**Summary**
XP Factory Plc, a leading UK experiential leisure company operating the Escape Hunt and Boom Battle Bar brands, released a trading update for the 2025/26 festive period. Key highlights include
1. **Record Quarterly Sales**UK Owned and Operated (O&O) revenue grew by 4.2% in the 13 weeks to December 28, 2025, with Escape Hunt O&O sales up 10.0% driven by new site openings and 6.4% like-for-like (LFL) growth.
2. **Financial Performance**Year-to-date Group unaudited pre-IFRS 16 adjusted EBITDA reached £4.8m, slightly <mark style="background-color:yellow">above</mark> the prior year. Escape Hunt maintained strong site-level EBITDA margins of circa 43%, while Boom’s margins were circa 18%.
3. **Boom Challenges**Boom O&O sales grew 2.5%, but LFL sales declined by 7.2% due to weak consumer demand, despite strong corporate bookings. Labour cost increases and sector softness impacted margins.
4. **Cost Control**The company achieved £2m in annualised cost savings to mitigate rising costs and LFL declines.
5. **Net Debt**: As of December 282025net debt stood at £5.6m.
6. **Outlook**FY26 EBITDA is expected to be below market estimates, with pre-IFRS 16 adjusted EBITDA projected at £5.0m to £6.0m. FY27 will focus on consolidation, with a slower pace of new site openings due to macroeconomic uncertainty.
7. **Long-Term Confidence**Despite near-term challenges, XP Factory remains confident in its long-term growth potential, positioning itself as a leader in the consolidating experiential leisure and competitive socialising sectors.
The company highlighted Escape Hunt’s resilience and Boom’s potential to thrive once market conditions improve, emphasizing its scale advantage in a consolidating industry.