Jump In creates healthy family fun by developing large, inspiring, music-filled entertainment centres with thousands of square feet of safe, clean, and supervised trampolines for jumping, games and exercise. The product includes open jump, tumbletracks, dodgeball, a foam pit, basketball and other bespoke trampoline-based features.
We consider trampoline parks to be an exciting, scalable opportunity as the UK is significantly under-penetrated with 42 sites vs. 345 in the US / 44 in Australia. Moreover, many of the best markets in terms of demography, affluence, and access, are, as yet, untapped as growth has been concentrated in the North West.
The proposition caters for the whole family: children love quality, weatherproof, un-structured fun time; fitness enthusiasts come for our innovative "Wild Jump" classes; and adults come for corporate events and dodgeball leagues.
£200 - 1 Gold ticket which each entitle you to a free jump + 20% off merchandise in store (excluding socks)
£400 - 2 Gold tickets which each entitle you to a free jump + 20% off merchandise in store (excluding socks)
£600+ - 3 Gold tickets which each entitle you to a free jump + 20% off merchandise in store (excluding socks)
Trampolines offer a way to get fit whilst having fun. Calorie burn is roughly similar to running, with some studies even showing greater energy consumption: “for similar levels of heart rate and oxygen consumption, the magnitude of biomechanical stimuli is greater with jumping on a trampoline than with running” (NASA). Trampolining helps with balance and coordination (the Journal of Electromyograhy and Kinesiology) and it is also considered that there is a lymphatic benefit given the vertical motion bouncing achieves, which could improve the overall immune function.
The sheer fun of jumping on a trampoline tends to mean people jump for longer than they might undertaking traditional forms of exercise (6% of customers book 2 hour slots) and the activity attracts many who do not undertake traditional forms of physical activity. Research highlights that individuals who view physical activity as fun rather than exercise are less likely to over-eat afterwards (The Cornell University F&B Lab).
Using the trampoline takes stress off your weight-bearing joints. Thus specific courses can be offered benefitting pensioners, the physically-challenged (autistic groups are frequent visitors at open sites), or those recuperating from accidents or injuries.
Substantial accomplishments to date
The business has raised significant external equity financing from a group of angel investors, signed with one of Europe's largest landlords (SEGRO), become Altitude Trampoline Parks (#3 in the US) Master License holder across Europe, and is achieving safety levels which we understand to be well ahead of UK and US “best practice”. It is also consummating an exclusive relationship with Knight Frank for property acquisition.
We consider our most notable achievement to be the speed of growth. Although we believe that Jump In was around 10th to market we consider that we are the most rapidly growing firm in the sector. We are early in our business journey and our most significant achievements will be when we are able to demonstrate the higher value in our operating model - which requires a more significant footprint than we have today.
More than anything we have enjoyed generating many great memories for all of the customers who come and jump with us.
Our primary business is the operation of trampoline arenas. Open jump (pay by the hour to use 100+ trampolines) is our largest revenue stream. Group and party bookings, theme nights, fitness classes, toddler classes & dodgeball leagues complete the offering. Socks are mandatory for cleanliness and safety reasons, and most visitors consume F&B/merchandise when visiting our arena (given the intensity of the activity). Where excess space exists in a facility we aim to add soft play/complementary business lines.
We aim to add up to four fully owned parks per year plus make selective investments in licensee parks.
We expect that licensing using the Master License Agreement we have through our relationship with Altitude Trampoline Parks (#3 in the US) will provide a stable long term revenue stream. Licensing is priced at 7% of revenues & £20k commitment fee for a single site operator, and we have jurisdiction across Europe.
In time, central services will be charged out to individual parks. We will offer a national call centre for bookings and general enquiries, marketing, procurement, management reporting & bookkeeping and expect to build this out over the 2016-2017 period in line with our expanding footprint.
As mentioned above, Jump In operates under a license from Altitude Trampoline Parks, the #3 trampoline park operator in the US. Under this arrangement, Altitude provides various support services for the parks, including consulting work around design, operations and marketing, leveraging their global procurement power, and procedures and operations manuals. Some key features of this arrangement:
- Jump In pay a licensing fee to Altitude of 3% of revenues per annum from its operated parks subject to a cap. Where sublicensing occurs, which is permitted across Europe under the Master License Agreement, the revenues are shared with Altitude. The split of revenues depends on a number of factors but the maximum is 50%.
- This arrangement with Altitude has a 10 year term and Jump In is committed to originating 2 new parks per year.
- During the course of the agreement and 1 year thereafter, Jump In is not permitted to open a park under the "Jump In" brand within 10 miles of an existing park.
Use of proceeds
Depending on funds raised, proceeds will be used to invest in one or two additional parks.
