Leading low cost gym operator, The Gym Group, announces its full year results for the year ended 31 December 2024.
Key financial metrics1
| Year ended 31 December 2024 | Year ended 31 December 2023 | Movement | |
| Revenue (£m) | 226.3 | 204.0 | +11% |
| Group Adjusted EBITDA (£m) | 87.3 | 75.5 | +16% |
| Group Adjusted EBITDA Less Normalised Rent (£m) | 47.7 | 38.5 | +24% |
| Adjusted profit/(loss) before tax (£m) | 3.6 | (5.5) | +£9.1m |
| Statutory profit/(loss) before tax (£m) | 2.5 | (8.3) | +£10.8m |
| Statutory profit/(loss) after tax (£m) | 4.4 | (8.4) | +£12.8m |
| Adjusted Diluted Earnings/(loss) per share (p) | 2.9 | (3.4) | +6.3p |
| Statutory Diluted Earnings/(loss) per share (p) | 2.4 | (4.7) | +7.1p |
| Free cash flow (£m) | 37.5 | 27.0 | +39% |
| Non-Property Net Debt (£m) (as at period end) | (61.3) | (66.4) | Down by 8% |
Financial Highlights1
- Strong revenue growth for the year, up 11%, with average members up 4% and average revenue per member per month (‘ARPMM’) up 7%; like-for-like2 revenue grew 7%
- 24% increase in Group Adjusted EBITDA Less Normalised Rent at £47.7m (2023: £38.5m), driven by revenue growth and strong operational leverage
- Return on Invested Capital (‘ROIC’) of mature gym sites of 25% (2023: 21%), delivering medium term guidance early; ROIC increases to 27% after excluding 13 workforce-dependent3 gyms
- Free cash flow generated in the year increased to £37.5m (2023: £27.0m) funding 12 new sites, enhancements to existing sites and continued technology and data investment
- Non-Property Net Debt reduced by £5.1m to £61.3m (Dec 2023: £66.4m), resulting in reduced Adjusted Leverage of 1.3x; new £90m three-year combined bank facility signed in June 2024
Business and operational highlights
- Next Chapter growth plan driving up returns on mature gym estate, through higher yield, more cost-effective promotion, better targeted customer acquisition and early progress on retention
- High levels of member engagement and satisfaction sustained, with 93% of members rating The Gym Group 4 or 5 out of 5 for overall satisfaction (57% 5/5); proportion of members visiting 4+ times a month increased by 120bps
- 12 new sites opened in 2024, at top end of guidance. Our focused approach to openings has resulted in all new sites performing ahead of historical maturity curves
- Continued investment in member proposition with capital spend in over 100 sites and significant enhancements in 15; HYROX training sessions rolled out to 120 gyms to become the UK’s largest HYROX training club
- Employee engagement score improved to 9 out of 10, with a 92% completion rate; now rank in the top 5%4 of consumer services businesses for overall engagement
Current trading and outlook
- Trading momentum remained strong in our peak recruitment months of January and February; revenue after two months has grown by 8% year on year, reflecting a 4% increase in average members and 4% growth in yield. Like-for-like revenue up 3%
- Plan to open 14-16 new sites in 2025, in line with our plan to open c.50 sites over three years funded from free cash flow; leverage expected to remain below 1.5x
- Group Adjusted EBITDA Less Normalised Rent for FY25 now expected to be at the top end of the recently revised analyst forecast range of £49.0m-£50.8m5 , driving further improvement in mature site ROIC
Will Orr, CEO of The Gym Group, commented:
This strong set of results reflects good progress against the strategic objectives set out in our Next Chapter growth plan. We have seen excellent momentum to date with increased membership, revenue and profit; and our market-leading proposition is more resonant than ever, in a sector that is growing. We will continue to execute on initiatives started in FY24 alongside new initiatives in place for FY25, underpinned by our investment in technology and data to drive future growth.
As a result, we believe there is still more benefit to come from the Next Chapter growth plan, giving us the confidence to increase guidance again to the top end of the recently revised analyst forecast range for FY25. We also remain on track to deliver our target of opening c.50 new high quality gyms over three years, funded from free cash flow.
A live audio webcast of the analyst presentation will be available at 9:00 a.m. today via the following link:
https://storm-virtual-uk.zoom.us/webinar/register/WN_USzSnU5bSyC7WdKB-P1gTA.
Webinar ID: 850 0442 4647
A copy of the presentation and recording of the webcast will be published on the Company’s website.
1 For a summary of KPI definitions used in the table see the ‘Definition of non-statutory measures’ section.
2 Like-for-like revenue vs 2023 includes all sites open as at 31 December 2021.
3 Sites with a workforce index of more than 120 (populations / residential *100), without car parking or a significant student population.
4 Based on companies included in the Peakon benchmark. Peakon is software developed by Workday that is designed to gather, analyse, and improve employee sentiment
5 Based on companies included in the Peakon benchmark. Peakon is software developed by Workday that is designed to gather, analyse, and improve employee sentiment
Download the full announcement
For further information, please contact:
The Gym Group
Will Orr, CEO
Luke Tait, CFO
Katharine Wynne, Investor Relations
via Instinctif Partners
Instinctif Partners (Financial PR)
Justine Warren
Tim Pearson
+44 (0)20 7457 2020