Virgin Group Explained

Virgin Group
Type:Private
Industry:Conglomerate
Hq Location City:London
Hq Location Country:United Kingdom
Area Served:Worldwide
Owner:Richard Branson
Revenue: £16.6 billion
Revenue Year:2019
Num Employees:~71,000

Virgin Group[1] is a British multinational venture capital conglomerate founded by Richard Branson and Nik Powell in February 1970.

Virgin Group's date of incorporation is listed as 1989 by Companies House, who class it as a holding company; however, Virgin's business and trading activities date back to the 1970s. The net worth of Virgin Group was estimated at £3 billion as of early 2023.[2]

History

The name "Virgin" arose in 1970 when Richard Branson and Nik Powell formed a record shop, first as mail order and in 1971 with a physical store.[3] They considered themselves virgins in business.[4] Branson has described the "V" in the logo as an expressive tick, representing the Virgin seal of approval.

The original logo from 1973 was a completely different design intended to be used for the record company that was founded by Richard Branson and Nik Powell. The logo was designed by British science-fiction artist and designer Roger Dean. According to Richard Branson in interviews and on the Virgin website, the more recent signature logo, introduced in 1978, was based on one that designer Ray Kyte scribbled on a napkin after a design meeting.[5] [6]

Corporate affairs

Virgin Group has its headquarters in the Porchester Building in the City of Westminster.[7] Previously it was at The Battleship Building in the Paddington district of the City of Westminster and in The School House, Brook Green, in the London Borough of Hammersmith and Fulham.[8] [9]

The Virgin Group of companies have a complex structure that contains elements of a generic conglomerate and a keiretsu, and sometimes it simply licences its brand. Examples of licensing are Virgin Records and Virgin Media, which are owned by Universal Music Group and Liberty Global respectively.

In mid-May 2013, the Virgin Group expressed its intention to seek out opportunities in Australia's healthcare industry to consolidate on the Group's Australian fitness centres. The Group also runs over 100 National Health Service (NHS) services in the United Kingdom and the healthcare division of medical services group Assura after entering the British healthcare industry in 2011.[10]

Virgin Group announced the establishment of Virgin Voyages on 4 December 2014 with financial backing from Bain Capital. The cruise line would be led by CEO Tom McAlpin, would have two new large ships built and be based in the Miami/Fort Lauderdale area.[11] [12]

Virgin StartUp

Virgin StartUp is the Virgin Group's non-profit company, helping entrepreneurs across the UK to start, fund and scale their business. In 2013, Sir Richard visited Boxpark in Shoreditch, London, to launch the new organisation, revealing that he wanted to support anyone that had the same dreams and ambitions that he did as a young boy: “It was £300 from my mum that sparked the Virgin adventure 40 years ago. Today, young people need that same help and I believe Virgin StartUp will provide it – with access to early capital, strong mentorship, advice and promotion.”[13]

The organisation became a delivery partner for the UK Government's Start Up Loans Company,[14] providing loan finance of between £500 and £25,000, advice, and mentoring to thousands of start-ups across the country. In 2016, it was awarded European Regional Development Funding[15] and subsequently launched Ready, Steady, Grow with Virgin StartUp, a programme of support aimed at start-ups that were ready to grow. A year later, it launched the UK's first equity-based crowdfunding accelerator programme, Crowdboost.[16]

By 2018, the organisation had supported over 11,000 UK-based entrepreneurs, with over £35m in pre-seed funding.

Foodpreneur

In 2014, Branson and Virgin StartUp launched the "Foodpreneur" food and drink focused start-up competition. Winners received mentorship from Branson, legal support, and brand counseling.[17] The 2014 winners included Proper Beans, Killer Tomato, Sweetpea Pantry, and Sweet Virtues.

In 2015, winners were given the opportunity to pitch Target Corporation buyers in the US. The 2015 winners included Pip & Nut, Double Dutch Drinks, Harry Bromptons, Cauli Rice, and Mallow and Marsh.[18]

Only one start-up was announced winner of the 2017 Foodpreneur prize, The Snaffling Pig Co., who won a six-week rental space at Intu Lakeside, the retail center with the highest foot traffic in the U.K.[19]

