Virgin Active reaches a healthy milestone

Health club operator Virgin Active yesterday said it recorded annual earnings of more than £100m for the first time in its 10-year history.

The group, which has 71 clubs in the UK and 187 sites in total, saw a 15 per cent rise in revenues to 391m after lifting membership by 4 per cent to 919,000.

Virgin Active chief executive Matthew Bucknall said: "The trend that we have seen throughout the recession confirms our opinion that health and fitness has become a core aspect to people's lives."

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The company, which is majority owned by Sir Richard Branson's Virgin Group, said its UK business "demonstrated its resilience" during 2009.

Yesterday's figures, which showed an 18 per cent rise in earnings to 101.1m, represent the 10th consecutive year of revenues and profits growth.

Virgin, which acquired Holmes Place in 2006, said its success reflected its strategy of situating clubs in sizeable catchment areas and using facilities large enough to drive economies of scale.

During the year it also increased the number of staff on the gym floor and improved the range of equipment and classes on offer.

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"Throughout 2009 we have continued to focus on our most valuable asset, our members," it added.

Eight new clubs were opened in 2009 – all of them overseas – while agreements have been secured for a further 17 clubs to support international expansion.

The group is also looking to open new sites in Bristol and Guildford.

South Africa is the company's largest territory with 91 clubs, while there are 17 sites in Italy and another eight in Spain and Portugal.