ESC.L Share News (ESC)

(Sharecast News) - Escape rooms operator Escape Hunt said on Monday that trading in the five weeks ended 20 June had been "encouraging" in both its established and new sites.
Revenues for the five-week period since reopening its UK owner-operated sites were up 47% year-on-year, while on a like-for-like basis, revenues from the company's eight established UK owner-operated sites open in the same period in 2019 made up 87% of the revenue in the same period in 2019.

Escape Hunt also said it was still benefitting from initiatives implemented during 2020 to improve site-level margins, as well as a temporary reduction to its VAT rate.

As a result, estimated earnings before interest, tax, depreciation and amortisation at site level for the five weeks to 20 June was 310% of the site level EBITDA in the same five weeks in 2019.

On a like-for-like basis, site-level EBITDA from the company's eight established sites was 189% of its 2019 equivalent.

Chief executive Richard Harpham said: "We are delighted to have seen a healthy return of demand from consumers in the short period since our UK sites have been able to re-open and are pleased that we are realising the benefits of the efficiency measures implemented, leading to a significant improvement in our UK site-level EBITDA.

"The performance of our new sites in particular, gives us confidence in our strategy to continue to expand our network and we have a well-developed pipeline of attractive opportunities within a favourable property landscape. Where our franchisees have been able to operate without undue restriction, demand appears to be returning. Whilst there are undoubtedly still Covid-related risks to trading in the near term, performance in the last few weeks gives us cause for cautious optimism."

As of 1030 BST, Escape Hunt shares were down 3.08% at 37.80p.