Gym goers switching from low-cost rivals help Total Fitness ‘significantly exceed’ pre-Covid levels
Gym goers switching from low-cost rivals has helped membership at Total Fitness “significantly exceed” record levels seen prior to the Covid-19 pandemic, according to new figures.
The Cheshire-based group, which is backed by NorthEdge Capital, has seen its turnover increase from £36m to £39.9m in the year to June 30, 2023, while its pre-tax profits went from £961,000 to £1.2m.
The newly-filed accounts with Companies House come after Total Fitness returned to the black for the first time since 2015 during its previous financial year.
During its most recent financial year, the average number of people employed by Total Fitness fell from 632 to 580.
Total Fitness operates 155 locations across the North West, North East, Yorkshire, East Midlands and Wales.
A statement signed off by the board said: “During the year, the business continued to grow its membership base despite a number of macroeconomic shocks, with membership significantly exceeding record levels seen prior to the pandemic, on a like-for-like basis.
“The board range of wet and dry-side facilities continue to attract new members looking to expand their fitness experience.
“The underlying macro trends which were driving sector growth pre-covid remain forecast to grow post-covid with industry outlooks projecting further growth to a market penetration of 20 per cent by 2030 from 14 per cent pre-covid – an addition of five million more members.
“Clearly there are headwinds given the economic landscape that apply to consumer sectors and others but the gym sector has demonstrated exceptional resilience and for Total Fitness specifically the post-covid landscape favours the suburban, destination model and with the scale/space to afford members the distancing and workout space they now demand.
“The joiner trend supports this thesis with 44 per cent of joiners surveyed post-reopening being ‘switchers’ from competitors with the majority of them choosing to ‘trade up’ from low cost/ budget gym chains.
“This suggests a more proposition-conscious purchase decision making process with breath of variety, space and availability noted as being key drivers.
“Furthermore, recent data (May 2023) suggests that in our local markets, 18 per cent of all non-members are likely to join a club in the next 12 months, 60 per cent of ex-members intend to return to Total Fitness with 25 per ent in the next 12 months – both demonstrate a stable pipeline of future growth.”
Total Fitness added that it completed its company voluntary arrangement “earlier than anticipated” during the year as a result of “the strong performance achieved”.
The business announced it was to enter a CVA process in March 2021 after being hit hard by the pandemic.
It also said that a £6.5m refinancing has “strengthened the business’ proposition to deploy capital investment in order to further grow the member base through a programme of facility enhancements”.