Xp Factory Plc · LSE:XPF
Xp Factory — H1 FY2025 Earnings Presentation
36 slides from Xp Factory's earnings presentation, December 2024
Slide 1: Interim Results for Six Months to 30 September 2024
INTERIM RESULTS FOR SIX MONTHS TO 30 SEPTEMBER 2024
Slide 2: Disclaimer
DISCLAIMER XP FACTORY INTERIM RESULTS FOR SIX MONTHS TO 30 SEPTEMBER 2024
Slide 3: FY24 Interim Results Agenda
AGENDA FY24 INTERIM RESULTS • • • • • • • INTERIM RESULTS FOR SIX MONTHS TO 30 SEPTEMBER 2024
Slide 4: Overview of FY24
OVERVIEW OF FY24
Slide 5: Operating Highlights H1 FY25
OPERATING HIGHLIGHTS H1 FY25 Total revenue Group EBITDA £24.9m £1.5m (Reported H1 2023: £18.7m) (H1 2023: £1.1m) (Apr – Sep 2023: £20.9m) UK LFL sales growth Owner operated revenues EH: +3.5% EH: £6.5m (Reported H1 2023: £6.1m) (Apr – Sep 2023: £6.4m) Boom +4.4% Boom: £17.6m (Reported H1 2023: £11.3
Slide 6: Key Metrics
KEY METRICS • • • • • • • • • • 1 Aggregated score expressed as a % from social reviews (e.g. Google, Facebook and TripAdvisor) All data Apr – Sep 2024. Feed It Back INTERIM RESULTS FOR SIX MONTHS TO 30 SEPTEMBER 2024
Slide 7: Key Metrics
KEY METRICS • • • • • • • • • • • 1 Aggregated score expressed as a % from social reviews (e.g. Google, Facebook and TripAdvisor) All data Apr – Sep 2024. Feed It Back INTERIM RESULTS FOR SIX MONTHS TO 30 SEPTEMBER 2024
Slide 8: Cash Generated H1 FY25
CASH GENERATED H1 FY25 ● Cash generation ● ● ● £m ● ● ● ● ● 1 Calculated at 12p per share with 175.2m shares in issue. INTERIM RESULTS FOR SIX MONTHS TO 30 SEPTEMBER 2024 2. 21 months period from 1 Jan 2023 to 30 Sep 2024
Slide 9: Cash Deployed H1 FY25
CASH DEPLOYED H1 FY25 Cash deployment ● ● ● £m ● Total growth capex - £3.3m ● ● ● ● ● ● INTERIM RESULTS FOR SIX MONTHS TO 30 SEPTEMBER 2024
Slide 10: Strategy Update
STRATEGY UPDATE
Slide 11: Strategic Plan: £90m revenue, £13m pre-IFRS EBITDA
STRATEGIC PLAN • • Vision for the year to March 2028 • £90m revenue (run rate at year end: £100m) • • £13m pre-IFRS EBITDA • (Group EBITDA margin 15%) INTERIM RESULTS FOR SIX MONTHS TO 30 SEPTEMBER 2024
Slide 12: Strategy Implementation
STRATEGY IMPLEMENTATION XP FACTORY Site expansion Unit economics Head Office costs • • • • • • • • • • • Underpinned by: • ~50% site level ROCE • Industry leading customer experience INTERIM RESULTS FOR SIX MONTHS TO 30 SEPTEMBER 2024
Slide 13: Site Expansion Strategy
SITE EXPANSION STRATEGY • 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 incentives • Consistent performa
Slide 14: Site Expansion Strategy
SITE EXPANSION STRATEGY • 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 • Consolidating data and learnings from 3 years of operatio
Slide 15: Targets Illustration
TARGETS ILLUSTRATION XP FACTORY FRANCHISE Xpfactory £60m turnover @ 20% £1.5m - £2.0m £30m turnover @40% EBITDA EBITDA contribution 35-40 sites 50-60 sites +2-4 premium sites p.a. (+8-10 p.a.) Capex~£900k / site Capex~£600k / site LL incentives ~£200k-£400k / site LL incentives ~£100k-£200k / site F
Slide 16: Site Pipeline
SITE PIPELINE XP FACTORY Boom potential target list EH potential target list • Internal site model incorporating Birmingham 2 Aberdeen learnings from broad range of EH / Brighton Bath Boom UK site openings; Bristol Brighton Edinburgh 2 Canterbury • Central London (e.g. Canary Wharf) Cardiff Newcastl
Slide 17: UK Budget Impacts
