TIDMESC
RNS Number : 3609A
Escape Hunt PLC
29 September 2020
29 September 2020
Escape Hunt plc
("Escape Hunt", the "Company" or the "Group")
Unaudited Half Yearly Results for the Six Months ended 30 June
2020
Escape Hunt plc (AIM: ESC), a global leader in the growing
escape rooms sector, is pleased to announce its interim results for
the six months ended 30 June 2020.
Half year ended Half year ended
30 June 2020 30 June 2019
(GBP'000) (GBP'000)
Revenue 1,306 2,208
---------------- ----------------
Gross Profit 900 1,613 ([1])
---------------- ----------------
Adjusted EBITDA loss,
pre-IFRS 16 (816) (1,059)(1)
---------------- ----------------
Loss per share (11.48p) (14.57p)
---------------- ----------------
HIGHLIGHTS
-- UK sites were closed from 21(st) March 2020 for the remainder
of the period
-- In the 12 week period prior to the lockdown, revenue from
owner-operated sites was up 44% compared to the same period
in 2019
-- Adjusted EBITDA loss in the half year reduced to GBP816k
(2019: GBP1,059k)
-- UK sites in aggregate achieving target returns prior to
COVID-19
-- Launch of downloadable play at home and remote play games
during lockdown generated GBP53k of revenue in period
-- Cash outflow constrained through careful management and
use of various Government support schemes
-- Basic loss per share ('EPS') of 11.48p (H1 2019 loss per
share: 14.57p)
POST PERIOD- HIGHLIGHTS
-- Raised GBP4.1m net of expenses through an equity placing,
share subscription, convertible loan note issue and open
offer to support continued expansion of the network and
provide working capital
-- Cash balance of GBP4.3m at end of August 2020
-- UK sites re-opened in July operating on reduced days
o Improved EBITDA conversion ratios benefitting from government
support schemes
o Revenue progress encouraging; final two weeks in August
representing 89% and six weeks to 20 September representing
72% of the same periods in 2019 respectively
o Site level EBITDA in the six weeks to 20 Sept up 33%
on the same period in 2019
-- Majority of franchise sites have also re-opened with volumes
returning
-- Norwich site opened to public on 23 September 2020
-- Fit-out work at Basingstoke well advanced and opening
scheduled in October taking total number of operational
UK sites to 11
-- Signed new site in Cheltenham and fit-out work commenced
-- Heads of terms agreed on two further UK sites (Watford
and Kingston)
-- 'Escape Hunt for Brands' progress with Netflix Enola Holmes
agreement
-- Launch of Doctor Who download, print and play game "The
Hollow Planet" in conjunction with BBC
-- 'Escape Hunt for Business' progress with launch of remote
play propositions for corporates
-- Awarded TripAdvisor(TM) Traveller's Choice awards at all
eight eligible UK site
Richard Harpham, Chief Executive of Escape Hunt, commented: "
The six months ended 30 June may well have been the toughest period
on record for leisure businesses with Government enforced closures
and consumers wary of socialising as a result of COVID-19.
Nevertheless, I am pleased to report strong progress in the period
prior to the UK lockdown which endured from 21 March 2020 to the
period end, as well as encouraging signs of recovery post period
end and significant strategic and operational progress helped by
supportive property conditions in which we expect a greater
availability of sites on more favourable terms.
"In addition, we were encouraged that, prior to lockdown, all
our UK sites had five-star ratings and were ranked in the top four
on TripAdvisor(TM) in their respective cities under fun and games.
Our sites have not been open for sufficiently long since lockdown
to draw any firm conclusions, however, the evidence to date is
encouraging, we are continuing to enjoy very positive consumer
ratings, and as a result we are continuing with our strategic
priorities in earnest. We are, however, aware of the growing rate
of COVID-19 infections and the possibility of further restrictions
being imposed which may impact our progress."
Enquiries
Escape Hunt plc
Richard Harpham (Chief Executive Officer)
Graham Bird (Chief Financial Officer)
Kam Bansil (Investor Relations) +44 (0) 20 7846 3322
Shore Capital - NOMAD and Joint Broker
Tom Griffiths, David Coaten (Corporate Advisory)
Fiona Conroy (Corporate Broking) +44 (0) 20 7408 4050
Zeus Capital - Joint Broker
John Goold
Daniel Harris +44 (0) 20 3829 5000
IFC Advisory - Financial PR
Graham Herring
Florence Chandler +44 (0) 20 3934 6630
About Escape Hunt plc
The Escape Hunt Group 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. Its products enjoy
consistent premium customer ratings and cater for leisure or
teambuilding, in small groups or large, and are suitable for
consumers, businesses and other organisations. Having been
re-admitted to AIM in May 2017, the Company has a strategy of
creating high quality premium games and experiences delivered
through multiple formats and which can incorporate branded IP
content.
CHIEF EXECUTIVE'S REPORT
INTRODUCTION
The six months ended 30 June may well have been the toughest
period on record for leisure businesses with government enforced
closures and consumers wary of socialising as a result of the
COVID-19 health crisis. Nevertheless, strong progress was achieved
in the period prior to the UK lockdown which endured from 21 March
2020 to the period end, as well as encouraging signs of recovery
post period end and significant strategic and operational progress
helped by supportive property conditions.
Notwithstanding the impact of COVID-19, Adjusted EBITDA loss in
the period reduced by 23% to GBP816k (2019: GBP1,059k). At a
divisional level, site level EBITDA from our owner-operated sites
grew 65% to GBP254k ( 2019: GBP154k) helped by the UK Government's
furlough scheme, rates holiday and rates grants. Our franchise
business also made a positive contribution of GBP136k helped by
tight cost control during lockdown. As set out more fully below, we
carefully managed cash during the period of closure, and together
with the new money raised from our fundraising announced in July
2020, this provides the Company with the cash resources with which
to continue the implementation of our strategy.
The Company has had to adapt during lockdown and I am very
pleased with the resilience the organisation has shown through
innovation leading to the launch of a number of new product lines
which can be played remotely. This is a credit to our workforce and
testament to the creativity and energy within the organisation. We
believe these new propositions have a long-term future in our
portfolio and will enable us to access markets which we have not
previously addressed.
Since the period end, all nine of our Escape Hunt branded sites
in the UK have re-opened and trading performance has, to date, been
encouraging. We have also opened a new site in Norwich on 23
September 2020 and our site in Basingstoke is well advanced and
scheduled to open in October 2020. We have exchanged and completed
contracts and are on site at a new site in Cheltenham and are in
advanced legal discussions on a further two sites. Further detail
on our progress since the period end and on our strategic
objectives is set out below.
