# Escape Hunt to open new site  at the Intu centre in Watford

- Link: https://www.directorstalkinterviews.com/escape-hunt-to-open-new-site-at-the-intu-centre-in-watford/412934844
- Published: 2020-11-04T07:14:10+00:00
- Author: Giles

**Escape Hunt plc** (LON:ESC), a global leader in the growing escape rooms sector,
announces an update on its UK owner operated estate in advance of the second period
of nationally enforced lockdown announced by the UK Government and due to come into
force on 5 November 2020 (“Lockdown”).

**Progress on site roll-out**

Escape Hunt is pleased to announce that it has exchanged contracts for a site at
the previous Intu centre in Watford. Contracts are expected to complete within the
next week. The Watford site will be the Company’s fourteenth owner operated site,
after the Brewery Quarter in Cheltenham and the recent acquisition of the former
franchisee site in Dubai.

Games for the Watford site have been manufactured and are currently in transit for
installation. Fit-out is expected to commence later this month and, under the guidance
currently available, the Company does not expect any significant impact on timing
as a result of the Lockdown.

Fit-out at the Company’s site at Brewery Quarter in Cheltenham is substantially 
complete and, subject to any further COVID-related restrictions, progress is not
expected to be impacted by Lockdown.  The site was due to open during November 2020
but will now open as soon as practicable once the Lockdown restrictions are lifted.

**Recent trading**

Revenue over the week beginning 26 October 2020 which coincided with schools’ half
term week, including the sales from new sites and digital products, was 25% ahead
of the same period last year. On a like-for-like basis, the Company’s eight mature
UK sites traded at 96% of the 2019 level, despite four of the sites being adversely
affected by either the Government’s tier 2, tier 3 or the Scottish COVID-related
restrictions. As previously announced, Basingstoke opened to the public on 29 October
2020 and initial trading has been the strongest in any of the Company’s new sites
to date. The other recently opened site in Norwich delivered sales usually associated
with a fully mature site, despite it being only five weeks old. In all the Company’s
UK owner-operated sites, the EBITDA conversion ratios have been substantially better
than in prior periods, assisted by more efficient labour usage and benefitting from
the flexible furlough scheme and VAT reductions.

Digital and remote-play products have also begun to contribute meaningfully.  Their
turnover in recent weeks has been growing strongly and the resultant EBITDA contribution
has exceeded the equivalent  EBITDA from of a separate, mature site.

In the six weeks prior to half term week, trading at the Company’s UK owner-operated
sites subject to the lowest level of government restrictions had continued to enjoy
an encouraging performance.  In contrast, sites which were subject to tier 2 or,
in particular tier 3 or the Scottish restrictions had seen an impact through reduced
turnover albeit that the higher EBITDA conversion rates had resulted in positive
EBITDA contribution from the estate (before central costs) with overall performance
ahead of management’s expectations.

**The impact of lockdown**

Following the strong half term trading, it is particularly frustrating that under
the new restrictions expected to come into effect on Thursday 5 November, Escape
Hunt’s UK owner-operated sites will be required to close during the Lockdown which
is currently anticipated to end on 2 December 2020.

However, staff will be eligible for the Government’s furlough scheme, which the 
Chancellor of the Exchequer has confirmed will continue until 2 December. This, 
combined with stringent cost control measures already in place, will facilitate 
the Company’s ability to manage cash during the lockdown period as was the case 
earlier this year.

> **Commenting on the site developments and recent trading, Richard Harpham, Escape
> Hunt’s CEO said:**
> “Recent trading gives us cause for optimism in relation to our UK owner-operated
> site strategy and our ability to recover once lockdown restrictions are lifted.
> We have been enormously encouraged by the performance of sites which have not 
> been subject to the most severe restrictions and, in particular, our new sites
> in Norwich and Basingstoke, which have both traded strongly since opening, vindicating
> our site choices.
> We are delighted to have exchanged contracts on a site in the former Intu centre
> in Watford which we believe has the potential to be a very strong performer. Unless
> further changes are announced, we do not expect the lockdown to have a significant
> impact on our ability to fit-out the site.  Whilst the opening of Cheltenham will
> be delayed due to the lockdown, fit-out should be completed and the site is expected
> to open as soon as practicable once the lockdown restrictions are lifted.
> Whilst it is hugely disappointing to be forced to close once again, we enter the
> second lockdown with a suite of digital and remote play options that did not exist
> six months ago, that are beginning to contribute, and to which we will shift our
> focus during this period of closure.”

Share on: