9 October 2024
XP Factory
Plc
("XP Factory", the
"Company" or the
"Group")
Completion of RCF banking
facility
XP Factory, one of the UK's
pre-eminent experiential leisure businesses operating the Escape
Hunt® and Boom Battle Bar®
brands, is pleased to announce the completion of
its new £10m revolving credit facility (RCF) provided by Barclays
Bank PLC.
The facility increases the Group's
flexibility and capacity to grow both the Escape Hunt and Boom
estates, provides additional working capital headroom, and will
enable the Company to refinance an existing £1m debt facility at
significantly lower borrowing costs. The facility has been
secured on the strength of the underlying cash generation in the
business.
In the 15 months to 31 March 2024,
XP Factory delivered £6.5m of free cash flow after maintenance
capex, representing an annualised yield of 24% based on the
Company's current market capitalisation of £21.9m. Over and
above this strong organic cash generation, the RCF will allow the
Group to more actively manage and accelerate its expansion of the
Boom Battle Bar and Escape Hunt networks.
The results for the 15 months to 31
March 2024 illustrated the underlying cash generation within the
business:
|
|
£m
|
|
Pre
IFRS 16 Group EBITDA:
|
6.3
|
|
IFRS 16 Adjustments
|
3.7
|
|
Working capital and other non-cash
movements
|
1.1
|
|
Net
cash generated from operating activities per cashflow
statement
|
11.1
|
|
Rent payments (treated as interest
and capital payments under IFRS16)
|
(3.1)
|
|
Underlying cash generated from operating
activities
|
8.0
|
|
Maintenance capex
|
(1.1)
|
|
Interest and finance
costs
|
(0.4)
|
|
Free cashflow available
|
6.5
|
|
Market capitalisation at 12.5p per
share
|
21.9
|
|
Annualised free cash
yield
|
24%
|
The Group has £22.3m of carried
forward tax losses which together with future capital allowances
from expansion in the estate provides significant future benefits
before corporation tax will become payable.
Historically, investments into new
sites within the Boom and Escape Hunt networks have generated
returns on capital of 52% and 48% per annum respectively. The
Group's strong free cash generation dynamics and high returns on
capital provided the basis for securing the RCF at an exciting
phase in its growth strategy.
Philip Richardson, Director of Hospitality & Leisure, UK
Corporate Banking, Barclays said "XP Factory are a great example of an
innovative business in the hospitality sector and we're proud to
support them with lending to continue their growth as they expand
their business across the UK."
Richard Harpham, Chief Executive of XP Factory plc said
"Securing this new RCF represents
an important milestone for the Group. Not only is it a strong
endorsement of the progress made in the last few years, but it will
significantly enhance our ability and confidence to add further
venues to our two fast growing brands. Our existing cash
generation supports around 5-6 new site openings per annum.
Although there will not be any impact in the current financial
year, with the facility in place we have the ability to increase
the pace of roll out in 2025 and beyond whilst maintaining
conservative debt ratios. "
Enquiries:
Notes to Editors:
About XP Factory plc
The XP Factory Group is one of the
UK's pre-eminent experiential leisure businesses which currently
operates two fast growing leisure brands. Escape Hunt is a
global leader in providing escape-the-room experiences delivered
through a network of owner-operated sites in the UK, an
international network of franchised outlets in five continents, and
through digitally delivered games which can be played
remotely.
Boom Battle Bar is a fast-growing
network of owner-operated and franchise sites in the UK that
combine competitive socialising activities with themed cocktails,
drinks and street food in a high energy, fun setting.
Activities include a range of games such as augmented reality
darts, Bavarian axe throwing, 'crazier golf', shuffleboard and
others. The Group's products enjoy premium customer ratings
and cater for leisure or teambuilding, in small groups or large,
and are suitable for consumers, businesses and other organisations.
The Company has a strategy to expand the network in the UK and
internationally, creating high quality games and experiences
delivered through multiple formats and which can incorporate
branded IP content. (https://xpfactory.com/)
|
Facebook:
|
EscapeHuntUK
|
|
BoomBattleBar
|
|
Twitter:
|
@EscapeHuntUK
|
|
@boombattlebar
|
|
Instagram:
|
@escapehuntuk
|
|
@boombattlebar
|
About Barclays
Our vision is to be the UK-centred
leader in global finance. We are a diversified bank with
comprehensive UK consumer, corporate and wealth and private banking
franchises, a leading investment bank and a strong, specialist US
consumer bank. Through these five divisions, we are working
together for a better financial future for our customers, clients
and communities.
For further information about
Barclays, please visit our website home.barclays