REG - Gym Group PLC (The) - Pre-close trading update

GYMAnnouncement

14/01/2025 07:00

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RNS Number : 1410T  Gym Group PLC (The)  14 January 2025

14 January 2025

The Gym Group plc

("The Gym Group" or "the Group")

Pre-close trading update

Leading low cost gym operator, The Gym Group plc, is pleased to announce that
positive trading momentum has continued through the second half of the year,
driving strong like-for-like revenue growth.

Revenue for the year ended 31 December 2024 increased by 11% to £226.3m
(2023: £204.0m), with like-for-like revenue growing 7% year on year(1).
 Average members grew 4% to 906,000 (2023: 872,000), and average revenue per
member per month ('ARPMM') was up 7% to £20.81 (2023: £19.50).  We closed
the year with 891,000 members compared with 850,000 at 31 December 2023, an
increase of 5%. We opened 12 new sites in the year, at the top end of the
projected range of 10-12, taking the total to 245.

Net debt as at 31 December 2024 was £61.3m, compared with £66.4m at 31
December 2023.

Guidance and Outlook

As a result of the strong delivery of like-for-like growth and new site
performance, Group Adjusted EBITDA Less Normalised Rent for FY24 is expected
to be slightly above the top end of the current market forecast range of
£43.5-45.5m(2).

We expect to accelerate new site openings to 14-16 sites in 2025 and remain on
track to deliver the target of around 50 sites over three years funded from
free cashflow, in line with our Next Chapter growth plan. We also continue to
reinvest in our existing estate and our major technology platforms. The
changes to Employers' National Insurance in the Autumn Budget will result in
additional costs in FY25 of c.£1.3m. Taking this as well as the momentum in
the business into account, we now expect that FY25 Group Adjusted EBITDA Less
Normalised Rent will be at the top end of the current market forecast range of
£47.2-49.7m.

The Group will publish audited FY24 results on 12 March 2025.

Will Orr, CEO of The Gym Group, commented:

"We have delivered strong progress and momentum in our Next Chapter growth
plan, that will result in FY24 profits ahead of the top end of previous
guidance. There is plenty more still to come as we execute our plan and we
look to 2025 with confidence.  We are well prepared for our key member
recruitment period in the current quarter and beyond, with our strengthening
new site pipeline and our flexible, high value, low cost offer making gym
membership more accessible for all."

( )

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(1) Like-for-like Revenue vs 2023 includes all sites open as at 31 December
2021

(2) Consensus forecasts are published on The Gym Group corporate website and
may be found at https://www.tggplc.com (https://www.tggplc.com)

 

For further information, please contact:

 The Gym Group plc                   via Instinctif

 Will Orr, CEO

 Luke Tait, CFO

 Katharine Wynne, IR

 Instinctif Partners (Financial PR)  +44 (0)20 7457 2020

 Justine Warren

 Matthew Smallwood

 

 

 

Notes for editors:

The Gym Group was a pioneer of the low cost gym model and now operates 245
high quality sites across the UK. These gyms offer 24/7 opening and flexible,
no contract membership. As at 31 December 2024 there were 891,000 members
nationwide. Our gyms have over 65 million visits per annum, score highly on
member satisfaction and are consistently rated "excellent" on Trustpilot. The
Gym Group is the UK's first carbon neutral chain of gyms.

Sites opened in 2024 are: Orpington, London Euston Road, Manchester Oxford
Road, Welwyn Garden City, London Plaistow, Dudley, London East Ham, London
Bromley by Bow, Surbiton, Gillingham, London Shepherds Bush and London
Elephant and Castle.

LEI Number: 213800VCU9TBANZIN455

 

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