Park build costs are typically £700-800k thus we would utilize asset finance to cover the funding shortfall (given an anticipated £600k raise). Should the raise substantially exceed expectations it is possible that the excess is used to redeem the existing asset finance facilities in place of £148k.
The Company currently also has an unsecured convertible investor loan of £600k of which £400k has been drawn to fund site 2 launch. Please note that the share price has been calculated on a fully diluted basis and has taken into account this convertible loan. None of the funds raised in this campaign will go towards paying down these loans. Note the business has no Directors Loans or Bank Debt outstanding.
Please email us for any further information.
Most purchasing decisions are made by a mother aged between 30 and 50, however 50% of jumpers are 5-15 years old. Our marketing approach has to address both constituencies' needs, and this insight impacts our product design and marketing mix. Jumpers aged 5-15 have a strong demand for both open jump and parties abetting a well-balanced mix of revenues from this segment.
Jump In also caters to a number of other segments. Our whole-family strategy allows us to target these jumper groups with specific features and events. Our dedicated "Mini Jump" for toddlers is linked to soft play allowing us to compete in the toddler market and offer a differentiated soft play experience. Our skills classes at night allows trampolining or tumble track skills development and is frequented by late teens and early adults. Teen night and theme nights appeal to an older demographic ensuring we remain relevant as children move into their mid/late teens.
Travel time is an important driver of the target market catchment. 2/3 of our customers are within a 10min drive which means local demography is a key factor; it determines week-day trips and repeat visits. Weekends see a broader catchment reflecting greater time availability. Most of our customers arrive by car, but public transport access will play a part in determining the target market, particularly in highly urbanised sites.
Characteristics of target market
The market is growing rapidly: our analysis showing that 42 parks exist today up from just 6 one year ago. We envisage a £60m market in 2016 vs. £250m for bowling and soft play at c.£350m (source the Soft Play Report, the X-Leisure Market Report).
Our view is that the UK will be able to absorb 200 parks, given benchmarks from other sectors. Additionally, Europe is largely untapped with only an estimated 50 parks across the rest of Europe currently (mostly in Germany).
Once sector capacity is reached we expect high single digit like-for-like growth is achievable through price/mix and enhancing ancillary offerings. Additionally (given our business model) through licensing and provision of shared services.
Sites are generally located in areas where there is a large demographic (200k+ population within a 15min drive), a sizable proportion of children and relatively high affluence (disposable income / head > the national average). Site selection has a material impact on market reach, and in addition to the data, consideration is given to proximity to big box retail/leisure and local traffic/proximity of fast flowing trunk routes. We aim to avoid areas of the UK with low capital utilisation and high warehouse availability. Site-specific factors will become increasingly important as market penetration increases. All our sites have a large fenced car park, a sizable/high/open arena for jumping, and adequate non-core space for parties/dwell time.
Pre-launch we primarily rely on mums' online & real world magazine ads, a targeted flier drop to homes, launch competitions, a VIP party for staff/suppliers/local influencers, distribution of Golden Tickets locally, Facebook ads and boost posts, Instagram ads, and SEO. Signage can be an important factor where the park is on a trunk road (not the case for our existing portfolio of sites).
Post-launch we use physical outreach to schools and local corporates, campaign-driven online ads highlighting specific features (PPC and SEO), regular blogging/news updates/competitions and posts across a broad range of social media (Facebook, Twitter, YouTube, & Instagram), and - best of all - word of mouth recommendations (we believe that around 50% of our reach is driven by word of mouth).
We pride ourselves on responsiveness to feedback and we actively monitor google reviews, Trip Advisor, and onsite customer comments to improve our offering. In 2016 this has led us to integrate a soft play to our site at Slough and to upgrade our coffee offering to a Barista machine.
We consider ourselves to have had considerable successes to date but believe we are still early in the journey and need to continue to capitalize on the market opportunity to become the leading player in the UK.
Site level successes:
Customer feedback online: currently 4 stars across all major channels.
Two poor Trip Advisor reviews have led us to work to improve phone-call response times.
We believe that we have market leading safety statistics: one “major” (hospital treatment excl. sprains) per 9,961 visitors - 0.01% YTD to April 2016.
Successful launch of Wild Jump fitness brand and associated classes.
Successful launch of Jump & Play trampoline & softplay experience for toddlers.
60% increase in ancillary spend per head since launch of Slough site.
Corporate level successes:
We consider ourselves to be the joint largest player in UK market given site portfolio with three sites open/under construction.
Only UK player to have a Master License Agreement with a top 3 US operator in Altitude Trampoline Parks.
Anticipated 27% reduction in site 2 start up costs vs. site 1 and with site 1 achieving a 2 month lead time between site access to opening.
Succeeding in the future:
We believe that licensing will enable us to have a higher return than our competition through a) limiting our Capex requirements and b) allowing us to develop a central services capability (and to charge this out to licensees).
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