a business plan for - allerdale borough council - meetings

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A Business Plan For

At The Wave Centre,

Maryport, Cumbria.

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1. Executive Summary:

It would be fair to say that over the first few years of The Wave Centre’s history ‘Eureka!’

moments have been somewhat rare, however when the new Clip ‘n Climb concept surfaced

last year a potentially bright future for this iconic building in the heart of Maryport marina

began to emerge.

The Wave’s problem has always been in finding its niche and consequently attracting

customers. The original concept was flawed in a number of ways including an overstatement

of its attraction to locals and visitors and a lack of understanding of its core businesses at

the planning stage around arts provision, exhibition management and catering. The ability

of CLL, the operator and Allerdale Borough Council who inherited the building to change

things early on was somewhat hamstrung by the original funding conditions which meant

that the original concept had to be persevered with for three years despite it being

fundamentally being unable to work.

The benefit of this ‘thinking time’ was the ability of all concerned to focus on what qualities

The Wave Centre would need to be in order to be successful. In no particular order these

are:

• Something completely unique and attractive across a broad spectrum of potential

users.

• An attraction that would pull in day and longer stay visitors to the region and also

appeal to local people.

• It would need to be ‘regionally (and potentially nationally) significant’ to pull people

from the Lake District and beyond.

• It would be capable of partnering up with other local attractions to offer joint

ticketing and reasons to stay locally and participate.

• It would need to be capable of generating income.

• It would need to be relatively low cost given the substantial existing investment in

the building and the subsidy currently required to operate it.

• It would preferably need to cater for existing users where possible by not displacing

areas of the operation that were supported and did work.

• It would need to be a business that would generate substantial secondary spend

through catering and retail.

• It would need to be a business that would fit in with local and national tourism

agendas and with local thinking around adventure capital and outdoor activity

themes.

• It would need to fit into the building!

To support this thinking a substantial local research project was undertaken along with a

hard and careful look at what local tourism organisations were saying about the local visitor

market. We also took heed of what local tourism strategies were saying about what the

growth areas including where, why and what would be supported and what would fit in with

what they are trying to achieve.

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The business plan that follows reflects all of this thinking and hopefully more. We think we

have come up with an idea which will revitalise and give sustainability to an iconic building

in need of a purpose. It will be hugely popular with locals and visitors and bring people into

Maryport and the region due to its exciting and unique offer. It fits well with local and

regional tourism strategies around outdoor and adventure themes and has the potential to

grow The Wave Centre into a regionally and perhaps nationally significant attraction.

Before reading the business plan which supports the business case for Clip’ N Climb please

have a look at the short video on the attached CD or if you don’t have a CD follow this link.

http://www.clipnclimb.co.uk/video-download

Most people ‘get it’ straight away. We hope you do too and that you will support the

project.

2. Current Business Details:

The Wave Centre was designed and built as a hybrid building to house and deliver tourism,

heritage, business and culture in a one stop iconic building in the seaside town of Maryport

on Cumbria’s west coast. It was conceived and built by Regeneration Maryport and handed

over to Allerdale Borough Council on completion.

The landmark building was constructed using European and local funding and sits in the

heart of the harbour/marina complex in the town. It opened in July 2008 with the aim of

delivering economic and regeneration benefits to the local area and to the region.

The original concept for The Wave Centre was that it would deliver across four key areas:

Tourism/Heritage:

The rear part of the centre was designed to house a significant (£0.5m) exhibition which

reflected the rich local heritage and history of Maryport focussing on its maritime past, links

with the Ismay family and RMS Titanic as well as local history, geography and personalities.

In addition it would act as a base for visiting the local area as it houses a Tourist Information

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Centre (TIC) and a guide to other local attractions and facilities. The initial business plan

estimated circa 60,000 paying users per annum to the exhibition.

Culture:

The centre of the building houses a small theatre (234 seats) which was designed to

supersede the local Civic Hall. As well as small touring productions, the venue was designed

to host local amateur theatre, music and dance groups as well as showing second release

film on DVD as there was a perceived demand for a small cinema in the town.

Business:

The theatre was designed to cater for conferences and exhibitions with the theatre fully

kitted out with modern audio visual facilities and with some space for break out meetings

and event catering as well as excellent, free car parking on site.

Bar/Café/Shop/TIC:

A large café area and tourist shop adjoins the reception/TIC area at the front of the building

and this is serviced by a substantial, high quality kitchen. The view was that this facility

would cater for the users of the building as outlined above providing everything from tea

and coffee up to formal dinners and conference catering. A bar was added after opening to

cater for events audiences. The shop carried local craft produce, food and products from ‘A

Made in Cumbria’ and local history and guide books were also featured

3. Current Management Arrangements:

Carlisle Leisure Limited (CLL) has managed the facility for the Borough since opening.

Carlisle Leisure Limited is an Industrial and Provident Society with staff shareholders and a

management board made up from partner Council’s, staff and a combination of non-

executive directors recruited locally from interested parties, partnership organisations and

businesses. It operates as a not for profit organisation and works to provide high quality

facilities and experiences for the communities in which it operates and beyond.

Carlisle Leisure Limited (CLL) was formed in 2002 from Carlisle City Council’s leisure DSO

Leisuretime. It was formed in response to Carlisle City’s proposal to externalise the

management of its leisure facilities. CLL successfully won the Carlisle business in open

competition and the Carlisle Contract commenced trading on 1st December 2002 with a

contract term of 15 years.

In early 2003 Allerdale Borough Council announced that it too would be looking for a new

partner and CLL was made preferred bidder following a tendering exercise with the new

contract/partnership agreement commencing on April 1st 2004 again for 15 years. CLL was

awarded Allerdale’s ‘Best Partnership Working with an External Partner’ award in 2005

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Since then The Wave Centre at Maryport has been added to the Allerdale contract from 1st

April 2008 with a finish date timed to coincide with the end of the Allerdale Leisure centres

contract in March 2019.

CLL also operates two school facilities at Morton School and Trinity School in Carlisle on a

shared use basis. Morton is operated via an arrangement with the school and Cumbria

County Council and Trinity is an annually renewable partnership with the school.

The company is operated from new offices in Carlisle at the Pacific House Business Centre in

Kingstown, which house the management team and HR, Personnel, Administration and

Finance, Health & Safety, Operations, Commercial, Grants, Sponsorship and Marketing

teams.

From an operations point of view the Managing Director oversees a small senior

management team of two business managers and a financial director.

CLL’s management philosophy is one of continuous improvement and partnership working.

We invest significantly in staff, facilities and quality. All of our qualifying facilities are

registered under Quest and have improved scores year on year. We have successfully

registered for and retained the ‘Investors In People’ award. We operate an ‘open book’

policy in terms of reporting to our Partners and any annual surpluses are retained for use in

the Partnership in which it was generated

The company now has a turnover in excess of £6m and employs 100 full and over 200 part

time staff.

CLL were approached after a lack of response to an initially unsuccessful tendering exercise

based on what proved to be an overly ambitious and in many areas flawed business plan for

the building. CLL, a local Not for Profit organisation based across North Cumbria were

already successfully operating Allerdale’s three main leisure facilities in Workington,

Cockermouth and Keswick and an agreement was made in the spirit of the excellent

partnership working relationship between CLL and the Council that CLL would operate the

building in parallel with its existing contracts up to 2019. The specification for operation

carried a high degree of risk particularly in terms of anticipated visitor numbers versus the

relatively high number of jobs created at the centre and consequently this risk was priced

into the partnership agreement in respect of a substantial subsidy of around £200,000. The

subsidy and management arrangement were subject to a three yearly review

Despite a strong opening (almost 10,000 people visited the exhibition in the first three

months and the initial shows all sold out) The Wave was always set to struggle – there were

three main reason for this.

