Escape Hunt : UNAUDITED CONDENSED INTERIM REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2020

ESCAPE HUNT PLC

Registered number 10184316

UNAUDITED CONDENSED INTERIM REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2020

Contents
FINANCIAL AND OPERATIONAL HIGHLIGHTS .....................................................................................	3
CHIEF EXECUTIVE'S REPORT..............................................................................................................	5
STATEMENT OF DIRECTORS' RESPONSIBILITIES IN RESPECT OF THE CONDENSED INTERIM
REPORT AND CONDENSED FINANCIAL STATEMENTS .........................................................................	11
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME .........................................	12
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION..................................................	13
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ..................................................	15
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS..............................................................	16
NOTES TO THE UNAUDITED INTERIM REPORT...................................................................................	17
COMPANY INFORMATION ................................................................................................................	25

29 September 2020

Escape Hunt plc

("Escape Hunt", the "Company" or the "Group")

Unaudited Half Yearly Results for the Six Months ended 30 June 2020

Escape Hunt plc (AIM: ESC), a global leader in the growing escape rooms sector, is pleased to announce its interim results for the six months ended 30 June 2020.

	Half year ended 30	Half year ended 30
	June 2020 (£'000)	June 2019 (£'000)
Revenue	1,306	2,208
Gross Profit	900	1
1,613
Adjusted EBITDA loss, pre-IFRS	(816)	(1,059)1
16
Loss per share	(11.48p)	(14.57p)

HIGHLIGHTS

• UK sites were closed from 21st March 2020 for the remainder of the period
• In the 12 week period prior to the lockdown, revenue from owner-operated sites was up 44% compared to the same period in 2019
• Adjusted EBITDA loss in the half year reduced to £816k (2019: £1,059k)
• UK sites in aggregate achieving target returns prior to COVID-19
• Launch of downloadable play at home and remote play games during lockdown generated £53k of revenue in period
• Cash outflow constrained through careful management and use of various Government support schemes
• Basic loss per share ('EPS') of 11.48p (H1 2019 loss per share: 14.57p)

POST PERIOD-END HIGHLIGHTS

• Raised £4.1m net of expenses through an equity placing, share subscription, convertible loan note issue and open offer to support continued expansion of the network and provide working capital
• Cash balance of £4.3m at end of August 2020
• UK sites re-opened in July operating on reduced days
  o Improved EBITDA conversion ratios benefitting from government support schemes
  o Revenue progress encouraging; final two weeks in August representing 89% and six weeks to 20 September representing 72% of the same periods in 2019 respectively
  o Site level EBITDA in the six weeks to 20 Sept up 33% on the same period in 2019
• Majority of franchise sites have also re-opened with volumes returning
• Norwich site opened to public on 23 September 2020
• Fit-outwork at Basingstoke well advanced and opening scheduled in October taking total number of operational UK sites to 11

1 Restated

• Signed new site in Cheltenham and fit-out work commenced
• Heads of terms agreed on two further UK sites (Watford and Kingston)
• 'Escape Hunt for Brands' progress with Netflix Enola Holmes agreement
• Launch of Doctor Who download, print and play game "The Hollow Planet" in conjunction with BBC
• 'Escape Hunt for Business' progress with launch of remote play propositions for corporates
• Awarded TripAdvisor™ Traveller's Choice awards at all eight eligible UK site

Richard Harpham, Chief Executive of Escape Hunt, commented: "The six months ended 30 June may well have been the toughest period on record for leisure businesses with Government enforced closures and consumers wary of socialising as a result of COVID-19.Nevertheless, I am pleased to report strong progress in the period prior to the UK lockdown which endured from 21 March 2020 to the period end, as well as encouraging signs of recovery post period end and significant strategic and operational progress helped by supportive property conditions in which we expect a greater availability of sites on more favourable terms.

"In addition, we were encouraged that, prior to lockdown, all our UK sites had five-star ratings and were ranked in the top four on TripAdvisor™ in their respective cities under fun and games. Our sites have not been open for sufficiently long since lockdown to draw any firm conclusions, however, the evidence to date is encouraging, we are continuing to enjoy very positive consumer ratings, and as a result we are continuing with our strategic priorities in earnest. We are, however, aware of the growing rate of COVID-19 infections and the possibility of further restrictions being imposed which may impact our progress."

Enquiries
Escape Hunt plc	[phone]
Richard Harpham (Chief Executive Officer)
Graham Bird (Chief Financial Officer)
Kam Bansil (Investor Relations)
Shore Capital - NOMAD and Joint Broker	[phone]
Tom Griffiths, David Coaten (Corporate Advisory)
Fiona Conroy (Corporate Broking)
Zeus Capital - Joint Broker	[phone]
John Goold
Daniel Harris
IFC Advisory - Financial PR	[phone]
Graham Herring
Florence Chandler

About Escape Hunt plc

The Escape Hunt Group 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. Its products enjoy consistent premium customer ratings and cater for leisure or teambuilding, in small groups or large, and are suitable for consumers, businesses and other organisations. Having been re-admitted to AIM in May 2017, the Company has a strategy of creating high quality premium games and experiences delivered through multiple formats and which can incorporate branded IP content.