The experiential leisure operator reported underlying revenue of £59.6m for the year ended 29 March 2026, up 3% from £57.8m the previous year, driven by growth at Escape Hunt, new site openings and the annualisation of previously acquired Boom franchise locations.
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However, pre-IFRS 16 adjusted EBITDA fell to £5.5m, down from £6.6m, as the group absorbed around £1.5m in additional labour costs linked to higher national insurance contributions and national living wage increases, alongside supplier inflation and softer trading in the competitive socialising market.
Adjusted operating profit fell to £0.8m from £3.4m, while net debt increased to £5.9m following investment in new site openings.
Chairman James van den Bergh described the year as “one of resilience rather than progress”, highlighting the pressure facing the wider experiential leisure sector.
‘Several competitors failed’
“In a year when several competitors failed, Boom limited its margin decline to less than two percentage points, finishing at 17%,” he said. “Escape Hunt UK delivered 4.6% like-for-like sales growth and site-level margins of 42%. The group’s ability to protect margins in a year like 2026 should not be underestimated.”
Escape Hunt continued to be the standout performer within the group. Revenue at the owner-operated business rose 11% to £15.8m, with UK like-for-like sales increasing 4.6%. Site-level EBITDA margins remained strong at 42%, despite inflationary pressures.
During the year, Escape Hunt opened new sites in Canterbury and Sheffield, expanded its Birmingham Resorts World venue and subsequently launched locations in Colchester, Wandsworth and Birmingham Cannon Street after the period end. A Cardiff opening is planned for October.
The group said the consistency of Escape Hunt’s performance across a range of catchments supports its long-term ambition to build a 100-site estate across the UK and Ireland.
By contrast, Boom Battle Bar continued to face challenging market conditions. Underlying revenue increased 2% to £42.8m, supported by acquisitions and new openings, but UK like-for-like sales fell 8%, slightly ahead of a 9% decline recorded across the wider competitive socialising sector.
Despite the sales decline, Boom’s site-level EBITDA margin only slipped from 18% to 17%, helped by cost-saving initiatives and supplier renegotiations.
The company said pressures across the competitive socialising market are accelerating consolidation, with several operators entering administration during the year.
XP Factory has also implemented a £1m head office cost reduction programme, with the full benefit expected in FY27, alongside more than £2m of annualised site-level savings.
Trading since the year end has been mixed. The group said unusually warm and dry summer weather hit demand for indoor leisure activities, although trading has improved as weather conditions have normalised.
Looking ahead to the important Christmas trading period, the company reported encouraging early signs, with December corporate bookings up 15% year-on-year following the launch of a new proprietary B2B booking platform.
XP Factory recently secured a new £20m revolving credit facility with HSBC and said current trading remains in line with market expectations.
The board said it remains cautious on consumer demand but believes both brands are well positioned to benefit from ongoing consolidation in the experiential leisure market.
- This story was originally published on the Morning Advertiser’s sister site, MCA, here.
