Virgin Active lifts sales with pitch for high-end customers

VIRGIN Active’s leaner size has not hurt sales as its focus on high-end and family clubs appears to have paid off.

In spite of selling 35 of its sites to rival Nuffield Health last year, the company still increased sales by 2.5pc to £173m as its more upmarket Collection clubs pulled their weight alongside its family-orientated premises.

The company has been focusing on these types of sites after taking the decision in May to go through with a sale of 14 racquet clubs to David Lloyd Leisure. It said plans were being made to upgrade more clubs in London on the back of full refurbishments in Clapham, the Strand and Fulham.

Although the number of adult members remained flat on a like-for-like basis, the company’s pre-tax losses dipped 29pc to £25.6m in 2016. Its adjusted operating earnings, which exclude various costs and expenses, rose 9.5pc to £32.2m. The management team said its decision to focus on London, the South East and other major metropolitan areas appeared to be working.

“The performance of the business remained stable following the UK’S Brexit vote, with the streamlined estate benefiting from higher cash generation, lower capital expenditure and more attractive growth prospects,” the company said in its results for 2016 released last week. A new club was opened in London’s Mansion House in January and focuses on athletic performance for its members.

This builds on a company-wide development of programmes such as group cycle concept The Pack, HEAT (high energy athletic training), and Punch, its boxing class.

Robert Cook was hired last August as managing director to help the company develop its high-end focus using his experience in the leisure industry, which includes stints at upmarket Malmaison and Hotel du Vin.