Like for like revenue in the pre-Covid mature estate of 138 sites was broadly back in line with pre-Covid levels in October (at 93%) compared to the same period in 2019. Performance in the 16 workforce-dependent sites however, was significantly below these levels. Total like for like revenue in the pre-Covid mature estate as a whole was at 90% compared to the same period in 2019.

Value will always be a core aspect of The Gym Group’s market leading customer proposition, and we are the lowest cost, nationwide 24/7 gym operator.  Good progress has been made regarding our yield management strategy.  We continued to increase yields in the four months to October with Average Revenue per Member per Month (‘ARPMM’) of £18.49, up from the comparable period last year by 5.5%.  We have also continued to enhance our premium price membership product – ‘Live It’ – and are pleased to see a positive response from our members.  Take-up of the ‘Live It’ product increased to 29.8% of our membership (June 2022: 28.7%).

During the period, we completed the rebranding of The Gym Group. The new branding has been rolled out across the estate and the Company’s digital assets.  This rebranding was accompanied by a new creative campaign (‘Gym Face’) which has been deployed across all media channels during the Autumn campaign. We are pleased and encouraged by the feedback and positive response to this important initiative.

The Company remains on track to deliver its rollout plan, targeting 28 new openings in 2022 and 25-30 in 2023. To date, 23 new sites have been opened in 2022 (including three Fitness First sites acquired); and five additional new sites are on track to open before the end of the year. We continue to see opportunities to take market share as disruption continues in the health and fitness market and competitors exit.

The Company continues to maintain a tight control of costs and has driven strong margins and cashflow in the four months ended 31^st October 2022. Looking forward, energy volumes are 100% hedged up to the end of Q1 2023; overall 63% are hedged for 2023 and our current expectation is that utility costs will rise by £8-10m in 2023 compared to 2022. Despite these headwinds, the Board remains excited about the market opportunities ahead and The Gym Group’s ability to capitalise upon them.

Richard Darwin, CEO of The Gym Group, commented:

Against an uncertain backdrop, we are pleased to see memberships continuing to build over the last four months demonstrating that people are prioritising their physical and mental health – and that gyms are an important part of the local community. Working patterns have continued to evolve post the pandemic and while performance of our 16 workforce-dependent sites is disappointing, the rest of the estate continues to recover well and demonstrate the resilience of our business model. Having delivered on the most ambitious rollout programme in our history to date, we are encouraged by the momentum in the pipeline for new gyms next year and believe that there is considerable scope for further growth. We are cognisant of the macro environment and continue to monitor developments very carefully.  However, the Board remains very confident in the long-term opportunities for The Gym Group; our value proposition has always been a competitive advantage and we believe that in the current consumer environment, our high quality, affordable offer will be even more compelling and attractive.

¹ Sites as at 7th November 2022 - 202 at the start of the year with 20 organic openings, three Fitness First sites acquired and one closure
² Net of one closure in the year
³ Includes the three Fitness First sites acquired

A conference call for analysts and investors will be hosted by Richard Darwin, Chief Executive, and Luke Tait, Chief Financial Officer, at 09:00am today to discuss this statement. Please contact mmailto:thegymgroup@tulchangroup.com if you would like to attend.