Brait (BAT) H1 2024 earnings summary

Executive summary

• NAV per share at R6.84, down 3% from FY23; available cash and facilities total R1.1 billion.

• Report covers unaudited interim results for the six months ended 30 September 2023, reflecting investment holding activities and portfolio valuation changes.

• Portfolio includes Virgin Active, Premier, New Look, and other investments, with a focus on value realisation by March 2025.

• Virgin Active showed robust recovery with 10% membership growth and yield enhancement; Premier delivered strong EBITDA growth; New Look faced a tough UK retail environment but maintained cost control.

• Board remains focused on unlocking value and optimal capital allocation.

Financial highlights

• Group NAV to shareholders at R9,025m as of 30 September 2023, with Premier, Virgin Active, and New Look as main assets.

• Profit for the period was R301 million, compared to a loss of R232 million in the same period last year.

• Premier: Revenue R9.4bn (+7% YoY), EBITDA R1,017m (+24% YoY), EBIT R805m (+33% YoY), net profit R424m (+6% YoY), leverage ratio 1.4x.

• Virgin Active: Revenue £372m (+20% YoY), EBITDA £13m (+205% YoY), active members up 10% to 972k.

• New Look: Revenue £403.6m (-11.3% YoY), EBITDA £20.2m (-28.4% YoY), gross margin up 2.4 pts to 56.9%.

Outlook and guidance

• Strategy remains focused on maximising value through realisation or unbundling of portfolio companies by March 2025.

• Premier expects revenue growth to moderate in H2, with margins stable and benefits from reduced debt levels.

• New Look to focus on omnichannel customers, margin improvement, and cost rationalisation.

• Virgin Active to continue growth initiatives funded by convertible preference shares and focus on cost savings.