Great companies like Merlin Entertainments generate whole ecosystems around themselves, with employees and their families, shareholders, investors, suppliers, stakeholders and customers benefiting from the wealth, energy and opportunity they create
In this issue of Attractions Management we pause to take a special, in-depth look at Merlin Entertainments, following its successful floatation in November last year and news it’s been named New Company of The Year 2013 at the London Stock Exchange PLC Awards (page 30).
Great companies generate whole financial eco-systems around themselves and a look at the numbers gives clues to the extent of that developing around Merlin.
Although its value at floatation was around $5bn, it’s already added $1bn to this, as well as reporting trading figures with an EBITDA of £390m and an increase in operating profit of 12.3 per cent on like for like revenue growth of 6.7 per cent.
Merlin employs 22,000 people and thousands who were shareholders at the time of the floatation benefited from it. In addition, 3,000 employees have taken advantage of a sharesave scheme introduced in January.
In his report on page 32, Deloitte’s Nigel Bland examines the organisations and individual investors who’ve benefited from involvement with Merlin. It’s a long list, including investment vehicles such as Apax, Blackstone, CDC, CVC, DIC, F&C/Graphite, HPE, Kirkbi A/S and Pearson, the former owner of The Tussauds Group.
Two represented private money: DIC who invested for the crown prince of Dubai and Kirkbi for Lego’s founders, while Bland says HPE was owned by BT’s pension fund, so those with BT pensions will benefit from this slice of investment.
The money came from all over the world: current fund CVC raised 46 per cent of its investment in the US, 17 per cent in Europe and 16 per cent in the UK, with the rest coming from Asia, the Middle East and Canada, so Merlin’s powers of wealth generation have benefited investors globally.
And the company generates value in other ways too. As a facility-based business, Merlin strikes property deals according to what’s appropriate, and those involved – such as Prestbury, which did a sale and leaseback deal with Merlin in summer 2007 – have seen the value of their covenants strengthened by the increase in value.
But with Merlin, the endgame is always the customer. Nearly 60 million people enjoyed the attractions last year and Varney told us he was adamant the floatation should be open to them, saying: “Some people tried to talk us out of having a retail offer because of the huge administrative burden involved. But this is a company people really want to own shares in – we sold 12.5 per cent to the general public.”
Those of us with long enough memories and faith in the industry recall the days when it commanded no respect among investors or governments and being called a Mickey Mouse business was an insult. How times have changed. Varney and his team have turned this right around and you feel they’re really only just getting started.
Read more from this issue of Spa Business magazine
View contents of Spa Business 2014 issue 1
Editor's letter: Creating Wealth
Great companies like Merlin Entertainments generate whole
ecosystems around themselves, with employees and their families,
shareholders, investors, suppliers, stakeholders and customers
benefiting from the wealth, energy and opportunity they create
Profile: Alberto Zamperla
The Italian ride entrepreneur is
attracting international attention for
his ambitious plans to build a new
cultural attraction in the heart of
Venice. Liz Terry finds out more
Planetariums: Science in the sky
We talk to Techmania's CEO Vlastimil
Volak and designer Glenn Smith
about the opening of the first 3D
Planetarium in the Czech Republic
Museums: Sea Views
Exploring underwater museums with
eco-sculptor Jason deCaires Taylor
Great companies like Merlin Entertainments generate whole ecosystems around themselves, with employees and their families, shareholders, investors, suppliers, stakeholders and customers benefiting from the wealth, energy and opportunity they create
In this issue of Attractions Management we pause to take a special, in-depth look at Merlin Entertainments, following its successful floatation in November last year and news it’s been named New Company of The Year 2013 at the London Stock Exchange PLC Awards (page 30).
Great companies generate whole financial eco-systems around themselves and a look at the numbers gives clues to the extent of that developing around Merlin.
Although its value at floatation was around $5bn, it’s already added $1bn to this, as well as reporting trading figures with an EBITDA of £390m and an increase in operating profit of 12.3 per cent on like for like revenue growth of 6.7 per cent.
