(Alliance News) - Escape Hunt PLC on Tuesday said performance for 2019 was comfortably ahead of expectations and that it plans to raise new capital to fund growth strategy amid Covid-19 disruption.
Shares in the escape room operator were trading 13% lower at 6.99 pence each on Tuesday afternoon in London.
For 2019, Escape Hunt posted revenue of GBP4.9 million, up more than two-fold from GB2.2 million reported in 2018. Pretax loss narrowed to GBP6 million from GBP9.9 million.
Administrative expenses were lower at GBP9.6 million, compared to GBP11.6 million the year prior.
The company said its owner-operated sites accounted for 78% of its sales, delivering GBP3.8 million of revenue with its performance driven by contributions from the eight new sites opened in 2018. Revenue from the franchise estate was GBP725,000, down from GBP741,000.
Looking ahead, Escape Hunt said that it has implemented cash-conservation measures amid the Covid-19 pandemic which will provide it adequate headroom to survive an expected three to six-month period of closure. It added that it is currently exploring options to access further working capital in order to fund its strategy for 2020.
"Conditional on accessing sufficient capital to do so, our short-term target is to grow the UK estate to at least 15 Escape Hunt branded sites within 9 months and then to 20 within 18 - 24 months of reopening after Covid-19. We believe there is a market opportunity to grow the UK estate to approximately 50 sites in the longer term. Supported by anticipated growth in our franchise business, both in the US and elsewhere, we believe this strategy will deliver a sustainably cash generative, highly profitable business," said Chief Executive Richard Harpham.
As at the end of 2019, the company had cash of GBP2.2 million.
By Ife Taiwo; ifetaiwo@alliancenews.com
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