We use a number of financial and non-financial key performance indicators (‘KPIs’) to measure our performance over time. We select KPIs that demonstrate the financial and operational performance underpinning our strategic drivers.
Revenue (£m)
Definition
Revenue is generated from membership fees, non-refundable joining fees, rental income from personal trainers and other ancillary services, including the sale of goods through vending machines, advertising through the use of media screens and the sale of day memberships.
Link to 2023 strategy
- High quality estate
- Compelling member experience
- Innovative technology and marketing
2023 performance
Revenue for the year increased by 18%, with average members up 8% to 872,000 (2022: 808,000), and average revenue per member per month (‘ARPMM’) up 9% to £19.50 (2022: £17.82). Like-for-like revenue grew 8% year on year.
Group Adjusted EBITDA Less Normalised Rent (£m)
Definition
Operating profit before depreciation, amortisation, long term employee incentive costs and non-underlying items and after deducting Normalised Rent.
Normalised Rent is the contractual rent payable, recognised in the monthly period to which it relates.
Link to 2023 strategy
- High quality estate
- Compelling member experience
- Innovative technology and marketing
2023 performance
Group Adjusted EBITDA Less Normalised Rent increased by 1% in the year as the increase in revenue noted above was largely offset by cost inflation, particularly in utilities and staff.
Return on Invested Capital (%)
Definition
Group Adjusted EBITDA Less Normalised Rent contributed by mature sites, divided by total capital initially invested in the mature sites. Mature sites are defined as those sites that have been open for 24 months or more at the period end and exclude acquisition sites.
Link to 2023 strategy
- High quality estate
- Compelling member experience
- Innovative technology and marketing
2023 performance
Return on Invested Capital declined slightly in the year as utilities and fixed cost increases more than offset revenue growth in the mature sites.
Free Cash Flow (£m)
Definition
Group Adjusted EBITDA Less Normalised Rent and movement in working capital, less maintenance capital expenditure, cash non-underlying items, bank and non-property lease interest and tax.
Link to 2023 strategy
- High quality estate
- Compelling member experience
- Innovative technology and marketing
2023 performance
Free Cash Flow increased by 62% in year, reflecting an increased uptake of pay-up-front and student products and the normalisation of rent payments.
Adjusted Leverage (x)
Definition
Non-Property Net Debt divided by Group Adjusted EBITDA Less Normalised Rent.
Non-Property Net Debt is defined as bank and non-property lease debt less cash and cash equivalents and is the leverage measure used in the Group’s banking covenants.
Link to 2023 strategy
- High quality estate
- Compelling member experience
- Innovative technology and marketing
2023 performance
Adjusted Leverage improved in the year as a result of higher free cash flow (see above) and fewer new site openings.
Total number of gyms
Definition
Number of gyms open at the end of the year.
Link to 2023 strategy
High quality estate.
2023 performance
The total number of gyms increased by a net four during 2023, as the Group opened six new sites and closed two city centre workforce-dependent sites.
Total number of members ('000)
Definition
Total gym memberships at the end of the year.
Link to 2023 strategy
- Compelling member experience
2023 performance
We closed the year with 850,000 members, an increase of 4% on 2022, and reflecting the full year impact of sites opened in 2022, as well as the incremental volume from new sites opened in 2023.
Average Revenue per Member per Month ('ARPMM') (£)
Definition
Revenue divided by the average number of members divided by the number of months in the period.
Link to 2023 strategy
- High quality estate
- Compelling member experience
- Innovative technology and marketing
2023 performance
ARPMM increased by 9.4% in 2023, driven by an increase in the average headline price of a Standard membership of £1.67 and an increase in the take-up of our premium product, Ultimate, (from 29.6% of total members in 2022 to 31.7% in 2023).
Members that visit 4+ times in a month (%)
Definition
The percentage of total members that have visited the gym four or more times in a month, calculated as a rolling 12 month average.
Link to 2023 strategy
- Compelling member experience
2023 performance
Members that visited four or more times per month increased again in 2023, demonstrating that members continue to get significant value from their gym membership.
Research shows that people who visit the gyms 4+ times per month are also more likely to continue their membership and gain significant health benefits from it which, in turn, drives increased Social Value.
Employee engagement score
Definition
A measure of how committed and enthusiastic employees are about their work and the organisation.
We use four engagement categories (Engagement, Belief, Loyalty, Satisfaction) to calculate a score on a 0-10 scale,and all responses are averaged out to give a score out of 10.
In 2023, we changed the way we measure employee engagement. We partnered with Peakon, an engagement specialist, and adopted a more accurate and comprehensive approach using a 0-10 scale rating system, moving away from a percentage score (Top Box).
Link to 2023 strategy
Unique team and culture
2023 performance
In 2023, we continued to make progress with employee engagement and achieved an engagement score of 8.5 out of 10, with a 90% completion rate. The score of 8.5 puts us in the top 25% in Peakon’s consumer services benchmarking for overall engagement.