TIDMGYM
RNS Number : 0793M
Gym Group PLC (The)
12 September 2023
12 September 2023
The Gym Group plc
('The Gym Group', 'the Group' or 'the Company')
2023 Interim Results
Leading low cost gym operator, The Gym Group, announces its
interim results for the six month period ended 30 June 2023.
Key financial metrics [1]
Six months ended 30 June 2023 Six months ended Movement
30 June 2022
Restated*
--------------------------------------------------- ------------------------------ ----------------- ---------
Revenue (GBPm) 99.8 84.2 18.5%
Group Adjusted EBITDA (GBPm) 35.1 33.5 4.8%
Group Adjusted EBITDA Less Normalised Rent (GBPm) 17.2 17.0 1.2%
Adjusted Loss before tax (GBPm) (5.2) (4.7) (10.6)%
Statutory Loss before tax (GBPm) (6.1) (7.2) 15.3%
Statutory Loss after tax (GBPm) (6.1) (3.4) (79.4)%
Basic and Diluted Adjusted Loss per share (p) (2.9) (0.8) (262.5)%
Basic and Diluted Statutory Loss per share (p) (3.4) (2.0) (70.0)%
Free cash flow (GBPm) 14.2 7.5 89.3%
Non-Property Net Debt (GBPm) (as at period end) (69.7) (57.6) (21.0)%
--------------------------------------------------- ------------------------------ ----------------- ---------
* Refer to note 3 of the Unaudited Condensed Consolidated
Financial Information for details of the restatement of Finance
costs (no impact at Group Adjusted EBITDA level).
Financial highlights
-- Revenue grew 18.5% year on year, reflecting growth in average
membership of 9.3% and yield ('ARPMM') of 8.4%; like-for-like
revenue grew 6.9% year on year [2]
-- Membership at 30 June 2023 was 867,000, up 9.7% year on year
(Jun 2022: 790,000) and up 5.6% since the end of 2022 (Dec 2022:
821,000)
-- Yield continued to strengthen due to both the average price of
a standard DO IT [3] membership increasing by 5.4% to GBP22.02
at 30 June 2023 and LIVE IT [4] penetration growing to 30.7%
of total membership (Jun 2022: 28.7%)
-- EBITDA Less Normalised Rent broadly flat, in line with guidance,
with revenue growth offsetting inflationary cost increases
-- Free cash flow generation of GBP14.2m resulted in GBP6.4m reduction
in Non-Property Net Debt to GBP69.7m at 30 June 2023 (Dec 2022:
GBP76.1m); leverage improved to 1.82x
Business and operational highlights
-- Board and management team strengthened: Will Orr appointed as
Group CEO and joined the business on 1 September; Simon Jones,
of Whitbread, appointed as Non-Executive Director on 6 February
2023
-- Two new gyms opened in the first half at Edinburgh and Accrington
and anticipate opening up to a further five sites in the second
half; sites opened in 2021 and 2022 maturing in line with expectations
-- High levels of member engagement with increasing visit frequency
(up 9.0% year on year in H1) and continuing strong customer satisfaction
scores; increased maintenance capital expenditure to support
member experience
-- Trial of three-tier price product architecture in 64 sites showing
early encouraging results
-- Bank facilities secured until October 2025 with supportive syndicate;
Covid-related covenants removed
Outlook and current trading
-- Trading in July and August continued in line with expectations;
on track to deliver our plans for the year as a whole
-- We are maintaining our guidance for FY 2023, provided in March,
that revenue growth will broadly be offset by cost inflation;
l everage [5] expected to remain within the range of 1.5 to 2.0x
John Treharne, Chair of The Gym Group, commented:
"The Gym Group has delivered a solid first half, driving growth
in both membership and yield, and remains on track for the full
year. I am delighted to welcome Will Orr on board. The actions we
have taken to strengthen management, our financial position and the
Group's customer proposition will enable us to continue to take
advantage of the many growth opportunities in our market under his
leadership."
