Don’t lose your head
Vardon provided Graphite with the opportunity to invest in the rapidly growing UK leisure sector backing a proven management team. The aim was to acquire high profile leisure assets and then grow the operations organically.
Vardon was a start-up business aimed at the growing leisure sector. Graphite made its first investment in Vardon in 1992 to help finance the acquisition of the London and York Dungeons. We participated in further fundraisings to finance the acquisitions of Sea Life Centres, a group of bingo clubs and the Parkdean Leisure holiday park business.
The investment in Vardon enabled Graphite to benefit from the leisure boom of the 1990s. Vardon brought together experienced executives who had a successful track record of developing leisure assets within larger businesses. They identified and acquired a number of leisure businesses with development potential at relatively attractive prices during this period.
Under Graphite's ownership, Vardon:
- doubled the profit of the London and York Dungeons
- achieved a listing on the London Stock Exchange which provided liquidity for the shares and helped finance the acquisition of the Sea Life Centres
- expanded the Sea Life Centres business from 9 to 19 centres
- acquired Parkdean Leisure which helped diversify the group into the holiday arena
- grew operating profit from £2.4 million to £9.1 million between 1992 and 1996
In 1992 Vardon was listed on the London Stock Exchange, generating a multiple of 2.4 times cost.
