Welcome to the PPA Southern Regional Meeting at Hobbledown

Tuesday 13th November 2012

Agenda

10:15 Arrive and Coffee10:30 UK Indoor Play Market Report 2012 Results and Discussions11:15 Small Group Discussions

- Practical ideas that work for Indoor Play Centre Operators- Making money for your centre from “other stuff”- What do you want the PPA to be? - Managing Risk Assessment

12:00 Networking Lunch with PPA Supplier Members1:00 Special Interest Seminars

- How to improve Coffee and Drink sales? - Activ Kids

1:30 Open Forum discussions and Q+A2:00 Centre Tour

UK Indoor Play Market Report 2012 Results and Discussions

Key Findings… Headline Figures 2012

Average size of site 9,936 sq ft

Avg total number of children (exc parties) 40,280

Avg total number of children (inc parties) 51,416

Avg total number of adults 33,147

Average TOTAL ANNUAL VISITORS 85,984

% children to adult admissions (avg) 61/39 % child : adult

% child admissions vs child parties (avg) 77:23 % admission : party

Average admissions income £193,446

Average parties income £100,806

Average catering income £147,781

Average TOTAL ANNUAL TURNOVER £432,929

Average net profit/loss Between 0-15%

UK Indoor Play Market Report 2012 Results and Discussions

• How can we develop more successful centres? • Any recent trends? Opportunities to take advantage of? • What does the perfect play centre look like? • What does 2013 hold for the indoor play sector? • How can the PPA support members sites?

Headline Figures 2012 2009 2008 2007

Admissions 44% 43% 41% 39%

Parties 23% 20% 24% 26%

Food and Beverage 33% 38% 35% 34%

Visitor Numbers

Industry total of 69 million visitors producing a total revenue of £346 millionDespite the economic downturn, there has been a rise in visitor figures for 2/3rds of the indoor play operators in the UK with this rise is highest in London and the South East where almost 4 out of 5 operators have seen increases.

Visitor Figures compared to previous year All sites

Increase Decrease

Child visitors (excluding parties) 68% 23%

Child visitors (including parties) 64% 28%

Adult visitors 68% 23%

Total visitors 66% 25%

London

Increase Decrease

88% 0%

63% 25%

88% 0%

79% 8%

South East

Increase Decrease

80% 20%

87% 13%

80% 20%

82% 18%

London and South East Specific… Entry Prices- Babies - Adults

All UK Entry Prices Free Up to £1.50

£1.50 - £3.50

£3.50 - £5.00

£5.00 - £6.50

£6.50+

Babies up to 1 year (off peak) 53% 32% 11% 1% 0% 0%

Babies up to 1 year (peak) 49% 32% 15% 1% 0% 0%

Toddler (off peak) 0% 4% 36% 47% 7% 1%

Toddler (peak) 0% 0% 22% 59% 11% 4%

Child visitor (off peak) 0% 0% 14% 47% 28% 8%

Child visitor (peak) 0% 0% 0% 49% 34% 15%

Adult visitor 51% 28% 9% 0% 0% 0%

Does size matter??

Visitor Figures by Size of Site

In analysing the figures by size of site, the market was divided into those sites below 10,000 sq ft and those above 10,000 sq ft. Of the operators who answered the survey, exactly 50% were in each category. The average size of a ‘small’ site in our survey was 6,000sq ft which generated an average 69,595 visitors per annum, compared to the average ‘large’ site of 13,500 sq ft, which generated an average 102,373 visitors per site. On a like for like basis, therefore, the smaller sites are seeing more visitors per sq ft than the larger sites, with 11.6 visitors per sq ft in smaller sites compared to 7.6 visitors per sq ft in larger sites.

Retail Leisure Industrial Residential- Town Other

Average rent per square foot £8.31 £7.37 £5.16 £5.36 £5.20

UK Indoor Play Market Report 2012 Results and Discussions

How many children’s parties do you average per month?

< 20 21-40 41-60 61-80 81-100 100+

All UK sites 9% 27% 12% 24% 19% 7%

By region

Home Counties 25% 50% 13% 13% 0% 0%

London 0% 13% 25% 13% 38% 13%

South East 7% 13% 7% 20% 40% 13%

By location

Retail sites 18% 9% 9% 36% 27% 0%

Leisure 0% 0% 0% 33% 50% 17%

Industrial 3% 32% 16% 18% 18% 11%

Residental-Town 20% 47% 7% 27% 0% 0%

Other 25% 0% 25% 25% 25% 0%

Retail sites Leisure Industrial Resi-Town Other£0

£200,000

£400,000

£600,000

£800,000

£1,000,000

£1,200,000

Avg. Total Turnover Per Site

Average Costs

Operational costs Approx. annual cost

Building rent per sq ft £5.76

Business rates £20,893

Gas £5,071

Electricity £9,473

Water £2,804

Maintenance (building) £9,002

Maintenance (play equipment) £4,108

Marketing spend (if you are multi-site operator, please use an allocation for this site)

£6,262

Staff wages (including employers NI, but excluding directors salaries and dividends)

£127,626

Investment in equipment £16,101

Increase Decrease Same

22% 3% 70%

62% 12% 22%

57% 12% 24%

72% 12% 12%

51% 5% 34%

38% 11% 46%

45% 12% 38%

18% 22% 53%

54% 15% 23%

34% 19% 39%

11:15 Small Group Discussions

- Practical ideas that work for Indoor Play Centre Operators- Making money for your centre from “other stuff”- What do you want the PPA to be? - Managing Risk Assessment

Chaired by Darren Johnson/ Richard Farley – PPA Exec Member’s

What is gross profit of your café area?Across the UK:For 8% of operators, the gross profit of the café area is less than 50%For 31% of operators this is 51-60%For 27%, the figure is 61-70%For 24% it is 71-80%And for us 1% of operators, the gross profit of the café area is more than 80%

12:00 Networking Lunch with PPA Supplier Members

1:00 Special Interest Seminar - Running your own sports activity classes (ACTIV KIDS)- How to improve Coffee & Drink sales (Shoppers Anonymous)

1:30 Open Forum discussions and Q+A

2:00 Centre Tour