XP Factory : Unaudited condensed interim results for the six months ended 30 June 2023

XP FACTORY PLC

Registered number 10184316

UNAUDITED CONDENSED INTERIM REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2023

Contents
FINANCIAL AND OPERATIONAL HIGHLIGHTS	3
CHIEF EXECUTIVE'S REPORT	6
STATEMENT OF DIRECTORS' RESPONSIBILITIES IN RESPECT OF THE CONDENSED INTERIM
REPORT AND CONDENSED FINANCIAL STATEMENTS	13
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME	14
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION	15
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	17
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS	18
NOTES TO THE UNAUDITED INTERIM REPORT	19
COMPANY INFORMATION	33

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27 September 2023

XP Factory plc

("XP Factory", the "Company" or the "Group")

Interim Results

XP Factory plc (AIM: XPF), one of the UK's pre-eminent experiential leisure businesses operating the Escape Hunt®

and Boom Battle Bar® brands, is pleased to announce its unaudited interim results for the six months ended 30 June 2023 ("H1 2023").

	Half year ended 30	Half year ended 30	Change
	June 2023 (£'000)	June 2022 (£'000)
Revenue	18,694	8,120	+130%
Gross Profit	11,697	5,096	+128%
Site level EBITDA	5,042	2,183	+131%
Pre IFRS 16 Adjusted EBITDA1	1,049	275	+281%
Adjusted EBITDA1	2,356	1,070	+120%
Loss per share (pence)	(1.58)	(2.20)

FINANCIAL HIGHLIGHTS

• Group revenue increased 130% to £18.7m (H1 2022: £8.1m) demonstrating the significant growth in scale:
• • Escape Hunt® owner operated site revenue increased 41% to £6.1m (H1 2022: £4.3m)
  • Boom Battle Bar® ("Boom") owner operated revenue increased 416% to £11.3m (H1 2022: £2.2m)
• Gross margin maintained at 62.1% (H1 2022: 62.8%)
• Pre IFRS 16 Group Adjusted EBITDA1 profit of £1.05m (H1 2022: £0.28m)
• Site level pre IFRS 16 EBITDA profit of £5.0m (H1 2022: profit £2.2m)
• Cash at 30 June 2023 of £3.7m (31 Dec 2022: £3.2m)

OPERATING HIGHLIGHTS

• Double digit like-for-like2 sales growth delivered across both owner-operated brands:

1. Boom: up 19.6% in the 26 weeks to 2 July 2023

• 1. Escape Hunt® : up 20.4% in the 26 weeks to 2 July 2023
• Boom franchise sites in Chelmsford and Ealing acquired in June 2023
• Boom owner operated site level EBITDA margins 19% in sites trading over 12 months and 11% overall (H1 2022: loss 33%)
• Escape Hunt® owner operated site level EBITDA margins 40% (H1 2022: 40%) continue to exceed internal targets

1. Earnings before interest, tax, depreciation and amortization, calculated before pre-opening losses, exceptional items, and other non-cash items. A full reconciliation to operating loss is provided below in the text of the announcement.
2. Comparatives adjusted for VAT benefit in 2022

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POST PERIOD-END HIGHLIGHTS

• Group performance in July and August 2023 rebounded strongly after the typically quieter May and June period
• First international Boom site opened in Dubai on 21 July and is performing well
• New Boom site in Canterbury due to open on 29 September 2023 and in Southend on 14 October 2023
• Boom consumer ratings significantly outperforming peers and the industry
• New Escape Hunt® site opened in Woking on 17 July 2023 with strong early performance
• All UK Escape Hunt® owner operated sites operating for more than a year awarded 'Traveller's Choice Awards' by Tripadvisor®
• Owner operated estate now comprises 24 Escape Hunt® sites and 15 Boom sites
• Franchise estate now comprises 23 Escape Hunt® sites and 14 Boom sites
• Record pre-bookings for corporate sales provides confidence underpinning expectations for full year
• Group's financial year end moved to 31 March

Richard Harpham, Chief Executive of XP Factory, commented: "We are delighted to have delivered such transformational growth compared to the same period in 2022, driven by the aggressive rollout of Boom Battle Bar. The performance in Escape Hunt® has been outstanding and we are delighted to see the young Boom business continue to mature with ongoing improvements to its operating metrics. Performance since the end of June 2023 has been encouraging with both Boom and Escape Hunt® delivering strong like for like growth over the summer months. Experiential leisure has displayed robust demand despite the current economic environment and our strategy to drive profitable growth and take market share continues to progress. Whilst mindful of ongoing short-termpressures on consumers and the second half weighting of the industry, we remain optimistic for the performance of both businesses over the short and medium term and expect to report full year numbers in line with market expectations."

Enquiries
XP Factory plc	[phone]
Richard Harpham (Chief Executive Officer)
Graham Bird (Chief Financial Officer)
Kam Bansil (Investor Relations)
Singer Capital Markets - NOMAD and Broker	[phone]
Peter Steel
Alaina Wong
James Fischer
IFC Advisory - Financial PR	[phone]
Graham Herring
Florence Chandler

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

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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® Boom Battle Bar® is a fast-growing network of owner-operated and franchised sites in the UK that combine competitive socialising activities with themed cocktails, drinks and street food in a high energy 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/)

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