UK OWNED SITES
Revenue from the UK owner-operated sites was GBP1,017k (H1 2019:
GBP1,675k) reflecting the closure of sites from 21 March 2020 to
the end of the period. The impact of COVID-19 began to be felt in
early March 2020, culminating in the mandatory closure of all
leisure facilities with effect from 21 March 2020. In the nine
weeks to 1 March 2020, revenue from owner-operated sites rose 65%
compared to the same period in 2019, and 55% on a like for like
basis. As at 1 March 2020, the 12-week rolling average
like-for-like sales growth in the oldest three sites (Birmingham,
Leeds, and Bristol) was 25% year-on-year, and 59% across all eight
Escape Hunt branded sites which were open in the same period a year
previously. Our sites had been open for 12 weeks of the current
period before facing mandatory closures on 21 March 2020. In that
12-week period, revenue from our owner-operated estate was up 44%
compared to the same period in 2019.
Before the onset of COVID-19, the average weekly sales and
EBITDA figures for our eight more mature sites were meeting the
Board's site level revenue and EBITDA targets. Notwithstanding the
attainment of these targets, like-for-like growth remained strong,
operating materially ahead of the mature site like-for-like target
and giving us confidence in the potential returns that we believe
might be achieved in future. The operational gearing at site level
means that as sales increase the relative flow through to EBITDA is
higher. This, together with plans to further improve site labour
efficiency, provide support for the Board's belief that the
performance in 2019 and early 2020 has established the blueprint
for a profitable, cash generative business.
Site level EBITDA in the 12 weeks prior to COVID-19 closures was
up around five times compared to the same period in 2019. This
included losses in the two weeks immediately preceding national
lockdown-enforced closures and before the introduction of
furlough.
Our new site at Birmingham Resorts World opened in December 2019
and was trading ahead of plan prior to the onset of COVID-19. Sites
at Basingstoke and Norwich were in build, well advanced and due to
open towards the end of Q1 2020 but were put on hold once COVID-19
impacted. Activity has since resumed, and we were delighted to have
opened our site in Norwich to the public on 23 September 2020.
Further detail on our progress since the period end is set out
below.
FRANCHISE OPERATIONS
International franchise
As with our UK owner-operated sites, our existing franchise
estate suffered significant reductions in revenue due to mandated
closures as a result of the pandemic. Franchise revenue in the
first half of the year fell to GBP249k from GBP533k in the same
period in 2019. We were able to mitigate some of this reduction
through cost control, reducing costs directly associated with
servicing our franchise network by 71%, resulting in the
contribution from our franchise network falling only 13% to GBP139k
(H1 2019: GBP156k).
The environment has been tough for many of our franchise
operators. A number are under financial pressure and, where we have
been able, we have worked proactively with them to provide support,
including granting fee holidays for the fixed fee component of
their franchise fees. During the period two legacy direct franchise
relationships were terminated, one in Philippines and one in
Mexico. For both, trading had not been profitable before COVID-19.
At the half-year end our franchise estate comprised 38 franchisee
sites in 15 countries compared to 40 at the end of calendar year
2019. Whilst most franchisee sites have re-opened and are again
trading, 6 sites had not yet re-opened as at 15 September 2020. It
is possible that some of these more marginal sites may not
re-open.
Amongst those sites that have re-opened, we have seen
encouraging revenue performance in areas such as Norway and parts
of France. Australia remains mixed due to the re-introduction of
lockdown measures in certain states. We have reached agreement with
our Middle East master franchise partner to bring the master
franchise in-house which would significantly increase the
contribution from that region provided that revenues return once
sites have fully re-opened. As a result, the Dubai site will become
an owner-operated site as soon as the agreement in concluded, which
we expect in the coming weeks. The expected cost to do so is not
material to Escape Hunt and we believe the longer-term prospects
for the region remain attractive. The individual who has managed
the master franchise and the local staff will all remain with the
business and continue to run the Dubai site under Escape Hunt
ownership and manage the other Middle East sub-franchisee sites as
before.
US franchise
The first site operated by our North American area
representative, PCH, opened successfully in Houston in March 2020
shortly before COVID-19 lockdowns were enforced. After a period of
closure, the site has since re-opened although local restrictions
remain in place.
Since the period end, PCH has made progress towards establishing
a site which will serve as a training centre for all franchisees
and potential franchisees recruited by PCH. Whilst COVID-19 has
delayed the anticipated roll-out in the US, we remain confident of
the prospects and are working closely with the team at PCH to
support their strategy. In line with our previous expectations, we
do not anticipate any revenue from the US franchise operation in
the current year.
IMPACT OF COVID-19
We took immediate action in early March 2020 to reduce costs and
cut capital expenditure as the potential impact of COVID-19 became
apparent. This included cutting all non-critical third-party costs,
furloughing over 120 of our staff, implementing pay reductions for
all staff, including a 25% pay reduction for senior staff and
non-executive directors waiving their fees during closure before
themselves being placed on furlough. We received some benefit from
Government grants through the rates scheme and continue to benefit
from the rates holiday provided to retail and leisure businesses
which continues until April 2021. We were able to defer most of our
rental payments as well as certain HMRC payments. In most cases, we
have subsequently been granted a rent holiday from landlords for
some or all of the period during which we were not able to open. As
a result of all these actions, we were able to restrict the net
cash used in operating activities during the six-month period to
GBP94k, with positive operating cashflow in January and February
offsetting approximately GBP350k of outflow in the remainder of the
period. It also reflects approximately GBP400k of deferrals most of
which will be caught up in the months following the period end.
Eight of our nine UK Escape Hunt branded sites re-opened on 11
July 2020, with the final site opening a week later. We took the
decision to close the Bournemouth site which had been operating as
the MacGuffin Project, as it had been loss making and the site was
not suitable to be upgraded to the Escape Hunt format.
NEW INITIATIVES
We were delighted to be able to launch a series of downloadable,
print and play games during lockdown. In addition, we launched a
remote play format which enables players collaborating remotely to
direct a games master around a physical room whilst solving
puzzles. We generated GBP53k of revenue from these initiatives
during the period and expect to continue to promote and develop
this side of our business.
