Leisure firm XP Factory has revealed a jump in sales over the past year, driven by new openings.
However, bosses at the escape room and axe-throwing venue owner said it came despite pressure from rising costs linked to the Labour government’s previous autumn budget.
Richard Harpham, chief executive of the business, said: “Whilst the business is having to cope with increased costs from government policy, and a challenging first quarter has posed operational challenges, we have made significant progress towards our strategic goals and remain resolute in pursuit of success.”
It reported that like-for-like sales were down across its Escape Hunt and Boom Battle Bar brands over the three months to June because of “challenging” trading.
XP Factory said sales were affected by warm and sunny spring weather reducing demand for indoor activities over the period.
It added that a “deterioration in business confidence related to rising minimum wage and national insurance costs” knocked corporate bookings.
However, it said that recent trading has improved, with a return to growth over the six weeks to August 10.
XP Factory said it has also “mitigated” its own increases in labour costs in recent months through sharper cost management.
It came as the business reported that group revenues jumped by 19% to £57.8 million for the year to March, compared with a year earlier.
The group was boosted by the opening of four new sites as it continues to expand across the UK.
Revenues rose 7% across its Escape Hunt business as it launched new venues in Worcester, Glasgow and Cambridge.
The group said it is targeting the opening of between eight and 10 new Escape Hunt venues until 2028, to reach between 50 and 60 sites by the end of the period.
XP Factory said it now sees the potential for at least 100 Escape Hunt sites across the UK, having previously indicated this would be around 50.
The group also reported that Boom Battle Bar saw revenues grow 29% to £42.2 million after benefiting from franchise acquisitions.