Will Orr, CEO of The Gym Group, commented:
"Our 'high value, low cost' proposition meets a clear customer
need in a growing market. I am excited to join a passionate, expert
team who are committed to lowering barriers to fitness across the
UK. As well as getting to understand all aspects of the business
I'm already starting work with the team to deliver the next phase
of The Gym Group's development and capturing our share of the
undoubted market potential."
A live audio webcast of the analyst presentation will be
available at 9:00 a.m. today via the following link:
https://storm-virtual-uk.zoom.us/webinar/register/WN_kJUuhA0xS0aqKbrRXVnkSQ
For further information, please contact:
The Gym Group via Instinctif Partners
John Treharne, Chair of the Board
Will Orr, CEO
Luke Tait, CFO
Katharine Wynne, Investor Relations
Instinctif Partners (Financial
PR)
Justine Warren
Matthew Smallwood
Joe Quinlan +44 (0)20 7457 2020
Forward-looking statements
This announcement includes statements that are, or may be deemed
to be, 'forward-looking statements'. By their nature, such
statements involve risk and uncertainty since they relate to future
events and circumstances. Actual results may, and often do, differ
materially from any forward-looking statements. Any forward-looking
statements in this announcement reflect management's view with
respect to future events as at the date of this announcement. Save
as required by law or by the Listing Rules of the UK Listing
Authority, the Company undertakes no obligation to publicly revise
any forward-looking statements in this announcement following any
change in its expectations or to reflect subsequent events or
circumstances following the date of this announcement.
Notes for editors
The Gym Group was a pioneer of the low cost gym model, and now
operates 230 high quality sites across the UK. These gyms offer
24/7 opening and flexible, no contract membership. As at 30 June
2023, there were 867,000 members nationwide. Our gyms have over 53
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.
Business and Operational Review
The Gym Group has delivered a solid first half against an
economic backdrop that has seen no let-up in inflation and
pressures on discretionary consumer spending. With this background,
The Gym Group has focused on delivering great value for our members
and managing controllable costs tightly to underpin our attractive
low cost proposition. We have seen continuing good demand and
strengthened pricing, driving an 18.5% increase in first half
revenue, offsetting the step-up in inflationary costs, in
particular utilities costs, to deliver EBITDA similar to last year.
This is consistent with our FY 2023 guidance, which remains
unchanged. Details of the financial results will follow in the
Financial Review. The following section focuses on the operational
progress in the half.
Continuing progress in strategic priorities
The Gym Group's founding mission is to make health and fitness
accessible and affordable for everyone. Our highly efficient, low
cost model ensures that we can offer a high quality member
experience at low prices with no contract obligation. We now
operate 230 well-equipped gyms across the UK, helping more than
800,000 members keep mentally and physically active. In an
environment where consumers face significant pressures on their
costs of living, demand for health and fitness remains robust and
we have focused on maintaining great value, supported by our recent
technology investment. As a result, we have continued to grow our
membership whilst further improving revenues per member.
New site openings moderated after record openings in 2022
After opening a record number of sites in 2022, we are on track
with our plan for new sites in 2023, with the intention to be fully
self-financing. In the first half, two new sites opened at
Accrington and Edinburgh Corstorphine, both of which are in retail
park locations. We anticipate opening up to a further five sites in
the second half. One site was closed in Manchester due to a lease
expiry. The sites opened in 2021 and 2022 are maturing in line with
our expectations.
Strong membership and yield growth
Like-for-like revenue [6] grew 6.9% year on year. Total
membership stood at 867,000 as at 30 June 2023, 9.7% higher than at
30 June 2022, and 5.6% higher than at 31 December 2022. Average
member numbers in H1 2023 of 885,000 are similarly 9.3% higher than
the average of H1 2022. Revenue in comparable sites is on an
improving trend and is now at 97% of 2019 [7] levels.
