XP Factory Delivers Strong Revenue Growth, But Costs From Government Policy Weighs

XP Factory, the experiential leisure group, today announced its preliminary unaudited final results for the year ended March 31, 2025, showcasing strong revenue growth alongside operational improvements.

However, headwinds from government policies and a challenging first quarter temper overall optimism.

Group revenue rose 19% to £57.8 million, compared to £48.6 million in the prior year (12 months to March 2024). This growth was fueled by both the Escape Hunt and Boom Battle Bar brands. Pre IFRS 16 Group Adjusted EBITDA increased to £6.6m, up from £5.1m the previous year.

Site level pre IFRS 16 EBITDA reached £15.2m, compared to £13.1m the year prior. Adjusted Operating profit came in at £3.5m, and adjusted earnings per share reached 0.23p, a notable increase from the 0.09p reported for the 15 months to March 31, 2024. Statutory loss per share was 0.71p, compared to a loss of 0.27p previously.

While revenue and adjusted profitability metrics improved, the company's cash position weakened. XP Factory reported a £1.1 million cash balance and £4.8 million net debt at March 31, 2025, compared to £3.9 million cash and £0.1 million net cash the prior year. This shift reflects investments in new site openings and acquisitions.

Driver Breakdown:

• Boom Battle Bar Growth: Boom revenue increased by 29% to £42.2m, driven by new site openings and acquisitions.
• Escape Hunt Stability: Escape Hunt revenue increased by 7% to £14.2m, supported by new site openings and consistent performance.

XP Factory has been expanding both organically and through acquisitions. The company opened a new Boom site in Cambridge and acquired five Boom franchise sites. Additionally, new Escape Hunt sites were opened in Worcester, Glasgow, and Cambridge. Post period end, new Boom and Escape Hunt locations opened in Reading and Canterbury, respectively, with further expansion planned.

Like-for-like sales growth remained positive across both brands for the year. Boom's like-for-like sales increased by 2.3%, and Escape Hunt's increased by 3.2%.

However, recent trading has been mixed. In the 19 weeks to August 10, 2025, group owner-operated revenue was up 12% year-over-year. Escape Hunt UK like-for-like sales are up 0.4% year-to-date, with a strong recovery in the last six weeks. Boom UK like-for-like sales are down 5.6% year-to-date, although excluding the impact of Euro 2024, they returned to positive territory.

Richard Harpham, Chief Executive of XP Factory, commented: “The year to March 2025 represents another successful period of development for XP Factory, with underlying operating metrics showing continued positive improvement. Whilst the business is having to cope with increased costs from government policy and a challenging first quarter has posed operational challenges, we have made significant progress towards our strategic goals and remain resolute in pursuit of success.”