XP Factory PLC (LSE:XPF) has reported a 13% uplift in revenue to £28.2 million for the first half of FY2026, supported by continued expansion across both its Escape Hunt and Boom Battle Bar brands. Despite a tougher macro environment, the group generated strong cash flow and improved its EBITDA margins. Financial flexibility was further enhanced through the securing of a new £20 million credit facility with HSBC. Management noted that the Christmas period will be a key trading window, with Boom Battle Bar recording record pre-bookings, although consumer spend remains softer than last year. Looking ahead, the company plans additional site openings and is evaluating potential shareholder returns, including share buybacks.

XP Factory’s near-term outlook is constrained by its financial fragility, with high leverage and uneven cash flow presenting clear risks. Technical indicators also point to bearish sentiment, and valuation metrics reflect the company’s lack of profitability. While recent corporate developments—particularly around employee engagement—are encouraging, they do not materially offset broader financial concerns.

More about XP Factory PLC

XP Factory PLC is a major operator in the UK experiential leisure sector, running the Escape Hunt network—offering immersive escape-room and digital gaming experiences—and Boom Battle Bar, which blends competitive social activities with food and drinks. The company continues to pursue domestic and international expansion through a mix of owned sites and franchise partnerships.

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