Boom Battle Bars fuel XP Factory's growth as revenue nearly doubles

XP Factory (LSE: XPF) narrowed its pre-tax losses in 2023 as sales surged, driven by the strong performance of its Boom Battle Bar brand.

The entertainment company, which also operates Escape Hunt venues, saw revenue nearly double to £44.7 million from £22.8 million in 2022. This significant growth was primarily fuelled by the success of Boom Battle Bar, whose revenue tripled to £28.6 million from £9.5 million. Escape Hunt, on the other hand, experienced a more modest increase of 38% to £13.5 million.

Despite continued losses, XP Factory expressed optimism. CEO Richard Harpham commented on the "extraordinary efforts" of the team and highlighted the "significant runways" ahead for both brands. The company remains focused on expanding its UK footprint through a mix of directly-owned and franchised locations. Additionally, it aims to accelerate international growth via franchising while developing new products and exploring synergies within the business.

XP Factory's confidence is bolstered by positive trading in the first 10 weeks of 2024 and a pipeline of upcoming site openings. Shares responded positively to the news, rising 1.7% on Tuesday morning.

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