Escape Hunt posts interim loss, is pleased with progress

Escape game company Escape Hunt posted a pre-tax loss of £1.1m for its first half on Monday, which was in line with its expectations and included transaction costs of £0.9m.

The AIM-traded firm said the interim results, for the six months to 30 June, included only two months of trading for the Escape Hunt business, which was acquired in May.

It acquired Experiential Ventures - which included the Escape Hunt business - for 12m in May, and placed 10.4 million new ordinary shares to raise £14m before expenses.

The board confirmed basic losses of 7.9p per share for the period, adding that net cash stood at £12.4m as at 30 June.

Its share of franchisee revenue for the two months since acquisition was said to be in line with expectations, with an increase of 40% on the same period in 2016.

“In a short space of time, we have identified eight attractive sites in the UK where leases are in the process of completion, and with a strong pipeline of sites for next year,” said Escape Hunt chief executive officer Richard Harpham.

“At the same time, we have been reviewing and improving the process of game design and implementation to ensure that both franchisee and owner operated sites can be opened as smoothly as possible.

“In order to mitigate risk, the completion and fit-out of sites will be carefully staged.”

Harpham said franchisee activity continued to develop, with 45 franchise sites now open and four more due to open in the near future.

“Our share of franchisees' revenue for the two months since acquisition is in line with our expectations and is an increase of 40% on the same period in 2016.

“Since we acquired the business four months ago, our expectations of the market are being confirmed and we remain confident about the opportunities for the business,” Harpham added.

“Given our ambitious owner-operated plans in the UK, the board has developed a sequentially planned roll-out programme to manage risk and ensure returns are maximised.”