David Lloyd Clubs (which sits financially under its parent company, Deuce Midco Limited) runs a resilient, cash-generative business model, while carrying a highly leveraged balance sheet to fund its expansion strategy.
Strategic Strengths
- Europe’s largest* premium health and racquets operator by revenue and number of members, with sector-leading NPS, leading to a multi-country footprint built over four decades
- Operating in a structurally growing market, with premium health club and wellness spending growing ahead of broader consumer discretionary categories
- Offering a distinctive proposition across health, racquets and wellness, attracting members seeking more than a single-use facility
*Based on Deloitte European Health & Fitness Market Report 2026
- The substantial majority of revenue is derived from membership subscriptions collected by direct debit, providing highly visible monthly cash flows unusual in leisure
- Industry-leading member retention and average member lifetime that significantly exceeds the health club sector norm
- An affluent, resilient membership base with above-average household discretionary income provides natural insulation against cyclical spending pressures as demonstrated in our strong value for money and member experience scores
- A family-anchored membership base deepens household commitment and extends the membership lifecycle well beyond that of individual gym users
- A 10+ year track record of year-on-year EBITDA growth through the GFC, Brexit and sustained inflation (excluding the COVID-disrupted years of 2020 and 2021)
- Rapid recovery to and beyond pre-pandemic earnings following COVID-19
- Strong underlying cash conversion from EBITDA to operating cash flow
- The large majority of Clubs are held on long-term leases or freehold, materially limiting lease expiry and renewal risk across the estate
- Strong rent coverage provides a meaningful buffer against cost pressures and supports debt service capacity across economic scenarios
- Significant cumulative capital investment under TDR ownership has produced a high-quality, efficiently maintained estate
- Growth driven by like-for-like yield management, premiumisation investment, and a disciplined new Club pipeline, each with a demonstrated return on investment track record
- The recent Aspria acquisition deepens European city cluster presence and accelerates brand compounding in continental markets
- A self-funding, ROI-disciplined growth plan supports ongoing deleveraging while continuing to invest in the estate
- Comprehensive data-led approach underpins successful execution of commercial strategy
- Established footprint in affluent catchments
- Strong brand awareness and recognition
Group Structure
Debt Summary
| Debt | Value | MATURITY |
|---|---|---|
| Senior Secured Sterling Notes | £825 million | November 2031 |
| Senior Secured Floating Rate Euro Notes | €530 million | November 2032 |
| Revolving Credit Facility | £175 million | May 2031 |
| Accura | €4.8 million | March 2029 / March 2043 |
Credit Ratings
| AGENCY | LONG TERM RATING | OUTLOOK |
|---|---|---|
| MOODY’S | B2 | STABLE |
| FITCH | B | STABLE |