4th Dec 2024 10:21
(Alliance News) - XP Factory PLC on Wednesday reported strong revenue growth and a narrowed first-half loss, and said it is "laser focused" on achieving a strong Christmas trading stretch.
The Crawley, England-based leisure and entertainment company behind Escape Hunt and Boom Battle Bar, recorded a 33% increase in revenue for the six months to September 30 to GBP24.9 million from GBP18.7 million for the six months to June 30, 2023.
Its pretax loss narrowed to GBP2.2 million from GBP2.4 million in the six months to June 30, 2023. XP Factory's administrative costs rose 23% to GBP16.4 million in the first half, up from GBP13.3 million in the six months to June 30, 2023.
In August 2023, XP Factory moved its financial period to a March 31 year-end from December 31.
Compared to the six months to September 30, 2023, revenue in the first half of the current financial year rose 19% from GBP20.9 million.
Escape Hunt owner operated site revenue grew 1.6% to GBP6.5 million compared to GBP6.4 million in the six months to the end of September 2023. Boom Battle Bar owner operated revenue surged 32% to GBP17.6 million from GBP13.3 million over the same period.
The AIM-listed group attributed the performance to strong like-for-like growth across both brands, which was "ahead of industry levels".
Chief Executive Officer Richard Harpham said: "This performance reflects continued volume-driven like-for-like growth across both of our brands, ahead of industry levels.
"Consumer sentiment weakened in the summer and ahead of the UK budget, softening first-half performance and, whilst we are encouraged by strong early indicators for the all-important festive season, with corporate pre-bookings significantly ahead of 2023, we remain laser focused on maximising the Christmas trade that is so important in delivering the full-year's results.
Looking forward, XP Factory aims to increase sales by 50% to GBP90 million, with a run-rate of GBP100 million, and double its pre-IFRS 16 adjusted earnings before interest, taxes, depreciation, and amortisation by March 2028.
In the first half of financial 2025, pre-IFRS 16 group adjusted Ebitda totalled GBP1.5 million, an increase of 31% from GBP1.1 million for the six months to June 2023.
Harpham expressed confidence in the company's growth prospects: "With a solid foundation in place, we remain confident in our ability to deliver sustainable growth and significant long-term value creation."
XP Factory also announced plans to reorganise its balance sheet to enable share buybacks and create capacity for dividend payments in the future. The process is set to begin in the final quarter of the financial year.
XP Factory will provide a trading update in January 2025, following the Christmas trading season.
Shares in XP Factory were up 2.3% at 13.81 pence each in London on Wednesday morning.
By Eva Castanedo, Alliance News reporter
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights reserved.