Brait (BAT) H1 2025 earnings summary

Executive summary

• Successfully completed recapitalization program, resulting in over threefold share price increase from rights issue price and 8% NAV per share growth since March 2024.

• Net asset value increased to R16.5 billion as of 30 September 2024, up from R15.1 billion a year earlier.

• Profit for the six months ended 30 September 2024 was R1,017 million, compared to R301 million in the prior year period.

• Virgin Active and Premier delivered strong operational and financial results, while New Look faced tough U.K. retail conditions but maintained market share.

• Brait completed a major recapitalisation in August 2024, including three-year bond extensions, a R1.5bn rights offer, and an extended BML facility, resulting in a strong share price recovery.

Financial highlights

• NAV per share increased 8% to R3.10 compared to March 2024, with total assets of R15.6 billion and liabilities of R4.6 billion.

• Profit for the period was R644m, up from R7m in the prior year; basic and diluted EPS was 39 cents (vs. 1 cent YoY).

• Virgin Active YTD revenue (incl. Kauai) was £430.6m (+23% YoY), with EBITDA at £56.9m (+362% YoY); run-rate EBITDA reached £93.7m as of October 2024.

• Premier reported H1 FY25 revenue of R9.7bn (+3.7% YoY), EBITDA of R1.2bn (+13.5% YoY), and EPS of 438c (+34.2% YoY).

• New Look H1 FY25 revenue was £386.6m (-3.5% YoY), with adjusted EBITDA at £15.7m (-22.7% YoY).

Outlook and guidance

• The company continues to pursue its strategy of maximising value through realisation and/or unbundling of existing portfolio companies.

• Virgin Active targets maintainable EBITDA of GBP 124 million by Q2 2025, with further growth expected from new clubs and premiumization.

• New Look exit targeted for H2 2025–H1 2026, dependent on market conditions; Virgin Active IPO or sale window expected H2 2026–H1 2027.

• Premier not actively for sale; will consider bilateral deals at fair value.

• Recapitalisation measures, including rights offer and bond amendments, are expected to support future liquidity and capital structure.