Strong revenue and profit growth and record number of new site openings underpinning future growth

The Gym Group Plc, the fast growing, nationwide operator of 75 low cost gyms branded ‘The Gym’, announces its full year results for the year ended 31 December 2015.

Financial Highlights

• Revenue of £60.0 million, an increase of 31.9% (2014: £45.5 million)
• Group Adjusted EBITDA¹ of £17.0 million, an increase of 15.9% (2014: £14.7 million)
• Group Operating Cash Flow² of £18.6 million, an increase of 12.7% (2014: £16.5 million)
• Loss before tax of £12.4 million (2014: £9.4 million) as a result of pre IPO finance costs and exceptional costs
• Proforma adjusted profit before tax³ of £5.3 million with proforma Adjusted EPS⁴ of 3.07p

Operational Progress

• Successful IPO on the London Stock Exchange and refinancing in November 2015
• 19 new gyms opened in 2015 increasing the total estate to 74, with a further site opening this week
• Total year end members at 376,000, an increase of 28.3% versus prior year (2014: 293,000)

Outlook

• A strong start to 2016 with performance in line with the Board’s expectations
• Strong pipeline with 6 new sites expected to be open by the end of H1 2016; a further 4 locations where contractors are on site

John Treharne, CEO of The Gym Group, commented:

2015 was a landmark year for The Gym Group with an acceleration in roll out and strong results, culminating in a successful IPO. Our low cost, affordable and disruptive model, which we relentlessly strive to improve, resonates with consumers as demonstrated by the near 30% increase in membership in 2015. In January 2016 we moved through the 400,000 member mark. A strong site pipeline for 2016 will see us continue to expand at a fast rate to take advantage of our considerable opportunity. We have a proven model, strong market fundamentals and financial strength to continue to prosper and deliver value for shareholders both in 2016 and much further beyond.

An audio webcast of the analyst presentation will be available from 13:00 today via our website www.tggplc.com

For further information, please contact

The Gym Group
John Treharne, CEO
Richard Darwin, CFO
via Instinctif Partners

Numis
Oliver Cardigan
Oliver Hardy
Toby Adcock
020 7260 1000

Instinctif Partners
Matthew Smallwood
Justine Warren
0207 457 2020

1. Group Adjusted EBITDA is calculated as operating profit before depreciation, amortisation, exceptional items and other income.
2. Group Operating Cash Flow is calculated as Group Adjusted EBITDA less working capital less maintenance capital expenditures.
3. Proforma adjusted profit before tax is calculated as Group Adjusted EBITDA less depreciation and proforma interest.
4. Proforma Adjusted EPS is calculated as proforma adjusted profit before tax less proforma tax divided by the number of shares at the year end.

Download the Results in full