Average revenue per member per month ('ARPMM') increased by 8.4%
in the first half to GBP18.81, due to a combination of optimising
headline subscription rates and higher penetration of our premium
LIVE IT subscription, supported by a new pay up-front option. The
average standard DO IT membership monthly cost has increased by
5.4% to GBP22.02 as at 30 June 2023 (June 2022: GBP20.89; Dec 2022:
GBP21.49). LIVE IT take-up has exceeded 30% for the first time in
this period, reflecting improvements in the product offer such as
the integration of the Fiit app - offering free digital workouts -
enabled by our technology platform investment in 2022.
Improving operational metrics
We have made further good progress in ensuring we serve the
needs of today's members effectively. Visits per member are up 9.0%
year on year and up 21.4% on 2019 levels. This means that the
average member visited four times per month in the first half of
the year, in line with our social value target.
57% of our members rated The Gym Group 5 out of 5 in overall
satisfaction measures [8] , with 93% rating us at least 4 out of 5;
and more than two thirds rated us 5 out of 5 for friendliness. Our
Trustpilot and Google ratings are both industry-leading at 4.5.
Downloads of The Gym Group app rose 15.4% in H1 compared with
the prior year. We averaged 700,000 users in the first half, up 34%
year on year, and penetration levels have increased to 80% of our
member base. Again, satisfaction levels are high with Apple and
Android ratings at 4.7 and 4.6 out of 5 respectively.
Investing in the core gym product
During the period, we spent GBP7.0m on maintenance capex (H1
2022: GBP2.8m) as part of our investment in format enhancements and
major kit replacements at key mature sites to maintain high
standards and reinforce the attraction to our members. We are also
rolling out new equipment to sites across the country, including
extending the dumbbell range in 88 gyms, and adding lifting rigs,
SkiErgs and air bikes in a number of further sites, to ensure we
are continuing to offer relevant and high quality equipment and
help increase capacity in existing footprints.
Trialling three-tier membership structure
In May we began trialling a three-tier price architecture in 64
of our sites aimed at attracting incremental membership volumes and
providing a platform for enhanced yield management. The three-tier
price architecture includes a lower entry price for off-peak
membership which appeals to additional, more price-sensitive
members and emphasises our value credentials; as well as an
enhanced upper end premium product, building on our successful LIVE
IT product.
The initial results from the trial are encouraging and we are
continuing to evaluate and optimise and prepare a potential rollout
plan.
Extending Corporate membership
A growing channel for new members is our offer to Corporates
which gives us substantial additional reach potential. We have
grown our Corporate memberships from small beginnings very rapidly
over the past year, more than doubling Corporate sales. As a
result, this segment now accounts for more than 2% of our overall
membership.
Sustainability at the core of our purpose
Our commitment to being a sustainable business, with the core
purpose of breaking down barriers to fitness for all, extends
across all our activities. We are proud to be AAA rated by
MSCI.
In the first half of 2023, we have continued to grow our social
value as members made over 32 million visits to our gyms, up 20% on
the prior half year.
A core driver of ensuring we can continue to deliver value to
our members at the same time as reducing our carbon footprint is
managing our site costs through energy saving initiatives,
including lighting and water usage. These initiatives are
continuing to underpin our status as the UK's first carbon neutral
chain of gyms.
We have continued to invest in our people, with enhanced early
career development and engagement initiatives. We have accelerated
our personal trainer programme in order to ensure we are offering
an attractive career path, to develop future leaders and to support
staff retention.
Strengthening Board and management
On 3 May 2023, The Gym Group announced the appointment of Will
Orr, formerly of Times Media Group, as CEO. Will commenced his role
on 1 September 2023, joining the Board as an Executive Director on
that date, and will also join the Sustainability Committee from 12
September 2023. As announced on 12 January 2023, following Will's
appointment, John Treharne has resumed his former Non-Executive
role and duties as Chair of the Board.
In addition, Simon Jones, Managing Director for Premier Inn and
Restaurants, UK and Global Commercial Director at Whitbread, joined
the Board as a Non-Executive Director on 6 February 2023. David
Kelly stepped down as a Non-Executive Director at the AGM on 11 May
2023 after seven years of service.
