RE: Share tip out an hour ago21 Jul 2023 08:46
XP Factory was formerly known as Escape Hunt. It operates “escape rooms”, into which players are locked until they can solve a puzzle, and also acquired Boom Battle Bars in 2021, which added games such as augmented-reality darts and axe-throwing.
“XP FACTORY, WHICH OPERATES ‘ESCAPE ROOMS’, HAS MANAGED TO KEEP ATTRACTING CUSTOMERS”
In January I highlighted the risk of a slowdown in consumers’ discretionary spending. Yet the group said recently that “it has been performing ahead of management’s expectations”. Like-for-like revenue rose by 32% year on year in the first quarter.
The threat of lower household spending hasn’t gone away, but investment bank Singer Capital Markets has pencilled in sales for 2023 of £42.6m compared with last year’s £22.8m. Margins continue to meet or beat management’s internal targets. I see no reason to change my view here.