Lights, camera, action for Luke Johnson and cinema chain
Experienced leisure entrepreneur Luke Johnson has headed up a buy-out of independent cinema chain The Light.
Johnson and his private equity firm Risk Capital Partners have set out an ambitious growth plan, backed by a restructured banking facility. They want the business to double in size over the next two years and claim £15m will be invested. Renowned cinema and leisure investor Melcorpo also has an undisclosed stake in the business
The Light, which has 13 venues across the UK, including Walsall has developed a unique entertainment model which includes bowling, mini golf, interactive darts, climbing and karaoke in addition to its core cinema offering. It was previously backed by Connection Capital.
Johnson said: “I have spent 40 years building businesses in the leisure and hospitality sectors, ranging from Pizza Express to Gail’s.
“We think the combination of cinema together with competitive socialising is a compelling offer for both consumers and landlords and believe the disruption facing the cinema industry provides opportunities.”
It has been a busy time for Johnson, who was chairman of Patisserie Valley in 2019 when arrests were made by the Serious Fraud Office. Last month he became chairman of struggling bar chain Revolution, which he has a 20% stake in..
He added: “The Light model offers a long-term, exciting solution to the challenges facing high street and existing cinema locations rather than short term fixes.
“Risk Capital Partners is thrilled to be part of the next phase of The Light’s journey, harnessing the power of cinema to bring their game-changing offer to more places across the UK”.
Bernard Dale of Connection Capital added: “The business has grown well during our period of investment, developing and launching the successful destination entertainment concept.
“Risk Capital’s investment will enable further UK sites to be opened and we are delighted to retain an interest in the business as this rolls-out”
James Morris, CEO of The Light said: “I am delighted Luke and Brian (Gilligan of Melcorpo) have chosen to invest in The Light which allows us to release our exciting plans for the business.
“Achieving ambitious growth cannot be achieved without great people and a positive culture, a founding principle at The Light. We have so many amazing people in our business who share our vision and values and exceptional, talented leaders, who I am so proud we have been able to attract.”
Johnson is best known as the former owner of Pizza Express, and currently the owner of Gail’s Bakery. He is also an investor in Kelso, the activist investor in THG.
A former chairman of Channel 4 TV, he has been involved as a director/owner of various quoted companies in retailing, pubs and bars, parcel delivery and maritime commerce, including Whittard of Chelsea, My Kinda Town, Nightfreight, Topps Tiles and American Port Services.
He was chairman/part-owner of Draft House, the craft pub chain from 2011. It was successfully sold to Brewdog in 2018.
Across the UK there are pockets of characterful local cinemas, art house and more mainstream, that are offering discerning cinema goers something different from what had become a soulless and wallet sapping exercise.
The Light model is similar to that of Everyman Media, an AIM-listed business with cinema screens in Manchester, Liverpool and Altrincham amongst its portfolio of 38 cinemas, produced solid results last month.
Revenue rose by 23 per cent to reach £46.9m in the first half of 2024 as admissions rose by 20 per cent year on year.
Everyman’s business model relies on customers seeing the cinema as a hospitality experience, with movie-goers paying for comfort and premium meals with their films.
At a time when Cineworld is in bankruptcy in the US and rival multiple Vue is restructuring, Everyman took £78.8m in the box office, turning a profit of £402,000, up from the prior year’s operating loss of £2.2m on 3.4m admissions.