GYM The Gym Group Plc

TIDMGYM

RNS Number : 1610Z

Gym Group PLC (The)

10 January 2024

10 January 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 the positive trading trends highlighted in our H1 results have continued throughout the remainder of the year, resulting in good growth in both membership and yield.

Revenue for the year ended 31 December 2023 increased by 18% to GBP204.0m (2022: GBP172.9m), with average members up 8% to 872,000 (2022: 808,000), and average revenue per member per month (ARPMM) up 9% to GBP19.50 (2022: GBP17.82). Like-for-like revenue grew 8% year on year(1) , maintaining the momentum of the first half. We closed the year with 850,000 members compared with 821,000 at 31 December 2022, an increase of 4%. We opened six new sites in the year and closed two.

Net debt as at 31 December 2023 was GBP66.4m, compared with GBP76.1m at 31 December 2022. The reduction reflects strong working capital performance and the timing of spend on new site openings and other capital expenditure projects.

As anticipated in our previous guidance for FY23, revenue growth has offset utility-driven cost inflation and leverage(2) is expected to remain within the range of 1.5 to 2.0x.

We have implemented a 3-tier price architecture with the roll out of an Off-Peak membership to the entire estate following the successful trial. We expect to accelerate new site openings to 10-12 sites in 2024 and continue to reinvest in our existing estate, funded from free cashflow.

The Group will publish its full FY23 results and provide a strategy update together with guidance for FY24 on 13 March 2024.

Will Orr, CEO of The Gym Group, commented:

"We have delivered good growth in both membership and revenue which will underpin FY23 results in line with guidance, and we are well-prepared for our key recruitment period in the coming quarter, with a flexible, high-value low-cost offer that makes gym membership even more accessible for everyone. These are strong foundations on which to build our "Next Chapter" growth plan and I will provide an update on this with our full year results in March."

1 Like-for-like Revenue vs 2022 includes all sites open as at 31 December 2020

2 Calculated as Non-Property Net Debt : Group Adjusted EBITDA Less Normalised Rent

For further information, please contact:

 
 The Gym Group plc                 via Instinctif 
  Will Orr, CEO 
  Luke Tait, CFO 
  Katharine Wynne, IR 
 
 Instinctif Partners (Financial 
  PR) 
  Justine Warren 
  Matthew Smallwood 
  Joe Quinlan                      +44 (0)20 7457 2020 
 

Notes for editors:

The Gym Group was a pioneer of the low-cost gym model, and now operates 233 high quality sites across the UK. These gyms offer 24/7 opening and flexible, no-contract membership. As at 31 December 2023 there were 850,000 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.

Sites opened in 2023 are: Accrington, Edinburgh Corstorphine, Wimbledon, Uxbridge, Stafford and Coventry.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

TSTSSWFAUELSEEF

(END) Dow Jones Newswires

January 10, 2024 02:00 ET (07:00 GMT)

Grafico Azioni The Gym (LSE:GYM)
Storico
Da Mar 2024 a Apr 2024

Grafico Azioni The Gym (LSE:GYM)
Storico
Da Apr 2023 a Apr 2024