XPF’s 15m trading update illustrates a strong end to the year with c.12% LFL’s for the 3-month stub period of Jan-March. This follows an exceptional 2023 and results in the 15m EBITDA being in line with market expectations. Positive momentum has continued into April. Overall, the strength of the update caps off a transformative trading period which saw revenue up >80%, LFL’s in high double-digit territory (all volume) and margin growth. This highlights excellent operational execution by management and reinforces that the Escape Hunt and Boom formats offer a superior product in the experiential leisure space. We make no forecast or TP changes. Overall, the scope for roll out remains significant, the BS is strong, and execution / ROI has been exemplary. This is not reflected in a depressed 3.4x EV/EBITDA (vs the Leisure sector on 6.5x) and a 23% FCF yield. We reiterate our Buy and 32p TP.