We have used this new suite of products to further develop our
'Escape Hunt for Brands' proposition. In July, we announced the
launch of a download, print and play Doctor Who Experience as part
of our partnership with BBC Studios. In September, we announced a
new brand marketing partnership with Netflix in which Escape Hunt
will create and distribute a print and play at home game to
coincide with the release of the Netflix Original Film: Enola
Holmes.
We have also been developing the range of other remote and
outdoor games which we offer. To augment our existing offer, we
have recently signed a licensing agreement with a software provider
which gives us access to a platform on which we can develop our own
digital outdoor game content which we can promote alongside our
existing outdoor offerings. We have also secured rights to a number
of multi-player games which can be played remotely by larger
groups, hosted remotely by Escape Hunt, and which can be marketed
to retail or in a corporate or educational setting. The strategy
has seen some early success which we hope to build on. By way of
example, in early September, we were successful in selling a game
to a UK based corporate which will have up to 100 participants
playing in groups of five people, all hosted by Escape Hunt. We
expect this capability will form an increasingly important part of
our 'Escape Hunt for Business' and 'Escape Hunt for Education'
propositions, notably in a post COVID-19 world where many
companies, universities and other institutions are looking for
innovative ways to keep employees, students and other stakeholders
engaged and interacting.
FINANCIAL REVIEW
Group revenue was GBP1,306k (H1 2019: GBP2,208k) comprising
GBP1,017k (H1 2019: GBP1,675k) from owner-operated sites and
GBP287k (H1 2019: GBP533k) from the franchise network reflecting
over three months during which sites were closed. Downloadable
print and play games together with remote play contributed GBP53k
to revenue (H1 2019: GBPnil). Gross profit margin was broadly in
line with the comparable period in the prior year.
Site level EBITDA from the owner-operated sites was GBP254k (H1
2019: GBP154k) reflecting cost reductions and the benefit received
from Government support schemes during lockdown. The P&L
benefit from the Government rates holiday and rates-related grants
totalled GBP572k in the period of which GBP130k was received in
cash grants.
Central costs, including costs allocated to owner-operated sites
and the franchise network in aggregate fell 24% to GBP1,359k (H1
2019: GBP1,788k). The cost reductions came from temporary salary
reductions as outlined above as well as cuts to all non-critical
expenditure during the lockdown period. The success of all our head
office staff working from home has led to a decision to exercise a
break clause in our head office property lease which will now
terminate in Q1 2021 and is expected to lead to savings thereafter
of over GBP100k per annum. We will in future make use of more
flexible working arrangements whilst providing a location in
central London for colleagues to meet and work together when
necessary. We are also looking closely at all central costs as we
seek to permanently reduce costs in other areas.
Group Adjusted EBITDA loss reduced to GBP816k (H1 2019:
GBP1,059k).
Six months Six months
ended June ended June
2020 2019
GBP'000 GBP'000
Adjusted EBITDA (816) (1,059)
Amortisation of intangibles (1,078) (1,055)
Depreciation (1,111) (995)
Share-based payment
expense (5) -
----------- ------------
Operating loss (3,010) (3,109)
---------------------------- ----------- ------------
Group operating loss was GBP3,010k (H1 2019: GBP3,109k) and the
total comprehensive loss for the period was GBP3,073k (H1 2019:
GBP3,200k).
Cash was carefully managed in the period, with net cash used in
operating activities of GBP94k (H1 2019: GBP1,569k). The movement
was helped by GBP720k of positive working capital and other
non-cash movements. Approximately GBP350k of this was as a result
of a reduction in receivables, largely the collection of amounts
held on the balance sheet at 31 December 2019 which was expected,
and also a reduction in pre-payments due to deferrals. Most of the
balance of movement in working capital can be attributed to
deferred payments relating to property, HMRC payments and deferred
revenue which arose from games which had been booked prior to
lockdown most of which have been converted to vouchers for future
use. Since the period end, certain of our landlords have granted
rent holidays for some or all of the period of lockdown. The
benefit from this will unwind over the remaining course of the
respective leases, whilst other deferrals will be cash settled in
the months following the period end.
GBP634k ( H1 2019: GBP734k) was invested in tangible capital
expenditure including fit-out work at both Norwich and Basingstoke,
games production for Norwich, Basingstoke and some advance
purchases for Cheltenham, and the production of our new Doctor Who
game, A Dalek Awakens, which was launched in March 2020.
The Group had GBP1,114k cash on hand at the end of the period
(H1 2019: GBP3,922k). Cash has subsequently been boosted by the
fund raising which closed on 1 July 2020. Cash on hand at the end
of August was GBP4.3m.
STRATEGY
We have set out a five-point plan to build shareholder
value:
1. Roll-out of owner-operated network through direct investment
2. Deliver US Franchise network in partnership with PCH
3. Sustain and support growth in existing franchise network;
sign further master franchise agreements
4. Broaden the product offering and market reach
5. Invest in infrastructure to improve efficiency and scalability
In the medium term, we aim to get to 20 UK owner-operated sites
and have a longer-term ambition of 50 sites. We have made good
progress since the period end. On 23 September 2020 we opened our
new Norwich site to the public. Work at Basingstoke is near
completion and the public opening is planned in October. We have
exchanged contracts on a site at the Brewery Quarter in Cheltenham
and the first games have been delivered to site with installation
due to commence shortly. Similarly, we have agreed heads of terms
and are close to exchanging contracts for a site in the Intu Centre
in Watford and games are under construction for installation there
too. We are in the process of finalising legal documents for a site
in Kingston where likewise we have agreed heads of terms. In all
three of these most recent sites, we have been able to secure terms
which we believe are substantially more favourable than would have
been the case pre-COVID-19. We have a further pipeline of sites
under discussion, a number of which are in locations which would
previously have been too expensive or unavailable. Our intention is
to agree deals in which the landlord shares a greater proportion of
the trading risk thereby reducing the operational gearing and
downside risk to Escape Hunt.
The US is key to our ambitions for our franchise business and we
are working closely with our area representative, PCH, to support
them in their efforts to begin to roll our Escape Hunt franchises
in North America. As mentioned above, PCH has made progress on
their plans to establish a site that will serve as a training site
for franchise applicants.
Focus on the existing franchise network is currently on
supporting their recovery from COVID-19 closures.
Our plans to broaden the product offer and market reach are
progressing well, with early successes in our remote play games,
'Escape Hunt for Business', 'Escape Hunt for Education' and 'Escape
Hunt for Brands' propositions as outlined above.