The Exhibition:

It would be fair to say that the exhibition carried significant local interest but despite a good

design and some clever and innovative aspects it lacked the unique selling point that would

draw people from the wider are and the Lake District in particular. Once you had seen it you

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had seen it and there was no real reason to return nor was there a strategy to refresh or

invigorate the exhibition with new or touring products that would keep interest going.

Within months weekly usage was in the tens rather than the hundreds anticipated and

consequently the catering business and shop area designed to run in conjunction with it

suffered from a lack of throughput. After eighteen months the admission fee was reduced

to increase usage but even this proved unsuccessful.

The Theatre:

The theatre space was designed to replace the much loved Maryport Civic Hall and it would

be fair to say there was a degree of resentment to the new building from a community who

were very sad to see what was considered to be a local tradition close down shortly after

The Wave opened. The location ‘on the wrong side of the river’ was also seen by some to be

an issue although in reality The Wave is a very short walk from the town centre. There was

also a prevalent view that the building was ‘not what local people wanted’ and ‘that they

hadn’t really been consulted’ or that ‘it wasn’t really for them’.

The main issue with the theatre however was in its design. No real practical expertise was

used in the design of the facility and consequently there are a number of issues. Firstly the

facility is too small at 234 seats to be viable. At an ambitious £20 per ticket there is still only

a maximum gross potential of £4,680 if the event sells out. In practice a selling price of £10

is more realistic in the current economic climate. Consequently the quality of acts available

for the money was limited and real skill and determination has been shown by management

to come up with a viable and entertaining mix of promotions hires and local shows and

events.

From a practical point of view there are some design flaws including a small stage with no

wing space, limited changing room (which were only added as an afterthought – without

showers) and no storage for portable seating or equipment. Again the smaller than

anticipated number of shows impacts on the ability of the catering operation to operate

profitably.

The Initial Concept Business Plan:

The whole business plan for the building was flawed from the outset with a building

massively over specified in some areas – particularly the monstrous mechanical and

electrical set up and a huge kitchen and under specified in others particularly around the

pull of the exhibition and the capability of the theatre. This specification led to an ambitious

staffing of the building to meet the anticipated demand with the business plan calling for

Centre, marketing technical and catering management as well as significant reception,

catering and cleaning staff to deliver to the anticipated crowds. The visitor numbers

required to make the building stack would have seen The Wave emerge as one of the Lake

District’s most significant attractions and with its limited content this was never going to

happen.

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Managing the problem and expectations:

Fortunately CLL and Allerdale Borough Council realised that there was an issue fairly early

on but unfortunately under the terms of the funding for the building the content had to be

left for three years before it could be changed. Given the levels of income that have been

generated this has led to a challenge of making the building as busy and vibrant as possible

within these constraints. Many of the originally created posts have been lost and a much

more practical approach to the building has been taken with CLL making use of its

substantial expertise throughout its operation to plug the gaps – an excellent example of

this is in arts and events management where assistance comes in the form of The Sands

Centres Arts, Events and Marketing teams supporting the facility team.

This has led to a way of managing the facility which is much more efficient – no risks are

taken on shows with most acts hiring or sharing any take – these events are well supported

in the main and when the centre is busy it works as it was intended with catering benefiting

from visitors, conferences and exhibitions as well as new sessions and users of the spaces

we have to offer. CLL are continuing to refine and grow the offer and at the end of year

three were able to reduce the subsidy to the council by £25k despite the closure and

subsequent removal of the exhibition.

Where next?

The fact unfortunately remains that a high quality, iconic building in a stunning location is

failing to deliver in terms of visitor numbers and participation and continues to cost local

people a significant annual subsidy. In order to attract visitors a unique attraction is

required to significantly supplement the existing offer and to fulfil the brief of creating local

jobs, provide cultural and leisure activities for local people and to attract visitors from far

and wide to supplement both the local economy and a successful West Coast and Solway

and Solway Plain tourist offer.

4. The Vision for The Wave Centre and Maryport:

The challenge outlined above is a uniquely difficult one. In order to be successful the

building needs content that will appeal both locally and regionally and be attractive to the

people of Maryport and Allerdale and at the same time have a draw for visitors and tourists

from further afield and ideally from the lake District national park as somewhere worth the

trip across to the West Coast. CLL have made the building efficient and relatively successful

from a point of view of the theatre space and general operations but the major opportunity

lies with the potential of the exhibition space and how the building develops as both an

attraction and a facility local people will engage with and use.

The Clip ‘n Climb concept as a first step:

Following a significant market research project showing a desire for facilities for local young

people (more of which later) and conversations with local stakeholders, CLL set out to try

and solve the conundrum above. Consideration was given to a different type of exhibition

with greater appeal and pulling power – the local connection with Titanic has been

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considered or using the museum in association with Roman Maryport – the problem with

this seems to be the level of investment required to give the centre significant gravitas to

pull people in – something with regional and national significance would be required if the

offer was not just going to be more of the same. Traditional leisure was considered –

conversion to a gym, a top quality play centre but again these are well catered for locally

and there is no real wish to compete with established local business people.

Clip and Climb is a brand new idea and there is currently only one facility of its type in

Europe in The Quay Climbing Centre in Exeter. The concept is based on climbing but not in a

traditional sense with bright colourful climbing modules and a unique belay system which

enables climbers to climb in safety and with confidence knowing that although they can fall

off they won’t fall to the ground. Videos have been attached on the CD included with the

Business Plan and pictures below are worth a thousand words.

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The proposed facility at The Wave Centre would consist of 23 separate and unique modules

examples of which are shown below.

Our initial idea is to convert the exhibition area at The Wave to a 23 module Clip ‘n Climb

which would be unique to Cumbria and the North East via a franchise arrangement. The rest

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of the facility will continue to operate as it currently does. However, our vision is a unique

and exciting, regionally significant leisure facility complemented by cultural activities, local

youth, dance, theatrical and musical groups, performance and rehearsal space, concerts and

festivals. Ultimately external as well as internal adventure concepts including high ropes and

use of the harbour for adventure based activity can be added – Clip’ n Climb is envisaged as

the catalyst for this development.

The Catering Offer:

The initial plan for catering at The Wave was geared solely to the enthusiastically high visitor

numbers to the exhibition (60,000 p.a) in the Capita business plan produced to support the

original concept. The kitchen is professional quality and capable of catering for well over

200 people at a time. A bar and coffee shop was added to the facility as an afterthought as

these were not included in the original build despite the need to cater for arts and business

events. Staffing was also driven by the original plan with the recruitment plan showing a

catering manager, two chefs and many full time, part time and casual staff supporting the

core team. This plan had to be changed fairly quickly after opening as anticipated diners did

not materialise form the exhibition and the operation became geared towards event and

conference catering as required an a basic offer to visitors.

More recently the management have worked with the renowned catering department of

Lakes College to produce fantastically well received themed dinners as an event in

themselves or to support events like the recent and very successful Titanic exhibition.

Cumbrian, Burns, Thanksgiving and Christmas themed nights are planned for the Autumn

and the relationship with Lakes College has enabled The Wave to improve its reputation for

food whilst giving student the opportunity for real world experience in what is a first class

kitchen.

Clip ‘n Climb will provide the missing link to enable a successful, high quality catering facility

at The Wave – namely customers! Plans are afoot to develop healthy and locally sourced

snacks and food for climbers and their friends and families. Corporate and party bookings

will also benefit from increased throughput and The Wave will work with Taste of Cumbria

to plan a profitable high quality offer to the thousands of new and existing customers of the

building.

Retail:

An opportunity exists for a local climbing/outdoors retail outlet to sell climbing shoes,

clothing and accessories to climbers. This can be done either through a rental or income

share arrangement and will run along site the existing tourist information facility.

