Escape Hunt finds it tough to break out of losing streak as profits fall
Escape room sector heavyweight Escape Hunt reported declining profits in its interim results as the company works to build up resources in its head office.
The figures
Escape Hunt, which runs escape room experiences including an upcoming Doctor Who themed room, said revenue soared in the last year from £193,000 to £800,000.
But gross profit tightened from £107,000 to £60,000 due to costs in its head office and initial site trading losses.
It reported an overall adjusted earnings loss of £1.4m, rising from a loss last year of £139,000. Escape Hunt said losses were in line with expectations.
Why it's interesting
Escape Hunt is a leading name in the niche, but rapidly expanding escape room market. The company will be hoping its five-year deal with the BBC to run a Doctor Who experience will improve business..
Since the deal it said it had received interest from retail property operators, as "experiential leisure is regarded as an attractive addition to the landscape to drive interest and footfall".
The company also said it had struggled with obtaining planning permission for some of its new UK sites, as well as stringing together a reliable supply chain for the production of its games – although it said progress was now being made in both areas.
What Escape Hunt said
Richard Rose, chairman of Escape Hunt, said:
"The strategic change from a pure play franchise model to a hybrid model, involving the roll out of owner-operated sites, has made very significant strides. There have been challenges along the way, which is perhaps not unexpected given that Escape Hunt is a relatively early stage business.
"The objective is to provide a strong platform to differentiate the group from its competitors and to establish Escape Hunt as the premier brand in the rapidly evolving escape room sector."