Xp Factory Plc · LSE:XPF
Xp Factory — FY2025 Earnings Presentation
36 slides from Xp Factory's earnings presentation, 2025
Slide 1: Results for Twelve Months to 31 March 2025
RESULTS FOR TWELVE MONTHS TO 31 MARCH 2025
Slide 2: Disclaimer
DISCLAIMER XP FACTORY The information contained in this document (“Presentation”) has been prepared by XP Factory plc (the “Company”). This Present ation 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 bei
Slide 3: Agenda FY25 Results
AGENDA FY25 RESULTS Richard Harpham Graham Bird Chief Executive Chief Financial Officer Officer • Overview of FY25 • Financial performance • Post period highlights • Cashflow • Summary and outlook • Financial position 3 RESULTS FOR TWELVE MONTHS TO 31 MARCH 2025
Slide 4: Overview of FY25
OVERVIEW OF FY25
Slide 5: Operating Highlights FY25
OPERATING HIGHLIGHTS FY25 Total revenue Group EBITDA £57.8m £6.6m (12m to Mar ’24 (Unaudited 1 ): £48.6m) (12m to Mar ‘24: £5.1m) (15m to Mar ’24 (Audited): £57.3m) (15m to Mar ’24: £6.3m) LFL sales growth Owner operated revenues EH: +3.2% EH: £14.2m (12m to Mar ‘24: £13.3m) (Audited 15m to Mar ’24:
Slide 6: Key Metrics – FY25 (Escape Hunt)
KEY METRICS – FY25 Continued strong performance • £14.2m owner-operated revenue (Apr – Mar 2024: £13.2m) • LFL growth +3.2% • Price broadly unchanged; growth driven by increases in booking numbers, customers per booking and the benefit of B2B growth on mix • Modest price increases implemented post p
Slide 7: Key Metrics – FY25 (Boom)
KEY METRICS –FY25 Improved profitability with maturation curve • £42.2m owner operated revenue (Apr – Mar 2024: £32.2m) • +2.3% LFL growth • Price broadly unchanged; growth largely driven by increases in F&B spend per booking and the benefit of B2B growth on mix • Modest price increases implemented
Slide 8: EH Gaining Share in Consolidating Industry
EH GAINING SHARE IN CONSOLIDATING INDUSTRY • Escape Room competitors have struggled with increased cost pressure, negative LFLs and tight margins Escape Room # of UK rooms1; larger 352 • Consolidation at many competitors 180 operators 317 over last 12 months 160 138 • Limited direct overlap with “ER
Slide 9: Initial Signs of Consolidation in Competitive Socialising
INITIAL SIGNS OF CONSOLIDATION IN COMP. SOCIALISING • Competitive Socialising industry at earlier maturity stage • Expansion has started to slow from a high Competitive Socialising # of UK sites1 base, early signs of consolidation with 91 40 negative c.10% industry LFLs in fiscal Q1 2 82 35 30 • As
Slide 10: Improving Financial Metrics FY 2025
IMPROVING FINANCIAL METRICS FY 2025 Group Sales 8 Adjusted EBITDA £6.6m 70 6 £57.8m 60 50 4 40 2 30 0 20 10 -2 0 -4 Year to Dec Year to Dec Year to Dec Year to Dec Year to Dec Year to Dec Year to Mar Year to Dec Year to Dec Year to Dec Year to Dec Year to Dec Year to Dec Year to Mar 18 19 20 21 22 2
Slide 11: Improving Financial Metrics FY 2025
IMPROVING FINANCIAL METRICS FY 2025 EH site level EBITDA margin Boom site level EBITDA margin Total central costs % of sales 50% 20% 18.0% 70% 43.3% 42.1% 43.7% 45% 41.2% 18% 16.6% 57.3% 60% 40% 16% Covid 13.4% 50% 35% 14% impact 30% 25.4% 12% 40% 25% 21.4% 10% 7.6% 30% 26.0% 20% 8% 15% 6% 17.5% 15.
