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 2024 strategy
- Strengthen the core – Price and revenue management
- Strengthen the core – Member acquisition
- Strengthen the core – Member retention
- Accelerate rollout of quality sites
2024 performance
Revenue for the year increased by 11%, with average members up 4% to 906,000 (2023: 872,000) and ARPMM up 7% to £20.81 (2023: £19.50). Like-for-like revenue grew 7% 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 2024 strategy
- Strengthen the core – Price and revenue management
- Strengthen the core – Member acquisition
- Strengthen the core – Member retention
- Accelerate rollout of quality sites
2024 performance
Group Adjusted EBITDA less Normalised Rent increased by 24% in the year as the strong trading performance and increased revenue was complemented by tight control of operating costs.
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 2024 strategy
- Strengthen the core - Price revenue management
- Strengthen the core – Member acquisition
- Strengthen the core – Member retention
- Accelerate rollout of quality sites
2024 performance
Return on Invested Capital of mature sites increased by 400 bps in
the year as a result of strong delivery against the ‘Strengthen the core’
element of our Next Chapter growth plan.
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 2024 strategy
- Strengthen the core – Price and revenue management
- Strengthen the core – Member acquisition
- Strengthen the core – Member retention
- Accelerate rollout of quality sites
2024 performance
Free Cash Flow increased by 39% to £37.5m, reflecting the strong trading performance and higher working capital inflows, offset partly by increased maintenance and enhancement capital expenditure.
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 2024 strategy
- Strengthen the core – Price and revenue management
- Strengthen the core – Member acquisition
- Strengthen the core – Member retention
- Accelerate rollout of quality sites
2024 performance
Adjusted Leverage improved in the year, reflecting the improved trading performance
Total number of gyms
Definition
Number of gyms open at the end of the year.
Link to 2024 strategy
- Strengthen the core – Price and revenue management
- Strengthen the core – Member acquisition
- Strengthen the core – Member retention
- Accelerate rollout of quality sites
2024 performance
We opened 12 new gyms during 2024, taking the total number of gyms at 31 December 2024 to 245. All the new gyms are located in Greater London and urban residential areas where we have historically seen the best returns.
Total number of members ('000)
Definition
Total gym memberships at the end of the year.
Link to 2024 strategy
- Strengthen the core – Price and revenue management
- Strengthen the core – Member acquisition
- Strengthen the core – Member retention
- Accelerate rollout of quality sites
2024 performance
We closed the year with 891,000 members, an increase of 5% year on year. The increase reflects the full year impact of sites opened in 2023 as well as the incremental volume from new sites opened in 2024.
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 2024 strategy
- Strengthen the core – Price and revenue management
- Strengthen the core – Member acquisition
- Strengthen the core – Member retention
- Accelerate rollout of quality sites
2024 performance
ARPMM increased by 7% in 2024, driven by an increase in the average headline price of a Standard membership of £1.37 as well as some selective repricing of the membership base.
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
- Strengthen the core – Member retention
2024 performance
The percentage of members visiting the gym 4+ times per month has increased again in 2024, 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.
Link to 2024 strategy
- Strengthen the core
- Accelerate rollout of quality sites
- Broaden our growth
2024 performance
In 2024, we improved our employee engagement score to 9 out of 10,with a 92% completion rate, meaning we now rank in the top 5% of consumer services businesses included in the Peakon benchmark for overall engagement. We improved across all 14 engagement drivers, with our teams highlighting excellent management support, clear objectives (goal setting), and peer relationships. Regular communications about the Next Chapter growth plan also led to significant improvements in our team alignment and understanding of the business strategy.