virgin hoovers report

Virgin Group Ltd. Profile

The School House 50 Brook GreenLondon, W6 7RR United KingdomPhone : +44-207-313-2000http://www.virgin.com

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WELCOME

HIDDEN TEXT TO MARK THE BEGINNING OF THE TOC

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Table of Contents1Company Overview

Key Information 1

Key Financials 1

Key People 2

3Company Description

4Company History

5Industry Information

6People

People 7

Board Members 8

8Biographies

Richard Branson 9

John Borghetti 10

Patrick McCall 10

11Historical Events

11Company Financials

Financial Summary 11

Historical Financials 13

14Competition

Competitors List 14

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Company OverviewThe School House 50 Brook GreenLondon, W6 7RR United KingdomPhone : +44-207-313-2000http://www.virgin.com

Led by visionary founder, chairman, and owner Sir Richard Branson, holding company Virgin Group gets around.The group's travel-related operations, led by 51%-owned Virgin Atlantic Airways, are among its largest cashgenerators. The airline flies to 30 destinations around the world with a fleet of almost 40 aircraft. Virgin Atlantic iscomplemented by its Australian low-fare cousin, Virgin Blue, which operates a fleet of some 80 aircraft. VirginGroup also operates rail franchises in the UK and sells tour packages. Besides travel and leisure, the group's majoroperating areas include beverages, financial services, and telecom (Virgin Media). Virgin, with offices in about 30countries, was established in 1970.

Key InformationDUNS Number 221450153

Location Type Single LocationSubsidiary Status YesManufacturer NoCompany Type PrivateUltimate Parent Virgin Group Holdings LimitedUltimate Parent DUNS 865402155Immediate Parent VIRGIN MANAGEMENT LTDImmediate Parent DUNS 227118080Plant/Facility Size (sq. ft.) 0.00Accountant KPMGTotal Employees 50,000Year of Founding or Change in Control 2001Primary Industry 1600:AirlinesPrimary SIC Code 45120000:Air transportation, scheduledPrimary NAICS Code 481111:Scheduled Passenger Air TransportationLatitude/Longitude 51.495578 / -0.215728

Key FinancialsFiscal Year-End MarchSales ($ M) $18,000.00M1-Year Sales Growth (21.74%)

Key People

Name Title

Sir Richard Branson Chairman

Mr. Peter Norris Non-Executive Chairman

Mr. Asheesh Advani CEO, Virgin Money

Mr. John Borghetti CEO and Managing Director, Virgin Blue

Mr. Jon Brown CEO, Virgin Limited Edition, London

Mr. Simon Burridge CEO, Virgin Games

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Name Title

Mr. Steve Ridgway CEO, Virgin Atlantic

Mr. Jigar Shah CEO, The Carbon War Room

Mr. Patrick McCall Commercial Director

Mr. Ashley Stockwell Executive Director, Brand and Marketing


Company Description

Branson has made Virgin one of the most recognizable brands in the world by plastering it on everything fromballoon flights to wine, representing more than 300 branded companies. Rather than maintaining full ownership ofthe companies, Branson typically has entered new businesses via partnerships with other investors or by licensingthe Virgin brand name.Virgin Group's latest airline venture, V Australia, is the international arm of Virgin Blue, offering flights to NewZealand and throughout the South Pacific islands. V Australia gives Qantas a run for its money on the Australia-USroutes. The airline took wing in early 2009 with service from Sydney to Los Angeles, quickly followed by servicefrom Brisbane and Melbourne to the "City of Angels." A year later it added service to South Africa, just in time forFIFA World Cup action.Virgin Group also runs Virgin America, a luxury low-fare carrier (sweet deals, unexpected amenities) based out ofSan Francisco. The US airline licenses the Virgin brand and borrows heavily from the Virgin customer-experienceplaybook. Nonetheless, Virgin Group is limited by US law to a minority stake in the carrier. Its destinations include10 major US cities, as well as service to Toronto.The group continues to look for growth opportunities to offset the airline industry's ups and downs. EmergingVirgin projects include stem-cell storage, alternative energy, and other innovations that strike Sir Richard's fancy.Virgin's space tourism division, Virgin Galactic, got off the ground in 2010 when a Scaled Composites test rockettook flight. The spaceline has tied up with Orbital Sciences and Sierra Nevada to compete for NASA funding fordeveloping private-sector space taxis. In the meantime, it has received deposits from 400 customers (more than$54 million) to soar into space on a ship named Enterprise sometime in 2012.The company launched into another new sector in 2010 when it formed Virgin Healthcare, fueled by the purchaseof a 75% interest in Assura Group's Assura Medicals. The British health care provider manages about 30 generalpractitioner clinics in the UK. The move followed Virgin's introduction of Virgin Digital Help. In partnership withSutherland Global Services, the help line caters to consumers with such IT gadget gaffaws as wireless networks orprinters not connecting, PCs crashing, and game consoles failing to link up with peripheral equipment.


