XP Factory PLC (LSE:XPF) reported underlying group revenue of £59.6 million for the year ended 29 March 2026, up 3%, while pre-IFRS 16 adjusted EBITDA declined to £5.5 million amid higher labour costs and lower demand in the competitive socialising market.
Net debt increased to £5.9 million. During the period, the group secured a new £20 million revolving credit facility with HSBC to support its funding and capital allocation requirements.
The owner-operated Escape Hunt business recorded an 11% increase in revenue to £15.8 million, with UK like-for-like sales rising 4.6%. Site-level EBITDA margins were 42%. The division added locations in Canterbury and Sheffield as part of its estate expansion.
Owner-operated revenue at Boom Battle Bar increased 2% to £42.8 million. UK like-for-like sales declined 8%, while site-level EBITDA margins decreased to 17%. The company said the performance was recorded against a declining experiential leisure market.
Trading following the year-end was affected by unusually warm and dry weather, which the company said reduced demand for indoor venues. XP Factory said trading conditions have subsequently normalised.
The group reported that December business-to-business bookings were running 15% ahead of the prior year, providing an early indication of demand for the Christmas trading period.
XP Factory has implemented £1 million of reductions in head-office costs and identified more than £2 million of annualised savings at site level.
The company is continuing to expand the Escape Hunt estate, with several new locations planned during 2026. Its longer-term objective is to operate 100 owner-operated sites across the UK and Ireland.
Chairman James van den Bergh described FY26 as a year of resilience rather than progress. The board remains cautious about the timing of a recovery in consumer demand as the group enters FY27 with a reduced cost base and continues to assess opportunities within the experiential leisure market.
More about XP Factory PLC
XP Factory PLC is a UK-based experiential leisure group operating the Escape Hunt and Boom Battle Bar brands.
Escape Hunt provides escape-room experiences through owner-operated UK locations, international franchises and digital games, serving consumer and corporate customers.
Boom Battle Bar operates owner-operated and franchised competitive socialising venues offering activities including augmented reality darts, axe throwing and crazier golf, alongside food and drinks.
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