5. Business Goals

Clip ‘n Climb will be unique to Cumbria. The goal in terms of installing and operating it in The

Wave is to generate visitors and income for the centre and area by providing an accessible

and unique leisure concept, which will appeal locally and regionally and will attract users for

the local area and pull in tourists. In The Wave Centre Clip ‘n Climb will drive increased

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usage and generate income not just in itself but also by driving catering and retail sales and

by increasing awareness of where the building is, what it does and what it is capable of. Clip

‘n Climb can be used by individuals, families, for parties, by corporate users, as a fitness or

exercise session, by schools and groups for visits and trips and by new and experienced

climbers.

This increased usage will help with the short term aim to reduce the cost of the facility to

local people by reducing the required subsidy from the Council with a view to eradicating

this subsidy completely and moving into a surplus which, CLL as a not for profit organisation

will use to further to develop the concept in the long term. It will also compliment and add

to the existing tourism offer in Maryport and CLL will work with venues such as the

Aquarium, Roman Museum and Go Karting facility on joint marketing and ticketing.

6. What is Clip ‘n Climb and how does it work?

Clip ‘n Climb is the most exciting new concept in indoor climbing to have emerged in the

past decade. It is where climbing walls meet theme parks!

Clip ‘n Climb will be popular with families, friends, schools, youth groups, sports teams,

works socials and corporates alike. There is no minimum or maximum age ... pre-schoolers

enjoy climbing at Clip ‘n Climb and existing sites in New Zealand and Canada even cater for

recycled kids of over 70 years of age to take the challenge ... including the Leap Of Faith!

At Clip ‘n Climb climbers don't need a belay partner (someone to hold the other end of the

rope), there are automatic belay devices on every climb ... just clip them onto your harness

and away you go ... and when you are finished, just let go and the device will gently lower

you back down to the ground ... it’s as simple as that !

All Clip ‘n Climb sessions start 'on the hour' and include a 15 minute period for getting on

harnesses and listening to a safety briefing. This is followed by 60 minutes of full on

climbing. Visitors can either book on line in advance or pay per visit and time can be set

aside for open or closed sessions for parties or corporate customers.

The beauty of Clip ‘n Climb is the huge variety of potential customers. From single climbers

to large groups there are many potential markets and opportunities:

• Single Users

• Groups

• Families and Friends

• Schools

• Children or Adult Parties

• Clubs and Societies

• Students

• Corporate Users

• Business Games

• Serious Climbers

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• Competitions – all modules have differing degrees of difficulty and routes

• After School Groups

• Disabled users

Clip ‘n Climb was almost designed for the exhibition space at The Wave and fits perfectly as

the illustrations below show. The requirements for Clip ‘n Climb in terms of available height,

ancillary rooms for briefing and parties, catering and café on site, accessibility and parking

are already catered for. Clip’ N Climb is also an indoor adventure activity making it perfect

for a wet or cold day.

Drawing one shows how the concept fits into the vacant exhibition space with viewing areas

on each side.

Drawings two to five show views of Clip ‘n Climb from a variety of vantage points in the

exhibition space.

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7. What Difference will Clip ‘n Climb make to The Wave

Centre, Maryport and the region?

Clip ‘n Climb represents a unique opportunity. The franchising arrangements means that this

will be the only facility of its type in Cumbria and the North East. It has the potential to be a

huge draw for local people and visitors to the region. It fits in perfectly with the outdoor,

adventure aspects of our geography and leisure offer in the area. It is fun, relatively

inexpensive to install and operate and offers something completely different to other

standard climbing and adventure concepts.

For The Wave Centre the concept is a perfect fit – it is almost as if the building was ready

made to accept Clip ‘n Climb. The sales and IT infrastructure is in place, we already have a

stunning building with the height, catering, reception and ancillary facilities required which

means that the install is relatively simple and the concept can be installed and up and

running very quickly.

Clip ‘n Climb represents the engine we need to drive our very nice car!

For Maryport and the local economy the concept will provide activity and focus for local

children, youth, families and groups and provide a destination for visitors and tourists with

real impact and pulling power to compliment rather than compete against other activities in

the area. There will be quite simply nothing like it.

Financially and given grant funding the building will start to see a reduction in its subsidy. If

finance is required the model is still profitable after depreciation is allowed for and our basic

model assuming grant funding and to break even requires only 14,500 users per annum –

the equivalent of just 37 customers per day. The Exeter facility is on target for 60,000

unique users in its first year of operation.

Once established we would look to develop the youth, adventure theme on site with high

ropes, bouldering and external climbing features as well as making use of the harbour for

water based activities. Youth theatre, dance and music groups would complement our

existing arts and events programme and conference and meeting users would have a fun

activity to tag onto their meeting. Our café would cater for all of these events as well as

offering Wi-Fi and computer use and gaming facilities. Joint ticketing with the Aquarium and

go-kart facility would give Maryport a significant day visitor offer.

Strategically Clip ‘n Climb at The Wave Centre meets or impacts on a number of local and

regional strategic challenges. These include:

• Promoting sustainable local tourism and access.

• Development of new tourist attractions that have the potential to extend the reach

of tourism across the County.

• Close proximity to the world renowned Lake District, means that there is huge

potential for Furness and West Cumbria to expand Cumbria’s tourism offer to

visitors from far and wide.

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• Encouraging a sense of entrepreneurial and socio-economic activity.

• Diversification of the rural economy and quality of life in rural areas.

• Increasing the growth of micro enterprises and social enterprises – CLL is a social

enterprise.

• Supporting sustainable local communities and services.

• Increasing demand for quality visitor experiences.

• A growing cultural sector, which complements the demand for quality tourism.

• Continued investment in the Maryport marina site.

• The development of Cumbria as the ‘Adventure Capital’ of the UK.

• Developments which improve high value added tourism, such as high quality

developments in sport, adventure, culture and eating out, can also play a key role in

encouraging business to locate to Cumbria and attract outside business investment.

• There is the opportunity to increase tourism in the area, especially centred on the

Solway Coast Area of Outstanding Natural Beauty.

Clip ‘n Climb will also see a minimum of 7.5 new full time and two new apprentices posts

created as well as opportunities for part time and casual work.

8. Legal Requirements.

The concept would need to comply with the terms of any funding or grants awarded.

CLL would need to ensure adequate insurance cover, however this is unlikely to extend

beyond insurance that the company already has in place to support its normal day to day

operations.

9. Market Research.

Local and Regional Research:

As soon as CLL became aware that the exhibition could be removed from the exhibition

space it commissioned market research company FlyOnTheWall to conduct extensive

market research locally across the region and with key local stakeholders into what type of

activity and use they would like to see. Stakeholders were also asked questions about

adventure play and specifically about the Clip ‘n Climb concept having been provided with a

link to the video footage included with this plan.

Carlisle Leisure asked FlyOnTheWall Research Ltd., to provide a research methodology to

consult with Cumbrian residents and stakeholders on potential developments at The Wave

Centre in Maryport.

This research methodology included three elements:

• A robust telephone survey of Cumbrian residents (n=500) to assess residents’

priorities for the development, and to ascertain support, take up and acceptable

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pricing options for the potential development of an Adventure Play/Youth Activities

Centre at The Wave Centre in Maryport.

• A similar website survey which was hosted on the Carlisle Leisure web site and the

Allerdale Borough Council web site. A key objective of this survey was to enable all

interested residents and parties to take part in the survey.

• An online survey of key stakeholders to assess their priorities for the development,

and to ascertain support and take up for facilities based on a specific concept for

potential development - the ‘Clip n Climb’ activity centre.

