Strong recovery since re-opening and opportunities for accelerated growth
The Gym Group, the nationwide operator of 190 low cost, high quality, 24/7 no contract gyms, announces its interim results for the six-month period ended 30 June 2021.
The results reflect both the significant disruption caused by the pandemic and the start of our recovery out of Covid. During this period, gyms were required by the UK Government to close for more than 50% of the trading days. However, with gyms re-opening in April and all remaining Covid restrictions being lifted in July in England, we have seen strong demand for our gym memberships and now look forward to a period of sustained recovery and accelerated growth.
Financial Highlights
Operational and Financial Update for H1 2021
- Strong recovery in membership numbers following re-opening, with total members at 30 June 2021 of 730,000, up from 547,000 at the end of February 2021
- Average headline price of a standard DO IT membership increased to £19.11 in June 2021 (vs £18.81 in December 2020 and £18.55 in June 2020)
- LIVE IT penetration at 30 June 2021 was 24.7% of total members, up from 22.5% at 31 December 2020
- Number of trading days lost in H1 2021 was similar to H1 2020, however a lower membership base in H1 2021 (due to extended closure periods during 2020 and 2021) resulted in a 21.4% reduction in revenue vs H1 2020
- Strong cost control and Government support during closures, together with strong recovery on re-opening, limited Group Adjusted EBITDA less Normalised Rent loss to £8.1m, in line with H1 2020
- EBITDA and cash flow positive in the months when gyms were fully open (May and June)
Current Trading Update and Outlook
- Equity placing completed 2 July 2021 providing £30.3m (net) of financing for accelerated rollout programme
- In addition to four sites opened in H1, we plan to open 40 new sites in the 18 months to December 2022, of which three have opened so far in July and August
- Total membership at 31 August 2021 was 721,000, a small decline from 30 June 2021 in line with expectations
- Gym visits remain strong at 1.4 visits per member per week since re-opening
- Non-Property Net Debt (including finance leases) at 31 August 2021 was £28.3m with headroom of £73.3m against £100m RCF
Richard Darwin, CEO of The Gym Group, commented:
Since the re-opening of gyms in April, The Gym Group has performed strongly with excellent member feedback, a higher rate of visits per member and a rapid recovery in overall membership levels. We have identified some exciting growth opportunities to expand our estate further and raised additional funds from shareholders to capitalise upon them. With restrictions now lifted, we are planning to open 40 new sites by the end of 2022, of which three have opened so far in July and August, as we continue to make fitness accessible for all and deliver further social value to communities around the country. We look forward to the second half of the year and beyond with confidence.
A live audio webcast of the analyst presentation will be available at 08.30am today via the following link:
https://webcasting.brrmedia.co.uk/broadcast/611531bec97de6636c2d90db
FOR FURTHER INFORMATION, PLEASE CONTACT:
The Gym Group:
Richard Darwin, CEO
Mark George, CFO
via Tulchan
Numis
Luke Bordewich
George Price
0207 260 1366
Peel Hunt
Dan Webster
George Sellar
0207 418 8900
Tulchan:
James Macey-White
Elizabeth Snow
0207 353 4200