Xp Factory Plc · LSE:XPF
Xp Factory — FY2020 Earnings Presentation
18 slides from Xp Factory's earnings presentation, 2021
Slide 1: Escape Hunt Results to Dec 2020
_ ESCAPE ‘HUNT _ RESULTS TO DEC
Slide 2: Financial highlights: Adjusted EBITDA loss reduced despite COVID-19 restrictions
Group Adjusted EBITDA loss reduced to £1.4m (2019: loss £1.7m) despite COVID-19 restrictions > 25% like-for-like sales growth on a 12-week rolling basis in the two months prior to lockdown Group revenue of £2.7m (2019: £4.9m) was 46% lower than FY19, driven by COVID-19 Revenue from digital a
Slide 3: Operational highlights for 2020
Owner-operated estate expanded by 59% to 14 sites (2019: 9 sites) Record opening performances at each of Norwich and Basingstoke sites All eight sites open for more than 12 months were named by TripAdvisor™ as a Travellers’ Choice Winner in August 2020 and continued five star TripAdvisor™ rati
Slide 4: Post period end and current trading
Full UK lockdown enforced shortly after Christmas 2020 with Escape Rooms re-opened 17 May 2021 Acquisition of French and Belgian Master franchise including owner-operated sites in Paris and Brussels Majority of French franchise agreements extended for further six years Kingston opened on May
Slide 5: 5-point plan for value creation
In June 2020, the Board set out a 5-point plan for value creation 1. Roll-out of owner-operated network through direct investment 2. Deliver US Franchise network in partnership with PCH 3. Sustain and support growth in existing franchise network; sign further master franchise agreements 4. Broaden t
Slide 6: Significant progress since June 2020: site roll-out and US franchise
Significant progress since June 2020, 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 5 new sites completed and opened Franchise disclosure document filed in the US allowing sales of franc
Slide 7: Progress: new products, international franchise network, infrastructure
Significant progress since June 2020, 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’ Acquired master franchise in Middle East prod
Slide 8: Significant strategic progress made notwithstanding lockdowns
Significant strategic progress made notwithstanding lockdowns Launch of digital and remote play creating strategically important product suite Owner operated estate substantially expanded Progress with franchise estate Favourable property market conditions to continue roll out; 18th and 19
Slide 9: Appendix
Slide 10: Income statement and trading overview
£m 2020 2019 Movement Strong revenue growth pre COVID Revenue 2.7 4.9 -46% ⎼ Overall sales (£2,658k) were 46% lower than 2019, Owner-operated sites 2.1 3.8 -46% driven by forced closure of sites and restricted trading Franchise network 0.6 1.1 -46% due to COVID-19 ⎼ Sales were 61% ahead of 2019 un
Slide 11: Cash flow overview
Overview of the period: £m 2020 2019 Movement Cash outflow from operating activities carefully managed Adjusted Group EBITDA loss (1.4) (1.7) 15% ⎼ Benefit from deferrals and Government support schemes Working capital and non-cash movements 0.6 (0.5) NA Tax (0.0) (0.0) 48% ⎼ Cash benefit from R&D
Slide 12: Balance sheet and liquidity
£m 2020 2019 Non Current Assets Property Plant and equipment 3.9 3.9 Right of use assets 2.9 2.5 £2.7m cash at year end and £3.3m at 31 March 2021 Intangible assets 0.9 2.9 ⎼ Resumption of capex for site roll-out after July fundraise Loan to franchisee and rent deposits 0.0 0.3 7.8 9.6 ⎼ Tangible
Slide 13: Escape Hunt game formats 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 14: A premium escape room experience
A PREMIUM ESCAPE ROOM EXPERIENCE PREMIUM HOSTS pat PREMIUM CONTE ESCAPE HUNT
Slide 15: Owner-operated and franchise estate
Owner operated estate: • 17 owner-operated sites (including Paris, Dubai and Brussels) plus further 2 UK sites in progress • Medium term target of 20 O+O sites by June 2022 1 expected to be exceeded Franchisee estate: • Additional 29 franchise sites USA BELGIUM NETHERLANDS KUWAIT UK Houston Brussels
Slide 16: 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: EH for Brands: • The print and play games launched during • Developed portfolio of digital and ‘play at lockdown proved popular with
Slide 17: Owner-operated and franchise business model 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 5 - 6 rooms per site1 Typically 7.5% - 10% revenue share Median 40% occupancy (8 sessions per day, 7dpw) Fixed monthly
Slide 18: Thank you: Escape Hunt Final Results Dec 2020
XP Factory Plc (Escape Hunt) — FY2020 Earnings Presentation on 6ix