Leading low cost gym operator, The Gym Group, announces its interim results for the six month period ended 30 June 2024.

Key financial metrics¹ 

Financial highlights

• Revenue for the period increased by 12%, with average members up 3% and average revenue per member per month (‘ARPMM’) up 9%; like-for-like revenue grew 9%
• Group Adjusted EBITDA Less Normalised Rent at £22.1m was 28% ahead of the prior year period driven by strong revenue growth, outpacing cost inflation
• Strong free cash flow generated in H1, up 73% to £24.5m, funding four new sites opened in the period, enhancements to existing sites and continued technology investment; Non-Property Net Debt was down by £11.8m in the period (Dec 2023: £66.4m), resulting in reduced leverage of 1.26x
• New £90m three-year combined bank facility signed in June 2024, made up of a £45m Term Loan and £45m Revolving Credit Facility, with improved terms

Business and operational highlights

• Next Chapter growth plan, announced in March 2024, starting to deliver progress in driving up returns in mature gym estate, through higher yield, reduced promotion and better targeted customer acquisition
• The Gym Group app refreshed with additional features, as part of a detailed programme to improve member retention
• High levels of member engagement and satisfaction levels sustained throughout the period
• Seven new sites opened year to date (four in H1); enhancements made in around 150 sites; on track to open 10-12 new sites in 2024 as guided
• Strong pipeline of high quality sites to accelerate new openings in 2025, in line with our plan to open circa 50 sites over three years, funded from free cashflow

Current trading and outlook

• Trading momentum continued in July and August; we now expect to deliver 5-6% like-for-like revenue growth in 2024
• After a strong first half performance, and continued encouraging trading throughout the summer, we now expect to deliver full year results at the top end of recently revised market expectations.

Will Orr, CEO of The Gym Group, commented:

Further positive trading momentum during the first half reflects the continued early benefit of executing on our Next Chapter strategy, set out in March. We have increased membership, revenue and profit and our market-leading proposition is more resonant than ever, in a growing market. We are also well on track to deliver our target of opening circa 50 new high quality gyms over the next three years, funded from free cash flow. We have detailed plans in place for the key autumn trading period and are well set to deliver full year results at the top end of recently revised market expectations .

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_3bshTPicTRyLtUvfT6z2mA.

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 Leverage calculated as Non-Property Net Debt divided by Group Adjusted EBITDA Less Normalised Rent.
⁴ Current Company-compiled analyst forecast range for EBITDA Less Normalised Rent is £42.4m-£44m.

Download the full announcement

For further information, please contact:

The Gym Group
Will Orr, CEO
Luke Tait, CFO
Katharine Wynne, Investor Relations
via Instinctif

Instinctif Partners (Financial PR)
Justine Warren
Matthew Smallwood
Joe Quinlan
+44 (0)20 7457 2020