XP Factory H1 revenues surge following Boom Battle Bar acquisition

9th Sep 2022 07:26

(Sharecast News) - Leisure business XP Factory said on Friday that interim revenues were projected to be in excess of £8.0m, up from £1.2m at the same time a year earlier after the group's acquisition of Boom Battle Bar.

Despite current macro-economic woes, XP said UK trading in both its Boom and Escape Hunt sites had been "encouraging", with its UK Escape Hunt owner-operated estate generating unaudited turnover in the eight weeks ended 28 August of approximately £1.4m - a 16% year-on-year increase.

Performance in the group's Boom Battle Bar estate was also said to have developed "positively", with its owner-operated sites delivering unaudited turnover of more than £1.0m over the same time period.

Elsewhere, XP Factory stated it had agreed to acquire Boom Battle Bar Cardiff for an enterprise value of £2.15m.

XP Factory said on Friday that Boom Battle Bar Cardiff, which has been operating as a franchise site since September 2020, was a "strong performer" in the network and, delivered unaudited turnover of £3.82m in the twelve months ended 30 June, as well as adjusted underlying earnings of £438,000 and pre-tax profits of £201,000.

The AIM-listed group said an estimated net consideration of £1.53m will be satisfied by a payment of £600,000 in cash on completion, with a further £600,000 due six months after completion, and the balance, which will be subject to a completion accounts mechanism, on the first anniversary of the acquisition.

As of 0905 BST, XP Power shares were up 3.13% at 12.38p.

Reporting by Iain Gilbert at Sharecast.com