Gym Group sprints to a million members as Brits try to shape up
Membership continued to rise at The Gym Group as more and more Brits joined the low-cost gym operator last year in an attempt to cut the pounds.
In a pre-close trading update, published this morning The Gym Group reported membership had increased to 850,000 at the end of the year, compared to 821,000 at the beginning.
Average monthly member revenue was also up nine per cent, helping the group’s top line climb 18 per cent to £204m.
The firm said “revenue growth has offset utility-driven cost inflation” while it expects its level of indebtedness to remain within the target range of one-and-a-half to two times equity.
Debt fell by just under £10m last year, reflecting “strong working capital performance” and the timing of spending on new site openings, the company said. Net debt was £66.4m at the end of the year.
Looking into the new year, The Gym Group will open between ten and twelve new sites while continuing to invest in existing ones. Last year year six new sites were opened while two were closed.
“We are looking for a good proportion of these to be urban residential sites, including Greater London,” Will Orr, chief executive of The Gym Group, told PA.
It will also roll out its cheapest form of membership – an off-peak package – trialled last year, across all its sites as it seeks to hit 1m members.
“We have delivered good growth in both membership and revenue which will underpin FY23 results in line with guidance, and we are well-prepared for our key recruitment period in the coming quarter, with a flexible, high-value low-cost offer that makes gym membership even more accessible for everyone,” Orr said.
The firm will publish its full-year results for 2023 on 13 March.