XP Factory (LSE:XPF) reported FY26 revenue of more than £59 million, slightly ahead of the previous year, with pre-IFRS 16 adjusted EBITDA expected to come in modestly above revised market expectations despite ongoing pressure from higher labour and supplier costs.
The experiential leisure group said net debt excluding lease liabilities increased to £5.7 million during the period. The company also transitioned to a 52-week accounting cycle while continuing efforts to streamline operations through reductions in central overhead expenses.
Escape Hunt, the group’s escape-room brand, delivered particularly strong performance, with owner-operated venues recording 11% revenue growth and like-for-like sales growth of 3.8%. The improvement was supported by new site openings and continued consumer demand.
Boom Battle Bar achieved overall revenue growth of 2%, although like-for-like sales declined 8%. Despite the softer comparable performance, management noted the brand continued to outperform the wider competitive socialising sector during a challenging leisure market environment.
XP Factory expanded both of its core brands during the year and introduced approximately £1 million in annualised head office cost savings. The company also reiterated its medium-term ambition to grow Escape Hunt to 100 owner-operated locations, positioning the business to capitalise on increasing consolidation within the experiential leisure industry.
The company’s outlook remains affected by financial pressures linked to leverage levels and cash flow constraints. Technical indicators currently suggest bearish momentum, while valuation measures continue to reflect the group’s lack of sustained profitability. Positive developments around operational efficiency and expansion strategy have provided some support, although they do not fully offset broader financial concerns.
More about XP Factory PLC
XP Factory PLC is a UK-based experiential leisure operator behind the Escape Hunt and Boom Battle Bar brands. Escape Hunt provides escape-room entertainment through company-owned UK venues and international franchise operations, while Boom Battle Bar offers competitive social gaming experiences including augmented reality darts, axe throwing and other group-based activities aimed at both consumer and corporate markets.
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