Virgin Active's operational turnaround: Revenue growth across all territories

Virgin Active, the global chain of health clubs and gyms controlled by JSE-listed investment holding company Brait, is making an operational turnaround, and its revenues are growing strongly across all territories.

Brait has a strategy of unlocking value and optimising its assets to return capital to shareholders and has previously hinted at listing Virgin Active. In Brait’s results for the six months to September 30, released on Thursday, Virgin Active’s UK business reported revenue growth of 12%, South Africa 15%, Italy 7%, and APAC 13%.

Brait's net asset value per share was up 5% to R3.21 from R3.06 reported for the 2024 financial year. Its share price slipped 4.2% to R2.06 on Thursday afternoon.

Membership growth increased marginally despite club refurbishment closures and higher terminations in some territories. Capital expenditure increased significantly to £96m from £58m in 2024 due to refurbishment and new club development.

Virgin Active’s earnings before interest, tax, depreciation, and amortisation (EBITDA) for the 12 months to September 30 increased 45% to £112m.

In Southern Africa (35% of group revenue), Virgin Active reported strong sales, particularly in higher-end clubs driven by sales momentum post-refurbishments.

Churn remained elevated due to club closures for refurbishment and affordability issues, which management was addressing through the loyalty program and data analytics.

The focus remained on estate upgrades, with a significant increase in capital expenditure to enhance member engagement and experience to support yield increases. There were 631 000 active members.

In Italy (27% of group revenue), there was higher churn from yield increases that impacted more price-sensitive regions. There remained significant opportunity, with new sites identified and leases signed. There were 192 000 active members in Italy as of September 2025.

In the UK (24% of group revenue), an above-budget sales increase was driven by the club refurbishment program. Significant capex was still required to elevate the estate to drive retention and support yield growth.

A strategy to "roll" clients onto 12-month contracts was implemented but had led to elevated churn in the short term. There were 140 000 active members in the UK.

In the Asia Pacific region (14% of group revenue), strong sales across Singapore and Thailand were offset by below-budget sales in Australia and elevated churn partly because of the yield management strategy.

The focus remained on operational improvements, price optimisation, and improving service levels. There were 60 000 members as of September 2025.

Brait's resulting unrealised carrying value for its investment in Virgin Active at the reporting date was R10.06 billion (R10.21bn) and comprises 59% (62%) of Brait's total assets.

At the food manufacturing and fast-moving consumer group Premier, where Brait is the major shareholder, a strong operational performance continued, with revenue and EBITDA growth of 6% and 14% year on year, respectively.  Performance was strong across all divisions, with MillBake being the core driver. Premier recently announced a merger with RFG, which will significantly diversify its product mix.

At UK fashion retailer New Look, revenue for the first six months was down 2% on the prior year, whilst the restructure of the business post the injection of new money resulted in EBITDA increasing 34% to £21m. An advisor was appointed to help in the assessment of strategic options for the business.

BUSINESS REPORT