In regard to our infrastructure, the development of a more
advanced games management platform is now complete and will be
rolled out at new sites as they are opened and in existing sites
where it is practicable to do so and is expected to lead to greater
labour efficiency. Work has also progressed on other projects
including data management and our e-commerce platform.
BOARD CHANGES
I am delighted that we are today announcing the appointment of
John Story as a Non-Executive Director who joins the Board with
immediate effect. John brings a wealth of experience to the
Company, having held a number of senior positions in both private
and public companies. We look forward to his positive contribution.
Adrian Jones, who is based in Malaysia and was one of the original
management team which established Escape Hunt prior to its
acquisition by Dorcaster and Admission to AIM, stepped down from
his position on the Board as a Non-Executive Director at the end of
May 2020. We mentioned at the time that we would appoint a UK based
replacement.
POST PERIOD TRADING AND OUTLOOK
Trading in our UK owner-operated sites has been encouraging
since we re-opened in July 2020. We initially chose to open sites
on Thursdays to Sundays only, with the exception of the Summer Bank
Holiday on 31 August 2020 and have since extended our opening from
Wednesday to Sunday. In the first eight weeks after re-opening,
sales have grown from an initial level of around 25% of the
equivalent week's sales in 2019 to over 90% of the equivalent prior
year sales in each of the last two weeks of the first eight-week
period. September has, as expected, seen the pace of recovery
soften, although sales in the six weeks to 20 September were
nevertheless an encouraging 72% of the same period in 2019.
Additionally, helped by the Government's flexible furlough
scheme and our reduced operating hours, we have been able to
operate sites significantly more efficiently with lower labour cost
ratios than we have historically been able to achieve. As expected,
the first four weeks following re-opening generated site level
EBITDA losses as the level of sales was not sufficient to cover
fixed costs, including property. However, in the six-week period to
20 September growth in sales resulted in a positive site level
EBITDA which was approximately 33% higher than the site level
EBITDA in the equivalent six-week period in 2019. Whilst the period
under consideration is admittedly short, the performance is
encouraging, in particular the significantly higher profit
conversion ratios achieved. The experience has also served as an
impetus to re-look at our labour scheduling models to see how we
might be able to continue to achieve the same level of efficiency
without the benefit of Government flexible furlough. Whilst it is
unlikely that we will be able to fully replicate the flexibility
offered by the current flexible furlough scheme, we are optimistic
of being able to improve our overall labour cost ratios at site
level once furlough ends.
We believe it likely that many smaller competitors will not
survive the economic downturn. In contrast, the strength of our
balance sheet following our recent fund raise gives us considerable
resilience and opportunity to make market share gains as a
result.
Our teams worked very hard to ensure that all our sites could be
considered 'COVID-secure' on re-opening, and it has therefore been
tremendously encouraging to see consumers returning with
confidence. Perhaps the most pleasing aspect since re-opening is
the fact that we have continued to receive five-star reviews in all
our UK locations. In August we were delighted to be awarded
Travellers' Choice awards in all eight of our sites which have been
open for more than 12 months by TripAdvisor(TM). Each year,
TripAdvisor(TM) combs through reviews, ratings and saves from
travellers everywhere and uses the information to award to the very
best. The awards place all our longer standing sites in the top 10%
of attractions worldwide. We were equally delighted that our newest
site at Birmingham Resorts World, which only opened in December
2019, and is therefore too new to be eligible for a Traveller's
choice award, was ranked the top attraction in Birmingham and the
West Midlands, and number seven across the whole of the UK.
We believe conditions in the property market are also moving in
our favour, as we are seeing a number of opportunities in desirable
locations on attractive financial terms. We expect these conditions
to underpin the attractiveness of our UK site roll-out
strategy.
We are, however, aware of the growing rate of COVID-19
infections and the likelihood of further restrictions being
imposed, whether national or local, which may impact sentiment and
performance. Indeed, since the tightening of local restrictions in
areas such as Birmingham, Liverpool and Manchester, it has been
evident that our sites in those locations have underperformed other
parts of the network.
With the exception of six of our thirty eight sites, our
franchise network has also re-opened. The rate of recovery varies
in different parts of the world, but overall we remain confident
that key regions are recovering and will continue to perform in
future. We remain positive about the prospects for our US business
through PCH.
We were encouraged by the performance of our business prior to
the pandemic and by the fact that at that time, all our UK sites
had five-star ratings and were ranked in the top four on
TripAdvisor(TM) in their respective cities under fun and games.
Given the possibility of further restrictions being imposed, we
expect Covid to have an ongoing impact on our performance for the
foreseeable future. However we remain very confident that our
strategy will deliver our expected levels of growth and performance
once life returns to normal.
Richard Harpham
Chief Executive Officer
29 September 2020
STATEMENT OF DIRECTORS' RESPONSIBILITIES IN RESPECT OF THE
CONDENSED INTERIM REPORT AND CONDENSED FINANCIAL STATEMENTS
The directors confirm that the condensed consolidated interim
financial information has been prepared in accordance with
International Accounting Standard 34, 'Interim Financial
Reporting', as adopted by the European Union and that the Interim
Report includes a fair review of the information required by DTR
4.2.7R and DTR 4.2.8R, namely:
-- an indication of important events that have occurred during
the first six months and their impact on the condensed
consolidated interim financial information, and a description
of the principal risks and uncertainties for the remaining
six months of the financial year; and
-- material related-party transactions in the first six months
and any material changes in the related-party transactions
described in the last Annual Report.
