XP Factory plc (LON: XPF), one of the UK’s pre-eminent experiential leisure businesses operating the Escape Hunt® and Boom Battle Bar® brands, has announced its unaudited interim results for the six months ended 30 September 2024.
| H1 FY2025 (£m) | H1 20231 (£m) | Change | |
| Revenue | 24.9 | 18.7 | +33.2% |
| Gross Profit | 15.6 | 11.7 | +33.6% |
| Pre IFRS 16 Site level EBITDA | 5.6 | 5.0 | +11.3% |
| Pre IFRS 16 Group Adjusted EBITDA1 | 1.5 | 1.1 | +30.5% |
| Post IFRS16 Group Adjusted EBITDA1 | 3.2 | 2.4 | +34.7% |
| Free cash generation3 | 2.1 | 2.2 | -7.4% |
FINANCIAL HIGHLIGHTS
| · | Group revenue increased 33.2% to £24.9m (H1 2023: £18.7m) |
| – Escape Hunt owner operated site revenue increased 7% to £6.5m (H1 2023: £6.1m) | |
| – Boom Battle Bar (“Boom”) owner operated revenue increased 56% to £17.6m (H1 2023: £11.3m) | |
| · | Gross margin maintained at 62.8% (H1 2023: 62.6%) |
| · | Pre IFRS 16 Group Adjusted EBITDA2 profit increased 30.5% to of £1.5m (H1 2023: £1.1m) |
| · | Pre IFRS16 site level EBITDA up 11% to £5.6m (H1 2023: £5.0m) |
| · | Free cash generation3 of £2.1m (H1 2023: £2.2m) |
| · | £3.6m invested in growth capex, and £0.3m in maintenance capex |
| · | Cash balance at 30 September 2024 of £1.9m (31 March 2024 £3.9m) |
| · | Net debt at 30 September 2024 of £1.3m (31 March 2024: £0.0m) |
OPERATING HIGHLIGHTS
| · | Continued underlying positive like-for-like growth in both brands ahead of the industry and against strong comparators in the prior year. | |
| o | Boom: up 4.4% in the 26 weeks to 29 September 2024 (5.6% excluding the two weeks of riots) | |
| o | Escape Hunt : up 3.0% in the 26 weeks to 29 September 2024 (5.7% excluding the weeks of the Euros and the riots) | |
| o | Group: up 4.0% in the 26 weeks to 29 September 2024 (5.6% excluding impacted weeks) | |
| · | Three Boom franchise sites – in Aldgate, Wandsworth and Bournemouth – acquired May and June 2024 | |
| · | Boom owner operated site level EBITDA margins increased to 11.8% (H1 2023: 11.0%) | |
| · | Escape Hunt owner operated site level EBITDA margins improved to 42.0% (H1 2023: 40.2%) | |
| · | New Escape Hunt opened in Worcester in September 2024 | |
1 H1 2023 interim results previously published were for the six months to 30 June 2023.
2 Earnings before interest, tax, depreciation and amortization, calculated before pre-opening losses, exceptional items, and other non-cash items. 2023 comparative restated
3 Cash generated from operations, after IFRS16 lease payments, interest and tax, before capital expenditure
POST PERIOD-END HIGHLIGHTS
| · | £10m revolving credit facility with Barclays formalised providing funding to accelerate growth |
| · | Group Like-for-like sales up 2.0% in the 9 weeks to 1 Dec 2024 against strong comparators |
| · | Escape Hunt Glasgow opened in October 2024 |
| · | Escape Hunt Cambridge and Boom Cambridge opening on 6 December 2024 |
| · | Boom Southampton and Boom Ipswich bought back in November 2024 |
| · | Mitigation plans in place to offset impact of UK Budget without need for significant price increases |
| · | £1m annualised central cost savings implemented with £0.5m benefit in current financial year |
| · | Balance sheet being restructured to allow future share buy-backs and dividends |
ANNOUNCEMENT OF MEDIUM TERM GROWTH TARGETS
| · | Plan to increase sales by 50% and double Pre IFRS 16 Adjusted EBITDA by March 2028 | |
| o | Revenue target of £90m with run-rate of £100m | |
| o | Pre IFRS 16 Group Adjusted EBITDA target of £13m, with run-rate 15% Group EBITDA margins | |
| o | Growth plans funded by cash generation and debt facility targeting average Debt:EBITDA ratios of c.1.0x (Pre IFRS 16) | |
Richard Harpham, Chief Executive of XP Factory, commented: “I am delighted to report on another period of positive, cash generative growth in the six months to 30 September 2024, with Group revenue increasing by 33.2% compared to our first half in 2023. This performance reflects continued volume-driven like-for-like growth across both of our brands, ahead of industry levels. Consumer sentiment weakened in the summer and ahead of the UK Budget, softening first half performance and, whilst we are encouraged by strong early indicators for the all-important festive season, with corporate pre-bookings significantly ahead of 2023, we remain laser focused on maximising the Christmas trade that is so important in delivering the full year’s results. This is a testament to the strength of our offering, the loyalty of our customer base, and the hard work of our teams.
“We have also achieved important milestones to support our expansion goals. The completion of a £10m revolving credit facility with Barclays provides us with the financial ability to execute our clear plan to double Group EBITDA over the next four years. In addition, we are planning a balance sheet re-organisation to enable share buy-backs and to create capacity for dividend payments in future, should we deem it appropriate. With a solid foundation in place, we remain confident in our ability to deliver sustainable growth and significant long-term value creation.”
XP Factory will provide a trading update after the Christmas period in late January 2025.