UK BUDGET IMPACTS XP FACTORY Est. impact on total labour cost Mitigation Category Description EH Boom HO considerations • NLW increase by 6.7% from £11.44 to • Labour efficiency initiatives, £12.21 / hour using technology to increase • Larger increase for NMW at lower age productivity bands Modest N
Slide 18: Summary of Financial Statements
SUMMARY OF FINANCIAL STATEMENTS
Slide 19: Financial Performance H1 FY24
FINANCIAL PERFORMANCE H1 FY24 ● ● ● ● ● H1 FY2025 H1 2023 INTERIM RESULTS FOR SIX MONTHS TO 30 SEPTEMBER 2024
Slide 20: Cash Flow H1 FY25
CASH FLOW H1 FY25 ● ● ● ● ● ● ● INTERIM RESULTS FOR SIX MONTHS TO 30 SEPTEMBER 2024
Slide 21: Financial Position Sep 2024
FINANCIAL POSITION 30 Sep 2024 ● ● ● ● Nature of borrowing (£'000) < 1yr > 1yr Total Vendor Loans 795 150 945 Fit out finance (incl equip finance leases) 792 371 1,163 Bank and other borrowings 43 1,028 1,071 1,631 1,548 3,179 ● ● ● ● ● ● ● INTERIM RESULTS FOR SIX MONTHS TO 30 SEPTEMBER 2024
Slide 22: Post Period Highlights
POST PERIOD HIGHLIGHTS
Slide 23: Autumn Trading
POST PERIOD HIGHLIGHTS AUTUMN TRADING • • • • • • • • INTERIM RESULTS FOR SIX MONTHS TO 30 SEPTEMBER 2024
Slide 24: Summary and Outlook
SUMMARY AND OUTLOOK XP FACTORY • • • • • • • • • INTERIM RESULTS FOR SIX MONTHS TO 30 SEPTEMBER 2024
Slide 25: Appendix Slides
APPENDIX SLIDES
Slide 26: Market Leader in Experiential Leisure
MARKET LEADER IN EXPERIENTIAL LEISURE XP FACTORY • EH and BBB are the UK Competitive Socialising # of Escape Room # of UK rooms1 market leaders in Escape 140 Room and Competitive 30 UK sites1 Socialising 120 25 • Scale advantages 100 20 • Repeatable, modular sites and 80 products that can be 15 repl
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 Sept 2024
PROPERTY PORTFOLIO Sept 2024 INTERIM RESULTS FOR SIX MONTHS TO 30 SEPTEMBER 2024
Slide 29: IFRS16 Impact
IFRS16 IMPACT XP FACTORY ● 15 mths to Pro-forma UK GAAP reconciliation H1 FY2025 H1 2024 Mar 2024 ● £'000 IFRS PAT as reported (2,207) (2,392) (422) ● Add back: IFRS 16 interest 1,261 828 2,394 ROU Depreciation 1,171 928 2,474 Other IFRS 16 Adj 225 73 505 ● Rent (1,927) (1,392) (4,119) Pro-forma PAT
Slide 30: At a Glance: Our Brands
AT A GLANCE OUR BRANDS Our 72 locations offer a wide variety of entertainment experiences together with licensed bars delivered with world class hospitality in prime retail or leisure locations. 47 31 Venues Venues Wet led venues home to Experience led venues multiple entertainment home to team base
Slide 31: Brand Focus: Boom Battle Bar
BRAND FOCUS The modularity provided by our multi-experience proposition is distinctly advantageous We can optimize the mix of games and experiences by venue size and location as well as A unique bar continue to innovate and refresh the offer to remain current without the requirement for wholesale ch
Slide 32: Brand Focus: Escape Hunt
BRAND FOCUS As a 360 gaming business that goes beyond the 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 33: ESG Initiatives
ESG INITIATIVES XP FACTORY • • • • • • INTERIM RESULTS FOR SIX MONTHS TO 30 SEPTEMBER 2024
Slide 34: Management
MANAGEMENT XP FACTORY 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 (formerly Escape Hunt) Deloitte in London, and has worked in advisory, management te
Slide 35: Shareholdings Sep 2024
SHAREHOLDINGS 30 Sep 2024 INTERIM RESULTS FOR SIX MONTHS TO 30 SEPTEMBER 2024
Slide 36: Results for Six Months to 30 September 2024
RESULTS FOR SIX MONTHS TO 30 SEPTEMBER 2024