20 Oct 2020 07:00
20 October 2020
Escape Hunt plc (AIM: ESC)
("Escape Hunt", "Group" or the "Company")
Acquisition of Middle East Master Franchise and re-opening of Dubai site
Escape Hunt, a global leader in the growing escape rooms sector, is pleased to announce that it has completed the acquisition of its Middle East master franchise partner, Escape Hunt Entertainment LLC ("EHE") subject only to the formal registration of the sale which is scheduled to take place on 22 October 2020. The Dubai site is re-opening for business today under Escape Hunt's control.
EHE owns and operates an escape room site in the Galleria Mall in Dubai and also has sub-franchise relationships for four sites in the region. As a result, the Dubai site will become an 'owner managed' site alongside the Company's existing estate in the UK and the sub-franchisees will become direct franchisees. Together with Basingstoke and Cheltenham, which are currently in build, this takes the total number of owner managed sites to 13 with a further two sites in legals. The management team from EHE has been retained and will continue to run the business in the area.
The acquisition is expected to significantly increase the contribution from the region. In 2019, the Dubai site had turnover of approximately £490k and we would expect to run the site on similar operating metrics to a UK site. In addition, with the Dubai site becoming a 100% beneficially owned subsidiary, Escape Hunt's revenue share from the Middle East sub-franchisee network will rise from 5% to 10%. In the light of COVID19, the Middle East regional sub-franchisee network is being reviewed and sites will either re-open and remain part of the network, or new partners will be sought to expand the regional network in time.
Commenting, Richard Harpham, Escape Hunt's CEO, said:
"We are excited about the prospects for the region and believe the Dubai site in particular has the potential to deliver very attractive returns from a high quality, attractive venue in the Galleria Mall as was being demonstrated prior to the COVID-19 pandemic. We are delighted that Abdulwahab Bahrawi and his team are now part of the Group and expect them to play an increasingly prominent role in driving our international franchise business in the future."
Enquiries | |
Escape Hunt plc Richard Harpham (Chief Executive Officer) Graham Bird (Chief Financial Officer) Kam Bansil (Investor Relations)
| +44 (0) 20 7846 3322 |
Shore Capital - NOMAD and Joint Broker Tom Griffiths, David Coaten (Corporate Advisory) Fiona Conroy (Corporate Broking)
| +44 (0) 20 7408 4050 |
Zeus Capital - Joint Broker John Goold Daniel Harris
| +44 (0) 20 3829 5000
|
IFC Advisory - Financial PR Graham Herring Florence Chandler | +44 (0) 20 3934 6630
|
Notes to Editors
About Escape Hunt plc
The Escape Hunt Group is a global leader in providing escape-the-room experiences delivered through a network of owner-operated sites in the UK, an international network of franchised outlets in five continents, and through digitally delivered games which can be played remotely. Its products enjoy consistent premium customer ratings and cater for leisure or teambuilding, in small groups or large, and are suitable for consumers, businesses and other organisations. Having been re-admitted to AIM in May 2017, the Company has a strategy of creating high quality premium games and experiences delivered through multiple formats and which can incorporate branded IP content. (https://escapehunt.com/)
Facebook: EscapeHuntUK
Twitter: @EscapeHuntUK
Instagram: @escapehuntuk