Richard Harpham of Escape Hunt on their strong bounce back, growth & profitability
Episode 363, Sep 28, 2021, 08:37 AM
Richard Harpham CEO of Escape Hunt #ESC discusses their interim results & post period highlights which saw 117% like for like growth, EBITDA profitability & an increased cash position of £3.5m.
Richard Harpham CEO of Escape Hunt #ESC discusses their interim results & post period highlights which saw 117% like for like growth, EBITDA profitability & an increased cash position of £3.5m.
HIGHLIGHTS
Strong post lockdown bounce back from UK sites which re-opened on 17 May 2021
H1 revenue £1,178k with UK sites open for only six weeks in the period (H1 2020: £1,306k from c.11 weeks UK trading)
Site level EBITDA for the half year £441k (H1 2020: 499k)
Improved EBITDA conversion ratios benefitting from technology investment and labour changes
Downloadable and play at home games continue to be additive, contributing £151k in the period (H1 2020: £53k)
Adjusted EBITDA loss in the half year reduced to £796k (HI 2020: £816k)
Basic loss per share ('EPS') of 2.81p (H1 2020 loss per share: 11.48p)
Dubai acquisition performing ahead of expectations with payback expected in less than 12 months
Completion of £1.4m placing of new shares at 17.5p per share to fund acquisition of master franchise in France and Belgium and provide working capital
New UK owner operated sites opened in Watford and Kingston on 17 May 2021 bringing total UK owner operated sites to 14; further sites secured and in build at the Lakeside shopping centre in Essex and in Milton Keynes. This brings us to 16 owner operated sites in the UK and 19 in total
POST PERIOD-END HIGHLIGHTS
Strong bounce back in sales continuing
Mature LFL sites delivering 117% of pre-COVID (2019) sales with total sales (including new sites) delivering 192% of 2019 level in the 16 weeks between re-opening and 5 September 2021
July and August both profitable at Group EBITDA level (even stripping out UK Government COVID support) which validates our previous assertion that with the existing estate, the Company could become cash generative over a full year
All owner operated sites trading with positive contribution
On track to be operating from 20 owner operated sites well ahead of target of July 2022
Build finally commenced at US franchise 'super centre' in Houston after considerable COVID-related delays
Awarded TripAdvisor™ Traveller's Choice awards at all eligible UK sites for second year in a row
Strong cash management ensured cash balance of £2.4m at 30 June 2021 (31 Dec 2020: £2.7m) and £2.4m at 31 August 2021
Receipt of further £0.95m (net of advisory fees) R&D credits from HMRC in September 2021 which will be recognised in H2 2021 (H2 2020: £0.2m) further boosting cash resources
ABOUT ESCAPE HUNT
The Escape Hunt Group is a global leader in providing escape-the-room experiences delivered through a network of owner-operated sites in the UK, an international network of franchised outlets in five continents, and through digitally delivered games which can be played remotely. Its products enjoy consistent premium customer ratings and cater for leisure or teambuilding, in small groups or large, and are suitable for consumers, businesses and other organisations. Having been re-admitted to AIM in May 2017, the Company has a strategy of creating high quality premium games and experiences delivered through multiple formats and which can incorporate branded IP content.
The Escape Hunt Group is a global leader in providing escape-the-room experiences delivered through a network of owner-operated sites in the UK, an international network of franchised outlets in five continents, and through digitally delivered games which can be played remotely. Its products enjoy consistent premium customer ratings and cater for leisure or teambuilding, in small groups or large, and are suitable for consumers, businesses and other organisations. Having been re-admitted to AIM in May 2017, the Company has a strategy of creating high quality premium games and experiences delivered through multiple formats and which can incorporate branded IP content.