The directors of Escape Hunt plc are listed on page 23 of this
report. A list of current directors is maintained on the Company's
web site: http://investors.escapehunt.com/
By order of the Board
Richard Rose
Non-Executive Chairman
29 September 2020
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 30 JUNE 2020
Six Six
months months
ended ended
30 June 30 June 2019
2020 (Restated)
Note Unaudited Unaudited
GBP'000 GBP'000
Continuing operations
Revenue 5 1,306 2,208
Cost of sales (406) (595)
Gross profit 900 1,613
Other income 130 -
Administrative expenses (4,040) (4,722)
Operating loss (3,010) (3,109)
Adjusted EBITDA (816) (1,059)
Amortisation of intangibles (1,078) (1,055)
Depreciation (1,111) (995)
Share-based payment expense (5) -
--------- ------------
Operating loss (3,010) (3,109)
------------------------------------------ ---- --------- ------------
Fair value gain on disposal of subsidiary - 10
Interest received 9 18
Lease finance charges 11 (88) (87)
Loss before taxation (3,089) (3,168)
Taxation 7 (2) (2)
Loss after taxation (3,091) (3,170)
Other comprehensive income:
Items that may or will be reclassified
to profit or loss:
Exchange differences on translation
of foreign operations 18 (30)
Total comprehensive loss (3,073) (3,200)
Loss attributable to:
Equity holders of Escape Hunt plc (3,091) (3,119)
Non-controlling interests - (51)
--------- ------------
(3,091) (3,170)
--------- ------------
Total comprehensive loss attributable
to:
Equity holders of Escape Hunt plc (3,073) (3,149)
Non-controlling interests - (51)
--------- ------------
(3,073) (3,200)
--------- ------------
Loss per share attributable to equity
holders:
Basic (Pence) 6 (11.48) (14.57)
--------- ------------
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2020
As at
2012201 As at
2 2012201 2
30 June 31 December
2020 2019
Note Unaudited Audited
GBP'000 GBP'000
ASSETS
Non-current assets
Property, plant and equipment 8 3,606 3,935
Right-of-use assets 9 2,642 2,470
Intangible assets 10 1,990 2,906
Rental deposits 26 26
Loan to franchisee 348 300
8,612 9,637
Current assets
Inventories 12 12
Trade receivables 114 370
Other receivables and prepayments 379 473
Cash and bank balances 1,114 2,171
1,619 3,026
TOTAL ASSETS 10,231 12,663
LIABILITIES
Current liabilities
Trade payables 445 317
Deferred income 478 360
Other payables and accruals 1,157 948
Lease liabilities 11 342 304
2,422 1,929
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30
JUNE 2020 (continued)
As at As at
30 June 31 December
2020 2019
Note Unaudited Audited
GBP'000 GBP'000
Non-current liabilities
Deferred income 214 262
Provisions 101 74
Lease liabilities 11 2,462 2,298
-
--------- -----------
2,777 2,634
TOTAL LIABILITIES 5,199 4,563
NET ASSETS 5,032 8,100
EQUITY
Capital and reserves attributable to
equity holders of Escape Hunt Plc
Share capital 13 336
336
Share premium account 24,717 24,717
Merger relief reserve 4,756 4,756
Accumulated losses (24,894) (21,803)
Currency translation reserve (1) (19)
Capital redemption reserve 46 46
Share-based payment reserve 72 67
TOTAL EQUITY 5,032 8,100
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to owners of the parent
Share Merger Currency Capital Share-based
Share premium relief translation redemption payment Accumulated Non-controlling
capital account reserve reserve reserve reserve losses Total interest Total
Six months
ended
30 June
2020 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------- -------- -------- ------------ ----------- ------------ ------------ -------- ---------------- --------
Balance as
at
1 January
2020 336 24,717 4,756 (19) 46 67 (21,803) 8,100 - 8,100
Loss for
the period - - - - - - (3,091) (3,091) - (3,091)
Other
comprehensive
income - - - 18 - - - 18 - 18
-------- -------- -------- ------------ ----------- ------------ ------------ -------- ---------------- --------
Total
comprehensive
loss - - - 18 - - (3,091) (3,073) - (3,073)
-------- -------- -------- ------------ ----------- ------------ ------------ -------- ---------------- --------
Share-based
payment
charge - - - - - 5 - 5 - 5
-------- -------- -------- ------------ ----------- ------------ ------------ -------- ---------------- --------
Transactions
with owners - - - - - 5 - 5 - 5
-------- -------- -------- ------------ ----------- ------------ ------------ -------- ---------------- --------
Balance as
at 30 June
2020 336 24,717 4,756 (1) 46 72 (24,894) 5,032 - 5,032
-------- -------- -------- ------------ ----------- ------------ ------------ -------- ---------------- --------
Six months
ended
30 June
2019 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------- -------- -------- ------------ ----------- ------------ ------------ -------- ---------------- --------
Balance as
at
1 January
2019 253 21,076 4,756 11 46 55 (15,741) 10,456 (8) 10,448
Adjustment
from adoption
of IFRS 16 - - - - - - (69) (69) - (69)
-------- -------- -------- ------------ ----------- ------------ ------------ -------- ---------------- --------
Adjusted
balance at
1 January
2019 253 21,076 4,756 11 46 55 (15,810) 10,387 (8) 10,379
Loss for
the period - - - - - - (3,119) (3,119) (51) (3,170)
Other
comprehensive
income - - - (30) - - - (30) - (30)
-------- -------- -------- ------------ ----------- ------------ ------------ -------- ---------------- --------
Total
comprehensive
loss - - - (30) - - (3,119) (3,149) (51) (3,200)
-------- -------- -------- ------------ ----------- ------------ ------------ -------- ---------------- --------
Issue of
shares 83 3,917 - - - - - 4,000 - 4,000
Share issue
costs - (276) - - - - - (276) - (276)
Disposal
of subsidiary - - - - - - - - 59 59
Share-based
payment charge - - - - - - - - - -
-------- -------- -------- ------------ ----------- ------------ ------------ -------- ---------------- --------
Transactions
with owners 83 3,641 - - - - - 3,724 59 3,783
-------- -------- -------- ------------ ----------- ------------ ------------ -------- ---------------- --------
Balance as
at 30 June
2019 336 24,717 4,756 (19) 46 55 (18,929) 10,962 - 10,962
-------- -------- -------- ------------ ----------- ------------ ------------ -------- ---------------- --------
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 30 JUNE 2020
Six months Six months
Ended Ended
30 June 2020 30 June 2019
Unaudited Unaudited
Note GBP'000 GBP'000
Cash flows from operating activities
Loss before income tax (3,089) (3,168)
Adjustments:
Depreciation of property, plant and
equipment 921 821
Depreciation of right-of-use assets 190 174
Amortisation of intangible assets 1,078 1,055
Fair value gain on disposal of subsidiary - (10)
Write-off of property, plant and equipment - -
Share-based payment expense 5 -
Interest income (9) (18)
Operating cash flow before working
capital changes (904) (1,146)
Decrease in trade and other receivables 350 109
Decrease / (increase) in inventories - (16)
Foreign currency translation differences 26 (39)
Increase / (decrease) in trade and
other payables 337 (315)
Increase in provisions 26 26
Increase / (decrease) in deferred
income 69 (170)
Cash used in operations (96) (1,551)
Income taxes paid 2 (18)
Net cash generated used in operating
activities (94) (1,569)
Cash flows from investing activities
Purchase of property, plant and equipment (634) (734)
Disposal of property, plant and equipment 40 20
Purchase of intangibles (170) (92)
Disposals of intangibles 7 -
Payment of deposits - (1)
Loans advanced to franchisees (47) -
Cash less overdrafts on derecognition
of subsidiary - 29
Interest received 9 18
Net cash used in investing activities (795) (760)
Cash flows from financing activities
Proceeds from issue of ordinary shares - 4,000
Share issue costs - (276)
Repayment of finance leases (161) (140)
Net cash from financing activities (161) 3,584
Net increase / (decrease) in cash
and bank balances (1,050) 1,255
Cash and cash equivalents at beginning
of period 2,171 2,657
Exchange rate changes on cash held
in foreign currencies (7) 10
Cash and cash equivalents at end of
period 1,114 3,922
NOTES TO THE UNAUDITED INTERIM REPORT
FOR THE SIX MONTHSED 30 JUNE 2020
1. General information
The Company was incorporated in England on 17 May 2016 under the
name of Dorcaster Limited with registered number 10184316 as a
private company with limited liability under the Companies Act
2006. The Company was re-registered as a public company on 13 June
2016 and changed its name to Dorcaster Plc on 13 June 2016. On 8
July 2016, the Company's shares were admitted to AIM.
