XP Factory plc (LON:XPF), one of the UK’s pre-eminent experiential leisure businesses operating the Escape Hunt® and Boom Battle Bar® brands, has announced the completion of its new £10m revolving credit facility (RCF) provided by Barclays Bank PLC.
The facility increases the Group’s flexibility and capacity to grow both the Escape Hunt and Boom estates, provides additional working capital headroom, and will enable the Company to refinance an existing £1m debt facility at significantly lower borrowing costs. The facility has been secured on the strength of the underlying cash generation in the business.
In the 15 months to 31 March 2024, XP Factory delivered £6.5m of free cash flow after maintenance capex, representing an annualised yield of 24% based on the Company’s current market capitalisation of £21.9m. Over and above this strong organic cash generation, the RCF will allow the Group to more actively manage and accelerate its expansion of the Boom Battle Bar and Escape Hunt networks.