Finally, The Gym Group has appointed Krishan Pandit as Company
Secretary with effect from 13 November 2023, replacing Katy Tucker
who will step down as Company Secretary on 19 September 2023. Luke
Tait will act as Company Secretary in addition to his Executive
responsibilities on an interim basis until Krishan joins in
November 2023.
Summary Guidance and Outlook
-- Our guidance for FY 2023 is unchanged, that revenue growth is
anticipated to be broadly offset by cost inflation.
-- We expect to open up to five sites in the balance of the year,
financed from free cash flow. Our current plans are to open 10-12
new gyms in 2024.
-- Bank facilities secured to October 2025 with supportive syndicate
and Covid-related covenants removed; Leverage (calculated as
Non-Property Net Debt : Group Adjusted EBITDA Less Normalised
Rent) is expected to remain within the target range of 1.5 to
2.0x (covenant set at 3.0x).
Financial Review
Presentation of results
This Financial Review uses a combination of statutory and
non-statutory measures to discuss performance in the period. The
definitions of the non-statutory key performance indicators can be
found in the 'Definition of non-statutory measures' section. To
assist stakeholders in understanding the financial performance of
the Group, aid comparability between periods and provide a clearer
link between the Financial Review and the condensed consolidated
financial statements ('Interim Financial Statements'), we have
adopted a three-column format to presenting the Consolidated
Statement of Comprehensive Income in which we separately disclose
underlying trading and non-underlying items. Non-underlying items
are income or expenses that are material by their size and/or
nature and that are not considered to be incurred in the normal
course of business. These are classified as non-underlying items on
the face of the Consolidated Statement of Comprehensive Income
within their relevant category. Non-underlying items include
restructuring and reorganisation costs (including site closure
costs), costs of major strategic projects and investments,
impairment of assets, amortisation and impairment of business
combination intangibles, remeasurement gains or losses on
borrowings, and refinancing costs. Further details on
non-underlying items are provided later in this report.
Six months ended 30 June 2023 Six months ended 30 June 2022 Movement
Restated*
-------------------------------------- ------------------------------ ------------------------------ ---------
Total number of gyms at end of period 230 212 8.5%
Total number of members at end of
period ('000) 867 790 9.7%
Revenue (GBPm) 99.8 84.2 18.5%
Group Adjusted EBITDA (GBPm) 35.1 33.5 4.8%
Group Adjusted EBITDA Less Normalised
Rent (GBPm) 17.2 17.0 1.2%
Adjusted Loss before tax (GBPm) (5.2) (4.7) (10.6)%
Statutory Loss before tax (GBPm) (6.1) (7.2) 15.3%
Statutory Loss after tax (GBPm) (6.1) (3.4) (79.4)%
Net cash inflow from operating
activities (GBPm) 42.0 29.6 41.9%
Free cash flow (GBPm) 14.2 7.5 89.3%
Non-Property Net Debt (GBPm) (as at
period end) (69.7) (57.6) (21.0)%
--------------------------------------- ------------------------------ ------------------------------ ---------
* Refer to note 3 of the Unaudited Condensed Consolidated
Financial Information for details of the restatement of Finance
costs (no impact at Group Adjusted EBITDA level).
