LONDON (ShareCast) - (Sharecast News) - Escape rooms operator Escape Hunt described trading at its UK owner-operated sites as "encouraging" on Thursday, since reopening on 12 July.
The AIM-traded firm, which was holding its annual general meeting, said it initially chose to open sites on Thursdays to Sundays only, with the exception of the Summer Bank Holiday on 31 August, and had since extended its opening from Wednesday to Sunday.

In the first eight weeks after re-opening to 6 September, sales grew from an initial level of around 25% of the seven-day week's sales in the equivalent week in 2019, to more than 90% of sales in the equivalent week in each of the last two weeks of the period.

Since then, September had seen the pace of recovery slow, as expected, although sales in the six weeks to 20 September were still described as "encouraging", at 72% of the same period in 2019.

"Additionally, helped by the UK government's flexible furlough scheme and our reduced operating hours, we have been able to operate sites significantly more efficiently with lower labour cost ratios than we have historically been able to achieve," said chairman Richard Rose.

"As expected, the first four weeks following re-opening generated site level EBITDA losses as the level of sales was not sufficient to cover fixed costs, including property.

"However, in the six-week period to 20 September, the growth in sales resulted in a positive site level EBITDA which was approximately 33% higher than the site level EBITDA in the equivalent six-week period in 2019."

Rose said that, while the period under consideration was admittedly short, the performance was encouraging, in particular the "significantly higher" profit conversion ratios achieved.

The company was aware of the growing rate of Covid-19 infections and the likelihood of further restrictions being imposed, Rose added, whether national or local, which could impact sentiment and performance.

"With the exception of six of our 38 sites, our international franchise network has also re-opened," Rose said.

"While the rate of recovery varies in different parts of the world, overall we remain confident that key regions are recovering and will continue to perform in future.

"We remain positive, in particular, about the prospects for our US business through our area representative agreement with PCH."

In other areas, the company said it was making progress on its strategy, opening its new site in Norwich to the public on 23 September, with its site in Basingstoke said to be "well-advanced" and scheduled to open in October.

The company said it had exchanged and completed contracts, and were on site at a new site in Cheltenham and in "advanced legal discussions" on a further two sites.

"We have also been making progress on other initiatives," Rose said.

"We were delighted to be able to launch a series of downloadable, print and play games during lockdown.

"The most recent of these has been done in partnership with Netflix to coincide with the anticipated release of a Netflix Original Film, and represents an important step in developing our 'Escape Hunt for Brands' proposition."

In addition, Rose said the company launched a remote play format, which would enable players collaborating remotely to direct a games master around a physical room while solving puzzles.

"We have been developing the range of remote and outdoor games which we offer using them to further develop both our 'Escape Hunt for Brands' and 'Escape Hunt for Business' propositions."

Escape Hunt said it would provide a further update in its interim results, which are due to be released on 29 September.

At 1216 BST, shares in Escape Hunt were up 12% at 8.4p.

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