The research as a whole is included in the plan as appendices and a summary of the result of

each appear below.

User Survey (500 Responses):

Over nine out of ten respondents stated that Youth based activities (93%) and Activities for

children (92%) were Important or Very Important to develop at The Wave Centre.

Conference facilities were the least likely to be rated as Important or Very important,

however it is important to note that this still included almost two thirds of respondents

(64%).

Respondents were also asked if there were any other activities or facilities they would like

to see developed at The Wave Centre. One in ten respondents listed Things for the youth

(11%) or Fitness related activities (10%).

Over nine out of ten respondents (93%) stated that they felt an Adventure Play/Youth

Activity Centre would be a suitable development for The Wave Centre. This idea was

popular across all age groups and both genders, and most popular with the Female

respondents and the 45-54 year old age group.

The vast majority of respondents from each area (77% - 100%) felt that an Adventure

Play/Youth Activity Centre was a Suitable or Very Suitable development for The Wave

Centre.

An Adventure Play/Youth Activity Centre was seen as a suitable development for The Wave

Centre because Occupying children is important (52%) and the development would be Good

for the area (17%).

There was a wide range of responses regarding preferred communication method

depending on age group and area. This suggests a multichannel approach to

communications about developments at The Wave Centre.

Newspapers, Leaflets, and Website were most frequently listed by respondents as the best

way to keep them informed about developments at The Wave Centre. The Radio was most

frequently listed as a preferred communication channel by the youngest age group (16-24

year old), while the oldest age group (65+) was most likely to want to hear about

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developments by Newspapers. The Web site was more likely to be listed by those over 35

years of age.

The Newspaper was the preferred communication channel to hear about developments for

respondents from Workington, and Leaflets were most frequently listed by respondents

from Whitehaven, and the Radio was a popular response with respondents from Keswick.

Website Survey:

This survey was hosted on the Carlisle Leisure website and the Allerdale Borough Council

web site for four weeks from late February to March 23. In total 63 responses were

received during this period.

Just over two thirds of these respondents were Female (67%) and 92% described

themselves as White/British/Irish/or any other white background. Just over six out of ten

respondents (62%) were from the Maryport area.

All of the respondents in the website survey had previously visited The Wave Centre, with

just over two out of ten (22%) visiting five times or more in the last 12 months.

Over three quarters of the respondents indicated that Activities for children (78%) and

Youth based activities (76%) were Important or Very important to develop at The Wave

Centre.

The most frequently listed Other activities and facilities respondents would like to see

developed at The Wave Centre included Music, theatre or film (24%) and Things for the

youth (17%).

Just over half of the respondents (52%) would like to hear about developments via Email

and 44% from Website.

Just over six out of ten respondents (61%) felt that an Adventure Play/Youth Activity Centre

would be a suitable development for The Wave Centre. For these respondents Occupying

children is important was the most frequently stated reason (50%).

Over half of the respondents (56%) indicated that they would be Somewhat likely or Very

Likely to use these facilities. The main reason given by respondents who were likely to use

these facilities was Need places to take kids (31%). The main reason provided by those

respondents not likely to use these facilities was No children at an age that would use this

(50%).

Additional comments made by respondents generally show support for the idea of an

Adventure Play/Youth Activity Centre, however 6% of respondents stated It is not a good

idea, and a similar proportion (6%) stated it would Need to be commercially viable.

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Stakeholders Views:

Eight out of ten respondents or more stated that Activities for children (85%) and Youth

based activities (80%) were Important or Very Important to develop at The Wave Centre.

Half of the respondents or more stated that they would like to hear about developments via

Newspapers (55%), Website (55%), and Email (50%). Other suggestions for communications

included text messages and social media.

Eight out of ten respondents (80%) felt that the ‘Clip n Climb’ concept was a suitable

development for The Wave Centre.

Almost two thirds of respondents (65%) stated they would be Somewhat likely (10%) or

Very likely (55%) to use these facilities.

Respondents who indicated that they would not be likely to use the facilities were asked for

their reasons. Respondents being too old, having no children, or no children of a suitable

age, were the main reasons for being unlikely to use the ‘Clip n Climb’ facilities.

Respondents who stated they were likely to use the facilities were also asked for their

reasons. Respondents felt the ‘Clip n Climb’ facility would provide something new to the

area and provide safe activities for children and adults.

Respondents were asked for any additional comments regarding the ‘Clip n Climb’ concept.

These comments were generally very supportive of the concept, but there were a number

of comments related to the importance of making these facilities affordable.

Respondents included four School and Education providers, three Youth organisations and

groups, three respondents from Local councils, two Tourism groups, and one Corporate user

and booker. Other respondents included NHS, MFL Blues Festival, Voluntary Organisation

Cumbria CVS, Sellafield, Charity, Not for profit organisation, and Social Enterprise.

Industry Information:

The indoor adventure play market in the UK is a highly fragmented, fledgling Industry. The

first indoor adventure play centre was built around 15 years ago and since then the industry

has grown to well over 600 independently operated sites. Many pubs and restaurants

feature indoor play equipment but certainly in more recent years, the independent operator

has started to dominate the industry.

A so called “new breed” of operators has entered the market, many based on successful

models from around the world with a view to making the Activity Centres built in the future,

of better standards and quality of that of their predecessors. The aim of many operators is

to turn adventure play centres into a wider visitor attraction appealing to a wide age

bracket.

20

The industry currently has a wide range of opportunities, with the benefits of play in a

child's development being recognised on a wider level.

It is widely understood that the world market is around 15 years ahead of the UK and in that

respect the industry has consolidated to larger adventure parks and a chain of family activity

centres. Soft Play only exists in isolation in very small sites. On the health benefits side, a

1995 research paper by Whitehurst, Groo and Brown concluded that the mean heart rate

during play was 77% of maximum.

Key Market Indicators:

It is widely believed that the industry is experiencing growth for a number of reasons:

• Parents are seeking a safe and secure environment for their children to play in away

from the risk of stranger danger, knife crime and abduction.

• There is a growing need to encourage energetic free play moving away from static

screen based entertainment.

• Leisure spending has increased to around 20% of total UK consumer expenditure.

• An increased need for city children to play.

• The growing problem of the rise in obesity in children.

• By catering for the demands of a new urban generation of parents who crave

comfortable surroundings and luxuries in their leisure experience.

The size and value of the UK adventure tourism market:

There are no definitive figures available for the size and value of the UK adventure tourism

market. The United Kingdom Tourism Survey (UKTS) provides data on UK holiday visitor

participation in some categories of adventure activity, including watersports and climbing.

Data on hill walking and mountain biking is, however, included in more general walking and

cycling categories, and UKTS gives no data on participation in motorised land sports. There is

no available data on day visitor participation in adventure activities.

The UKTS data that is available suggests that:

• Over 10% of UK holiday trips involve participation in adventure activities. The

proportions are even higher for Scotland (15%) and Wales (17%);

• At least 11 million UK holidays each year include taking part in an adventure activity;

• Annual spending by UK holiday visitors that engage in adventure activities during

their stay is at least as much as £2 million;

• Adventure holidays currently account for something like 4% of all UK holidays.

The figures for UK adventure tourism are likely to be even higher if participation in hill

walking, mountain biking and motorised land sports are taken into account, as well as

adventure day visits.

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Tourism in Cumbria:

Economic Impact of Tourism - Visitor Volume and Value 2011 - Cumbria Tourism, along with

a number of partners including some of the district Councils, commission Global Tourism

Solutions Ltd to estimate the economic impact of tourism in Cumbria. This is achieved

through use of a model called STEAM (Scarborough Tourism Economic Activity Monitor).

