19th Mar 2024 09:26
(Alliance News) - XP Factory PLC on Tuesday reported a reduced pretax loss in 2023, as sales almost doubled to generate "significant" revenue growth.
The Crawley, England-based entertainment company, which operates under the Boom Battle Bar and Escape Hunt brands made a loss before tax of GBP535,000, narrowed from a GBP1.1 million loss in 2022.
Revenue nearly doubled to GBP44.7 million from GBP22.8 million.
This growth was primarily driven by the Boom Battle Bar business, which saw revenue triple to GBP28.6 million from GBP9.5 million, whereas revenue generated by the Escape Hunt business grew by just 38% to GBP13.5 million from GBP9.8 million.
The company continues to pay no dividend, as it is loss-making.
Chief Executive Richard Harpham said: "I'm delighted with the company's performance over the last 12 months, and doubling in scale for the second year running is testament to the extraordinary efforts of our team. Both brands have significant runways ahead of them, and I'm excited to have such a robust foundation in place from which to grow further."
While XP Factory continued to expand the business with the opening of four new owner-operated sites that contributed to sales growth over the period, it stressed that "most was driven by the underlying momentum in the business."
Looking ahead, XP Factory hopes to continue making progress across its strategic priorities and maximise the UK footprint by rolling out both brands, either through direct investment into owner-operated
sites or through franchise arrangements. It said it aims to accelerate growth in international territories using the franchise model, whilst developing new products and exploiting synergies throughout the business.
The company said it remains confident following continued growth in the first 10 weeks of 2024, and a pipeline for further site openings has been developed.
Shares in XP Factory were up 1.7% to 15.00 pence in London on Tuesday morning.
By Elijah Dale, Alliance News reporter
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