Member Info for Maximus20

Sorry correction 1/4 of mcap is in rincon

This looks cheap to me. Am I right in saying their shares in rincon are currently worth around £200,000? That’s 1/3 of their mcap.

Their net asset value in half year (31st Jan 2024) £1.75mil and cash 1.3mil.

Need to do a bit more calculating but this looks incredibly cheap currently. Or am I missing something?

Haven’t been able to watch the presentation yet. But hopefully they’ll be something in there to get excited about regarding future growth. I think the “double down” on franchise partnerships looks like the best opportunity for early growth.

“Double Down on Franchising: Plans in place to accelerate growth via franchising, whilst continuing own store roll out in grade A locations, at least five openings planned in 2024 with our partners”

https://youtu.be/lrF5RBvVFfg?si=rsUO7BcQvv_maUoo

Thought the results where pretty underwhelming but price action looks positive since. Hopefully board, Luke Johnson etc have a positive plan to progress business forward…

Completely agree with that hedge.

I’d also add the increase in national living wage may increase revenue as their target market may have more available spend for leisure.

Sounds like crux asset management are suggesting it should be a lot higher… https://youtu.be/jJtZlE_XWXs?si=fmYzHYfk3zgvARs3

Below link is the investor meet presentation

Https://youtu.be/_YJ9aRnVmqQ?si=5R2ebJWSpMYN3XUj

one of the things i’m most excited about is the double digit lfl growth in both escape hunt (the more mature business) at 17% and boom at 29%. and considering a lot of these sites hadn’t fully opened yet or been open long it would’ve taken a while to gain traction. so i think that’s very impressive. i think you can also add the fact richard is always looking at the data and looking at how they can optimise sites. like i said before he’s mentioned adding a ****tail bar at the o2 venue to increase drink spend before concerts or adding an extra escape room at sites where there’s more capacity. i think they’ll continue to achieve more double digit growth and this will be turbo charged if/when the market recovers.

But how is it smoke and mirrors? They’ve explained the change and it’s perfectly acceptable. So why suggest that change is the reason they’re in operating profit? They understand the lifecycles of the games more accurately for example. Do you get what I’m saying? You’re suggesting that they did that on purpose to put them into an operating profit when that simply isn’t the case.

You say it’s hard to make profit in the leisure industry. And I completely agree it’s been difficult. Hence why you have to give Xpf a lot of credit for what they’ve achieved in such tough times. BUT interest rates will fall this summer. Inflation is dropping. We’re in for an epic recovery in aim and the leisure industry and I believe Xpf is the best positioned leisure company to benefit from this. Can you name me a better one?

It is desperate. Explain to me why the change in depreciation is a problem? Their explanation is perfectly reasonable. They have a better understanding of life cycles of games for example and upped them from 2 to 5 years. If you read singers broker note they said exactly that. Singers broker note also said; “This amounts to depreciation (non-IFRS16) at 6% of sales vs 12% historically. We welcome this move given the previous policy was aggressive and brings XPF in line with peers Hollywood Bowl at 5% and Ten Entertainment at 6%.“

Bottom line, there’s no better company to do well in the leisure industry when the market recovers. Interest rates likely to drop in summer. And the stock market is forward thinking. Name me one better leisure company that will benefit when the market recovers? Amazing growth, double digit lfl growth. These boom and sites haven’t been open that long?! Imagine another 12-18months of traction compounded with their market leading reviews and growth in corporate sales.

Why are people listening to these ppl trying to control this negative narrative. It’s mental! Even Paul Scott has allowed himself to be swayed. I just listened to his podcast and he had contact from the ceo and cfo having to correct him on some of his comments and FairPlay he apologised and acknowledged he got it wrong. And even suggested he may buy back in.

These numbers have been during a cost of living crisis, interest rates rising, train strikes. Having to contend with Covid, war in Ukraine, the aim market on its knees. This company has only done one fundraise and that was for rapid growth. It hasn’t done one fundraise since! We should be championing what a fantastic performance these guys have done in this new and exciting market - experiential leisure and clearly that market is still growing. I have no doubt this will have an epic recovery… if it doesn’t get bought out before then.

The depreciation comments just show how desperate they’ve become.

People been knocking this share for ages now. Definitely seems like something going on behind the scenes. Find it strange/funny people nit picking the results looking for bad news. This company should be given more credit considering its growth over the last 3 years. How many companies in their sector have shown this type of growth in this time with Covid, cost of living, train strikes, inflation, interest rates rising the aim market being at lows. If this company continues their growth this will be many multiples where it is now. And imagine when interest rates start dropping? Inflation is at 30month lows. When market recovers this will boom.

i agree the growth has been quite incredible especially if you look at what’s happened over the last 3 years. think people are negative because the share price hasn’t moved and trying to find reasons. but i’m very comfortable here and if they carry on double digit lfl growth and carry on expanding sites towards their target of 50 escape hunts and 100 boom sites this will go far beyond singers 32p target price. i also like the fact they’re not only looking at site growth but also improving operational sites. good example- putting a ****tail bar in o2 site to increase drinking pre concert events or adding in an extra escape room in sites they feel they could fit one in.

also,

£9.5m cash generated from operations (2022: £3.2m) - £6.9m invested in capital expenditure

£4.4m cash balance at 31 december 2023 (31 dec 2022: £3.2m)

that sounds good to me.

Ye not great. I sold out at a substantial loss here. Maybe they’ll release good news in the coming weeks but too risky for me now. Fundraise is inevitable. Annoying they couldn’t get one of these deals done sooner as that was what I was hoping for.

Interesting trades last few days. Hopefully this is the start 🤞

Been buying here. Interims weren’t that impressive tbh and cash burn gone up. However ceo said this,

“we have now established the foundations for us to accelerate growth. We are currently in discussions with substantial partners regarding some significant opportunities, which reflect the recognised strength of our offer and are testament to our renewed go-to-market approach. We are also very excited by the innovative work that we are doing with generative AI - which is being undertaken alongside our customers to ensure our product is designed to meet their exact requirements. As a result, we continue to look to the future with confidence and look forward to updating the market on our progress“

Im banking on there being some near term newsflow being the catalyst for a good rise and it’s worth the risk at this price imo.

Definitely looks undervalued. been buying today.

Https://blooloop.com/play/in-depth/xp-factory/

No I absolutely get that billy. But if people are being negative because of their interpretation of the broker note then I can’t see where they’re coming from personally. The growth has been quite incredible imo. And they will no doubt eventually become a very profitable business. Everything they set out as a goal 2 years or so ago they have delivered on. Now that is rare on aim.

If you read the broker note I’m not sure how you could be despondent. It had a buy rating of well over double where the sp is now.