Through STEAM the county has a continuous tourism economic impact dataset from 2000 to

2011. STEAM uses locally-derived data from a variety of sources including tourist

information centres, visitor attractions and events, accommodation bed stocks and

occupancy rates. Data is analysed to produce estimates of the number of visitors, visitor

days, employment supported by tourism, and revenue generated.

In 2011 Cumbria had 40.1 million visitors, made up of 35 million day trippers and 5.1 million

overnight visitors. This brought in £2.2 billion to the region's economy and provided

employment for 33,090 full time equivalent (FTE) posts. As many tourism jobs are actually

part time, or seasonal, the total number of people in tourism jobs is estimated at 56,900.

The following table shows tourism revenue, tourist days, tourist numbers and tourism

employment during 2011 for each of Cumbria's districts, and the county as a whole.

Allerdale has a substantial market for tourism alone with 6.83m visits.

Allerdale Barrow Carlisle Copeland Eden S Lakes Cumbria

Tourism

Revenue (£)

399.9 92.0 362.5 139.1 225.5 982.9 2201.9

Tourist days

(M)

9.65 3.05 81.9 4.14 6.55 21.16 52.74

Tourist

Numbers

(M)

6.83 2.67 7.40 3.10 4.30 15.80 40.10

Employment

(FTE)

6,415 1,428 5,258 2,116 3,589 14,284 33,090

How will Clip ‘n Climb contribute towards tourism in Allerdale and the Western Lake

District in particular?

West Cumbria Tourism’s chair Eric Robson commenced his foreword to West Cumbria

Tourism 2011 – 2012 Annual Report with the following paragraph:

“Our job is pretty straightforward – to maximise tourism’s contribution to the economy,

employment and quality of life in the Western Lake District. Simple as that. But the reason

that’s important as well as straightforward is that the revenue visitors bring touches not just

front line tourism businesses but every part of the area’s economy. The butcher, baker,

farmer, web designer, plumber, garage owner, retailer, estate agent and accountant all

benefit from tourism. If you know of a candlestick maker, he’s probably benefiting too.”

Visitors to West Cumbria contribute significantly to the local economy with tourism valued

around £539 million of which £400m comes directly into Allerdale. It would be fair to say

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however that the west coast is perhaps on the periphery of the bulk of this business and has

to work harder to encourage visits form the wider Lake District and beyond.

Clip ‘n Climb will add value to Maryport and the Solway Coast in a number of ways. Firstly, it

will add significantly to already established attractions such as the Lakes Coast Aquarium,

Maryport Marina and Harbours, the Solway AONB in providing a high quality attraction

which gives tourists another reason to visit and add enough depth to the area to convert

visitors to the area from day visitors to overnight stays.

In Cumbria as a whole just under 45% of all income is brought in by overnight stays which

currently represent only 13% of visitors. The other 55% of income is brought in by day visits

at 87% of total visits so it is clear that giving people reasons to visit and perhaps stay longer

in West Cumbria is key to economic success. In West Cumbria visits are split similarly

(85:15).

Clip ‘n Climb will be unique to the Western Lakes and Maryport and will help to attract

visits. Working with other local attractions (we have already had meetings with West Lakes

Aquariums and West Coast Carting) we will develop day and stay packages and promote the

area as somewhere to spend more than just a day visit. We will work through the TIC

already established in The Wave building to develop deals with local accommodation

providers and with Northern Rail to develop packages to visit and stay in the area.

In addition we will work with West Lake District Tourism Partnership to advance their local

agenda and there is a deal of synergy between Clip ‘n Climb and West Cumbria Tourism’s

stated aim of promoting the visitor economy.

The West Cumbrian Tourism annual report for 2011 – 2012 states:

The visitor economy embraces the total visitor experience. It’s not just about the individual

businesses – though these are critical – it is also creating and maintaining a sense of place,

delivering excellent customer service and communicating clear, appealing messages about

the Western Lake District - and alongside all this, we need to stay ahead of competing

destinations.

Delivering a successful visitor economy requires a joined up approach from the private,

public and voluntary sectors. Meeting the needs of visitors also brings wider benefits for the

local community; enabling our town and the village services to thrive…

More visitors, longer visits, increased spend - We aim to increase the number of visitors, how

long they stay and how much they spend while in the Western Lake District by:

• Building an even stronger brand position for Western Lake District through

advertising and promotion in our key target markets

• Acting on the increasing desire for enriched experiences – the Experience Economy

• Developing our strong visiting friends and relatives offer

• Strengthening the visitor economy through harbour town and coastal developments,

outdoor adventure, food and drink and business tourism

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• Emphasising the huge range of ‘free’ experiences on offer – opportunities for rest and

relaxation, beautiful scenery, pretty villages, free attractions, and free, healthy

activities such as walking and cycling in the great outdoors

• Offering a good quality, good value, unique product with excellent customer service

• Being flexible and adapting to changing circumstances and consumer needs

• Keeping the visitors coming back!

Clip ‘n Climb sits very well within this vision.

• It adds to the ‘Adventure Capital’ and ‘Experience Economy’ themes.

• It is a fantastic visitor experience for local and visiting families – something fun to

enjoy together.

• It will encourage business visits through The Wave’s unique ability to cater for the

conference and the corporate day out in one building.

• It will strengthen the economic position of Maryport by adding another reason to

visit and stay and fits well around the themes of adventure and business tourism as

well as a redesigned food and drink offer.

• It is good value, high quality and certainly unique.

• It makes sustainable use of an already high quality building and location which,

needs to adapt and respond in order to encourage users and visitors.

• It will certainly keep visitors coming back.

Tourism in West Cumbria grew by just under 1% in 2010 with an additional 85,200 visitors to

the area. It is envisaged that Clip ‘n Climb will grow from 20,000 visitors in its first year

adding great value to the area. (Clip ‘n Climb Exeter is expected to achieve 60,000 visitors in

its first year generating some £500,000). 20,000 users to the area will bring in just under

£175k in direct income to The Wave and if current trends are replicated 17,000 of these

visitors will be day visitors and 3,000 will stay over in some way.

Cumbria - Top 20 Visitor Attractions 2011 (by visitor numbers):

This table is included to show levels of visits to Cumbria’s top attractions as a comparative

to the usage required by Clip ‘n Climb. The Lake District Coast Aquarium near to The Wave

Centre has around 35,000 unique visits with a ticket price of £7.50 and this figure does not

include users for their café only. This shows that the right attraction can be successful in this

location.

1. Windermere Lake Cruises in South Lakeland with 1,350,881 visitors

2. Rheged in Eden with 378,258 visitors

3. Ullswater Steamers in Eden with 331,891 visitors

4. South Lakes Wild Animal Park in Dalton-in -Furness with 309,410 visitors

5. Tullie House Museum and Art Gallery in Carlisle with 251,131 visitors

6. Whinlatter Forest Park & Visitor Centre in Allerdale with 250,000 visitors

7. Grizedale Forest Park and Visitor Centre in South Lakeland with 250,000 visitors

8. Lake District Visitor Centre Brockhole in South Lakeland with 198,306 visitors

9. Ravenglass and Eskdale Railway in Copeland with 176,837 visitors

10. Carlisle Cathedral with 171,155 visitors

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11. The World of Beatrix Potter in Windermere with 144,900 visitors

12. Theatre By The Lake in Keswick with 131,371 visitors

13. Honister Slate Mine in Allerdale with 128,787 visitors

14. Hill Top (the home of Beatrix Potter) in South Lakeland with 105,905 visitors

15. Sizergh Castle near Kendal with 102,534 visitors

16. The Beacon in Whitehaven with 82,998 visitors

17. Muncaster Castle in Copeland with 75,631 visitors

18. Lakeland Motor Museum near Ulverston with 70,125 visitors

19. The Dock Museum in Barrow with 68,292 visitors

20. Carlisle Castle with 50,149 visitors.

Source: Cumbria Tourism - Visitor Attractions Monitor.