Company History

Always one to revel in competition, Richard Branson got his start in the business world at the age of 17, droppingout of boarding school to pursue his magazine, Student, in 1968. Two years later he was on to a new challenge whenhe started Virgin -- a mail-order record company named for his lack of experience at such things. After a postalstrike in 1971 put a damper on that enterprise, Branson opened the first Virgin record store. Continued success ledto a recording studio and record label that went on to sign several popular British rock bands in the 1970s, includingthe Sex Pistols, Genesis, and the Rolling Stones.With his entertainment businesses flourishing in the early 1980s, Branson sought a new adventure and found it inthe airline industry, another business he knew very little about. Virgin Atlantic Airways took off in 1984 with oneplane and one transatlantic route. Growing steadily, Virgin Atlantic became one of the world's most profitableairlines in the 1980s. The company added Virgin Holidays (tours) to its travel group in 1985.Branson collected all his businesses (except the travel operations) into a new company called Virgin Group and tookit public in 1986. Despite the enterprise's continued growth and profits, the market slashed its value after the crashof 1987, and a frustrated Branson bought it all back the following year. Virgin sold its smaller UK record stores in1988 to focus on the development of its Megastores concept. It also entered the hotel business that year.Virgin started Britain's first national commercial rock radio station in 1992. Branson sold the Virgin Music Group (adecision he still regrets) to THORN EMI that year for about $1 billion. He used the proceeds to build Virgin Atlantic.By the early 1990s the airline had added to its fleet and had new routes, including flights to Asia. It also took onBritish Airways and won a libel suit in 1993.The company debuted Virgin Cola in 1994 and bought 25% of the Our Price record store chain with WH Smith (itpurchased the rest in 1998). Virgin acquired MGM Cinemas (the UK's largest theater operator) and introduced itsfinancial services business in 1995. Meanwhile, it added dozens of new Megastores around the world in the mid-1990s. Virgin got back into the recording business in 1996 when it launched the V2 record label. It also bought low-fare Euro Belgian Airlines (renamed Virgin Express).Virgin looked to keep itself on the right track in 1997 when it got into the rail business. Realizing that the right trackmight be the Internet, Branson has pushed the group toward the age of e-commerce and online services withVirgin.com. Mobile phone sales (at its existing retail locations) entered the company's cornucopia in 1999. Late thatyear Virgin agreed to sell its cinema chain to Vivendi (later Vivendi Universal), raising funds for other online andretail ventures. It launched a major Australian airline (Virgin Blue) in 2000.That year Branson's bid to wrest the operation of UK's national lottery from current contract holder Camelot Groupcame up short. The National Lottery Commission extended Camelot's contract for seven years. Later in 2000 thecompany sold 49% of Virgin Atlantic to Singapore Airlines.In 2001 Virgin agreed to sell Virgin Sun (package holidays) to rival travel firm First Choice Holidays. Also that yearthe company sold its 16 French Megastores, as well as some international rights to the Virgin brand, to France'sLagardère. Virgin Mobile in 2002 began offering prepaid wireless service in the US in conjunction with Sprint PCS.In 2006 UK cable operator NTL bought Virgin Mobile, which continued to operate under the Virgin brand. NTLsubsequently changed its name to Virgin Media; Virgin Group retains a minority stake.In order to focus more attention on its core business of transportation and renewable energy, Virgin in 2007 soldoff its Virgin Entertainment Group operations, which operated the Virgin Megastores chain. Virgin sold the segmentto Related Companies and Vornado Realty Trust.