Slide 12: Cash Generated FY25
CASH GENERATED FY25 Business model is strongly cash generative ● £2.8m free cash generated before maintenance capex ● After net £1.6m adverse working capital movement (pre IFRS16) which will normalise to modest positive / neutral in Cash generation year to Mar 2025 future (rebates and creditor unwin
Slide 13: Cash Deployed FY25
CASH DEPLOYED FY25 Historic ROI for both Boom and EH of c.50% provides attractive investment opportunity Cash deployment 9.0 ● Total £1.0m landlord contributions received for new EH sites in 8.0 1.0 Glasgow, Worcester and Canterbury and Boom site in 7.0 2.8 Total growth capex - £6.0m Reading 6.0 (1.
Slide 14: Post Period Highlights
POST PERIOD HIGHLIGHTS
Slide 15: Strategic Progress
STRATEGIC PROGRESS XP FACTORY Trading update ● Turnaround in LFL sales after challenging Q1 impacted by unseasonally hot weather ● Escape Hunt UK LFL sales +0.4% in the 19 weeks to 10 August 2025 ● -3.5% in Q1 ● +8.6% in the subsequent six weeks to 10 August 2025 ● Boom UK LFL sales -5.6% in the 19
Slide 16: Summary and Outlook
SUMMARY AND OUTLOOK XP FACTORY ● Trading impacted by unseasonal weather in Q1, but marked turnaround since ● Cost controls and supplier contract renegotiations offsetting the negative EBITDA impact due to LFLs ● Positive B2B momentum, ahead of the all -important festive period ● Board remains cautio
Slide 17: Appendix Slides
APPENDIX SLIDES
Slide 18: Strategic Plan
STRATEGIC PLAN Increase revenue by 50%+ and double EBITDA by Mar 2028 • Bank financing enables acceleration of expansion plans • Consistently strong returns from Escape Hunt and site economics has increased size of the opportunity in the UK Vision for the year to March 2028 £90m revenue • Learnings
Slide 19: Strategy Implementation
STRATEGY IMPLEMENTATION XP FACTORY Site expansion Unit economics Head Office costs • Escape Hunt – accelerate expansion • Investing in data and systems, • Operational leverage on head office; implementing key learnings built to manage a larger scale of sites • Target avg 8-10 new EH sites per year •
Slide 20: Site Expansion Strategy: Accelerate New Openings
SITE EXPANSION STRATEGY Accelerate new openings • Unique competitive position in a highly fragmented industry • Market leader, but with only ~5% share of UK market by sites • Unit economics continue to improve and far exceed initial expectations • Learnings • Scale and reputation • Landlord incentiv
Slide 21: Site Expansion Strategy: Premium Locations
SITE EXPANSION STRATEGY Continued expansion, focus on premium locations • Attractive unit economics in line with initial expectations • Expect ongoing improvement with maturity and learnings • Key footfall driver for landlords with exceptional customer feedback; attractive property deals • Consolida
Slide 22: Targets Illustration
TARGETS ILLUSTRATION XP FACTORY FRANCHISE xpfactory ~£60m turnover @ ~20% ~£1.5m - £2.0m Head office fixed costs ~£30m turnover @~40% EBITDA EBITDA contribution 10% - 12.5% of sales ~35-40 sites ~50-60 sites Contained costs +2-4 premium sites p.a. (+~8-10 p.a.) Capex~£900k / site Capex~£600k / site
Slide 23: Financial Performance FY 2025
12 months Unaudited 15 months to to 31 Mar 12 months 31 March FINANCIAL PERFORMANCE FY 2025 £m 2025 to Mar 2024 2024 Revenue 57.8 47.7 57.3 EH Owner-operated sites 14.2 13.2 16.7 EH Franchise network 0.6 0.7 0.8 Further improvement in key indicators Boom Owner-operated sites 42.2 32.2 37.5 Boom Fran
Slide 24: Cash Flow FY 2025
15 months to 31 March CASH FLOW FY 2025 £m Mar-25 2024 Adjusted Group EBITDA 10.5 9.9 Exceptionals and pre-opening costs (1.7) Investment in the period focused on new sites and enhancements at existing Working capital and other movements (1.2) 1.1 sites Tax (0.0) 0.0 Net Cash generated in operating