10. Market Segmentation.

SECTOR SEGMENT GEOGRAPHICAL MARKET POTENTIAL

Local

Residents

Market

Aspiring Professionals

Young active ABC1 18-35

groups and couples

Living in Maryport

Workington, Cockermouth,

Whitehaven and Carlisle

***

Older Couples ABC1 55+

independent

Living in Maryport



**

Education Living in Maryport



****

Single Hobbyists

20-70 BC1 Singles &

Groups

Living in Maryport



****

Families

BC1 C2 25-40 with

children under 17

Living in Maryport



****

Business Based in Maryport



***

VFR Staying/Visiting with

Friends & Family in local

area

***

Key: * Low ** Medium *** Strong **** Very Strong

25


Day Visitor

Primary

Resident

Market

Individuals &

Groups

Single Hobbyists

20-70 BC1 Singles &

Groups

Staying in hotels, self

catering accommodation,

holiday centres in the

Western Lake District and

Central Lakes areas

***

Older Couples

ABC1 Couples 55+

independent and tour

groups





Central Lakes areas

*



groups and couples





Central Lakes areas

***

Families

BC1 C2 25-40 with

children under 17





Central Lakes areas

****

VFR Staying with Friends &

Family in wider Cumbria

***



Day Visitor

Secondary

Resident

Market

Individuals &

Groups

Single Hobbyists

20-70 BC1 Singles &

Groups

Cumbria, Lancashire,

Durham, Northumberland,

the Borders, Dumfries and

Galloway, Strathclyde

**

VFR Cumbria, Lancashire,




***



groups and couples





**

26

Older Couples

ABC1 Couples 55+

independent and tour

groups





**

Families

BC1 C2 25-40 with

children under 17





****


Target Markets

Local Community

It is vital that locals are involved in any launch activity and are encouraged to visit the

attraction as early as possible after opening. They will play a vital role in sustaining the

attraction throughout the year particularly in the areas of retail, party hire and catering

spend.

Given the relatively short drive time, the local area for Clip n Climb is realistically would

cover the majority of North and West Cumbria offering a significant catchment area to

target.

Maryport itself has a population of just over 11,500 with Allerdale and the two neighbouring

authorities collectively having a population of over 270,000.

Allerdale Carlisle Copeland Total

0-15 16,000 18,000 12,000 46,000

16-64 58,000 68,000 45,000 171,000

65+ 21,000 21,000 14,000 56,000

95,000 107,000 71,000 273,000

Schools:

Educational visits are extremely important to any visitor attraction. The best way to reach

the education segment is by physically getting into school staff meetings and selling the

attraction and its benefits to those who make the decisions. The development of a short

DVD will help to support this engagement with schools and other similar groups.

The approximate number on role for Primary Schools in the immediate catchment areas is

as follows:

Maryport Cockermouth Workington Keswick Carlisle Whitehaven Total

2517 924 2216 459 7073 2852 16041

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The approximate number on role for Secondary Schools in the immediate catchment areas

is:

Maryport Cockermouth Workington Keswick Carlisle Whitehaven Total

2512 1400 2100 1057 6859 3700 17627

This shows a significant opportunity to engage with school groups from just within a 45

minute drive time.

Group Visits:

Although there is an increased trend towards independent travel, there is equally an

expansion in 'group travel' by established groups of friends, colleagues and people with

similar interests. At a local level this would include youth groups, scouts, guides, plus special

interest groups particularly around climbing.

Group trips are often taken in addition to family holidays and constitute an important

source of core business for many attractions. Initial work will be required with established

tourism partners such as Western Lake District Tourism Partnership and Cumbria Tourism to

acknowledge the attraction and more importantly in some cases to further develop

Maryport as a destination in its own right.

Many operators have very established routes into Cumbria, particularly The Lakes and over

the last few years the Western Lake District Tourism Partnership has made great strides in

encouraging more operators into the West and it is important for this reason that a good

partnership is developed with this group. Familiarisation visits are a key part of getting

operators interested in both the attraction and the area and it is vital that links are made

with WLDTP and Cumbria Tourism to ensure that Clip n Climb is on these itineraries.

Business:

Corporate days and team building also offers potential as a target market for Clip n Climb.

This sector could be engaged in the same way as education establishments, through

utilisation of a short DVD promoting the facility.

Tourism:

The tourist market has huge potential but is very competitive due to the vast number and

reputation of attractions within Cumbria and the Lakes in particular. One big advantage that

Maryport has is that the Lake District Coast Aquarium is very well established and receives

in the region of 35,000 visitors each year. Opportunity for joint promotion and ticketing

exists which would help to raise the profile of Clip n Climb and indeed Maryport as a

destination in its own right.

Affiliation to and the development of a good working relationship with Cumbria Tourism

and its officers is very important. It is vital to feature Clip n Climb on their DMS and to be

involved in their guides on an annual basis.

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At a more local level WLDTP is a key partner and will play a crucial part in the joint

marketing and promotion of both the attraction and the destination. Several publications

that the partnership produces are essential to be featured in, the Holiday Guide and Top

Attractions brochure.

11. Profiling Competitors.

In terms of the concept for Clip ‘n Climb and the franchise arrangement proposed the facility

will be unique in Cumbria and the North East and there will be no comparable competition –

if people want Clip ‘n Climb they will need to come to The Wave Centre.

Comparable adventure concepts in the lakes include GO APE at Whinlatter Forest Park in

the North Lakes and Grizedale Forest in the South Lakes. Both include high ropes, zip wires,

Segways, forest walking and cycling trails. Prices are £30 per adult and £20 per child.

http://goape.co.uk/days-out/whinlatter

A similar facility ‘Treetop Trek’ has also recently opened at the Brockhole Lake District

Visitors Centre at Windermere. Adult prices are £26.00 and children £19.00.

http://www.treetoptrek.co.uk/whatistreetoptrek/

Keswick Climbing Wall offers a new indoor climbing wall, bouldering and also offers a wide

range of outdoor activities such as ghyll scrambling , canoeing , archery and high ropes.

Climbing is priced from £6 with outdoor activities such as ghyll scrambling costing £25 for a

three hour session.

http://www.keswickclimbingwall.co.uk/

Center Parcs at Whinfell Forest offers a range of paid for activities for residents only. These

include high ropes, gladiator challenge, zip wires, quad bikes, pendulum swing and tree

trekking

http://www.centerparcs.co.uk/villages/whinfell/todo/outdoor/adrenaline/index.jsp

Climbing walls are also located in leisure centres at Carlisle, Cockermouth and Penrith with

single climbs around £5.

Locally the main tourist attractions in Maryport are as follows:

At the Lake District Coast Aquarium, you can discover the amazing underwater world of

Cumbria's seas and coasts. Set in the heart of the refurbished Maryport Harbour, the new

purpose built Aquaria contains over 35 creative displays, specialising in native British aquatic

life.

29

Winner of the Cumbria Tourism Visitor Attraction of the Year 2010 (Up to 50.000 visitors a

year category) the Aquarium currently attracts 36,000 paying visitors per annum at £7.50

per admission with rates for group and families. A successful and busy café is also contained

within the facility as well some outdoor play.

http://www.coastaquarium.co.uk/

West Coast Indoor Carting is located close to The Wave Centre. Here usere can race go

karts – currently cited as one of Britain's fastest growing leisure activities. They offer a

chance for the general public to experience the thrills and spills of motorsport in relative

safety and at a realistic price.

Prices are Children: £15 (8 to 15 years) and Adults: From £16 (16 years and over).

http://www.westcoastkarting.co.uk/index.html

Senhouse Roman Museum is dramatically sited on the cliffs overlooking the Solway Firth.

