XP Factory (LSE:XPF), the UK experiential leisure group behind Escape Hunt and Boom Battle Bar, provided an unaudited FY26 trading update showing pre‑IFRS 16 adjusted EBITDA is expected to be marginally ahead of the revised market expectations of £5.1m for the 52 weeks to 29 March.
Group revenue for FY26 exceeded £59m (FY25: £58m) and net debt excluding lease liabilities was £5.7m at 29 March (31 March 2025: £4.9m).
Escape Hunt owner‑operated sites delivered revenue growth of 11% and like‑for‑like growth of 3.8%, with management flagging material labour cost increases driven by higher National Insurance and the National Living Wage.
Boom owner‑operated revenue was up 2% driven by annualisation of prior franchisee acquisitions and net site openings, while O&O like‑for‑like declined 8%, modestly outperforming the sector LFL decline of 9%, and disciplined cost control helped offset inflationary pressure.
The group opened two Escape Hunt sites in Canterbury and Sheffield and one Boom in Reading during the year, finished with 27 Escape Hunt O&O and 25 Boom O&O sites at year end, and opened Colchester in April post period end.
XP Factory has initiated approximately £1m of annualised HQ cost reductions with FY26 impact and full benefit expected in FY27 while reiterating a medium‑term target to grow Escape Hunt O&O to 100 sites and reporting FY27 trading in line with Board expectations.
"Whilst trading conditions within the Competitive Socialising market have remained difficult, we are confident that Boom, as a scale operator, will prove to be a long‑term winner as the industry consolidates," Richard Harpham said.
