XP Factory (XPF) Reports 3% Revenue Increase to £59.6m in FY26 Despite Boom Battle Bar Challenges

XP Factory plc (XPF), the UK experiential leisure group behind Escape Hunt and Boom Battle Bar, has released its audited final results for the year ended 29 March 2026, revealing a 3% rise in underlying group revenue to £59.6m. Pre-IFRS-16 Group Adjusted EBITDA fell to £5.5m from £6.6m the previous year, impacted by an additional £1.5m in labour costs and softer market conditions in the competitive socialising sector. The board confirmed that FY27 performance is expected to align with market expectations, supported by encouraging early festive trading data. Key Points XP Factory plc (XPF), UK experiential leisure operator of Escape Hunt and Boom Battle Bar Underlying group revenue increased 3% to £59.6m for the year ended 29 March 2026, with pre-IFRS-16 adjusted EBITDA at £5.5m Net debt stood at £5.9m at period end; £20m revolving credit facility secured with HSBC Investors will monitor festive trading results and the progression of Escape Hunt's expansion toward a 100-site UK target Escape Hunt's owner-operated division led performance during the period, with revenue climbing 11% to £15.8m and UK like-for-like sales increasing by 4.6%. Site-level pre-IFRS-16 EBITDA margin was 42%, down slightly from 44% the prior year due to significant labour cost inflation. The estate expanded to 27 owner-operated sites by period end, up from 25, following openings in Canterbury and Sheffield and an extension at Birmingham Resorts World. After the period, new locations opened in Colchester, Wandsworth, and Birmingham Cannon Street, with a Cardiff site slated to open in October 2026 as the 28th UK location. Boom Battle Bar Experiences 8% UK LFL Sales Drop Amidst Competitive Socialising Market Pressure Boom Battle Bar's owner-operated estate encountered a tougher trading environment, with UK like-for-like sales declining 8.0% over the 52 weeks to 29 March 2026. Despite this, the performance slightly outpaced the wider competitive socialising industry, which saw a 9% LFL decline per the CGA RSM Hospitality tracker. Underlying Boom revenue rose 2% to £42.8m, supported by franchise acquisitions and net site openings. Site-level pre-IFRS-16 EBITDA margin decreased to 17% from 18%, with stringent cost controls—including renegotiated supplier contracts—partially offsetting labour and input cost inflation. The Southend site closed in January 2026. £1m HQ Cost Savings and HSBC Revolving Credit Facility Bolster FY27 Financial Position XP Factory commenced the new financial year with a £20m revolving credit facility from HSBC and net debt of £5.9m, up from £4.9m at FY25 end. The group has implemented £1m in annualised head office cost reductions, expected to fully benefit FY27, alongside over £2m in annualised site-level savings already identified. Adjusted operating profit for FY26 was £0.8m, down from £3.4m the previous year. Incoming Chairman James van den Bergh, who took on the role on 2 February 2026, emphasized the board's commitment to disciplined capital allocation. December B2B Bookings Surge 15% as XP Factory Focuses on Festive Trading and 100-Site Escape Hunt Growth Post-period trading was affected by an unusually warm and dry summer, which the company said dampened demand for indoor activities, though conditions improved as weather normalized. Early festive period indicators are positive, with December business-to-business bookings rising 15% year-over-year, aided by a newly launched proprietary B2B booking platform. The board reiterated its long-term goal to expand the Escape Hunt owner-operated estate to 100 sites across the UK and Ireland, while noting that expansion will proceed cautiously given current market conditions. To keep reading, please log in to your account, create a free account, or simply fill out the form below.