Merlin employs 22,000 people and thousands who were shareholders at the time of the floatation benefited from it. In addition, 3,000 employees have taken advantage of a sharesave scheme introduced in January.
In his report on page 32, Deloitte’s Nigel Bland examines the organisations and individual investors who’ve benefited from involvement with Merlin. It’s a long list, including investment vehicles such as Apax, Blackstone, CDC, CVC, DIC, F&C/Graphite, HPE, Kirkbi A/S and Pearson, the former owner of The Tussauds Group.
Two represented private money: DIC who invested for the crown prince of Dubai and Kirkbi for Lego’s founders, while Bland says HPE was owned by BT’s pension fund, so those with BT pensions will benefit from this slice of investment.
The money came from all over the world: current fund CVC raised 46 per cent of its investment in the US, 17 per cent in Europe and 16 per cent in the UK, with the rest coming from Asia, the Middle East and Canada, so Merlin’s powers of wealth generation have benefited investors globally.
And the company generates value in other ways too. As a facility-based business, Merlin strikes property deals according to what’s appropriate, and those involved – such as Prestbury, which did a sale and leaseback deal with Merlin in summer 2007 – have seen the value of their covenants strengthened by the increase in value.
But with Merlin, the endgame is always the customer. Nearly 60 million people enjoyed the attractions last year and Varney told us he was adamant the floatation should be open to them, saying: “Some people tried to talk us out of having a retail offer because of the huge administrative burden involved. But this is a company people really want to own shares in – we sold 12.5 per cent to the general public.”
Those of us with long enough memories and faith in the industry recall the days when it commanded no respect among investors or governments and being called a Mickey Mouse business was an insult. How times have changed. Varney and his team have turned this right around and you feel they’re really only just getting started.
Read more from this issue of Spa Business magazine
View contents of Spa Business 2014 issue 1
Editor's letter: Creating Wealth
Great companies like Merlin Entertainments generate whole
ecosystems around themselves, with employees and their families,
shareholders, investors, suppliers, stakeholders and customers
benefiting from the wealth, energy and opportunity they create
Profile: Alberto Zamperla
The Italian ride entrepreneur is
attracting international attention for
his ambitious plans to build a new
cultural attraction in the heart of
Venice. Liz Terry finds out more
Planetariums: Science in the sky
We talk to Techmania's CEO Vlastimil
Volak and designer Glenn Smith
about the opening of the first 3D
Planetarium in the Czech Republic
Museums: Sea Views
Exploring underwater museums with
eco-sculptor Jason deCaires Taylor
A recent survey by the UK Spa Association (UKSA) into the industry’s approach to cancer care
has revealed that almost half of participating respondents (46 per cent) are unaware that
cancer is a disability and guests with a cancer diagnosis must be given
Mexican operator, Solmar Hotels and Resorts, is hosting a series of events in celebration of
Global Wellness Day, including a Temazcal ceremony at its Playa Grande Resort and Spa in Los
Cabos.
Mandarin Oriental has announced a standalone residence brand, Mansions, which will debut at
Emirates Palace, Mandarin Oriental Mansions, Abu Dhabi, in 2029.
Four Seasons Resort The Nam Hai in Hoi An, Vietnam, has put together a Global Wellness Day
(GWD) agenda with activations rooted in nature and shaped by four pillars of Joy – in
alignment with the day’s theme #JoyMagenta.
The Global Wellness Summit (GWS) will celebrate its 20th anniversary at the 2026 event in
Phuket, Thailand, later this year with the theme: The Science, Art and Soul of Wellness.
Auko, an all-inclusive development, is opening in Phong Nha in Vietnam in Q3 2026, with a
series of 30 tented eco-lodges and wellness hospitality operations by Lumina Wellbeing.
Therme Manchester’s 28-acre development, which will include interconnected glass pavilions
that measure 65,000sq m, will be the largest bathing and wellbeing attraction in the world once
complete, according to prof David Russell, CEO of Therme UK.
Naples Beach Club, a Four Seasons Resort, has opened a 2,800sq m spa called The Sanctuary,
with the design and concept inspired by the Native American people that populated Florida’s
Southwest coast – the Calusa.
