Full Year Results
A year of profitable growth and significant pipeline progress

The Gym Group plc, the fast growing, nationwide operator of 89 low cost gyms branded ‘The Gym’, announces its full year results for the year ended 31 December 2016.

Financial Highlights

• Revenue of £73.5 million, an increase of 22.6% (2015: £60.0 million)
• Group Adjusted EBITDA¹ of £22.7 million, an increase of 33.4% (2015: £17.0 million)
• Adjusted earnings per share² increased to 5.6p (2015: Adjusted loss per share of 1.8p)
• Adjusted profit before tax³ increased by £10.7 million to £8.7 million (2015: Adjusted loss before tax of £2.0 million)
• Statutory profit before tax of £6.9 million (2015: loss before tax of £12.4 million)
• Proposed final dividend of 0.75p per share, giving a proposed full year dividend of 1.0p per share

Operational Progress

• Average Mature Site EBITDA⁴ increased to £476,000 (2015: £472,000)
• 15 new gyms opened in 2016, increasing the total estate to 89
• Total year end members at 448,000⁵, an increase of 19.1% versus prior year (2015: 376,000)

Outlook

• Early 2017 performance in line with the Board’s expectations; 495,000 members at the end of February, an increase of 10.5% since the year end
• Expect to achieve towards the top end of the guidance range of 15 to 20 sites openings for 2017, with 17 sites exchanged at the start of the year, compared to 12 sites in early 2016

John Treharne, CEO of The Gym Group, commented:

2016 has been a good year with strong financial and operational progress. Our existing estate continues to deliver excellent returns and our low cost, 24/7, no contract model is disrupting the market and attracting new members. We will continue to expand rapidly in 2017 through a well developed site pipeline. We have had an encouraging start to 2017 with January and February, key months for any gym business, showing record membership levels with an increase in members to 495,000.

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

A copy of the Annual Report and Accounts is available via our website.

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

Download the Results in full

Notes

1. Group Adjusted EBITDA is calculated as operating profit before depreciation, mortisation, long term employee incentive costs, exceptional items and other income.
2. Adjusted earnings per share is calculated as the Group's profit for the year before amortisation, exceptional items, other income and the related tax effect, divided by the basic weighted average number of shares.
3. Adjusted profit before tax is calculated as profit before tax before amortisation, exceptional items and other income.
4. Average Mature Site EBITDA is calculated as Group Adjusted EBITDA contributed by the mature gym portfolio, divided by the number of mature sites. Mature sites are defined as gyms that have been open for 24 months or more measured at the end of the year.
5. Average member numbers grew by 20.8% to 429,000 (2015: 355,000).