31st May 2022 09:41
(Alliance News) - XP Factory PLC on Tuesday said revenue more than doubled and its loss was all but eliminated in 2021, but it still doesn't plan to pay a dividend anytime soon.
Shares in the Sussex, England-based entertainment company were up 6.4% to 25.80 pence each in London on Tuesday morning.
XP Factory, which operates under the brands Escape Hunt and Boom Battle Bar, revenue more than doubled to GBP7.0 million in 2021 from GBP2.7 million year-on-year. As a result, the company's pretax loss narrowed to GBP885,000 from GBP6.6 million loss.
XP Factory's owner-operated estate increased by 46% to 19 sites, compared to 13 sites in 2021. It added that these sites traded above the company's own expectations in the first quarter of 2022.
Looking forward, the company said it is unlikely that the board will recommend a dividend in the next few years. "The directors believe the company should improve performance to generate profits to fund the company's growth strategy over the medium term," it explained.
XP Factory said it remains mindful of the current macro-economic environment. In particular, it cited rising inflation and cost pressures as concerns for the company.
Despite the external challenges, the company remains "highly optimistic". So far, this year a further six Boom sites have been built and 10 contracts have been exchanged or are in final legal proceedings, underpinning site roll-out targets for the year. The company anticipates having 27 Boom venues and 21 Escape Hunts trading by the end of 2022.
Chief Executive Richard Harpham said: "With such a well-developed pipeline of sites, such encouraging demonstrable unit economics in both brands, and such a well-positioned business in terms of customer demand, we have reason to be highly optimistic about the future for XP Factory."
By Sophie Rose; [email protected]
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