Virgin Active continued to make a huge pre-tax loss during its latest financial year despite its revenue passing £500m, it has been revealed.
The London-headquartered chain has posted a pre-tax loss of £146.7m for 2023, after also reporting a loss of £147.3m in 2022.
The last time the group made a pre-tax profit was the £22.2m it reported for 2018.
Newly-filed accounts with Companies House also show that Virgin Active’s revenue increase from £436.4m to £511.4m during 2023.
The results also show that Virgin Active achieved an operating profit of £4.9m – its first since the Covid-19 pandemic.
Working from home still impacting city-based Virgin Active clubs
Chief executive Dean Kowarski, writing in the accounts, said: “2023 saw the continued recovery of the business following the Covid-19 pandemic which had a significant adverse impact on operations in all of our countries.
“Through the year, the business experienced strong growth in membership and revenue as people continued to return to the gym, and this trend has continued into 2024.
“It is pleasing to report a positive operating profit for the group for the first time since the beginning of the pandemic.
“The market fundamentals for our business remain strong and we see a growing consumer acknowledgment of the importance of maintaining a healthy lifestyle, not only in fitness but in nutrition and broader wellness.
“While working from home trends continue to impact usage levels at city clubs, residential demand is strong and I see sustained positive trends drive by a renewed post-pandemic interest in healthy and active lifestyles.”
Virgin Active was founded in the late 1990s by Sir Richard Branson and Matthew Bucknall, who stepped down as CEO in 2022.
The group’s first club was opened in Preston, Lancashire, while it now runs 227 across the world.
South African billionaire Christo Wiese owns it through private equity firm Brait SE and 16.8 per cent is owned by Virgin Group.
Mr Wiese bought into the brand in 2015 for £682m when plans for an IPO were cancelled.