Virgin Active has swung back to a profit – but auditors warned again over its ability to stay afloat.
The upmarket gym chain, controlled by South African conglomerate Brait, posted a profit of £3.4m in 2021 – up from a loss of £565.4m in 2020.
But auditors KPMG said there was ‘material uncertainty’ around Virgin Active’s future, as there was a ‘severe but plausible’ scenario in which it breached the terms of its bank loans unless it secured funding.
Uncertain future: The upmarket gym chain, controlled by South African conglomerate Brait, posted a profit of £3.4m in 2021 – up from a loss of £565.4m in 2020
Virgin Active was battered by the pandemic, while continued lockdowns in 2021 ‘severely limited’ its recovery, according to chief executive Dean Kowarski.
The number of Virgin Active ‘clubs’ around the world fell from 236 to 230 last year, with members down to 807,000 from 931,000.
In March the chain secured £88.4m of investment.
Kowarski said membership was growing again, despite home-working trends depressing activity in its city locations.
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