Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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A nice £35k buy at the end of the day
No idea how or why the SP sunk to these lows - it seemed to get stuck in a downtrend
XP almost certainly enjoying their most successful sales to date
GLA, Please DYOR
Don't want to tempt fate but is our seller slowing down a bit??
I have added, hopefully we have seen the bottom and good time to buy
No idea how or why the SP sunk to these lows - it seemed to get stuck in a downtrend
As my previous blogs have stated. This is the AIM market. It is corrupt with manufactured share pricing and insider dealings. Let’s just hope they keep the upward momentum going now.
XP Factory (AIM: XPF), a global leader in the experiential leisure sector, was notified on 5 December 2023 that Andrew Jacobs, Chief Operating Officer of the Company, on the same day acquired 233,227 ordinary shares of 1.25 pence in the Company at a price of 15.0 pence per share.
As a result, Andrew Jacobs' total beneficial interest in the Company has increased to 1,303,684 Ordinary Shares, representing 0.75 per cent. of the Company's issued share capital.
So good to see COO buying in, £35k worth, probably not a great deal to him , but it's not small change either, and a sign that he is confident in how the business is growing, can only instill confidence
He also bought another £30ks worth not long ago. I’m sure he’s seeing something he likes.
Looks like seller may have slowed for sure and hopefully this is the inflection point - sweet spot - where we see a nice rise from here 🙏
It’s about time!
From the interim results RNS Sep 28th things were looking very positive and if train strikes are less this year then should see a good Christmas. Wondering when they will start opening new Boom Battle Bars and drive the econmies of scale
POST PERIOD END TRADING AND OUTLOOK
Trading bounced back strongly in July after the seasonally quieter months of May and June.
The resilient performance continued throughout the summer.
Like for like growth within the Boom owner operated estate was 25% and within the Escape Hunt® owner operated estate was 23% in the nine weeks to 3 September 2023.
Margins within Boom saw further, steady improvements and Escape Hunt® has continued to operate at margins in line with those achieved in the first six months of the year.
Whilst remaining alert to the ongoing pressures on consumers, cost pressures in the business and the seasonal significance of the end of the year, strong corporate sales and ongoing operational improvements provide confidence of an outcome for the full year in line with current market expectations.
Good post Chapel. I too noticed the H2 start had been good, which seems to have gone a little under the radar.
Also for Boom we had very few sites this time last year so the Christmas period should have a significant impact YoY. Similarly there should only be 1 weekend impacted by train strikes which is also an improvement on last year.
For me this looks undervalued - revenues are growing quickly, it is cash generative and it is now using some of this cash to re-invest in new stores or buying up franchise sites. A small maiden profit would really be ideal now.
So we still seemingly have a seller....or a shorter still hanging on?
Very strange - not the time to sell this stock if you are here for the business case
I think it’s worth remembering when we talk about scaling the business where they’ve come from. It’s quite amazing imo how they’ve now got 27 boom battle bars and 49 escape rooms, bearing in mind they only started BBB back in late 2021. This is in spite of covid, cost of living, train strikes etc. in fact they were able to take advantage of covid by getting lease deals in prime locations at favourable rates. I think this phase of slowing down openings of sites and proving it can be a profitable, successful business is right strategy and then can go to next phase of scaling up after.
I may have spoken to soon - some biggies reported after hours. Looks less like a seller and more like some positions closing
Maximum - nice post
Compare that to Hollywood Bowl....
Venues
BOWL - 80
XPF - 76
Activities
BOWL - Tenpin Bowling, Pool, Bar, Food and mini golf (3) and amusements
XPF - Escape Rooms, Pool, Crazy Golf, Augmented Reality Darts,Axe Throwing, Table Tennis + Beer Pong, Shuffleboard, Food, Bar , Kareoke
H1 Revenue / EBITDA / EBITDA Margin %
BOWL - £110m / £35m / 32%
XPF - £18 / £2.3m / 13%
mCap / mCap as multiple of EBITDA
BOWL - £469m / x13
XPF - £28m / x8
BOWL must represent a more mature target for XPF - opportunity to significantly grow revenue and improve margins. BOWL pays dividends and is clearly a more mature and established business - howvere, from an investment persepctive I see lots of growth and opportunity in XPF and BOWL is a cash cow at best that will find it harder to grow.
Ten Entertainment (TEG) The owner of Bowling alleys, Modern Arcades, Escape rooms and Laser Tags has been bought out by a US Private equity group for a 35% premium to the current price (still a bargain imo).
Further shows how undervalued UK Alternative entertainment companies are, this 100% applies to XPF too. Glad I bought last week and continuing to add whilst its this undervalued.
Hedge - good comparison with Hollywood Bowl.
Your figures are of course H1 only - for 2023 FY if we assume EBITDA is c£5m and for a fast growing company a 10x EBITDA is a decent yardstick then that's a £50m valuation, almost double the current SP.
Pretty sure the market is expecting FY EBITDA of £10m
£10m - are you sure. They only did an adjusted EBITDA of £2.3m in H1.
Are you quoting the pre IFRS number, which is always higher? For H1 this was c£5m.
IMHO the pre IFRS is always a bit misleading so i tend to ignore.
Not sure and cannot find my source
H2 will be higher.
Posh IFRS16 adj margin is usually higher
XP Factory plc
("XP Factory" or the "Company")
Director/PDMR Shareholding
XP Factory (AIM: XPF), a global leader in the experiential leisure sector, was notified on 8 December 2023 that Philip Shepherd, a non-executive director of the Company, on the same day acquired 62,163 ordinary shares of 1.25 pence in the Company at a price of 16.0867 pence per share.
Philip Shepherd's total beneficial interest in the Company is 62,163 Ordinary Shares, representing 0.04 per cent. of the Company's issued share capital.
Not even worth reporting
The company have to report it, its regulated. I'd rather he was buying £10k worth, than not - It is still a good sign.
What is your excuse? - your comment was 'not even worth posting'
He is only a non exec and so £10k is fair enough. Combined with recent £65k from COO Andrew Jacobs looks positive sign to me.
Hope you’re right. But this share needs to start moving. Hope January is the game changer.
I agree with chapel. Seems like they’re impressed with the progress or why else buy?
I wouldn’t be surprised if we saw more director buys also.
More sells than buys lately……. ???