XP Factory (XPF), a leading UK-based operator of experiential leisure businesses, has released an outstanding trading update for 2022. The company experienced what it described as “a transformational year” of growth, enjoying a 300% increase in group revenue of £21.9m, up from £7.0m in 2021.
XP factory announced it had achieved “critical mass” in both its Escape Hunt and Boom Battle Bar networks. Their Escape Hunt sites brought in revenue of £9.9m, a 64% increase from 2021, while turnover from the Boom Battle Bar owner-operated estate was approximately £8.8m, with royalty revenue from the franchise estate of approximately £1.5m.
The acquisition of Boom Battle Bar sites symbolised what XP Factory described as a “maiden year” for the company, in which they continued to launch new locations across the UK and reaching their target of 27 open Boom Battle Bar sites in 2022.
Richard Harpham, Chief Executive of XP Factory, commented: "2022 has been a transformational year. We are delighted to have achieved our target of having 27 Boom Battle Bar sites open by the end of 2022 together with the further expansion of our Escape Hunt network. The platform that this combined estate sets up for the Group forms the basis for a profitable and cash generative group with very attractive return on capital metrics in future and provides options for us to deliver significant growth for all our stakeholders. In the current climate, we believe that our focus on providing value for money and a highly differentiated social experience resonates strongly."
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2022 was the first year since 2019 to be unscathed by Covid-19 lockdown measures, and XP Factory enjoyed an outstanding year of progress, as customers flocked to their sites up and down the UK. That helped Escape Hunt continue to smash internal EBITDA margin benchmarks in 2022, with the site-level EBITDA margin expected to be in excess of 35% for the full year.
This success can be attributed to an absence of lockdown measures in 2022, as well as a growing interest from the UK consumer in escape rooms as a novel way to enjoy their leisure time. Boom Battle Bars were no expectation to this, thanks to their novel amalgamation of American pool, augmented reality darts, axe throwing, beer pong and crazier golf but to name a few, all under one roof - perfect for the return of office parties.
Indeed, XP Factory’s escape rooms provide great value for money, while also offering up the opportunity for fun that doesn’t involve sitting in one place and looking at a screen. The range of physical activities that Boom Battle Bars offer will no doubt continue to draw in customers through their originality and range of activities, as hard up households turn their backs on more standard drinks- and food-led hostelries.
The global escape room market is anticipated to rise at a considerable rate between 2023 and 2026, which implies that XP Factory is tapped into the right trend to continue its rapid trading recovery in 2023.