TIDMXPF
RNS Number : 5196Q
XP Factory PLC
29 June 2022
29 June 2022
XP Factory Plc
("XP Factory", the "Company" or the "Group")
AGM statement
XP Factory (AIM: XPF.), a group of leading UK experiential
leisure businesses operating under the Escape Hunt(TM) and Boom
Battle Bar(TM) ("Boom") brands, is pleased to provide an update on
trading ahead of its Annual General Meeting which is being held at
10.00am today at the offices of Irwin Mitchell LLP, 40 Holborn
Viaduct, London EC1N 2PZ.
Results for the year to 31 December 2021 were announced on 31
May 2022 and included an update on trading. Further progress has
been made since then.
-- A further two Boom sites have opened in June 2022. Our newest
owner-operated site opened in Manchester and a further franchise
site opened in Ealing. The Boom estate today comprises 17 sites of
which four are owner operated and 13 are franchised.
-- We have commenced build on a further two Boom sites. There
are currently, in aggregate, six Boom sites in build; three of
which are to be owner operated and three will be franchised.
-- Eight Boom sites are in the advanced pipeline with more than
20 other Boom sites under active consideration, underpinning a
strong pipeline
-- As a result, the Board remains confident of achieving its
target of having 27 Boom sites open and trading by the end of the
calendar year. Within this number, the Company now expects at least
nine owner-operated sites - an increase from the seven initially
targeted.
-- The performance at our owner operated Boom sites continues to
develop positively, providing confidence that the range of target
site level turnover and profitability for different size mature
sites previously indicated will be achieved.
-- Boom franchise sites are performing in line with the Board's
expectations, providing further confidence in the concept and
commercial model
-- The return on capital expected from Boom owner operated sites
remains highly attractive, notwithstanding inflationary pressures
to fit out costs, with target cash on cash returns in excess of 50%
still achievable taking account of landlord contributions and
rent-free periods
-- Escape Hunt owner operated sites have continued to perform
well. The UK owner operated estate traded ahead of the Board's
expectations in Q1 2022 and has performed in line with expectations
to date in Q2 2022.
-- A new owner operated Escape Hunt site opened in Exeter in April 2022, co-located with Boom
-- Three further owner operated Escape Hunt sites are in build
in Edinburgh (co-located with Boom), Norwich and Bournemouth
-- Further Escape Hunt sites are currently under consideration,
providing a pipeline for continued growth
-- Total cash at the end of May 2022 was GBP6.8m
The pipeline for both Escape Hunt and Boom Battle Bar sites
planned to be opened in 2022 is under-pinned by sites in build and
the advanced pipeline. Evidence to date supports the range of
target box economics driven by strong returns on capital. As a
result, the Board is confident that the targeted run-rate sales and
EBITDA for sites open by the end of the year will be in line with
its expectations.
Within the context of the significant progress that has been and
continues to be made, the timing and order in which sites open is
very difficult to predict given the many parties involved and
complexity of the process. Owner-operated sites have so far opened
broadly in line with the timing expected by the Board, with the
exception of Oxford Street, where the landlord has required a
significantly more onerous process than for other sites, leading to
a delay of 4-5 months against original expectations. Similarly, the
timing of franchise site openings is not entirely within the
Company's control and several openings have been a few weeks later
than initially indicated. Notwithstanding this, as set out above,
the Board still expects to open the target number of sites in
2022.
2022 is the year for XPF to build on its foundations and become
a major leisure operator within the UK. Since the target number of
sites is on target to be opened within the year, and the target box
economics are expected to be met, any in-year delays to site
openings are not expected to impact the exit run-rate or the
Group's financial performance in 2023.
Commenting on the update, Richard Harpham, Chief Executive of XP
Factory plc, said: "We are delighted with the progress we have made
so far in building a business for the future. The Boom estate is
now a substantial business in its own right and we have a secured
pipeline to deliver on our targets for 2022. Escape Hunt has
continued to perform well and we are excited about opening further
venues, including those co-located with Boom. Whilst we are not
immune to inflationary pressures in our build costs, the return on
capital metrics across both our existing brands remains highly
attractive and provides the potential to deliver significant growth
in shareholder value. As a result, we remain optimistic about the
future prospects for the Group."
Enquiries:
XP Factory Plc
https://www.xpfactory.com/
Richard Harpham (Chief Executive
Officer)
Graham Bird (Chief Financial
Officer)
Kam Bansil (Investor Relations) +44 (0) 20 7846 3322
Shore Capital, NOMAD and Broker
https://www.shorecap.co.uk/
Tom Griffiths/David Coaten (Corporate
Advisory) +44 (0) 20 7408 4050
IFC Advisory - Financial PR
https://www.investor-focus.co.uk/
Graham Herring
Florence Chandler +44 (0) 20 3934 6630
Notes to Editors:
About XP Factory plc
The XP Factory Group is one of the UK's pre-eminent experiential
leisure businesses which currently operates two fast growing
leisure brands. Escape Hunt 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.
Boom Battle Bar is a fast-growing network of owner-operated and
franchise sites in the UK that combine competitive socialising
activities with themed cocktails, drinks and street food in a high
energy, fun setting. Activities include a range of games such as
augmented reality darts, Bavarian axe throwing, 'crazier golf',
shuffleboard and others. The Group's products enjoy premium
customer ratings and cater for leisure or teambuilding, in small
groups or large, and are suitable for consumers, businesses and
other organisations. The Company has a strategy to expand the
network in the UK and internationally, creating high quality games
and experiences delivered through multiple formats and which can
incorporate branded IP content. ( https://xpfactory.com/ )
Facebook: EscapeHuntUK BoomBattleBar
Twitter: @EscapeHuntUK @boombattlebar
Instagram: @escapehuntuk @boombattlebar
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END
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