XP Factory lowers profit outlook amid weak festive trading

XP Factory has lowered its earnings forecast to between £5m and £6m for the year ending March 2026 and announced it will moderate the pace of new site openings to preserve capital, following a challenging festive period for its Boom Battle Bar division. 

The experiential hospitality operator reported record quarterly sales, as total revenues rose 4.2% in the 13-week period to 28 December 2025. This was bolstered by a strong performance at Escape Hunt, where sales jumped 10%. 

However, like-for-like sales at Boom Battle Bar fell 7.2% as a squeeze on consumer spending offset resilient corporate bookings.

Management cited significant labour cost increases, driven by rises in national insurance and the national living wage, as further pressure on margins. The company permanently closed its Southend venue in January 2026.

The group also confirmed the appointment of James van den Bergh as independent non-executive chairman. He succeeds Richard Rose, who announced his intention to step down in September 2025. Van den Bergh currently serves as chief executive of TruFin.

Richard Harpham, chief executive of XP Factory, said: “Against a backdrop of well-documented industry challenges, we have continued to outperform the wider experiential leisure market and make progress against our strategic objectives. 

“While near-term trading within Boom has been impacted by market pressures, with strong market positions and a compelling UK growth runway, we remain well positioned to emerge as a long-term winner as the sector continues to consolidate.”