This award winning museum is next to a Roman fort probably founded in the first Century

AD and rebuilt during the reign of Hadrian. The fort was an important element in the

complex frontier system known as Hadrian's Wall. The museum displays the largest group of

Roman military altar stones and inscriptions from any site in Britain and unique examples of

Romano-British religious sculpture.

Entry Prices (2012): Adults: £3.00, Children: £1.00, Family: £8.00.

http://www.senhousemuseum.co.uk/

12. Pricing:

Clip ‘n Climb is a brand new concept and only one site is operational across the whole of

Europe. We hope to be one of the first to follow and will have a truly unique attraction for

North Cumbria and the Lakes District which will generate visitors and help to revitalise The

Wave Centre and Maryport and provide additional focus for the Solway Coast and AONB.

Pricing at the Exeter facility is as follows:

Ages Peak Exclusive Use Off Peak Exclusive Use

4-5 £7 £175 £5 £125

6-16 £10 £250 £8 £200

17+ £15 £375 £12 £300

30

Leap of Faith * £2.50 per person

2nd Leap of Faith in same session £1.50 per person

Peak period - Weekends (Fri 4pm-Sun 8pm) and all Holiday periods (Half term and bank

holidays included).

Off Peak - Weekdays (Mon - Fri 4pm).

Clip ‘n Climb Maryport would be priced slightly lower initially to take into account the more

depressed and rural nature of our economy. In addition once operational we will look at

local discounts for priority customers (based on CLL’s Leisure Access Card), season tickets

based on purchasing blocks of admissions in multiples of 5 and an annual membership

giving year round access for a fixed fee in cash or via DD.

Proposed Pricing:

Ages Peak Exclusive Use Off Peak Exclusive Use

4-5 £5 £130 £4 £100

6-16 £8 £220 £6 £160

17+ £13 £350 £11 £300

Leap of Faith * £2.50 per person

2nd Leap of Faith in same session £1.50 per person

Opening hours will be Mon – Fri 12 noon until 9.00 pm and 9.00 am – 10.00 pm weekends

and all holidays

13. Promotion & Advertising

Pre-Opening & Year 1 Marketing Requirements

Branding - £1,000

Photography £500

Stationery £500

Advertising - £19,000

Border Television Campaign £7000 – 7 weeks at key holiday times

CFM Radio Campaign £3000 – 2 months

Whitehaven News Campaign £2000

31

Times & Star Advertising Campaign £2000

Cumberland News Campaign £2000

Northwest Evening Mail Campaign £1000

News & Star £2000

South West Scotland £3000

Print - £6,000

Initial Tourism Leaflets 60,000 £1500

Distribution of Tourism Leaflets £1500

Generic Domestic leaflet £800

Door Drop of domestic leaflet £600

Children’s Parties & Courses £800

Corporate Packs £800

Tourist Guides - £4,500

Cumbria Tourism Guide £500

WLDTP Perfect Days Out Guide £500

Lakes & Cumbria Today £500

Hadrian’s Wall Tourism Guide £500

Bedroom Browsers £2000

Go Cumbria DMS £500

Visit Scotland D&G £1000

Other - £1,000

Web site £0

Video for School/Corporate Outreach £1000

Total £35,500

14. Staffing.

The Wave Centre currently already has a centre, technical and reception management

system in place as well as a part time catering manager which accounts for only four full

time equivalent posts. Due to its current pattern of use the rest of its staff tend to be of a

casual nature working as receptionists, technical support, stewards and catering/bar staff.

Clip ‘n Climb will create a number of new full time jobs and at the time of writing these were

anticipated to be as follows:

• 1 Full Time catering supervisor (from part time).

• 1.5 Full Time chef positions

• 1 full time receptionist position (from casual).

32

• 4 Full Time Clip ‘n Climb trainers (one of which will include duty management).

• 2 apprentices to work across the leisure, theatre and catering aspects of the

business.

• In addition the existing Technical managers post will be expanded to take on

responsibility for the technical and maintenance of the Clip ‘n Climb facility as well as

existing conferences and arts/events provision.

15. Premises.

It is as if The Wave Centre was almost purposely designed with Clip ‘n Climb in mind. An

ideal Clip ‘n Climb site would have a space large enough and with sufficient height to

accommodate the installation with ease, have rooms for parties and briefing of users, have

a substantial catering facility and café space to cater for the volume of users and have

access and reception facilities. In addition, a venue booking system, good IT provision and

excellent support services network would be desirable - The Wave is ready to go out of the

box on all of the above.

The operation of the theatre will not be overly compromised by the installation as the

auditorium is sound proofed and can operate independently of the exhibition space with

very little inconvenience. Spaces for private parties will be created and the added benefit of

a corporate activity following a meeting or conference is particularly evident.

33

The iconic nature of the building sits well with the concept and the extensive grounds and

harbour side location are perfect for expansion of the concept into high ropes and other

outdoor activity opportunities.

Minimal changes are required to the existing building with only minor changes to lighting,

air handling and some repurposing of rooms being required. Clip ‘n Climb’s bespoke booking

system will sit alongside CLL’s current Legend management information system and can be

run using the same hardware. Adequate, free parking for all anticipated users is already

available on site. A bespoke Clip ‘n Climb website will be commissioned and this will

integrate with CLL’s main company website and the existing Wave website.

It is anticipated that Clip ‘n Climb could be up and running within four months of an order

being placed.

16. Suppliers.

Climb ‘n Climb is exclusively licenced in Europe by Entre-Prises UK. For over 15 years, Entre-

Prises UK has provided a full climbing wall design, manufacture and construction service for

satisfied customers throughout the UK, Ireland, Middle East and Asia. Entre-Prises UK

ensures that indoor climbing experience is the very best it can be. Entre-Prises UK also sells

a broad range of bolt-on holds, fixings, volumes, macro features and indoor climbing

equipment.

As Official supplier of bolt-on holds to the British Mountaineering Council (BMC) and official

partner to the International Federation for Sport Climbing (IFSC), Entre-Prises has been

heavily involved in climbing competition development.

The UK team at their office in Lancashire, England includes among its ranks, artists,

designers, engineers, project managers and administrators. Each team member holds true

to his or her passion for rock climbing and caving.

The quality of their products and their level of service reflects this passion.

Francois Savigny - an industrial engineer and rock climber, founded Entre-Prises in 1985. The

first products to be sold were a selection of modular bolt-on holds made from resinous

concrete and these were the world's first commercially marketed bolt-on climbing holds.

The first modular climbing panel systems, Profile and Cristalithe were developed soon after

and the era of modular, artificial climbing structures was born.

Since then, Entre-Prises has sought to remain at the forefront of climbing wall development.

They have steadily grown with the sport of rock climbing over the past 25 years, developing

new technologies and products along the way to meet the ever changing expectations of

our customers and drawing on our various skills developed in a wide range of industries.

34

Entre-Prises has completed over 5,000 climbing wall projects worldwide. With 28 global

distributors and with manufacturing in the UK, US, France and China, Entre-Prises remains

world leaders in supplying custom climbing walls and bolt-on holds.

Clip ‘n Climb is an international phenomenon! With centres on three continents attracting

thousands of visitors daily, Clip ‘n Climb is the hottest attraction to come out of New

Zealand since the Bungee Jump!

Clip ‘n Climb is now live and launched in the UK with Entre-Prises as the master license

holder. With 28 uniquely themed climbing challenges and more to come Clip ‘n Climb is an

international phenomenon! With centres on three continents attracting thousands of

visitors daily.

