The rising popularity of padel and pickleball has helped health club chain David Lloyd make a profit for the first time since being acquired by private equity giant TDR Capital.
The Hertfordshire-headquartered chain has reported a pre-tax profit of £32.2m for 2024, new accounts filed with Companies House have revealed.
The results come after the group registered a pre-tax loss of £25.7m in 2023.
Since TDR Capital acquired David Lloyd in 2023, the chain has racked up pre-tax losses of around £600m.
The latest accounts for the group also show its revenue jumped in 2024 from £756.3m to £860.7m.
The chain said 2024 had been a “record-breaking year both operationally and financially” and pointed to its focus on premium offerings as a reason behind its success.
It added that the growing popularity of panel and pickleball was a key factor for it in 2024.
The group runs 130 panel courts across 37 clubs and is the largest operator in the UK. It also has 76 pickleball facilities at 76 of its clubs.
David Lloyd predicted that the popularity of both sports is “expected to continue to grow exponentially” and it is aiming to open panel courts at an extra 20 clubs in 2025.
The chain, which was founded in 1982 by former professional tennis player David Lloyd, manages 134 locations with 105 in the UK and 29 in mainland Europe
David Lloyd hails record year
A statement signed off by the board said: “2024 was a year of significant investment and sustained growth, driven by strong market demand, resulting in improved yields and returns.
“The group achieved a record-breaking year both operationally and financially, demonstrating robust performance across key metrics including membership numbers, yields, member experience, employee engagement, revenue and adjusted EBITDA.”
The chain said the rise in its membership by 3.9 per cent was driven by a combination of like-for-like growth and two new openings.
The results come after it was reported in March this year that TDR Capital was considering selling David Lloyd to itself.
According to reports, a possible deal could value David Lloyd between £1.8bn and £2.3bn.
TDR Capital has previously tried to sell the chain in 2017 and again in 2023.
As well as David Lloyd, the private equity giant’s portfolio includes Asda, Jollyes and Constellation Automotive which owns Cinch and WeBuyAnyCar.
At the start of 2025 Simon Orange, the self-made millionaire who co-owns Premiership rugby club Sale Sharks, sold his business empire to TDR Capital in a deal worth more than £1bn.
Bosses ‘remain highly confident’ for the future
On the results David Lloyd’s chief executive Russell Barnes said: “Momentum has continued to build through the second half as we continue to implement our programme of strategic growth initiatives.
“The steady increase in the membership base demonstrates the attractiveness of our premium health and wellness facilities, including innovative spa, family-specific classes and facilities and unparalleled racquet sport offering.”
He added: “We remain very excited about the growth opportunities ahead, with a well progressed pipeline of premiumisation and expansion opportunities.
“We are highly disciplined in our approach to investment, as demonstrated by our track record of delivering excellent return on investment and the board remains highly confident in the outlook for the business.”
