XP Factory PLC (AIM:XPF) shares advanced in Friday morning’s deals as the escape room and ‘battle bar’ operator reported a jump in turnover and earnings.
It told investors that in July its trading was significantly ahead of May and June and early indications are positive for August, this was despite “the ongoing rhetoric of the cost of living crisis and rising interest rates”, the company highlighted.
Group turnover increased 131% to £18.8 million, the company reported in a trading statement, whilst earnings (EBITDA) increased 245% at the company’s owned and operated sites to £3.8 million – and franchise earnings increased by 30% to £1.5 million.
In the 26 weeks to 2 July 2023, the Boom branded ‘battle bar’ chain saw sales up 19% year-on-year and the company’s Escape Hunt chain similarly was up 20%, XP highlighted. It meanwhile highlighted "record" levels for pre-bookings of corporate sales, which it said provides confidence underpinning expectations for full year.
"We are delighted to have delivered such transformational growth compared to the same period in 2022,” said chief executive Richard Harpham.
“The performance in Escape Hunt has been outstanding and we are delighted to see the young Boom business continue to mature with ongoing improvements to its operating metrics.
“We are mindful of the pressures on consumers and on our cost base which bring an element of short term caution but we remain optimistic for the future of both our businesses and for the 2023 outturn."
Success at Boom Battle Bar, which offers activities like axe throwing and batting cages, is made even more impressive considering earlier this year XP Factory’s board decided that despite inflationary pressures weighing down input costs it would not pass it on to the customer.
Despite having a larger exposure to cost pressure than Escape Hunt, the group said it was encouraged that Boom reached its labour level target and that utility bills were beginning to reduce.
In London, XP Factory shares were up 1.77p or 10.44% changing hands at 18.77p each, valuing the company at just under £30 million.