Industry InformationHoover's Industries

> Transportation Services

> Airlines ( primary )> Railroads

> Intercity Passenger Railroads> Banking

> Banking - Asia & Australia> Banking - Europe> Banking - Middle East & Africa

> Consumer Services

> Travel Agencies & Services> Media

> Music> Television

> Television Production & Distribution> Retail

> Music, Video, Book & Entertainment Retail> Telecommunications Services

> Data Services> Internet & Online Services Providers

> Wireless Communications Services> Wireless Telecommunications Resellers

Denotes In-depth Industry Insight by Hoover's Editorial Staff

Primary SIC Code45120000 : Air transportation, scheduledPrimary NAICS Code481111 : Scheduled Passenger Air Transportation


People

Employees

Name Age SalaryTitle Bonus

Sir Richard Branson -- --60ChairmanMr. Peter Norris -- --55Non-Executive ChairmanMr. Asheesh Advani -- --CEO, Virgin MoneyMr. John Borghetti -- --55CEO and Managing Director, Virgin

BlueMr. Jon Brown -- --CEO, Virgin Limited Edition, LondonMr. Simon Burridge -- --CEO, Virgin GamesMr. Steve Ridgway -- --CEO, Virgin AtlanticMr. Jigar Shah -- --CEO, The Carbon War RoomMr. Patrick McCall -- --45Commercial DirectorMr. Ashley Stockwell -- --Executive Director, Brand and

Marketing


Board Members

Name AgeTitle

Sir Richard Branson 60Chairman

Mr. Peter Norris 55Non-Executive Chairman


BiographiesRichard Branson, Age 60

Current Company TitlesUnknown - Present : Chairman

Other Company AffiliationsChairman, Virgin Wines Online Ltd.

Chairman and CEO, Virgin Vacations

President, Virgin Atlantic Airways Limited

Past Company AffiliationsHonorary President, Virgin Mobile Telecoms Limited

Chairman Emeritus, Virgin Express NV/SA

Chairman, Virgin Active Ltd.

President, Virgin Mobile Holdings (UK) Limited

Biography

Richard Branson was born in 1950 and educated at Stowe School. It was here that he began toset up Student Magazine when he was just 16. By 17 he'd also set up Student Advisory Centre,which was a charity to help young people. In 1970 he founded Virgin as a mail order recordretailer, and not long after he opened a record shop in Oxford Street, London. During 1972 arecording studio was built in Oxfordshire, and the first Virgin artist, Mike Oldfield, recorded"Tubular Bells" which was released in 1973. This album went on to sell over 5 million copies!Since then many household names, including Belinda Carlisle, Genesis, Phil Collins, JanetJackson and The Rolling Stones have helped to make Virgin Music one of the top six recordcompanies in the world. The equity of Virgin Music Group - record labels, music publishing, andrecording studios was sold to THORN EMI in 1992 in a US$1billion deal. The Virgin Group hasnow expanded into international music Megastores, air travel, mobile, financial, retail, music,internet, drinks, rail, hotels and leisure, with around 200 companies in over 30 countries. Yes,we've been busy! Virgin Atlantic Airways, formed in 1984, is now the second largest British longhaul international airline and operates a fleet of Boeing 747 and Airbus A340 aircraft to NewYork, Miami, Boston, Los Angeles, Orlando, San Francisco, Hong Kong, Johannesburg, Tokyo,Las Vegas, Delhi, Lagos, Port Harcourt, Shanghai and the Caribbean. The airline is based on theconcept of offering a competitive and high quality Upper Class, Premium Economy andEconomy service. The airline has won many major awards, including Airline of the Year Awardseveral times. During 1997 Virgin took over Britain's two most run-down rail franchises,CrossCountry and the West Coast Main Line. Virgin is currently engaged in a £2billion fleetreplacement programme. In 2002, the combined sales of the different Virgin holding companiesexceeded £4billion. In addition to his own business activities, Richard is a trustee of severalcharities including the Virgin Healthcare Foundation, a leading healthcare charity which wasresponsible for the launch of a health education campaign relating to AIDS in 1987. TheFoundation has also become involved in a lobbying campaign called Parents Against Tobacco,which aims to restrict tobacco advertising and sponsorship in sport. His help in the initialfunding of charity projects helped that organisation to raise over £100 million, throughcampaigns such as Comic Relief and many other charities. For more information on the VirginGroup and charity, please click here to visit our charity section|. And to keep his adrenalinelevels high, Richard has been involved in a number of world record-breaking attempts since1985. In 1986 his boat, "Virgin Atlantic Challenger II" rekindled the spirit of the Blue Riband by