Results for the period
Six months ended 30 Six months ended 30
June 2023 June 2022
Restated*
Underlying Non-underlying Total Underlying Non-underlying Total
result items result items
GBPm GBPm GBPm GBPm GBPm GBPm
Revenue 99.8 - 99.8 84.2 - 84.2
Cost of sales (1.4) - (1.4) (0.8) - (0.8)
----------------------------- ----------- --------------- ------- ----------- --------------- -------
Gross profit 98.4 - 98.4 83.4 - 83.4
Other income - - - 0.3 - 0.3
Operating expenses
(before depreciation,
amortisation & impairment) (64.7) (0.5) (65.2) (50.8) (1.2) (52.0)
Depreciation, amortisation
& impairment (28.5) (0.1) (28.6) (29.4) (0.1) (29.5)
----------------------------- ----------- --------------- ------- ----------- --------------- -------
Operating profit 5.2 (0.6) 4.6 3.5 (1.3) 2.2
Finance costs (10.4) (0.3) (10.7) (8.2) (1.2) (9.4)
Loss before tax (5.2) (0.9) (6.1) (4.7) (2.5) (7.2)
Tax credit - - - 3.2 0.6 3.8
----------------------------- ----------- --------------- ------- ----------- --------------- -------
Loss for the period
attributable to equity
shareholders (5.2) (0.9) (6.1) (1.5) (1.9) (3.4)
Loss per share
Basic and diluted
(p) (2.9) (3.4) (0.8) (2.0)
----------------------------- ----------- --------------- ------- ----------- --------------- -------
* Refer to note 3 of the Unaudited Condensed Consolidated
Financial Information for details of the restatement of Finance
costs (no impact at Group Adjusted EBITDA level).
Revenue
Trading in the first half of 2023 was positive despite the
ongoing cost-of-living pressures on consumers, demonstrating the
resilience of the low cost gym model. Revenue increased by 18.5% to
GBP99.8m (H1 2022: GBP84.2m), reflecting 9.3% higher average
membership numbers throughout the period and an 8.4% increase in
yields.
The average membership number in the six months to 30 June 2023
was 885,000 compared with 810,000 in the six months ended 30 June
2022; and we closed the period with 867,000 members which was up
5.6% on 31 December 2022.
The average headline price of a standard DO IT membership
increased to GBP22.02 in June 2023 compared with GBP20.89 in June
2022 and GBP21.49 in December 2022, largely as a result of higher
joining fees and price increases for new members, as well as some
repricing of the base membership . In addition, the proportion of
members taking our premium membership was 30.7% in June 2023
compared with 28.7% and 29.6% in June 2022 and December 2022
respectively. As a result, Average Revenue Per Member Per Month
('ARPMM') in the first half of 2023 was up 8.4% to GBP18.81
compared with GBP17.36 in the first half of 2022.
Cost of sales
Cost of sales increased to GBP1.4m in the first half of 2023 (H1
2022: GBP0.8m), reflecting revenue and membership growth.
Underlying operating expenses (before depreciation, amortisation
and impairment)
Underlying operating expenses (before depreciation, amortisation
and impairment) are made up as follows:
Six months Six months
ended 30 ended 30
June 2023 June 2022
GBPm GBPm
--------------------------------------------- ----------- -----------
Site costs before Normalised Rent 53.3 41.8
Site Normalised Rent 17.7 16.3
--------------------------------------------- ----------- -----------
Site costs including Normalised Rent 71.0 58.1
Central Support Office costs 10.0 8.4
Central Support Office Normalised Rent 0.2 0.2
--------------------------------------------- ----------- -----------
Central support office costs including
Normalised Rent 10.2 8.6
Share based payments 1.4 0.6
--------------------------------------------- ----------- -----------
82.6 67.3
Less: Normalised Rent (17.9) (16.5)
--------------------------------------------- ----------- -----------
Underlying operating expenses ( before
depreciation, amortisation and impairment) 64.7 50.8
--------------------------------------------- ----------- -----------
Site costs including Normalised Rent
Site costs including Normalised Rent in the first half of 2023
increased to GBP71.0m (H1 2022: GBP58.1m). The fixed costs
associated with running the sites (predominantly rates and service
charges) increased by GBP4.2m year on year as a result of the
increased estate size and the end of the Covid-related rates relief
which reduced costs in the first quarter of 2022.
Controllable site costs increased by GBP7.3m with higher
utilities costs accounting for GBP5.1m of this increase, largely as
a result of the increased unit costs of energy. Marketing costs
were also higher year on year, reflecting increased advertising
spend to drive membership numbers in the peak January/February
trading period. Higher staff costs reflected inflationary pay
increases and increased site bonus payments following a successful
first period of trading. Other increases in controllable costs
broadly reflect the larger estate size.
