Escape Hunt narrows losses as new UK sites opened

Escape Hunt on Friday reported a narrowed interim loss as revenue more than doubled following the opening of new UK sites.

The escape room operator booked a loss before tax of £3.2m for the six months ended 30 June compared with a loss of £3.7m in the same period last year, as revenue increased 276% to £2.2m.

The AIM-traded company now has nine owner-operated UK sites, compared with three during the same period last year, resulting in owner operated revenue soaring from £0.3m to £1.7m.

Heads of terms have been agreed on two new owner-operated sites in the UK, with two others in legal negotiations.

Meanwhile, the franchise business, where all franchised branches are operating under effectively the same model, has active franchisees in more than 20 countries and saw revenue edge 1% lower to £0.5m.

Escape Hunt said the second half of the year had started well, with revenue in August hitting a new record, while cost reduction measures have been put in place and will impact results from the fourth quarter onwards.

On Monday, the company also signed a franchise deal with investment firm Proprietors Capital Holdings to roll out its escape room product in North America.

Richard Harpham, chief executive of Escape Hunt, said: "Given the early stage nature of the business and number of initiatives being pursued, both in the UK and abroad, it is difficult to predict the exact timing when things come to fruition, but overall we are confident that during the remainder of the year, we will see continued progress in line with expectations."

Escape Hunt shares were down 0.95% at 52.00p at 1040 BST.