10 July 2024
The Gym Group plc
("The Gym Group" or "the
Group")
Pre-close trading
update
Leading low cost gym operator, The Gym Group
plc, is pleased to announce that positive trading trends have
continued in H1 2024 with good growth in membership and yield. For
the period ending 30 June 2024, revenue has increased by 12% to
£112.1m (H1 2023: £99.8m) with membership of 905,000 as at 30 June
2024 compared with 867,000 at 30 June 2023 and 850,000 at 31
December 2023. H1 average revenue per member per month ('ARPMM')
was up 9% to £20.44 (H1 2023: £18.81). Like-for-like revenue grew
9% year on year[1]. In H1 2024, the Group
opened four new gyms taking the total to 237, and we are in the
fitout stage of the next four sites which will open shortly. We
remain on track to open a total of 10-12 new gyms by the year end,
as guided.
With further strong cashflow generated in the
first half, net debt as at 30 June 2024 was £54.6m, compared with
£66.4m at the 2023 financial year end. On 28 June 2024, The Gym
Group completed a refinancing of its bank debt with its existing
banking group comprising NatWest, HSBC and Barclays. The new
three-year facility is made up of a £45m Term Loan and £45m
Revolving Credit Facility, at a minimum annual interest rate of
2.75% above SONIA. Terms permit the distribution of surplus
cashflow to shareholders in line with our capital allocation
policy, which prioritises organic growth.
The Group's interim results for the six months
to 30 June 2024 will be announced on 11 September 2024.
Will Orr, CEO of The Gym Group,
commented:
"We are
making encouraging progress with our strategic priorities under our
Next Chapter growth plan, delivering good growth in membership and
yield. We have further strengthened our financial position, whilst
stepping up our opening programme in line with our target to open
50 high quality sites over the next three years, funded from free
cashflow. After a strong first half, we expect to
deliver full year results at the higher end of market
expectations[2]."
For further
information, please contact:
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The Gym Group
plc
Will Orr, CEO
Luke Tait, CFO
Katharine Wynne, IR
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via
Instinctif
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Instinctif
Partners (Financial PR)
Justine Warren
Matthew Smallwood
Joe Quinlan
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+44 (0)20 7457
2020
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Notes for
editors:
The Gym Group was a pioneer of the low-cost gym
model, and now operates 237 high quality sites across the UK. These
gyms offer 24/7 opening and flexible, no contract membership. As at
30 June 2024, there were 905,000 members nationwide. Our gyms have
over 60 million visits per annum, score highly on member
satisfaction and are consistently rated "excellent" on Trustpilot.
The Gym Group is the UK's first carbon neutral chain of
gyms.