Source : Company Web Site, 2008

crossing the Atlantic Ocean in the fastest ever recorded time. This was followed a year later bythe epic hot air balloon crossing of the same ocean in "Virgin Atlantic Flyer". This was not onlythe first hot-air balloon to cross the Atlantic, but was the largest ever flown at 2.3 million cubicfeet capacity, reaching speeds in excess of 130 miles per hour (209 km/h). Still after theultimate adventure, in January 1991 Richard crossed the Pacific Ocean from Japan to ArcticCanada, the furthest distance of 6,700 miles. Again, he broke all existing records, with speedsof up to 245 miles -per hour in a balloon of 2.6 million cubic feet.

John Borghetti, Age 55

Title held since 2010 : CEO and Managing Director

Current Company Titles2010 - Present : CEO and Managing Director

Other Company AffiliationsCEO and Managing Director, Virgin Blue, Virgin Group Ltd.

Biography

Source : Company Press Release, co pr 3/2/10 rtw;

Mr Borghetti, was Executive General Manager of Qantas over the six years before he left thegroup and was responsible for over $10bn in revenue per annum, up to 16,000 staff and assetsincluding approximately 200 aircraft. He headed domestic and international operationsincluding network operations, scheduling and pricing, sales and marketing, crew, customerservice, product and brand. These responsibilities covered all full-service airlines in the Qantasgroup, which in addition to Qantas mainline, also included Australia¿s regional carrierQantasLink and Qantas¿s New Zealand operation Jetconnect. During his tenure as ExecutiveGeneral Manager Qantas Airlines, the company achieved its highest reported profit of over$1.4bn. Other achievements at Qantas include the development of a number of subsidiarybusinesses such as the company¿s Holiday Travel operations in Australia and Asia; building itsFrequent Flyer membership to over 5 million; and increasing Qantas¿s Australian corporatetravel business. He also played a key role in formulating the company¿s two-brand strategy andthe introduction of low cost operator, Jetstar. Furthermore, Mr Borghetti led the completeredefinition and upgrade of Qantas¿s product, design and customer service models - aninitiative which transformed the brand and received numerous awards for excellence. Prior to2003, Mr Borghetti headed the airline¿s Global Sales and Marketing operations, includingresponsibility for the Qantas Holidays group of companies. In his early career, he held a varietyof positions in various commercial areas in the airline¿s Melbourne office, moving to Sydney in1988. Mr Borghetti¿s current directorships are with Care Australia, Piper Aircraft, TheAustralian Ballet and Investment Committee Member of Investec Global Aircraft Fund. He willbe stepping down from the Piper Aircraft board and the Investec Global Aircraft Fund.

