The Gym Group plc Pre-close trading update (9401B)
January 16 2018 - 1:00AM
UK Regulatory
TIDMGYM
RNS Number : 9401B
The Gym Group plc
16 January 2018
16 January 2018
The Gym Group plc
Accelerated, profitable growth
The Gym Group plc ("the Company" or "TGG"), the fast growing,
nationwide operator of 129 low cost gyms, announces a pre-close
trading update for the year ended 31 December 2017.
Financial
-- Total year end membership numbers ahead
by 35.5% to 607,000 (Dec 2016: 448,000)
as the new openings and the existing estate
traded strongly; Average Members of 528,000
(Dec 2016: 428,000) up 23.4% (1). The business
continues to achieve high membership numbers
at launch including one new site opening
in the year with our highest ever day one
membership.
-- Total revenue growth of 24.3% for the year
versus 2016.
-- Year end net debt of GBP37.5m (2016: GBP5.2m)
following the Lifestyle acquisition and
new site openings.
Operational
-- Site numbers expanded by 44% to 128 at
year end (2016: 89) with 21 organic openings
and 18 sites acquired from Lifestyle Fitness.
-- Estimated share of the low cost gym market
increased to 22.4% (2016: 17.7%) with TGG
having achieved 65% of the estimated low
cost market net site growth since March
2017 (2).
-- Important milestones achieved in the year
including our 100 millionth member visit
to The Gym since launch and 100th Gym opened
at Feltham by Jonnie Peacock.
-- LIVE IT., the Company's premium pricing
product, launched successfully in 44 sites
in November 2017. Initial uptake is encouraging
with decision taken to rollout the product
on a region by region basis across the
entire estate by May 2018.
-- 17 sites refurbished and rebranded during
the year in line with our refurbishment
plan.
-- Strong site openings profile in Q1 2018
with 4 sites scheduled to open (Q1 2017:
1). We continue to target 15 to 20 openings
in 2018.
-- Trial underway at one of the 2018 openings
of the new member service proposition announced
in November 2017.
Lifestyle Fitness Acquisition (18 sites)
-- 6 conversions to The Gym brand achieved
by year end, ahead of guidance, with further
4 conversions due to be completed by April
2018. The initial conversions are trading
well.
In light of the progress made, the Company anticipates its
results will be in line with market expectations for earnings in
2017.
Following another strong performance, the Company has created an
excellent platform for the coming year. The business is in great
shape to achieve the substantial growth in profitability included
in its 2018 plans, as it benefits from the significant expansion of
the past 2 years.
The Company expects to announce its Preliminary Results in
mid-March.
(1) Average Members excludes sites not open at the period end.
(2) Management estimate based on low cost site openings and
closures from March 2017 to December 2017
John Treharne, CEO of The Gym Group, commented:
"This has been another year of accelerated, profitable growth
with a record number of newly developed gyms (21) and the
acquisition of the Lifestyle Fitness gyms. We are the fastest
growing low-cost gym operator, have significantly increased market
share and after 10 years of operation are still breaking records,
underlining the resilience of our proposition and the constant
evolution of our offer. We have had 100 million gym visits since
launch in 2008, and our membership of over 600,000, would fit into
Wembley, Twickenham, the Bernabeu, the MCG, Old Trafford, Croke
Park and the Nou Camp combined.
Looking ahead, we have a very strong foundation and a proven
rollout model from which to build the business and increase its
profitability further: we expect to open a further 15 - 20 new gyms
in 2018 with more in the first half than in recent years. I have
every confidence that our very experienced and innovative team is
primed to deliver the next stage of our development."
Investor and analyst conference call
A conference call for analysts and investors will be held at
8.00am (GMT) today. To join the call, please dial:
UK dial-in number: 0844 571 8892
International dial-in
number: +44 (0) 207 192 8000
Conference ID: 2775198
A recording of the call will be available on the Company's
website later today.
For further information, please contact
The Gym Group via Instinctif
John Treharne, CEO
Richard Darwin, CFO
Numis
Oliver Cardigan
Toby Adcock 020 7260 1000
Instinctif
Matthew Smallwood
Justine Warren 0207 457 2020
This information is provided by RNS
The company news service from the London Stock Exchange
END
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