XP Factory has reported “very strong December” trading and has doubled revenues for the second year in a row.
The experiential leisure business which operates Escape Hunt and Boom Battle Bar brands provided a financial update for the 52 weeks to 31 December 2023, with group turnover of circa £44.5m, 95% ahead of £22.8m the previous year.
This increase reflects robust like-for-like growth and expansion of the owner operated estates of both Boom Battle Bar and Escape Hunt.
It saw like-for-like sales growth across both brands during the period, with Boom Battle Bar up 29% and Escape Hunt up 17%.
Record sales at Christmas also drove strong results in December 2023, with the brands up 50% and 20% respectively.
Sales from the Boom Battle Bar owner-operated estate exceeded £27.5m, a near threefold increase on 2022, due to “the maturing nature of the young sites, combined with significant operational focus.”
Total Escape Hunt sales within the owner-operated estate are expected to exceed £13 million, an increase of well over 30% on 2022.
The company said that this performance provides confidence in meeting market expectations for the financial year to March 2024.
Boom Battle Bar’s “continuing maturity profile”, and “strong operating leverage” in H2 2023 delivered site level EBITDA margins in line with management’s expectations of 20-25%.
Meanwhile, Escape Hunt site level EBITDA margins continues to exceed 40%.
Three new owner-operated Boom sites were opened in the period, Dubai in July, Canterbury in September and Southend in October, bringing the estate to 19.
In addition, franchise sites in Liverpool and Glasgow were bought back in November 2023 and Watford in December 2023.
Franchise revenue for the twelve month period is expected to be broadly flat year on year (2022: £2.8m), reflecting underlying growth offset by the smaller estate as sites have been bought back.
A new Escape Hunt site in Woking was opened in July 2023, bringing the owner operated estate to 24 sites.
The Escape Hunt international franchise business is expected to show a modest decline in revenue given the estate has reduced in size.
The company will publish an interim report for the 12 months to 31 December 2023 in March 2024, and audited financial statements for the 15 months to 31 March 2024 during the summer.
Richard Harpham, chief executive of XP Factory plc said “We are delighted with the performance of the Group over Christmas and for the twelve months to December 2023.
“Group turnover in the second half of the year surpassed that of the entirety of 2022, showcasing the substantial growth and transformative step change in scale achieved.
“Our offerings continue to resonate well with a broad spectrum of customers, whose support and loyalty, combined with the trading momentum we are carrying, positions the business favourably and underpins our confidence in meeting market expectations for our 15 month financial period to 31 March 2024.”