Until its acquisition of Experiential Ventures Limited on 2 May
2017, the Company was an investing company (as defined in the AIM
Rules for Companies) and did not trade.
On 2 May 2017, the Company completed the acquisition of the
entire issued share capital of Experiential Ventures Limited.
Experiential Ventures Limited was the holding company of the Escape
Hunt Group which is is a global provider of live 'escape the room'
experiences.
On 2 May 2017, the Company's name was changed to Escape Hunt
plc.
The Company's registered office is 3 Pear Place, London SE1
8BT.
The consolidated financial information represents the
consolidated results of the Company and its subsidiaries, (together
referred to as "the Group"). The Consolidated Interim Financial
Statements are presented in Pounds Sterling, which is the currency
of the primary economic environment in which the Company
operates.
2. Basis of preparation
These interim consolidated financial statements have been
prepared in accordance with IAS 34 Interim Financial Reporting.
They do not include all disclosures that would otherwise be
required in a complete set of financial statements and should be
read in conjunction with the 2019 annual report. The statutory
financial statements for the year ended 31 December 2019 were
prepared in accordance with International Financial Reporting
Standards as adopted by the EU ("Adopted IFRS") and in accordance
with the requirements of the Companies Act 2006. The auditors
reported on those financial statements; their Audit Report was
unqualified.
The interim financial information is unaudited and does not
constitute statutory accounts as defined in the Companies Act
2006.
The interim financial information was approved and authorised
for issue by the Board of Directors on 28 September 2020.
3. Going concern
The financial statements have been prepared on a going concern
basis which contemplates the continuity of normal business
activities and the realisation of assets and the settlement of
liabilities in the ordinary course of business.
The directors have assessed the Group's ability to continue in
operational existence for the foreseeable future in accordance with
the Financial Reporting Council's Guidance on the going concern
basis of accounting and reporting on solvency and liquidity risks
issued in April 2016.
The Board has prepared detailed cashflow forecasts covering a
forty-two-month period from the reporting date. The forecasts take
into account the impact of COVID-19 on the business during the
period between 20 March 2020 and 11 July 2020 when all the Group's
UK owner-operated sites were closed. During the same period, many
of the Group's franchisee operators likewise were closed and were
not able to pay regular service fees. For a number of them, the
Group agreed to grant payment holidays. In addition, various
payments were deferred during the lockdown period, including
employment tax and national insurance payments and, in the case of
certain sites, rent payments. Some of these deferred payments have
been waived by landlords, but most will need to be caught up. Work
at two new sites had commenced prior to the lockdown but was
subsequently stopped. This work has resumed and across our UK
estate, leading to resumed capital expenditure, there has been a
need for additional expenditure to ensure that existing sites have
been able to re-open in accordance with guidelines. These factors
have all been taken into account in the forecasts.
On 1 July 2020, the Group completed a fund raising process which
resulted in the receipt of GBP4.1 million (net of expenses) raised
through the issue of GBP340,000 convertible loan notes and the
balance through new equity issuance by means of a placing, a
subscription and an open offer. The convertible loan notes are
redeemable, if not previously converted, five years and one day
from the date of issue and carry 10 per cent interest. The
interest, which may also be converted into equity, is payable
alongside the principal at the end of the term.
Taking into account the receipt of this new funding, and the
trading since re-opening sites and the end of August the Group has
considered a number of potential scenarios for the ongoing recovery
of trading. The Group also plans to resume the roll out new sites
in the UK which are expected to contribute to performance in
future.
The central case builds on the performance to date and assumes
that it takes six months for trading to normalise post COVID-19.
Resumption of activity at franchise sites is expected broadly to
mirror that of the UK. During this time the Group expects to
continue its roll out of new sites and plans to complete and open
the sites in Norwich and Basingstoke which were put on hold, and to
open up to an additional two sites before the end of 2020. Further
openings are assumed for 2021 and in order to achieve the objective
of 20 UK owner-operated sites within two years of the recent fund
raising, the Group would expect to access debt funding. This is not
yet secured. In the event that debt funding is not available, the
pace of roll-out of new sites from Q2 2021 will be slowed, with
cash managed accordingly. In the central case, with or without
access to debt, the Group believes it has sufficient resources for
its present needs.
The Group has also considered a 'downside' scenario. In this
scenario the Group has assessed the potential impact of a second
wave of COVID-19 with closures enforced for a further two months
between October and December. The pace of recovery after the second
closure is assumed to be much slower, with trading taking 12 months
to resume to 'normal' levels. The scenario also considers a delay
in progress in the US. In this scenario, the Group believes it can
take mitigating actions to preserve cash. Principally the roll-out
of further sites beyond four new sites would be stopped and cost
saving measures would be introduced at head office. The Group has
already taken steps to reduce its head office property costs, and
further cost reductions could be targeted in both people and areas
such as IT, professional services and marketing. Other areas of
planned capital expenditure would also be curtailed. Taking into
account the mitigating factors, the Group believes it would have
sufficient resources for its present needs.