Patrick McCall, Age 45

Title held since 2002 : Director

Current Company Titles


2002 - Present : Director

Biography

Source : Annual Report, 2006

Patrick is the Virgin Group Commercial Director and was appointed to the Virgin Blue Board inMay 2002. As well as holding a number of directorships within Virgin Group, Patrick waspreviously a Virgin Rail Group Planning Director and a Director of SBC Warburg.


Event DetailsDate

Historical Events

Top Executive Change Stephen Murphy succeeded Richard Branson, who remained chairman.2005-09-08


Company Financials

Auditor

$18,000.00M

--

PrivateCompany Type

1-Year Sales Growth

Prescreen Score--1-Year Net Income Growth

(21.74%)

KPMG

Financial Summary

Fiscal Year-End MarchSingle Location

2009 Sales

2009 Net Income


Historical Financials

Income Statement

Year Revenue ($ M) Net Income ($ M) Net Profit Margin Employees

Mar 2009 18,000.00 -- -- 50,000

Mar 2008 23,000.00 -- -- 50,000

Mar 2007 20,000.00 -- -- 50,000

Mar 2004 8,100.00 -- -- 35,000

Jan 2003 7,000.00 -- -- 36,000

Jan 2002 6,500.00 -- -- 34,000

Jan 2001 6,000.00 -- -- 32,000

Jan 2000 5,200.00 -- -- 30,000

Jan 1999 4,940.70 -- -- 25,000

Jan 1998 5,000.00 -- -- 24,000

2009 Year-End Financials

Debt Ratio --Return on Equity --Cash ($ M) --Current Ratio --Long-Term Debt ($ M) --Shares Outstanding (M) --Dividend Yield --Dividend Payout --Market Cap ($ M) --

Stock HistoryStock Price ($) P/E Per Share ($)

Year FY High FY Low FY Close High Low Earns. Div. Book Value

Mar 2009 -- -- -- -- -- -- -- --

Mar 2008 -- -- -- -- -- -- -- --

Mar 2007 -- -- -- -- -- -- -- --

Mar 2004 -- -- -- -- -- -- -- --

Jan 2003 -- -- -- -- -- -- -- --

Jan 2002 -- -- -- -- -- -- -- --

Jan 2001 -- -- -- -- -- -- -- --

Jan 2000 -- -- -- -- -- -- -- --

Jan 1999 -- -- -- -- -- -- -- --

Jan 1998 -- -- -- -- -- -- -- --


Competitors ListGross Revenue Net Profit

MarginNet Operating Cash FlowCompany

$7,882.29M $881.26M60.52%Accor

$28,249.96M ($1,073.55M)1.24%Air France-KLM

$22,170.00M $1,241.00M(2.12%)AMR Corp.

$124,280.00M $34,993.00M15.98%AT&T

$12,045.36M $498.75M6.07%British Airways (Top Competitor)

$32,002.93M $7,270.31M4.84%BT

$35,119.00M $9,532.00M33.63%Coca-Cola

$38,063.00M $6,578.00M11.32%Disney

-- ----EMI Group (Top Competitor)

$3,075.72M $124.30M2.44%HMV

$20,055.95M $326.41M(3.24%)Japan Airlines

$31,936.00M $2,853.50M--Lufthansa

$11,691.00M $1,151.00M3.92%Marriott

$32,778.00M $3,854.00M9.46%News Corp.

$8,759.53M $1,556.08M22.90%Pearson plc

$57,838.00M $8,448.00M10.93%PepsiCo

$11,792.96M $1,119.18M0.81%Qantas

-- ----RTL Group (Top Competitor)

$77,824.61M $9,848.44M(0.77%)Sony

$5,071.00M $764.00M9.41%Starwood Hotels & Resorts

$828.95M $109.73M--The Rank Group

$26,888.00M $3,290.00M9.59%Time Warner

$23,229.00M $1,907.00M1.09%United Continental

$106,565.00M $33,363.00M2.39%Verizon

$38,269.13M $9,231.34M7.61%Vivendi

$67,010.41M $19,684.84M25.06%Vodafone


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