XP Factory, an England-based entertainment company, completed a new GBP10 ($13.1) million revolving credit facility with Barclays Bank, amid a growth in free cash flow. The facility provides working capital headroom and allows the company to refinance an existing GBP1 ($1.3) million debt facility at “significantly lower” borrowing costs. It was secured on the strength of its underlying cash generation._x000D_
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XP Factory delivered GBP6.5 million in free cash flow after a GBP1.1 ($1.4) million maintenance capex in the fifteen months to March 31. Its pre-IFRS 16 earnings before interest, taxation, depreciation and amortization in the same fifteen-month period was GBP6.3 ($8.2) million, more than doubling from GBP2.6 ($3.4) million in 2022. The company recently moved its financial period to a March 31 year-end from Dec. 31._x000D_
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“Securing this new revolving credit facility represents an important milestone for the group. Not only is it a strong endorsement of the progress made in the last few years, but it will significantly enhance our ability and confidence to add further venues to our two fast-growing brands,” Richard Harpham, CEO of XP, said. “Our existing cash generation supports around 5-6 new site openings per annum. Although there will not be any impact in the current financial year, with the facility in place we have the ability to increase the pace of roll-out in 2025 and beyond whilst maintaining conservative debt ratios.”
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