Senior leadership

List of former chairmen

  1. Sir Richard Branson (1970–2009)

List of former chief executives

  1. Sir Richard Branson (1970–2005)
  2. Stephen Murphy (2005–2011)
  3. David Baxby and Josh Bayliss (2011–2014)

Subsidiaries and investments

Company data-sort-type="number" Ownership percentage !Sector
Virgin Active20%Health, gyms
Virgin Balloon Flightsdata-sort-value="0" Brand licensed to AirXcite LtdEntertainment, hot air balloons
Virgin Atlantic51%Travel, airline
Virgin Atlantic Holidays51%Travel, tour operator
Virgin Australia Holdings5%Travel, airline
Virgin Books10%Publishing
Virgin Experience Daysdata-sort-value="0" Brand licensed to Inflexion Private EquityHospitality
Virgin Fibra33.3%Broadband
Virgin Galactic11.9%[20] Travel, aerospace
Virgin Gift Card100%Retail
Virgin Hotels100%Travel, hotels
Virgin Limited Edition100%Travel, hotels
Virgin Media O2data-sort-value="0" Brand licensed to VMED O2 UK Limited, a 50/50 joint venture between Liberty Global and TelefónicaCommunications
Virgin Megastoresdata-sort-value="0" Brand licensed to Azadea Group, Megastores of Lebanon SAL and Retail Holding SARetail
Virgin Mobiledata-sort-value="0" Brand licensed to numerous entities, operating Virgin-branded mobile virtual network operatorsCommunications
Virgin Money Australiadata-sort-value="0" Brand licensed to Bank of Queensland[21] Banking
Virgin Money UK13% [22] Banking
Virgin OceanicTravel, undersea
Virgin Plusdata-sort-value="0" Brand licensed to Bell Canada[23] Communications
Virgin Pulse25%Business services
Virgin Puredata-sort-value="0" Partnership agreement with Strauss GroupConsumer goods
Virgin Radiodata-sort-value="0" Brand licensed to numerous entities, operating Virgin-branded radio stationsEntertainment, radio
Virgin Rail Group51%Travel, train
Virgin Musicdata-sort-value="0" Brand licensed to Universal Music GroupMusic
Virgin Red100%Loyalty program
Virgin Unite100%Charity
Virgin Startup100%Charity
Virgin Voyages49%Travel, cruises
Virgin Winesdata-sort-value="0" Brand licensed to Virgin Wine Online Ltd (UK) & Direct Wines (Australia) [24] Retail, wine

Formerly owned ventures

train operating company on the West Coast Main Line. Renewed franchise bid unsuccessful, superseded by Avanti West Coast in December 2019 (51%)

train operating company, supersed by London North Eastern Railway in June 2018 (10%)

train operating company between Miami and West Palm Beach, Florida. Branding deal launched in late 2018, ended in 2020.

Controversies

The group's health business received significant media coverage over its legal battle with NHS groups. It sued clinical commissioning groups (CCGs) in Surrey after it lost out on an £82 million contract to provide children's health services across the country. The NHS bodies settled out of court with a £328,000 payout to Virgin Care, resulting in some controversy. More than 100,000 people backed a petition calling on the company to stop "dragging the NHS through the courts".[32] [33]