Based on the above, the directors consider there are reasonable
grounds to believe that the Group will be able to pay its debts as
and when they become due and payable, as well as to fund the
Group's future operating expenses. The going concern basis
preparation is therefore considered to be appropriate in preparing
these financial statements.
4. Significant accounting policies
The Company has applied the same accounting policies,
presentation, methods of computation, significant judgements and
the key sources of estimation of uncertainties in its interim
consolidated financial statements as in its audited financial
statements for the year ended 31 December 2019, which have been
prepared in accordance with International Financial Reporting
Standards as adopted for use by the European Union.
Government Grants
During the period, the Company received benefits from Government
grants. Revenue based Government grants are recognised through the
consolidated statement of comprehensive income by netting off
against the costs to which they relate. Where the grant is not
directly associated with costs incurred during the period, it is
recognised as 'other income'.
5. Segment information
Management considers that the Group has two operating segments.
Revenues are reviewed based on the nature of the services provided
as follows:
1. The franchise business, where all franchised branches are
operating under effectively the same model; and
2. The owner-operated branch business, which consisted of 10
sites in the UK during the six months to 30 June 2020.
The Group operates on a global basis. At present, the Company
has active franchisees in over 15 countries. The Company does not
presently analyse or measure the performance of the franchising
business into geographic regions or by type of revenue, since this
does not provide meaningful analysis to managing the business.
Segment results, assets and liabilities include items directly
attributable to a segment as well as those that can be allocated on
a reasonable basis.
The cost of sales in the owner-operated business comprise site
staff costs and other costs directly related to revenue generation.
In the franchisee business, the cost of sales comprises principally
the creation and shipping of games to franchisees.
Owner Franchise
operated operated Unallocated Total
Six months ended 30 June
2020 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 1,017 287 2 1,306
Cost of sales (362) (38) (6) (406)
--------- --------- ----------- -------
Gross profit 655 249 (4) 900
Other income 130 - - 130
Site level operating costs (745) - - (745)
IFRS 16 Adjustment 214 - - 214
--------- --------- ----------- -------
Site level EBITDA 254 249 (4) 499
Centrally incurred overheads (81) (110) (1,168) (1,359)
IFRS 16 Adjustment - - 44 44
--------- --------- ----------- -------
EBITDA 173 139 (1,128) (816)
Interest income - - 8 8
Finance lease charges (82) - (6) (88)
Depreciation and amortisation (1,087) (9) (1,092) (2,188)
Share-based payment expenses - - (5) (5)
Profit/(loss) from operations
before tax (996) 130 (2,223) (3,089)
Taxation - (2) - (2)
--------- --------- ----------- -------
Profit / (loss) for the
period (996) 128 (2,223) (3,091)
--------- --------- ----------- -------
Other information :
Non-current assets 6,140 354 2,117 8,612
--------- --------- ----------- -------
Owner Franchise
operated operated Unallocated Total
Six months ended 30 June
2019 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 1,675 533 - 2,208
Cost of sales (595) - - (595)
--------- --------- ----------- -------
Gross profit 1,080 533 - 1,613
Other income - - - -
Site level operating costs (1,111) - - (1,111)
IFRS 16 Adjustment 185 - - 185
--------- --------- ----------- -------
Site level EBITDA 154 533 - 687
Centrally incurred overheads (395) (377) (1,016) (1,788)
IFRS 16 Adjustment - - 42 42
--------- --------- ----------- -------
EBITDA (241) 156 (974) (1,059)
Interest income - - 18 18
Finance lease charges (81) - (6) (87)
Depreciation and amortisation (1,949) (66) (35) (2,050)
Share-based payment expenses - - - -
Profit/(loss) from operations
before tax (2,271) 90 (987) (3,168)
Taxation - (2) - (2)
--------- --------- ----------- -------
Profit / (loss) for the
period (2,271) 88 (987) (3,170)
--------- --------- ----------- -------
Other information :
Non-current assets 10,105 919 - 11,024
--------- --------- ----------- -------
6. Loss per share
Basic loss per share is calculated by dividing the loss
attributable to equity holders by the weighted average number of
ordinary shares in issue during the period. Diluted loss per share
is not presented as the potential issue of ordinary shares from the
exercise of warrants are anti-dilutive.
Six months Six months
ended Ended
30 June 30 June
2020 2019
Unaudited Unaudited
GBP GBP
Loss after tax (GBP000) (3,091) (3,119)
Weighted average number of
shares:
* Basic and diluted 26,925,925 21,401,063
Loss per share
* Basic and diluted 0.1148 0.1457
7. Taxation
The tax charge is based on the expected effective tax rate for
the year. The Group estimates it has tax losses of approximately
GBP19.1m as at 30 June 2020 which, subject to agreement with
taxation authorities, would be available to carry forward against
future profits. The estimated tax value of such losses amounts to
approximately GBP3.8m.
8. Property, plant and equipment
Escape
Leasehold Office Furniture games Total
property equipment Computers and fixtures
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 31 December 2019 2,776 9 75 238 3,071 6,169
Additions 361 6 24 9 234 634
Disposals - - - - (40) (40)
As at 30 June 2020 3,137 15 99 247 3,265 6,763
------------ -------------- --------- ---------------- ----------- -----------
Accumulated depreciation
At 31 December 2019 (749) (8) (34) (50) (1,393) (2,234)
Depreciation charge (271) (2) (29) (34) (585) (921)
As at 30 June 2020 (1,021) (11) (63) (84) (1,978) (3,157)
Carrying amounts
At 31 December 2019 2,027 1 41 188 1,678 3,935
============ ============== ========= ================ =========== ===========
At 30 June 2020 2,116 4 36 163 1,287 3,606
============ ============== ========= ================ =========== ===========
9. Right-of-use assets
As at As at
30 June 31 Dec
2020 2019
GBP'000 GBP'000
Land and buildings - right-of-use
asset 3,127 3,119
Additions 363 8
Less: Accumulated depreciation
At the beginning of the period (658) (310)
Depreciation charged for the period (190) (347)
Net book value 2,642 2,470
--------- --------
The additions of GBP363,000 in the period relate to a new lease
signed. The Group leases land and buildings for its offices and
escape room venues under agreements of between five to fifteen
years with, in some cases, options to extend. The leases have
various escalation clauses. On renewal, the terms of the leases are
renegotiated.
