Xp Factory Plc · LSE:XPF
Xp Factory — Escape Hunt — H1 2021 Earnings Presentation
27 slides from Xp Factory's earnings presentation, September 2021
Slide 1: Interim Results 6 Months to June 2021
Slide 2: Disclaimer
The information contained in this document (“Presentation”) has been prepared by Escape Hunt plc (the “Company”). This Presen tation has not been approved by an authorised person in accordance with Section 21 of the Financial Services and Markets Act 2000 and therefore it is being deli vered for inf
Slide 3: Performance Overview
PERFORMANCE OVERVIEW
Slide 4: Strong bounce back from UK sites re-opened on 17 May
“It is clear that Escape Rooms have now entered the mainstream consumer psyche underpinning confidence in our strategy to expand both our owner operated and franchise networks” Strong bounce back from UK sites re-opened on 17 May ▪ Revenue £1,178k with UK sites open for only six weeks in the period
Slide 5: Group profitability in both July and August
Significant milestone achieved – Group profitability in both July and August Sales in the owner operated estate running significantly ahead of management expectations ▪ Strong bounce back in sales post COVID has accelerated ▪ UK LFL sales up 17% vs 2019, and total sales up 92% in the 16 weeks to 5 S
Slide 6: Summary of Financial Statements
SUMMARY OF FINANCIAL STATEMENTS
Slide 7: Strong bounce back after re-opening
Six months to June Strong bounce back after re-opening £m 2021 2020 ▪ Owner operated revenue £936k with UK sites open for only 6 weeks in the period (2020: £1,017k from c.11 weeks trading) Revenue 1,178 1,306 Owner-operated sites 936 1,017 ▪ Franchise revenue sustained notwithstanding closures Franc
Slide 8: Continued careful management of cash
Six months to June Continued careful management of cash £k 2021 2020 ▪ Positive working capital movement from capex creditors and others Adjusted Group EBITDA loss (796) (816) Working capital and non-cash movements 704 720 ▪ C.£500k of property related creditors will unwind in H2 Tax (8) 2 Net Cash
Slide 9: £2.4m cash at period end and as at 31 August 2021
£k Jun-21 Dec-20 £2.4m cash at period end and £2.4m as at 31 August 2021 ▪ Goodwill of £500k recognized on acquisition of France / Non current assets Belgium which assumes £250k earnout Property, plant and equipment 4,165 3,885 Right of use assets 2,852 2,940 ▪ Investment into Houston site via enhan
Slide 10: Recent Performance
RECENT PERFORMA
Slide 11: Strong like for like growth from mature sites
Strong like for like growth from mature sites ▪ Like for like revenue growth of 17% in 16 weeks since re-opening ▪ Accelerating trend – like for like growth in 9 weeks since period end was 31% ▪ Like for like site level EBITDA up 172% on 2019 in 16 week period New sites reaching ‘mature’ performance
Slide 12: TripAdvisor Travellers' Choice accreditation
Each UK site open for more than one year has earned the prestigious Tr ipAdvisor Travellers’ Choice accreditation, awarded only to the very best bookable experiences globally. ▪ All sites in top 4 in their respective locations ▪ 9 / 14 are ranked #1 TripAdvisor ratings as at 16 Sept 2021 12
Slide 13: International Owned and Franchise Sites
International Owned Sites • Dubai ⎼ Site has been open throughout the period, although impacted by covid ⎼ Has consistently performed in line with or ahead of expectations ⎼ Acquisition has already paid back from profits ⎼ Exciting opportunity to exhibit in the Royal Kingdom of Saudi Arabia in the R
Slide 14: Outlook
Slide 15: Materially stronger business than pre-COVID
Escape Hunt is a materially stronger business now than it was pre -COVID, and is extremely well poised to grow significantly from its now profitable base. • Trading has been much stronger than expected post COVID • Group profitability in July and August is cause for optimism about the remainder of t
Slide 16: Appendix
APPENDIX
Slide 17: Escape Hunt products and partnerships
In venue immersive escape rooms or virtual reality Outdoor explorer games Location Neutral games for Consumers & Corporates 100% 5* reviews from customers in the UK Top rated across “Fun and Games” on TripAdvisor Partnered with the BBC to bring Doctor Who to life in site Created a game for Netflix t
Slide 18: Owner operated and franchisee estate
Owner operated estate: ▪ 17 owner-operated sites (including Paris, Brussels, Dubai) with a further 2 UK sites in build ▪ Further sites in pipeline ▪ Medium term target of 20 O+O sites by June 20221 expected to be exceeded USA BELGIUM NETHERLANDS KUWAIT UK Houston Brussels Groningen Kuwait Basingstok
Slide 19: A Premium Escape Room Experience
A PREMIUM ESCAPE ROOM EXPERIENCE PREMIUM LOCATIONS :| hed PREMIUM HOST:
Slide 20: Digital and remote play solutions
During 2020 Escape Hunt developed its portfolio to include digital and other remote play solutions catering to remote audiences, businesses and brands. EH for Business: ▪ Developed portfolio of digital and ‘play at home’ products from scratch during 2020 ▪ Scalable products ⎼ Largest game so far del
Slide 21: Owner managed and franchise economics
Escape Hunt operates owner managed sites in the UK and has a predominantly franchised business internationally. Revenue Existing franchise network ▪ 4 players @ £22 incl VAT ▪ Typically 7.5% - 10% revenue share ▪ 5 - 6 rooms per site ▪ Fixed monthly admin fees - $250 - $500 per month ▪ Median 40% oc
Slide 22: Investment highlights
Attractive industry dynamics – strong growth in experiential leisure International brand and ability to partner with global IP studios Site economics proven ⎼ Attractive site commercials; positive cash dynamics and flexible costs ⎼ Target 10%+ cash return on investment in Yr 1; 25%+ in Yr 2
Slide 23: Board of directors
Richard has a wealth of experience chairing high profile boards. He has Richard joined the Company on its admission to AIM in May 2017 having been Non-Executive Chairman of Watchstone Group plc since May 2015. worked since November 2016 with the Jigsaw management team. Previously he has held a numbe
Slide 24: Major shareholders
SHAREHOLDER ORDINARY SHARES HELD % HELD Canaccord Genuity Wealth Management 18,568,772 20.94% Hargreaves Lansdown, stockbrokers 12,003,733 13.53% Mr John Story 10,447,599 11.78% JO Hambro Capital Management 8,594,159 9.69% Interactive Investor 6,393,794 7.21% HSDL, Stockbrokers 3,430,507 3.87% Mr St
Slide 25: Owner-operated roll-out and US franchise network
Further in the period, placing the business in a substantially stronger position to benefit from a recovery in demand post COVID Owner-operated site roll-out US Franchise network ▪ New sites completed and opened in Watford and ▪ Franchise disclosure document filed in individual Kingston states in th
Slide 26: New products, markets and international franchise
Further in the period, placing the business in a substantially stronger position to benefit from a recovery in demand post COVID New products and markets International Franchise network ▪ Developed portfolio of digital and ‘play at home’ ▪ Acquisition of master franchise in Middle East products from
Slide 27: Thank You