Site Normalised Rent, which is defined as the contractual rent
that would have been paid in normal circumstances without any
agreed deferments, recognised in the monthly period to which it
relates, amounted to GBP17.7m in the period (H1 2022: GBP16.3m).
The increase year on year reflects the larger estate size.
Central Support Office costs including Normalised Rent
Central Support Office costs in the six months to 30 June 2023
increased to GBP10.2m (H1 2022: GBP8.6m), reflecting inflationary
pressure on pay and rewards as well as the annualisation of the
investment in people and technology that was made in the first half
of 2022.
Share based payments
Share based payment costs in the period amounted to GBP1.4m (H1
2022: GBP0.6m), reflecting a more regular run rate following a year
in which the charge was lower than expected due to share price
volatility and a number of adjustments for leavers.
Underlying depreciation and amortisation
Underlying depreciation and amortisation charges in the period
amounted to GBP28.5m (H1 2022: GBP29.4m). The reduction year on
year reflects a return to more normal levels as the prior year
charge included accelerated depreciation and amortisation on a
number of assets that were replaced following the launch of the new
consumer website and brand.
Group Adjusted EBITDA Less Normalised Rent
The Group's key profit metric is Group Adjusted EBITDA Less
Normalised Rent, as the Directors believe that this measure best
reflects the underlying profitability of the business. Group
Adjusted EBITDA Less Normalised Rent is reconciled to statutory
operating profit as follows:
Six months Six months
ended ended
30 June 2023 30 June 2022
GBPm GBPm
------------------------------------------ -------------- --------------
Operating profit 4.6 2.2
Non-underlying operating items 0.6 1.3
Share based payments 1.4 0.6
Underlying depreciation and amortisation 28.5 29.4
Group Adjusted EBITDA 35.1 33.5
Normalised Rent (17.9) (16.5)
------------------------------------------ -------------- --------------
Group Adjusted EBITDA Less Normalised
Rent 17.2 17.0
------------------------------------------ -------------- --------------
Group Adjusted EBITDA Less Normalised Rent in the period was
broadly in line with the prior year at GBP17.2m (H1 2022:
GBP17.0m), as the increased revenue was offset by increased
operating costs.
Underlying finance costs
Underlying finance costs in the period amounted to GBP10.4m (H1
2022: GBP8.2m). The implied interest relating to the lease
liability was GBP7.8m (H1 2022: GBP6.9m). Finance costs associated
with our bank borrowing facilities were GBP2.6m (H1 2022: GBP1.3m)
comprising interest costs and fee amortisation. Funds borrowed
under the Revolving Credit Facility ('RCF') bear interest at a
minimum rate of 2.85%.
Non-underlying items
Non-underlying items are costs or income which the Directors
believe , due to their size or nature, are not the result of normal
operating performance. They are therefore separately disclosed on
the face of the income statement to allow a more comparable view of
underlying trading performance.
Six months Six months
ended 30 June ended 30 June
2023 2022
Restated*
GBPm GBPm
---------------------------------------------------- --------------- ---------------
Affecting operating expenses (before depreciation,
amortisation and impairment)
Costs of major strategic projects and investments 0.1 1.3
Restructuring and reorganisation costs (including
site closures) 0.4 (0.1)
0.5 1.2
Affecting depreciation, amortisation and
impairment
Amortisation of business combination intangible
assets 0.1 0.1
0.1 0.1
Affecting finance costs
Refinancing and remeasurement of borrowings 0.3 1.2
0.3 1.2
Total all non-underlying items before tax 0.9 2.5
Tax credit on non-underlying items - (0.6)
---------------------------------------------------- --------------- ---------------
Total all non-underlying items 0.9 1.9
---------------------------------------------------- --------------- ---------------
* Refer to note 3 of the Unaudited Condensed Consolidated
Financial Information for details of the restatement of Finance
costs.
