Losses balloon at Ovo tycoon's luxury private members club
Stephen Fitzpatrick's Kensington Roof Gardens plunged £26m into the red in the 12 months to December, according to new filings, up from losses of just £6.6m the year prior.
The scale of the losses reflects the challenge facing Mr Fitzpatrick in making a success of the exclusive club, which he reopened in July last year.
Owned by Sir Richard Branson until 2018, Kensington Roof Gardens has an illustrious history as a west London party venue and was once home to a flock of pink flamingos.
To safeguard the company's balance sheet, Mr Fitzpatrick, a Belfast-born City trader, recently secured a £15m loan from a Luxembourg-based investment fund that is subject to a punishing 17.5pc interest rate.
This is expected to see the company through to May 2026. It has already sparked more than £3m in debt interest costs.
Total revenues hit £4.3m in 2024, bolstered by charging customers an annual membership fee of £2,500 a year. This falls to £700 for under-32s.
As well as securing a £15m loan, Mr Fitzpatrick also extended £29m to Kensington Roof Gardens through his own investment vehicle, Imagination Industries.
Similar loans had previously sparked scrutiny because they were made when Imagination Industries was also the owner of Ovo, Britain's fourth biggest energy supplier.
This led to Mr Fitzpatrick being hauled before MPs in 2022, as they urged him to 'open the books' after grilling him over £40m worth of intercompany loans.
Ovo, which is currently said to be in merger talks with Scottish Power, has since cut ties with its former parent group.
However, Mr Fitzpatrick is the ultimate owner of each of these businesses, which form part of his sprawling business empire.
He was also formerly the largest shareholder in Bristol-based flying taxi business Vertical Aerospace but lost control late last year as part of an emergency refinancing deal.
He also owned the Formula 1 Manor Racing Team before it collapsed in 2017.
The roof gardens were built in 1938 and were bought by Sir Richard in 1981.
During his tenure, the private club was a celebrity hotspot frequented by the likes of Freddie Mercury, Kate Moss and Madonna.
A spokesman for Kensington Roof Gardens said: 'Over the past two years, there has been significant investment into The Roof Gardens, sparking a revival of the iconic London landmark.
'The figures reflect the major restoration and investment into the project. The transformation has created jobs, reimagined the private members' club experience in the capital, while delivering a positive impact for the local community.'
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