XP Factory : Unaudited condensed interim results for the six months ended 30 June 2022

XP FACTORY PLC

Registered number 10184316

UNAUDITED CONDENSED INTERIM REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2022

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............................................................................	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 .....................................................................................................................	28

28 September 2022

XP Factory plc

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

Interim Results

XP Factory plc (AIM: XPF), a global leader in the experiential leisure sector, is pleased to announce its unaudited interim results for the six months ended 30 June 2022 ("H1 2022").

	Half year ended 30	Half year ended 30
	June 2022 (£'000)	June 2021 (£'000)
Revenue	8,120	1,178
Gross Profit	5,096	801
Adjusted EBITDA1 profit / (loss)	1,070	(796)
Loss per share (pence)	(2.20)	(2.81)

FINANCIAL HIGHLIGHTS

• Group revenue of £8.1m (2021: £1.2m) demonstrates a significant growth in scale and includes:
• • Escape Hunt owner operated site revenue increased to £4.3m (2021: £0.9m)
  • Boom Battle Bar ("Boom") revenue of £3.6m comprised £2.2 from owner operated sites and £1.4m from franchises
• Group Adjusted EBITDA1 profit of £1.1m (H1 2021: loss £0.8m)
• Site level EBITDA profit of £3.1m (H1 2021: profit £0.4m)
• Group Operating loss of £2.4m (H1 2021: loss £2.2m)
• Loss per share of 2.2p (H1 2021: loss of 2.81p)
• Cash at 30 June 2022 of £5.2m (30 June 2021: £2.4m)

OPERATING HIGHLIGHTS

• Significant progress made in establishing the UK owner operated network both for Escape Hunt and Boom
• 17 UK Boom sites open at 30 June 2022 - 4 owner operated and 13 franchised
• 19 owner-operated Escape Hunt sites open at 30 June 2022
• Pipeline of additional new sites well established for both businesses
• Escape Hunt exceeded its pre IFRS 16 target site level EBITDA margin (39% vs 30%)
• Boom Battle Bar owner operated sites already beginning to demonstrate their ability to achieve mature target EBITDA margins

POST PERIOD-END HIGHLIGHTS

• Escape Hunt and Boom currently performing well with pleasing level of sales being achieved
• Continuing growth in the returns being achieved across the Boom owner operated sites

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.

• Acquisition of the former Boom franchise site in Cardiff completed on 8 September 2022
• Acquisition of the former Boom franchise site in Norwich completed on 16 August 2022
• Further owner operated Boom sites opened in September 2022 in Edinburgh and Plymouth and an additional Boom franchise sites opened in Sheffield in July 2022 and Chelmsford in September 2022 taking the total to 21 open sites, comprising 8 owner operated and 13 franchise sites
• 2 further owner operated Escape Hunt sites opened, in Norwich in August 2022 and Edinburgh in September 2022, taking the total to 21 owner operated sites
• Additional owner operated Boom sites in build in London (Oxford Street), Leeds, and Birmingham
• Further franchised Boom sites in build in Southampton and Bournemouth
• Additional owner operated Escape Hunt sites in build in London (Oxford Street) and Bournemouth
• All UK Escape Hunt owner operated sites operating for more than a year awarded 'Traveller's Choice Awards' by Tripadvisor ™
• Boom consumer ratings significantly outperforming peers and the industry

Recent performance across the estate has been encouraging with no discernible impact from consumer

weakness. The Board remains focussed on providing the best possible customer experience to an ever growing

number of customers across the UK and beyond and will keep a careful eye on consumer behaviour in the

context of the macro-economic environment and be ready to react if there is any sign of an impact.

Notwithstanding the encouraging recent performance, the Group's full year results are heavily weighted to the

final quarter's trading and will be influenced by, inter alia, the dates on which sites currently in build are able to

open, how quickly the performance at those sites tracks through the maturity curve, and the strength of pre-

Christmas trading generally.

Richard Harpham, Chief Executive of XP Factory, commented: "2022 represents an important year in our evolution as we continue to build the platform for a sustainable, cash generative and profitable experiential leisure business.

We have made significant progress towards our goals, growing the Boom estate to 21 sites today from only seven when we acquired it in November 2021. We have also grown our Escape Hunt business to 21 owner operated sites today, with the brand continuing to perform well, generating strong returns at a site level.

With each successive week, Boom's trading performance reinforces our belief that it is a very attractive proposition, capable of delivering strong margins and an exceedingly attractive return on capital. We are delighted with the progress we have made and believe that by the end of the year, the foundations will be firmly set for the business in 2023 and beyond."

Enquiries
XP Factory 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)

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 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 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/)