JD Gyms, a part of the larger conglomerate owned by FTSE 100 heavyweight JD Sports, says it enjoyed a "record year" with sales surpassing £100m during its most recent financial year - though it reported a pre-tax loss.
The company, headquartered in Greater Manchester, disclosed a pre-tax loss of £29,000 for the 12 months to 3 February, 2024, a contrast to the pre-tax profit of £16.4m it posted the previous year, as reported by .
This loss was incurred even as its revenue increased from £81.1m to £100.8m over the 12 months, as per the latest accounts filed with Companies House.
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By the end of its financial year, JD Gyms had expanded its portfolio to 85 sites, up from 79, and boosted its membership to approximately 536,000, an increase from 453,000. The firm attributed its higher sales to "reflect enhanced membership volumes aligned to 24-hour operations and club reinvestment alongside underlying yield growth on the back of selective club-level member price increases".
During the year, JD Gyms raised its membership prices above its typical £19.99 monthly fee, citing "following significant multi-year compounded inflationary pressures". Despite this, the company's directors expressed confidence that the selective price increases continue to offer members excellent value at the affected clubs.
The number of people employed by JD Gyms also saw a significant increase, jumping from 708 to 954 over the year.
JD Gyms said its pre-tax loss related to the holding company and was because of the sale of other businesses instead of the performance of the chain itself. The company achieved an operating profit of £7.4m for the year, up from a loss of £17m in the prior 12 months.
A spokesperson for JD Gyms said: “We are delighted to announce a record year for JD Gyms.
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“We grew our annual profit before adjusting items – which reflects the underlying performance of the business – by nearly two thirds to £29.5m, on revenue that exceeded £100m for the first time.
“This record performance was driven by the ongoing investment in our successful core JD Gyms business, increased membership numbers and the popularity of our 24-hour opening times.
“Our statutory figures for the last financial year included one-off costs related to the divestment and impairment of non-core assets, in line with our renewed focus on the profitable JD Gyms fascia.”
These results follow JD Sports' own record revenue for the first half of its financial year, driven by a surge in sales and the acquisition of American retailer Hibbett.
The retailer saw revenues soaring to just over £5bn in the 26 weeks leading up to 3 August, 2024, marking a rise of 5.2 per cent from the previous year.
Pre-tax profits escalated by two per cent, reaching £405m, as earnings per share increased by 4.5 per cent to 5.15p.
Additionally, City AM revealed that Go Outdoors, part of the JD Sports group, has dipped into losses because of a "disproportionate" escalation in costs.