Non-underlying items affecting operating expenses before
depreciation, amortisation and impairment amounted to GBP0.5m in
the period (H1 2022: GBP1.2m).
The costs of major strategic projects and investments in the
period of GBP0.1m relate predominantly to the Group's work in
relation to introducing a three-tier price product architecture. As
noted earlier in this report, the trial results have been
encouraging and we are now evaluating and optimising the results
and preparing a potential rollout plan.
Restructuring and reorganisation costs in the period of GBP0.4m
include the costs associated with the change of Group CEO and other
Board and Executive Committee changes, as well as restructuring
within the Central Support Office team, partly offset by accrual
true-ups and lease surrender income associated with the closure of
a small number of gyms in recent years.
Non-underlying costs affecting depreciation, amortisation and
impairment in the period amounted to GBP0.1m (H1 2022: GBP0.1m) and
relate to the amortisation of business combination intangibles
acquired as part of the Lifestyle, easyGym and Fitness First
acquisitions .
Non-underlying items affecting finance costs amounted to GBP0.3m
in the period (H1 2022 restated: GBP1.2m) and reflect the costs
associated with making certain changes to the Group's RCF earlier
in the year, as well as the periodic remeasurement of the Group's
RCF.
Taxation
The tax credit in the period was GBPnil (H1 2022 restated:
credit of GBP3.8m) and the effective tax rate on the statutory loss
before tax for the period ended 30 June 2023 was therefore 0% (H1
2022 restated: 52.8%).
The net deferred tax asset recognised at 30 June 2023 was
GBP16.3m (31 December 2022: GBP16.3m; 30 June 2022 restated:
GBP20.0m). This comprised deferred tax assets in respect of tax
losses and other temporary differences where the Directors believe
it is probable that these will be recovered within a reasonable
period. Short term timing differences are generally recognised
ahead of losses on the basis that they are likely to reverse more
quickly.
The financial forecast used in the Going Concern assessment was
also used to assess the deferred tax recoverability at 30 June
2023, and the Directors believe that this plan provides convincing
evidence to support the continued recognition of the deferred tax
assets that were recognised at 31 December 2022. However, given the
ongoing macro-economic and geopolitical uncertainty, the Directors
do not believe it is appropriate to recognise additional deferred
tax assets at 30 June 2023.
Earnings
As a result of the factors discussed above, the statutory loss
before tax for the period was GBP6.1m (H1 2022 restated: loss of
GBP7.2m) and the statutory loss after tax for the period was
GBP6.1m (H1 2022 restated: loss of GBP3.4m).
Adjusted loss before tax is calculated by taking the statutory
loss before tax and adding back the non-underlying items. Adjusted
loss before tax in the period was GBP5.2m (H1 2022: loss of
GBP4.7m). Adjusted loss after tax was also GBP5.2m (H1 2022: loss
of GBP1.5m).
The basic and diluted loss per share was 3.4p (H1 2022 restated:
loss of 2.0p), and the basic and diluted adjusted loss per share
was 2.9p (H1 2022: loss of 0.8p).
Dividend
It is a condition of the GBP10m additional RCF that the Company
shall not declare or pay a dividend. Although this facility
currently remains undrawn, the Directors would like to continue to
have access to it as necessary and, as a result, the Directors are
not proposing an interim dividend in respect of 2023 (H1 2022:
GBPnil).