10. Intangible assets
Internally
Trademarks Intellectual generated Franchise
and patents property IP agreements Portal Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 31 December
2019 78 10,195 568 802 269 11,912
Additions - - 170 - - 170
Disposals / adjustments - (1) (7) - - (8)
As at 30 June
2020 78 10,194 731 802 269 12,074
------------- ------------- ----------- ------------ -------- ---------
Accumulated amortization
At 31 December
2019 (29) (8,353) (151 (306) (167) (9,006)
Amortisation (9) (783) (116) (143) (27) (1,078)
At 30 June 2020 (38) (9,136) (267) (449) (195) (10,085)
============= ============= =========== ============ ======== =========
Carrying amounts
At 31 December
2019 49 1,842 418 497 101 2,906
========
At 30 June 2020 40 1,058 465 353 74 1,990
============= ============= =========== ============ ======== =========
11. Lease liabilities
Six months Six months
ended ended
30 June 30 June
2020 2019
GBP'000 GBP'000
In respect of right-of-use assets
Recognised on adoption of IFRS 16 on
1 January 2,602 2,878
Additions during the period 363 8
Interest Incurred 88 87
Repayments during the period (249) (235)
Lease liabilities at end of period 2,804 2,738
----------- -----------
As at As at
30 June 30 June
2020 2019
GBP'000 GBP'000
Maturity
Current 342 293
Non-current 2,462 2,445
Total lease liabilities 2,804 2,738
12. Share capital
Six months Year
ended ended
30 June 31 December
2020 2019
Unaudited Audited
GBP'000 GBP'000
As at beginning of period / year
* 26,925,925 (2019: 20,259,258)
Ordinary shares of 1.25 pence each 336 253
Issued during the period / year
* 6,666,667 Ordinary shares - 83
As at end of period / year
* 26,925,925 (2019: 26,925,925)
Ordinary shares of 1.25 pence each 336 336
----------- ----------------------------------
During the six months ended 30 June 2020, there were no changes
to the share capital of the company
Share option and incentive plans
On 24 January 2019, the Company issued options to subscribe for
137,931 ordinary shares of 1.25 pence each at an exercise price of
87 pence per share to an employee of the Company, under the terms
of the Escape Hunt Plc Enterprise Management Incentive Scheme 2018.
No options were exercised, forfeited or lapsed during the period.
Accordingly, all options remained in place at 30 June 2020. The sum
of GBP5,000 has been recognized as a share-based payment and
charged to the Income Statement during the period (six months to
June 2019 - GBPnil; year ended Dec 2019 - GBP12,000).
Subsequent to the year end, a new share incentive plan has been
put in place and all options outstanding as at 30 June 2020 have
been cancelled.
13. Key management personnel compensation
Six months Six months
ended ended
30 June 30 June
2020 2019
Unaudited Unaudited
GBP'000 GBP'000
Salaries and benefits (including directors) 219 405
Share-based payments 5 -
Social security costs 39 47
Other post-employment benefits 10 11
Less amounts capitalised (34) -
Total 239 463
------------- -------------
Related party transactions
During the period under review, in addition to those disclosed
elsewhere in these financial statements, the following significant
transactions took place at terms agreed between the parties:
Invoices for services of GBP4,125 and other benefits of GBP92
were paid to a close family member of one of the directors (six
months ended 30 June 2019: salary of GBP16,000 and other benefits
GBP1,000) on an arm's length basis.
14. Government Grants and Government Assistance
The following Government grants were received and have been
recognised during the period:
Six months Six months
ended ended
30 June 30 June
2020 2019
Unaudited Unaudited
GBP'000 GBP'000
Coronavirus Job Retention Scheme grants 407 -
Local authority Small Business Grants 130 -
Total 537 -
------------- -------------
In addition, the Company benefitted from Business Rates Relief
introduced for the retail, hospitality and leisure industries. The
benefit in the period was GBP35k (2019: GBPnil)
15. Seasonality of the Group's business
There are no seasonal factors which materially affect the
operations of any company in the Group.
16. Subsequent Events
Fund raise
On 12 June 2020 the Company announced a conditional GBP4.0m
fundraise (before expenses) through an accelerated bookbuild, share
subscription and convertible loan note issue and launched an open
offer to raise up to a further GBP0.5m from existing shareholders.
The shareholder meeting to approve the fund raise was held on 1
July 2020 at which all resolutions were passed and the fund raise
closed with a further GBP0.3m being raised through
the open offer. The total cash received; net of expenses was GBP4.1m.
The fund raise resulted in the issue of 53,017,013 Ordinary
Shares at 7.5 pence per share.
The fund raise also resulted in the issue of GBP340,000
convertible loan. The loan notes are convertible into ordinary
shares at a price of 9.0 pence per share. If not converted, the
principal and interest, which rolls up at 10 per cent per annum, is
all repayable five years and one day from the date of issue.
COVID-19
The UK Government mandated closure of all restaurants, bars,
clubs, gyms and leisure facilities, forcing closure of all the
Company's UK sites on 20 March 2020. The vast majority of the
Group's franchise network was also affected by similar mandatory
closures in other parts of the world. The Company's UK sites and
the many of the Group's franchise network remained closed as at 30
June 2020.
On 4 July 2020, the UK government lifted certain restrictions,
allowing sites to re-open subject to implementing various processes
and procedures aimed at minimising the risk of spreading COVID-19.
Eight of the Company's sites re-opened on 11 July 2020 with a ninth
opening a week later. However, the Company's site in Bournemouth
which did not operate under the Escape Hunt brand and which had
been loss making, has been permanently closed.
Whilst activity has been building and performance to the end of
August was encouraging, the pace and degree to which activity will
ultimately resume following the closures remains unknown. The
forced closures may also have had an ongoing impact on the
financial position and future financial performance of the
Company's franchise network, potentially impacting their ability to
pay outstanding and / or future franchise fees.
COMPANY INFORMATION
Directors
Richard Rose, Independent Non-Executive Chairman
Richard Harpham, Chief Executive Officer
Graham Bird, Chief Financial Officer
Karen Bach, Non-Executive Director
Company Secretary
Graham Bird
Company number
10184316
Registered address
3 Pear Place
London
SE1 8BT
Independent auditors
Crowe U.K. LLP
St. Bride's House
10 Salisbury Square
London EC4Y 8EH
Nominated adviser and joint broker
Shore Capital
Cassini House
57 St James's Street
London SW1A 1LD
Joint broker
Zeus Capital Limited
82 King Street
Manchester M2 4WQ
Registrars
Equiniti Limited
Aspect House
Spencer Road
Lancing
West Sussex
BN99 6DA
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