Padel and pickleball boost David Lloyd’s profitability.
The rising popularity of padel and pickleball has enabled health club chain David Lloyd to achieve a profit for the first time since its acquisition by private equity firm TDR Capital. The Hertfordshire-based chain has reported a pre-tax profit of £32.2m for 2024, according to new accounts filed with Companies House. This comes after the group recorded a pre-tax loss of £25.7m in 2023. Since TDR Capital’s acquisition of David Lloyd in 2023, the chain has accumulated pre-tax losses of approximately £600m.
The latest accounts also reveal that the group’s revenue rose from £756.3m to £860.7m in 2024. David Lloyd described 2024 as a “record-breaking year both operationally and financially” and attributed its success to its focus on premium offerings. The growing popularity of padel and pickleball was highlighted as a key factor for the success in 2024. The group operates 130 padel courts across 37 clubs, making it the largest operator in the UK, and has 76 pickleball facilities at an equal number of clubs. David Lloyd anticipates that the popularity of both sports will continue to grow exponentially and plans to open padel courts at 20 additional clubs in 2025.
Founded in 1982 by former professional tennis player David Lloyd, the chain manages 134 locations, including 105 in the UK and 29 in mainland Europe. A statement from the board noted that 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 in terms of membership numbers, yields, member experience, employee engagement, revenue, and adjusted EBITDA.
The chain reported a membership increase of 3.9 per cent, driven by like-for-like growth and the opening of two new locations. Reports earlier this year suggested that TDR Capital was considering selling David Lloyd to itself, with a potential valuation between £1.8bn and £2.3bn. TDR Capital has previously attempted to sell the chain in 2017 and 2023. In addition to David Lloyd, TDR Capital’s portfolio includes Asda, Jollyes, and Constellation Automotive, which owns Cinch and WeBuyAnyCar.
In early 2025, Simon Orange, co-owner of Premiership rugby club Sale Sharks, sold his business empire to TDR Capital in a deal exceeding £1bn. David Lloyd’s chief executive Russell Barnes commented on the results, stating, “Momentum has continued to build through the second half as we continue to implement our programme of strategic growth initiatives.” He emphasised the attractiveness of their premium health and wellness facilities and expressed excitement about future growth opportunities, highlighting a well-developed pipeline for premiumisation and expansion. Barnes affirmed the board’s strong confidence in the business’s outlook, emphasising disciplined investment and a history of excellent returns.