Notes and References

  1. Web site: 1993-09-28 . VIRGIN GROUP overview - Find and update company information - GOV.UK . 2023-08-21 . . en.
  2. Web site: Richard Branson . Forbes . 1 May 2023.
  3. Web site: Our timeline. Virgin.com. 20 July 2021. 20 July 2021. https://web.archive.org/web/20210720043923if_/https://www.virgin.com/about-virgin/timeline. live.
  4. Book: Branson, Richard. Losing My Virginity: The Autobiography. Losing My Virginity. Virgin Books. 1998. 1852276843. London. 901482660. Richard Branson.
  5. Web site: Extra: Richard Branson Full Interview. Freakonomics. 27 February 2018. 27 February 2018. https://web.archive.org/web/20180227191308/http://freakonomics.com/podcast/richard-branson/. live.
  6. Web site: The Virgin logo. ANash. 15 August 2016. 27 February 2018. 28 February 2018. https://web.archive.org/web/20180228041159/https://www.virgin.com/richard-branson/virgin-logo. live.
  7. "VIRGIN GROUP LIMITED filing history - Find and update company information - GOV.UK". Companies House. Retrieved 16 August 2024. "66 Porchester Road, London W2 6ET"
  8. "Our company information ". Virgin Group. Retrieved 14 October 2013. "The Battleship Building, 179 Harrow Road, London W2 6NB"
  9. "Our company information ." Virgin Group. Retrieved 14 January 2009. "The School House 50 Brook Green London, W6 7RR England"
  10. News: Kitney . 20 May 2013 . Virgin Group eyes slice of Australia's $65bn healthcare market . . 20 May 2013 . 20 May 2013 . https://web.archive.org/web/20130520161141/http://www.theaustralian.com.au/business/companies/virgin-group-eyes-slice-of-australias-65bn-healthcare-market/story-fn91v9q3-1226646295342 . live .
  11. News: Sampson. Hannah. Virgin Cruises to base first 2,800-passenger ship in Miami. 24 June 2015. The Miami Herald. 23 June 2015. 24 June 2015. https://web.archive.org/web/20150624161429/http://www.miamiherald.com/news/business/tourism-cruises/article25368637.html. live.
  12. News: Stieghorst. Tom. Richard Branson to enter cruise business. 24 June 2015. USA Today. 4 December 2014. 26 June 2015. https://web.archive.org/web/20150626235426/http://www.usatoday.com/story/cruiselog/2014/12/04/sir-richard-branson-creates-virgin-cruises/19883603/. live.
  13. Web site: Richard Branson launches Virgin StartUp at BoxPark Shoreditch. Murray-Morris. Sophie. 2013-11-06. Hackney Post. en-GB. 2019-08-03. 13 January 2020. https://web.archive.org/web/20200113072617/http://hackneypost.co.uk/richard-branson-launches-virgin-startup-at-boxpark-shoreditch/. live.
  14. Web site: Virgin StartUp. Start Up Loans. en-GB. 2019-08-03. 3 August 2019. https://web.archive.org/web/20190803025612/https://www.startuploans.co.uk/delivery-partners/virgin-startup/. live.
  15. Web site: LIST of ERDF PROJECTS IN THE LONDON LEP AREA. London Enterprise Panel. 3 August 2019. 13 January 2020. https://web.archive.org/web/20200113074324/https://lep.london/sites/default/files/2017%2010%2031%20ERDF%20list%20of%20projects.pdf. live.
  16. Web site: Virgin StartUps launches CrowdBoost, a crowdfunding acc. www.crowdcube.com. en-gb. 2019-08-03. 3 August 2019. https://web.archive.org/web/20190803025611/https://www.crowdcube.com/explore/entrepreneur-articles/crowdboost. live.
  17. Web site: Winners of Richard Branson's "Foodpreneur" competition announced. Platt. Ryan. 2014-09-22. Startups.co.uk. 5 June 2018. 6 July 2018. https://web.archive.org/web/20180706075246/https://startups.co.uk/winners-of-richard-bransons-foodpreneur-competition-announced/. live.
  18. Web site: Richard Branson announces 2015 Foodpreneur Festival winners. Foster. Charlie. 5 October 2015. Virgin. 5 June 2018. 6 July 2018. https://web.archive.org/web/20180706075459/https://www.virgin.com/entrepreneur/richard-branson-announces-2015-foodpreneur-festival-winners. live.
  19. Web site: Virgin StartUp and Intu have named The Snaffling Pig Co as the winners of Virgin Foodpreneur 2017.. Clarkson. Natalie. 2017-07-26. Virgin. 5 June 2018. 6 July 2018. https://web.archive.org/web/20180706075051/https://www.virgin.com/entrepreneur/virgin-startup-reveals-virgin-foodpreneur-2017-winner. live.
  20. Web site: Sheetz . Michael . Richard Branson sells over $150 million in Virgin Galactic stock . CNBC . en . 15 April 2021.
  21. Web site: Virgin Money sold to Bank of Queensland. amp.smh.com.au.
  22. News: Clydesdale and Yorkshire bank brands to go in takeover of Virgin Money. Julia. Kollewe. Rupert. Jones. The Guardian . 18 June 2018. www.theguardian.com. 23 October 2019. 23 October 2019. https://web.archive.org/web/20191023194642/https://www.theguardian.com/business/2018/jun/18/virgin-money-bought-clydesdale-bank-cybg. live.
  23. Web site: Virgin Mobile to rebrand as Virgin Plus on July 19th. Karandeep. Oberoi. 17 July 2021. MobileSyrup.
  24. Web site: Virgin Wines' UK business in £14m management buyout. Angela. Monaghan. 12 November 2013. The Guardian.
  25. Web site: Virgin Atlantic and Stobart agree Flybe take-over. Dyson. Molly. 2019-01-11. Buying Business Travel. en-GB. 2019-10-28. 14 October 2019. https://web.archive.org/web/20191014150454/https://buyingbusinesstravel.com/news/1129764-virgin-atlantic-and-stobart-agree-flybe-take-over/. live.
  26. Web site: Introducing HCRG Care Group | Virgin. Virgin.com.
  27. Web site: Virgin pulls its name from Hyperloop One (update). 4 November 2022. Engadget.
  28. Web site: Virgin Atlantic to cut complimentary ground transfers for Upper Class passengers. Business Traveller.
  29. Web site: LimeLight Sports buys mass participation company Virgin Sport. Michael. Long. 8 September 2020.
  30. Ski - Feb 1986 Page 16 "The program, called "Virgin Snow." is available in seven resorts this season, including Zermatt, Verbier, Val dTsere and St. Anton."
  31. News: AP. 1989-07-27. THE MEDIA BUSINESS; Film Concern Is Being Sold. en-US. The New York Times. 2022-01-28. 0362-4331.
  32. Web site: Dobinson . Isabel . Tens of thousands demand Virgin Care return £328,000 NHS payout . . 6 November 2019 . 8 December 2017 . 6 November 2019 . https://web.archive.org/web/20191106153804/https://www.getsurrey.co.uk/news/surrey-news/the-nhs-under-severe-financial-14011956 . live .
  33. Web site: More than 100,000 demand Richard Branson 'stop dragging NHS through courts'. 8 August 2018. The Independent. 6 November 2019. 6 November 2019. https://web.archive.org/web/20191106142011/https://www.independent.co.uk/news/health/richard-branson-virgin-care-nhs-privatisation-outsourcing-contracts-a8482826.html. live.

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