Brait (BAT) H2 2026 earnings summary

Executive summary

• Final phase of the value-unlock plan: repay offshore convertible debt, recapitalize Virgin Active, sell New Look and unbundle remaining listed assets.

• EBITDA rose 37% at Virgin Active, 18% at Premier and more than 100% at New Look.

• Net debt fell from R7.0bn in March 2020 to R1.7bn in March 2026.

• Virgin Active’s £175m recapitalisation targets 2.0x net debt/EBITDA and a listing in 2H 2027 or 1H 2028.

• Premier share sales raised R1.8bn in FY2026; a R2.5bn rights issue was completed.

Financial highlights

• NAV was R12.6bn, or R3.27 per share, up 7% YoY; like-for-like NAV growth excluding bond equity-accounting effects was 11%.

• March 2026 assets were R17.4bn, liabilities R4.6bn and available cash and facilities R1.6bn.

• Premier FY revenue rose 6.6% to R21.2bn, EBITDA 18.2% to R2.8bn, EBIT 23.2% to R2.4bn and HEPS 27.7% to R12.04.

• Virgin Active FY2025 revenue was £636m, up 10%; EBITDA was £110m, up 37%, and cash flow before financing rose £22m to £54m.

• New Look revenue declined 3.6% to £713.2m; gross margin rose 2.7ppt to 60.4% and EBITDA increased from £14m to £36.6m.

Outlook and guidance

• Virgin Active targets a listing in 2H 2027 or 1H 2028, supported by new clubs, refurbishments, growth investment and deleveraging.

• Premier is integrating RFG, focusing on operational efficiencies and expansion; a full-year Aeroton contribution is expected in FY2027.

• New Look’s sale process is expected relatively soon; proceeds may reduce residual debt to ~R600m. Digital transformation and cost optimisation continue.

• Asset sales and unbundling remain central to completing the value-unlock strategy.