XP Factory shares gained 6.78% to 31.5p after the company announced new site openings since it acquired Boom Battle Bar in November 2021.
The XP Factory has made great progress, including completing the Boom integration, growing its UK base, and expanding the site pipeline.
The Boom estate consisted of one owner-operated site and six franchise sites when it was purchased in November 2021 by XP Factory.
There are currently 11 operating sites, consisting of 2 owner-operated and 9 franchised locations, with a further 10 sites currently under construction and set to launch in the following months. Seven out of the 10 sites are nearing or have completed construction said XP Factory.
The expanded estate of 21 locations will include 6 owner-operated and 15 franchised locations once it opens. According to XP Factory, more sites are nearing completion, and construction is slated to begin this summer and into the fall.
XP Factory’s progress thus far suggests that the board’s goal of 27 open Boom venues by the end of 2022 will be easily achieved.
The board’s box-economics projections for both sales and profitability are being validated by trading performance across both owner-operated and franchised locations.
XP Factory’s monthly operating leverage is increasing in line with the board’s planned maturity profile.
Boom and Escape Hunt will open co-located locations in Exeter, Edinburgh, and Oxford Street soon. The XP Factory group has been reinforced following the plans for 2022 and is increasing capacity for the upcoming rollout.
More information will be available in the XP Factory’s audited final results for the fiscal year ending December 31, 2021, which are expected to be disclosed in late May 2022 and will reflect performance in line with the company’s trading update made on January 26, 2022.
“We are delighted at how well Boom Battle Bar has been integrated into the group. It has been an extremely busy period for site development and we have an exciting run of openings in the coming weeks and months which position us well to deliver on our estate targets for the end of the year,” said Richard Harpham, CEO of XP Factory.
“The recent performances from our new Boom sites have validated our expectations for the site level profitability we believe is achievable. In addition, Escape Hunt performance has exceeded expectations for Q1, giving us confidence for the execution of our strategy as a whole.”