Clip ‘n Climb will be installed at the Maryport site on the basis of a franchise agreement

charged on the number of auto belays used in the installation. In this case 23 x £500 per

annum or £11,500. The franchise gives exclusive rights to the operator in its own and two

adjacent post codes which ensure the uniqueness of the concept to The Wave in our region

and beyond as well as brand and maintenance support during the franchise period.

Suppliers and partners for catering and retail will be locally sourced and will support and

offer that reflects the products and services available in our region.

17. Equipment and Managing Operational Risks.

Entre-prise are a one stop shop for all aspects of Clip ‘n Climb and the equipment required

for this installation is outlined in Appendix one covering capital costs. The turnkey cost for

the project is in the region of £400,000 before VAT.

Given the nature of the sport of climbing maintenance and health and safety are of

paramount importance and the operating budget allows for full annual inspection,

maintenance and servicing of both the modules and the auto belay systems. Sufficient

harnesses, helmets, webbing, lines and karabiners will be purchased to enable seamless

operation even in the event of breakages or damage.

Entre-Prises have developed an extensive training and operations manual coupled with a

fantastic staff training program that ensures that both the staff and facility can be made as

safe and enjoyable as possible. CLL’s health and safety regime will also ensure adequate risk

assessments and safe systems of work are in place to compliment provided literature and

training and delivery staff will be trained in health and safety and first aid. CLL’s extensive

Health and Safety policy and procedures will apply.

Entre-Prises UK’s manufacturing and supply location in north Lancashire also ensures rapid

call out response times to breakdowns and operational issues as well as replacement of

equipment and part where necessary.

35

No additional insurance will be required for Clip ‘’n Climb over and above CLL’s standard

business insurance policies already in place although an uplift in buildings content will be

required to cover the new equipment being purchased.

In addition a range of Clip ‘n Climb merchandise will be available and an opportunity will

exist for a retail outlet for a local climbing or outdoor business once established.

18. Start Up Costs.

Detailed start-up cost can be found in Appendix One (Tab One) Start-Up Costs.

The project required in the region of £400,000 which is broken down in rounded sums as

follows:

Clip ‘n Climb Modules £184,000

Engineering £6,000

Installation £55,000

Matting £12,000

Belay System £33,300

Equipment £9,100

Building Alterations £31,100

Marketing & Branding £44,500

Contingency £25,000

Total £400,000

Other quotes (to date) are included as Appendix Four

19. Profit and Loss Forecast.

A detailed profit and loss forecast for Clip ‘n Climb and for The Wave Centre for years 1 – 3

can be found in Appendix One (tabs two and three)

The aim of the on-going project is to revitalise The Wave Centre and bring visitors to

Maryport and by doing this reduce and eventually remove any subsidy attached to the

building and give better value to Allerdale Council and its ratepayers.

The P&L shows a surplus however in practice after the first £10k is moved to a sinking fund

for module replacement the remaining surplus will be handed back to ABC to reduce the

subsidy attached to the building.

Our approach to depreciation is that the capital cost will be totally funded with around

£180k being applied for from RDPE and the balance from ABC as a spend to save initiative. If

this balance is not funded in this way then depreciation will be applied to the balancing sum

of £220k and this is shown as an additional line in the P&L.

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For information, if fully grant funded the project breaks even at 14,500 users per annum.

Appendix Two also shows a summary of how Clip ‘n Climb Exeter has performed since

opening last Autumn.

20. Sourcing Funding

The purpose of this business plan is to apply for €200,000 circa £180,000 from the Rural

Development Programme for Northwest of England. The balance of the £400,000 required

will come from one of two sources. Firstly as a grant from ABC on the basis of a spend to

save initiative to reduce the annual subsidy to The Wave Centre or secondly funded from

future rate savings that CLL’s status as a not for profit organisation entitle it to. If the second

option is used then depreciation to the balancing sum will be applied per 19. above.

21. Potential Risks.

Competitor Action: This kind of business is subject to competition for leisure spend

particularly in the growing market for adventure and outdoor play. Clip ‘n Climb is a unique

concept and our operation will be protected by our franchise agreement which will ensure

that no other Clip ‘n Climb facilities will go live in CA, LA and NE post codes while we are

franchise holders.

The proposed £18m extreme sports area in Copeland would be a serious competitor but

again would not be able to provide this unique concept in the unlikely event of it being

funded and becoming operational. If it does, it would almost certainly increase awareness

and participation in extreme and outdoor sports, which would benefit Clip ‘n Climb.

The facility is still in competition with all other leisure activities in North Cumbria and the

Lake District and launch and on-going marketing budgets have been set high to give

prominent market presence. Clip ‘n Climb Exeter have taken the same approach however

the popularity of the concept have led to savings in marketing and the facility has hugely

exceeded expectations – in the first 32 weeks since opening in October it has taken just over

300,000 from 26,500 customers with a busy summer holiday period still to come.

Commercial Issues: The biggest risk to the operation if funded is that user numbers do not

materialise. However, the operation, if funded, breaks even at 14,500 users or only 37 users

per day. Exeter (which admittedly has a larger local population) is averaging 120 before the

busy summer holiday figures are added (Exeter averages over 220 users per day during

holiday weeks).

Operations: The largest operational risk would be catastrophic failure of the auto belay

system resulting in either an accident or closure of one of the modules. The likelihood of this

will be mitigated by regular servicing and maintenance and be having a spare belay and

webbing constantly available as a spare. CLL is already insured against any accident or

personal injury.

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Staff: The largest risk with staffing would result from visitor numbers not materialising. We

are comfortable with our projection of 20,000 users and break even with the staffing levels

indicated is 2/3 of this figure. CLL has 13 separate operations throughout North Cumbria

and this gives flexibility to bring and move out staff to other sites if large fluctuations in

usage do occur.

Acts of God: CLL is insured for building people and loss of income in the event of

catastrophic activity.

CLL’s current risk register is attached as an Appendix Three. Additional risks specific to this

project are around the following keys areas.

• Failing to meet grant criteria leading to clawback.

o See above in terms of resale of equipment and Clip ‘n Climb modules.

• Withdrawal of subsidy by Allerdale Borough Council.

o Reduction of subsidy only based on success of facility and by agreement.

o ABC keen to support The Wave Centre and Maryport locality.

o Wave provides rates savings to ABC/CLL leisure partnership.

22. Cash Flow

Project Cost: £400,000

Add irrecoverable VAT currently 50% £40,000

Total Capital Cost £440,000

Capital Cash Flow Budget - Assumption 1:

ABC fund full Capital and repayment is made to ABC for RDPE

If ABC fund the £440,000 capital cost as a one off payment to CLL , there is no cash flow

impact on CLL. Once CLL receive the RDPE grant we would simply repay ABC that element of

the grant.

Capital cash flow budget - Assumption 2:

ABC fund their share of the £440,000 but not the RDPE element.

This option would mean CLL would have to fund approximately £180,000 of expenditure for

a period of approximately 6 months until the RDPE money was paid over. In this case CLL

would have to borrow the money from our bank. As we would have a letter from RDPE

guaranteeing the money, borrowing the money should not be a problem however there

would be a cost to this. Assuming a rate of interest of around 6.5% this would cost CLL

approximately £1000 per month and there would be a one off arrangement fee of circa

£2000. These would both need to be factored into our costs.

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Revenue Cash Flow Budget:

Once Clip ‘n Climb is up and running, there will be a positive impact on CLL's cash flow as the

income is cash or credit card so will flow into our bank immediately whereas associated

costs such as salaries, maintenance, franchise fee, catering cost of sales, utilities all occur

within 15-45 days later therefore our cash flow should improve.

There will be a negative impact on cash flow before the project starts due to pre-launch

marketing and any staff recruitment costs but these will be funded out of CLL's normal cash

flow.

a business plan for - allerdale borough council - meetings

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