Group
turnover in the second half of the year surpassed that of the
entirety of 2022, showcasing the substantial growth and
transformative step change in scale achieved . Our offerings
continue to resonate well with a broad spectrum of customers, whose
support and loyalty, combined with the trading momentum we are
carrying, positions the business favourably and underpins our
confidence in meeting market expectations for our 15 month
financial period to 31 March 2024."
(1) After normalising for the VAT benefit in Q1 2022
Enquiries:
XP Factory Plc
https://www.xpfactory.com/
Richard Harpham (Chief Executive
Officer)
Graham Bird (Chief Financial
Officer)
Kam Bansil (Investor Relations) +44 (0) 20 7846 3322
Singer Capital Markets, NOMAD
and Broker
https://www.singercm.com
Peter Steel
Alaina Wong
James Fischer +44 (0) 20 7496 3000
IFC Advisory - Financial PR
https://www.investor-focus.co.uk/
Graham Herring
Florence Chandler +44 (0) 20 3934 6630
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/ )
Facebook: EscapeHuntUK BoomBattleBar
Twitter: @EscapeHuntUK @boombattlebar
Instagram: @escapehuntuk @boombattlebar
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