Two pals from East Yorkshire who went from small seaside tourism ventures to founding international active entertainment giant Gravity have secured £30 million to push the business on.
An initial trampoline park operation was launched in 2014 by Harvey Jenkinson and Michael Harrison by indoor ski slope Xscape at Castleford. Now a £27 million turnover business - bringing a host of indoor leisure activities to 17 prime locations nationwide and franchises beyond - it has completed a finance deal to drive the bar even higher. Sculptor Real Estate, the property arm of New York Stock Exchange listed Sculptor Capital Management Inc, has invested.
Revenues of £50 million are now being eyed for 2024, with karting, mini-golf and bowling key offers.
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Mr Jenkinson, chief executive, said: “This funding has come at a pivotal and exciting time for Gravity with the launch of our Gravity Max brand at Liverpool One and London Westfield Stratford this year. We are thrilled to build our relationship with Sculptor on this investment.
“This backing will help us realise the full potential of the Gravity brand, ensuring the rollout of our business plan and achievement of strategic objectives. We look forward to further establishing Gravity as the international name in active entertainment and providing our customers at every site with the best possible experience.”
Former Debenhams stores have been taken on as it continues its unflinching strategy of taking prime spots with strong footfall, over out-of-town trade parks.
The funding follows a £5 million injection from the private equity arm of Guinness Asset Management in 2017, that helped springboard the company to what it has become.
Mr Jenkinson and Mr Harrison both went to school in Bridlington, with the former’s family running boat trips alongside a seafood shop while the latter’s family running an amusement park. They now live as near neighbours in Beverley.
After more than a decade working on yachts around the globe having gained his sailing qualifications, Mr Jenkinson hit on the trampoline park idea after seeing it in the US. They were joined by Simon Whicker, a friend of Mr Jenkinsion and former restructuring partner at KPMG, to help fund the first park.
After the Castleford site, launches in Hull, Glasgow and Norwich followed, who live as near neighbours in Beverley. This year has seen sites in Mauritius and Saudi Arabia open, two of six established franchises, while employing 600 people.
Having launched the Gravity Max brand in 2020 in Wandsworth, London they are on track to open new sites in Liverpool One, pre-summer, and Westfield Stratford, scheduled for the final quarter of the year. The funds will also drive expansion with Gravity expected to announce a pipeline of venues in major UK cities as well as more overseas.
Investments in refurbishments is also earmarked to enhance customer experience, while marketing, advocacy and loyalty all to be factored in. Alongside operational improvements, the business plans to strengthen its senior leadership team with strategic hires in the coming months that will support wider growth and brand development.
Will Dear, co-head of European real estate for Sculptor, said “Gravity is at the forefront of experiential leisure trends with a track record of driving customer footfall and dwell time around its locations. We are excited about our investment and to support the business plan and growth of the leading player in active entertainment.”
Gravity was advised by KPMG Corporate Finance and Irwin Mitchell.
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