Continued strong growth in membership numbers and profitability
The Gym Group Plc, the fast growing, nationwide operator of 80 low cost gyms branded ‘The Gym’, announces its interim results for the six month period ended 30 June 2016.
Financial Highlights
• Revenue of £36.1 million, an increase of 25.1% (H1 2015: £28.9 million)
• Group Adjusted EBITDA1 of £11.5 million, an increase of 35.2% (H1 2015: £8.5 million)
• Group Operating Cash Flow2 of £13.5 million, an increase of 13.6% (H1 2015: £11.8 million)
• Adjusted profit before tax3 of £4.6 million (H1 2015: loss of £0.8 million)
• Adjusted EPS4 of 2.8 pence (H1 2015: loss of 3.3 pence)
• Statutory profit before tax of £3.4 million (H1 2015: loss of £3.3 million)
• Strong cash generation reduces net debt to £2.5 million (December 2015: £7.1 million)
• Maiden interim dividend of 0.25 pence declared
Operational Progress
• Six new gyms opened in H1 2016 increasing the total estate to 80
• 19.4% increase in membership numbers versus prior year to 424,000 (H1 2015: 355,000)
• Maturing sites driving profitability – Site EBITDA up 30.8% ahead of revenue growth demonstrating the
Company’s operational gearing
• Strong pipeline for H2 2016 and 2017 – expect to meet target of 15-20 new gyms per year
• Recently exchanged contracts on four sites from another operator
• 11.2 million visits in the period, up 2.1 million compared to H1 2015
• Gold Investors in People awarded
John Treharne, CEO of The Gym Group, commented:
Excellent progress has been achieved so far in 2016 as demonstrated by the growth in membership. Our rollout is on track with six sites opened in H1. We remain on target for 15-20 for the year and have a strong pipeline for 2017. Our existing sites are performing well which has contributed to the Group’s strong growth in profitability. We are confident that our low cost, disruptive positioning in the market place, our well developed roll out plans and our strong financial position bode well for further rapid and measured profitable development and progress, whatever the economic environment.
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, long term employee incentive costs, exceptional items and other income.
2 Group Operating Cash Flow is calculated as Group Adjusted EBITDA less working capital less maintenance capital expenditures.
3 Adjusted profit before tax is calculated as Group Adjusted EBITDA less depreciation, net finance costs and long term employee incentives.
4 Adjusted EPS is calculated as the Group's profit for the period before amortisation, exceptional items, other income and the related tax effect, divided by the basic weighted average number of shares.