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Retail & consumer

XP Factory sees revenue soaring; acquires Cardiff Boom Battle Bar for £2.15mln

Revenues expected to exceed £8mln for half year, up from £1.2mln in comparative prior period

XP Factory PLC (AIM:XPF) said first-half revenue is expected to grow significantly compared to a year ago, and that it has acquired a third Boom Battle Bar for £2.15mln.

The UK experiential leisure company, which also operates the Escape Hunt chain, said it expects group revenues to exceed £8mln for the six months ended June 30, 2022, up from £1.2mln the same period in 2021 before it made its first Boom acquisition.

"Despite the current macro-economic backdrop, trading in the UK since June 30, 2022 in both Boom and Escape Hunt sites has been encouraging," the company said.

The UK Escape Hunt owner-operated estate has generated unaudited turnover in eight weeks to August 28, 2022 of around £1.4mln, up 16% on-year, with the company noting Escape Hunt site level EBITDA margins continue to exceed the board's internal benchmark of 30%.

Performance in Boom Battle Bar estate has been "developing positively" and owner-operated sites delivered turnover in excess of £1mln, it said.

The Battle Bar network today comprises 18 sites, of which six are owner operated, including Cardiff, and 12 are franchised, following franchise openings in Ealing in June and Sheffield in July.

Boom Battle Bar Cardiff, today's acquisition, has been operating as a franchise site since September 2020, with XP saying it delivered unaudited turnover of £3.82mln, underlying earnings of £438,000 and pre-tax profit of £201,000 for the twelve months to end-June, 2022.

"We are delighted to have been able to add the Boom Cardiff site into our owner-operated estate on attractive terms. It is consistently a strong performing site," said XP chief executive Richard Harpham.

"Likewise, the acquisition of the Boom Norwich site is expected to provide an excellent cash on cash return."

Shares of the company were trading 2.50% at 12.30p.

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