TIDMESC
RNS Number : 1599E
Escape Hunt PLC
04 November 2020
4 November 2020
This announcement contains inside information.
Escape Hunt plc (AIM: ESC)
("Escape Hunt" or the "Company")
Update on UK owner-operated estate
Escape Hunt, a global leader in the growing escape rooms sector,
announces an update on its UK owner operated estate in advance of
the second period of nationally enforced lockdown announced by the
UK Government and due to come into force on 5 November 2020
("Lockdown").
Progress on site roll-out
Escape Hunt is pleased to announce that it has exchanged
contracts for a site at the previous Intu centre in Watford.
Contracts are expected to complete within the next week. The
Watford site will be the Company's fourteenth owner operated site,
after the Brewery Quarter in Cheltenham and the recent acquisition
of the former franchisee site in Dubai.
Games for the Watford site have been manufactured and are
currently in transit for installation. Fit-out is expected to
commence later this month and, under the guidance currently
available, the Company does not expect any significant impact on
timing as a result of the Lockdown.
Fit-out at the Company's site at Brewery Quarter in Cheltenham
is substantially complete and, subject to any further COVID-related
restrictions, progress is not expected to be impacted by Lockdown.
The site was due to open during November 2020 but will now open as
soon as practicable once the Lockdown restrictions are lifted.
Recent trading
Revenue over the week beginning 26 October 2020 which coincided
with schools' half term week, including the sales from new sites
and digital products, was 25% ahead of the same period last year.
On a like-for-like basis, the Company's eight mature UK sites
traded at 96% of the 2019 level, despite four of the sites being
adversely affected by either the Government's tier 2, tier 3 or the
Scottish COVID-related restrictions. As previously announced,
Basingstoke opened to the public on 29 October 2020 and initial
trading has been the strongest in any of the Company's new sites to
date. The other recently opened site in Norwich delivered sales
usually associated with a fully mature site, despite it being only
five weeks old. In all the Company's UK owner-operated sites, the
EBITDA conversion ratios have been substantially better than in
prior periods, assisted by more efficient labour usage and
benefitting from the flexible furlough scheme and VAT
reductions.
Digital and remote-play products have also begun to contribute
meaningfully. Their turnover in recent weeks has been growing
strongly and the resultant EBITDA contribution has exceeded the
equivalent EBITDA from of a separate, mature site.
In the six weeks prior to half term week, trading at the
Company's UK owner-operated sites subject to the lowest level of
government restrictions had continued to enjoy an encouraging
performance. In contrast, sites which were subject to tier 2 or, in
particular tier 3 or the Scottish restrictions had seen an impact
through reduced turnover albeit that the higher EBITDA conversion
rates had resulted in positive EBITDA contribution from the estate
(before central costs) with overall performance ahead of
management's expectations.
The impact of lockdown
Following the strong half term trading, it is particularly
frustrating that under the new restrictions expected to come into
effect on Thursday 5 November, Escape Hunt's UK owner-operated
sites will be required to close during the Lockdown which is
currently anticipated to end on 2 December 2020.
However, staff will be eligible for the Government's furlough
scheme, which the Chancellor of the Exchequer has confirmed will
continue until 2 December. This, combined with stringent cost
control measures already in place, will facilitate the Company's
ability to manage cash during the lockdown period as was the case
earlier this year.
Commenting on the site developments and recent trading, Richard
Harpham, Escape Hunt's CEO said:
"Recent trading gives us cause for optimism in relation to our
UK owner-operated site strategy and our ability to recover once
lockdown restrictions are lifted. We have been enormously
encouraged by the performance of sites which have not been subject
to the most severe restrictions and, in particular, our new sites
in Norwich and Basingstoke, which have both traded strongly since
opening, vindicating our site choices.
We are delighted to have exchanged contracts on a site in the
former Intu centre in Watford which we believe has the potential to
be a very strong performer. Unless further changes are announced,
we do not expect the lockdown to have a significant impact on our
ability to fit-out the site. Whilst the opening of Cheltenham will
be delayed due to the lockdown, fit-out should be completed and the
site is expected to open as soon as practicable once the lockdown
restrictions are lifted.
Whilst it is hugely disappointing to be forced to close once
again, we enter the second lockdown with a suite of digital and
remote play options that did not exist six months ago, that are
beginning to contribute, and to which we will shift our focus
during this period of closure."
Enquiries
Escape Hunt plc
Richard Harpham (Chief Executive Officer)
Graham Bird (Chief Financial Officer) +44 (0) 20 7846
Kam Bansil (Investor Relations) 3322
Shore Capital - NOMAD and Joint Broker
Tom Griffiths, David Coaten (Corporate Advisory) +44 (0) 20 7408
Fiona Conroy (Corporate Broking) 4050
Zeus Capital - Joint Broker
John Goold +44 (0) 20 3829
Daniel Harris 5000
IFC Advisory - Financial PR
Graham Herring +44 (0) 20 3934
Florence Chandler 6630
Notes to Editors
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. (https://escapehunt.com/)
Facebook: EscapeHuntUK
Twitter: @EscapeHuntUK
Instagram: @escapehuntuk
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