Escape Hunt and Boom operator reports volume-driven like-for-like growth in ‘positive’ start to new financial year: XP Factory, which operates the Escape Hunt and Boom Battle Bar brands, has reported a “positive” start to its new financial year with both brands delivering volume-driven like-for-like growth. Like-for-like sales across the Boom owner operated sites were up 1.9% in the 20 weeks to 18 August and by 1.5% across the Escape Hunt owner operated estate. Three Escape Hunt sites and one Boom are currently in build stage, “with a developed pipeline underpinning site roll-out targets for the year”. XP Factory has also received credit approval for a new £10m revolving credit facility from Barclays. The company stated: “Trading since the start of the financial year to March 2025 has been positive, with both brands delivering positive volume-driven like-for-like growth. While the rate of growth has slowed compared with the same period a year ago, the change reflects the gradual maturing of the estates. Both businesses have maintained margins while absorbing significant further labour cost increases, driven by the increases to minimum living wage levels and our desire to continue to pay a premium to attract talent. While the summer uplift in sales in July and August was modest, forward bookings for the end of year peak are well ahead in comparison with previous years providing confidence for the coming months. Our recently approved banking facility is a strong endorsement of the progress made within the group and provides us with flexibility to roll out new sites in line with our strategy and the potential to accelerate our plans as we secure new sites. With the anticipation of further interest rate cuts on the horizon and a materially lower inflation rate which is now being outstripped by labour inflation, we believe there is scope for improving consumer confidence underpinning optimism in our sector and we view the future with growing confidence.” Acquisitions of further Boom franchise sites in Wandsworth and Aldgate in London were completed in May 2024 and Bournemouth in June 2024. It comes as the group reported revenue for the 15 months to 31 March 2024 increased to £57.3m (12 months 2022: £22.8m) “demonstrating the significant growth in scale”. Escape Hunt owner operated site revenue increased to £16.7m (2022: £9.8m). Boom owner operated revenue increased to £37.5m (2022: £9.5m). Franchise revenue was £3.1m (2022: £3.6m). Like-for-like sales were up 22.4% at Boom owner operated sites and 16.9% in Escape Hunt during the period. Gross margin increased slightly to 64.6% (2022: 64.4%). Group adjusted Ebitda rose to £9.9m (2022: £4.0m). The group generated an operating profit of £1.9m (2022: loss £4.9m). Chief executive Richard Harpham said: “Our focus on incremental improvements alongside ongoing expansion in the estate has helped deliver market leading returns on investment in both our brands and strong operating cash generation. Since the period end, we have continued to see positive like-for-like growth and performances well ahead of the industry as a whole. With record advance bookings for the busy end of year season and improving consumer sentiment, the board’s expectations for the full year are unchanged and we continue to view the prospects for the business with optimism.”

 

Large fines for businesses that break new workers’ rights laws: Businesses face paying thousands of pounds in fines if they do not uphold new protections for employees introduced by Labour as part of its overhaul of workers’ rights. The Times has been told ministers are considering a warning system which would allow companies to make improvements before being hit with fines. But business leaders have called for small businesses to be exempt from any financial sanctions to prevent government “overreach” that would damage economic growth. The sanctions regime will be overseen by a new Fair Work Agency (FWA), which will bring together existing watchdogs into a single enforcement body for workers’ rights. However, Craig Beaumont, from the Federation of Small Businesses, feared the government was focusing too much on large corporations and said ministers should exempt smaller firms from any fines. It is understood ministers are still debating at what level financial penalties should be set, but they are likely to be in the lower thousands due to worries that any “punitive” levels would impact business confidence. Currently six bodies plus local councils can enforce working regulations, overseen and funded by seven government departments. Some of these can impose fines but only in specific circumstances, and a report by the Resolution Foundation, a think tank, found that the sanctions regime was “fragmented” with “financial penalties too low to act as a meaningful deterrent”. The creation of the FWA is part of a package of reforms to rights for workers which will also include a ban on “exploitative” zero-hours contracts, granting day-one rights, after probation, on sick leave and unfair dismissal, and allowing employees to apply for flexible working with a presumption to approve the request. It will also create a right to switch off, through a code of conduct between bosses and employees over when they should be expected to be contacted about work. The plans to boost workers’ rights has also led to fears for the future of fish and chip shops, which are already under pressure due to high energy costs and poor potato harvests driving up prices for customers. Andrew Crook, who has run Skippers in Euxton, Lancashire, for 17 years and is president of the National Federation of Fish Friers, has written to business secretary Jonathan Reynolds warning the “odds are stacked against” fish and chip shops. Crook is expanding with another outlet called Oh My Cod in nearby Coppull, but says many of his fellow owners are in despair. Crook called for “common sense” from Labour on workers’ rights, and told The Mail: “You’ve got to protect employees from bad employers. But you also have to protect employers from bad employees.”