Slide 25: Financial Position
£m Mar 2025 Mar 2024 FINANCIAL POSITION 31 Mar 2025 Non Current Assets Property Plant and equipment 25.2 19.4 Right of use assets 26.9 20.3 Intangible assets 23.7 23.6 Balance sheet movements largely due to capital investment and franchisee acquisitions Finance lease receivabe and other 0.1 1.5 ● £5
Slide 26: Market Leader in Experiential Leisure
MARKET LEADER IN EXPERIENTIAL LEISURE XP FACTORY • EH and BBB are the UK market Competitive Socialising # of Escape Room # of UK rooms1 leaders in Escape Room and 160 Competitive Socialising 30 UK sites1 • Net capacity reductions at 5 140 of the 8 Escape Room 25 120 operators over last 12 months 20
Slide 27: Demographics
DEMOGRAPHICS XP FACTORY • Both brands appeal to a broad Customer age split by brand1 Customer gender split by and overlapping demographic 35% brand1 • Diverse customer base spread 30% 60% across gender and age groups for each brand 25% 50% 20% 40% 15% 30% 10% 20% 5% 10% 0% 0% 18-24 25-34 35-44 45+ M
Slide 28: Property Portfolio
PROPERTY PORTFOLIO March 2025 Date opened / Existing Boom sites O-O / FS planned Legal status Existing Escape Date Hunt Franchise Rooms opened / 1 Norwich O-O Jun-20 Open sites Existing Escape Hunt sites open acq Legal status 2 Cardiff O-O Oct-20 Open 3 Liverpool O-O May-21 Open Franchise sites 1 Bi
Slide 29: IFRS16 Impact
IFRS16 IMPACT XP FACTORY ● XP Factory results adversely impacted by IFRS 16 Pro-forma UK GAAP reconciliation 15 Months reporting to Mar 2024 £'000 FY 2025 ● Total P&L charge in early years is much higher under IFRS PAT as reported (1,252) (422) IFRS 16 than it would be under UK GAAP – impact Add bac
Slide 30: At a Glance: Our Brands
AT A GLANCE OUR BRANDS Our 73 locations offer a wide variety of entertainment experiences together with licensed bars delivered with world class hospitality in prime retail or leisure locations. 47 Venues 31 Venues Experience ledvenues Wet led venues home to home to team based multiple entertainment
Slide 31: Brand Focus
As a 360 gaming business that goes beyond the BRAND FOCUS bricks and mortar this gives us access to both depth and scale unique to retail and leisure 5 Star rated, premium team based adventures ESCAPE ROOMS In venue immersive escape adventures or virtual reality ESCAPE HUNT is unique in its position
Slide 32: Brand Focus: Multi-Experience Proposition
BRAND FOCUS The modularity provided by our multi-experience proposition is distinctly advantageous We can optimize the A unique bar mix of games and vibe with experiences by social lean in venue size and location as well as entertainment AR AXES AR DARTS continue to innovate and refresh the offer BO
Slide 33: ESG Initiatives
ESG INITIATIVES XP FACTORY Corporate social responsibility • Our games bring people together through shared experiences • Offer free use of facilities for active engagement with charities or members of the community • Inclusive workforce with rich mix of cultures; investing in training, development
Slide 34: Management
MANAGEMENT XP FACTORY Richard Harpham Graham Bird Chief Executive Officer Chief Financial Officer Richard joined the Company on its Admission Graham joined as CFO in January 2020. He is a to AIM after working since November 2016 chartered accountant, having qualified with with the xpfactory (formerl
Slide 35: Shareholdings
SHAREHOLDINGS 31 March 2025 Number of shares % held Total number of shares in issue 175,157,600 100.0% % of company not in public hands 34.0% Ordinary shares Shareholder held % held Canaccord Genuity Wealth Management 32,734,656 18.69% BGF GP 23,674,420 13.52% Allianz Global Investors (London) 12,25
Slide 36: Results for Twelve Months to 31 March 2025
RESULTS FOR TWELVE MONTHS TO 31 MARCH 2025