Virgin active, Go-Ahead, First Group: Business news in brief on Tuesday June 14

Virgin Active sells 35 gyms to focus on luxury clubs; Go-Ahead share price slumps after Thameslink profit warning

Brait, a South African investment group bought an 80% stake in Virgin Active last year, snapping up 51% from private equity group CVC Capital Partners and 29% from Sir Richard Branson's Virgin Group. (Getty Images)

UK inflation rate stays at 0.3%

The UK's inflation rate remains unchanged at 0.3 per cent in May, according to the Office for National Statistics (ONS).

The rate was kept low after a fall in the price of clothing offset rising transport costs.

Analysts said the low rate of inflation meant it was unlikely the Bank of England would raise interest rates for some time.

Virgin Active sells 35 gyms to focus on luxury clubs

Fitness chain Virgin Active is selling 35 of its UK clubs to rival Nuffield Health as part of plan to focus on luxury fitness clubs.

The company, majority-owned by Brait a South African investment group, said it will invest in its range of Collection clubs offering services such as shirt pressing, shoes shining and spa access.

All staff and members will transfer to Nuffield Health as part of the sale. Sales were up 3 per cent at £630.5 million.

Go-Ahead share price slumps after Thameslink profit warning

Shares in transport group Go-Ahead have fallen sharply after it warned of lower than expected profits from Thameslink Railways.

Go-Ahead said the cost of extra investment in Govia Thameslink Railway (GTR) would halve its expected profit margins over the contract's lifetime.

Go-Ahead's shares fell 16 per cent on the news.

FirstGroup upbeat despite revenue fall

FirstGroup, a transport firm, has said it expects to make “strong progress” despite seeing revenues fall following the loss of key rail franchises.

The group reported a 13.8 per cent drop in revenue for the year to March 31, with underlying earnings slipping by 1 per cent to £300.7 million.

“In the coming year we expect the group to make strong progress despite a challenging trading environment in several of our markets,” said Tim O’Toole, the company's chief executive.

Passenger numbers rose by 2.9 per cent on a like-for-like basis in its First Rail business across the year.