XP Factory saw revenues more than double in FY21

[source: Boom Battle Bar O2]

During the year ended 31 December 2021,  (XPF ) saw revenue more than double, resulting in the company’s pre-tax loss narrowing to £2.7m, up from a loss of £1.4m in FY20.

The England-based entertainment company which operates under the brands Escape Hunt and Boom Battle Bar saw revenue increase by 163% year-on-year to £7m up from £2.7m.

XP’s owner-operated estate increased by 46% to 19 sites, compared to 13 sites in 2021, with these sites trading above the company’s own expectations during the first quarter of 2022.

XP said 2H trading exceeded even its own expectations, as it successfully exploited pent up customer demand and trading in sites which the company says was “hugely encouraging.”

XP said it achieved a significant milestone for the first time in that it delivered positive EBITDA during 2H21, with the company’s Escape Hunt brand breaking multiple weekly sales records.

“The investment we made in growing our estate substantially throughout 2020 allowed us to deliver group profitability over the 6 months to 31 December 2021, and we were delighted to see substantial growth in the mature sites, as well as stellar performances in the new venues, where sales were ramping up faster than we had seen before,” XP told investors this morning.

In November 2021, the group acquired the socialising business Boom Battle Bar, later raising £16.1m to complete the purchase and to provide capital for the planned growth of the estate.

XP Factory considers the acquisition of Boom Battle Bar as “a good strategic” fit alongside Escape Hunt, since the core customer is common across both brands, and the experience it has developed in hosting games in Escape Hunt transfers to the hosting of games at Boom.

Looking forward, the company said it is unlikely that the board will recommend a dividend over the next few years. “The directors believe the company should improve performance to generate profits to fund the company’s growth strategy over the medium term,” it explained.

Shares in XP Factory were trading 7.22% higher at 26p following this morning’s results.

It also acknowledged the current macro-economic environment as a potential challenge, citing the rising inflation and cost pressures as concerns for the company into FY22 and beyond.

Despite these challenges, the company says it remains highly optimistic about its future as a result of its well-developed pipeline of sites, such encouraging demonstrable unit economics in both brands, and “such a well-positioned business in terms of customer demand,” it said.

With a current pipeline of over 40 potential sites in development, the company anticipates having 27 venues trading by the end of 2022, spread across franchise and owned units, and it believes that this footprint will enable the firm to become a pre-eminent player in the industry.

“With such a well-developed pipeline of sites, such encouraging demonstrable unit economics in both brands, and such a well-positioned business in terms of customer demand, we have reason to be highly optimistic about the future for XP Factory,” said CEO, Richard Harpham.

Post-period and in the year to date, six new Boom Battle Bar sites have opened, including an owner operated site in Exeter, co-located with Escape Hunt, and franchise sites in Watford, Ipswich, Glasgow, Aldgate East and Bath. A further six Boom sites are now in build with 10 contracts in exchange or in final legal underpinning site roll-out targets for the year ahead.

These Boom Battle Bar franchise sites are therefore performing in line with the Board’s expectations. Meanwhile, the Company added that Escape Hunt sites are performing well with its UK owner operated estate and trading ahead of the Board’s expectations in 1Q22.

Follow News & Updates from :