Axe-throwing bar chain toasts growth as Brits look for competitive night out
Novelty bar operator XP Factory topped market expectations today after a boost in Brits looking for competitive nights out with activities like axe throwing and mini golf.
Group revenue more than doubled in the 15 months ended 31 March 2024, to £57.3m from £22.8m.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose to £9.9m, up from £4m, while operating profit reached £7m, up from a loss of £4.9m in 2022.
XP operates two brands: Escape Hunt, which provides escape room experiences, and Boom Battle Bar, which offers activities like axe throwing in a traditional bar.
XP said it generated £11.1m in cash from operations, with £8.3m invested in capital expenditure. It reported a post-tax loss of £0.5m.
Boom Battle Bar opened three new sites during the period – including one in Dubai – and acquired a further five. There is a “pipeline of further site openings developed across both brands,” the company said.
The experiential leisure industry in the UK has been rapidly growing and has withstood even dampened consumer backdrop, with a 455 per cent increase in ‘combo’ attractions over the past five years.
“I am delighted to report on another exceptional period of growth which has delivered results ahead of market expectations,” said Richard Harpham, Chief Executive of XP Factory, said.
“Our focus on incremental improvements alongside ongoing expansion in the estate has helped deliver market leading returns on investment in both our brands and strong operating cash generation. Since the period end, we have continued to see positive like-for-like growth and performances well ahead of the industry as a whole.”
He added that the firm was doubling down on its expectations for the year, and the board continued to “view the prospects for the business with optimism.”