XP Factory delivers strong H1 with 33% revenue growth and continued expansion
() , the experiential leisure company operating the Escape Hunt and Boom Battle Bar brands, announced its interim results for the 6 months to September 30, 2024 (H1 2025).
XP Factory reported a revenue increase of 33.2% to £24.9m from £18.7m LY, of which Escape Hunt revenue increased 7% to £6.5m and Boom Battle Bar revenue jumped 56% to £17.6m. Group adjusted EBITDA profit rose 30.5% to £1.5m, with gross margin maintaining at a high 62.8%.
generated £2.1m of free cash, broadly unchanged from last year. Cash on September 30, 2024 was £1.9m (£3.9m LY) while net debt rose to £1.3m after £3.6m was invested in growth capex and £0.3m in maintenance capex.
Operationally, both brands continued underlying positive like-for-like growth. Boom added 3 franchises in Aldgate, Wandsworth and Bournemouth, acquired in May and June 2024. Boom's site-level EBITDA margin increased slightly to 11.8%. Likewise, Escape Hunt opened a new location in Worcester in September 2024, and its site-level EBITDA margin improved by 1.8% to 42.0%.
Richard Harpham, CEO of XP Factory, commenting: "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."
View from Vox
XP Factory delivers another 6 months of progress with solid expansion across both brands and 33.2% sales growth over last year despite weaker consumer sentiment in the last quarter, partially attributable to the UK budget announcement. Escape Hunt continued its aggressive rollout in the UK while maintaining strong site-level EBITDA margins and cash generation, with plans for international expansion as well.
Similarly, Boom delivered positive LFL revenue growth while maintaining a healthy gross margin and strong free cash generation. Boom's sales are typically H2-weighted due to the seasonal nature of the business, therefore investors should expect site-level EBITDA to accelerate into the Christmas season. is already reporting corporate pre-bookings for the holidays being "significantly up" compared to the equivalent period last year.
Post-period, XP Factory secured a £10m revolving credit facility with Barclays that should accelerate investment and growth further. Also post-period, the group continued its aggressive expansion with Escape Hunt opening 2 more locations in Glasgow and Cambridge, while Boom bought back franchises in Southampton and Ipswich. said it planned to mitigate the cost impact of the UK budget "without need for significant price increases".
maintained its ambitious target to deliver £90m of sales and £13m group EBITDA margin within 4 years, with an underlying run-rate revenue of £100m and targeting a 15% group EBITDA margin. Growth should result from further expansion of the estate, facilitated by ongoing robust cash generation and the new debt facility, targeting average debt:EBITDA ratios of c. 1.0x.
Additionally, plans to restructure its balance sheet to enable share buy-backs and to create capacity for future dividend payments. The next critical milestone for investors will be the Christmas season's performance, which is pivotal for delivering 's full-year results.
Follow News & Updates from XP Factory:
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.