Cash flow
Six months Six months
ended ended
30 June 2023 30 June 2022
GBPm GBPm
-------------------------------------------- -------------- --------------
Group Adjusted EBITDA Less Normalised
Rent 17.2 17.0
Movement in working capital 7.5 (4.8)
Maintenance capital expenditure funded
by leases (1.5) -
Maintenance capital expenditure funded
by other sources (5.5) (2.8)
-------------------------------------------- -------------- --------------
Group operating cash flow 17.7 9.4
Non-underlying items (0.6) (1.1)
Net interest paid (2.9) (1.3)
Taxation - 0.5
Free cash flow 14.2 7.5
Expansionary capital expenditure funded
by leases (1.5) (1.8)
Expansionary capital expenditure funded
by other sources (6.1) (13.2)
Refinancing fees (0.2) (0.6)
Net consideration paid on acquisition - (5.4)
Cash flow before movement in debt 6.4 (13.5)
Net increase in finance lease indebtedness 0.3 0.6
Net (repayment)/drawdown of borrowings (7.0) 12.5
Net cash flow (0.3) (0.4)
-------------------------------------------- -------------- --------------
The Group operating cash inflow in the period was GBP17.7m (H1
2022: inflow of GBP9.4m) largely reflecting the Group's trading
performance, with working capital inflows broadly offsetting the
maintenance capital expenditure. The higher than expected working
capital inflow of GBP7.5m (H1 2022: outflow of GBP4.8m) reflects
careful cash management throughout the period as well as some short
term timing differences around the period end which are expected to
reverse in the second half of the year. The prior year outflow
included GBP1.6m in relation to the unwind of deferred rents from
2020 and 2021.
Fixed asset additions in respect of maintenance capital
expenditure in the period amounted to GBP3.3m (H1 2022: GBP2.8m)
continuing the higher run rate in the second half of 2022 as we
returned to more normal levels of operation and investment.
However, the timing of settlement of some maintenance capital
creditors brought forward from the prior year has meant that the
cash flow from maintenance capital expenditure in the period was
GBP7.0m (H1 2022: GBP2.8m), including GBP1.5m funded by finance
leases (H1 2022: GBPnil).
Fixed asset additions in respect of expansionary capital
expenditure in the period amounted to GBP4.1m (H1 2022: GBP16.5m)
and relate to the fit-out of new gyms, enhancements to existing
gyms and spend on technology projects . The fit-out costs are
stated net of landlord contributions. Adjusting for the movement in
capital creditors, the cash flow from expansionary capital
expenditure was GBP7.6m (H1 2022: GBP15.0m), including GBP1.5m
funded by finance leases (H1 2022: GBP1.8m).
Balance sheet
At 30 June At 30 June At 31 December
2023 2022 2022
Restated*
GBPm GBPm GBPm
------------------------- ----------- ----------- ---------------
Non-current assets 567.2 568.9 580.4
Current assets 10.8 16.1 15.2
Current liabilities (63.2) (56.8) (64.7)
Non-current liabilities (385.6) (379.1) (396.9)
------------------------- ----------- ----------- ---------------
Net assets 129.2 149.1 134.0
------------------------- ----------- ----------- ---------------
* Refer to note 3 of the Unaudited Condensed Consolidated
Financial Information for details of the restatement of Finance
costs.
Non-current assets decreased in the period by GBP13.2m to
GBP567.2m as the investment in maintenance and expansionary assets
was more than offset by the depreciation and amortisation charged
in the period.
Current assets decreased by GBP4.4m to GBP10.8m in the period,
largely reflecting the unwind of year end prepayments in relation
to marketing and rates. Current liabilities were broadly in line
with the position at 31 December 2022 as the unwind of capital
creditors brought forward from the prior year end was largely
offset by an increase in short term lease liabilities (despite
overall lease liabilities falling by GBP2.0m as a result of the
reduction in new site leases signed).
Drawings under the RCF decreased by GBP7.0m in the period
reflecting careful cash management and prudent investment in new
site openings. At 30 June 2023, the Group had Non-Property Net Debt
of GBP69.7m (31 December 2022: GBP76.1m; 30 June 2022: GBP57.6m)
comprising drawn facilities of GBP63.0m and finance leases of
GBP11.8m, less cash of GBP5.1m.
Banking facilities
On 5 September 2023, the Group agreed a number of amendments to
its GBP80m RCF. These included an extension of the facilities to
October 2025 and the inclusion of Barclays within the syndicate
alongside HSBC and NatWest. In addition, Covid-related covenants
have been removed.
Going concern
The Board has reviewed the financial forecasts and downside
scenario of the Group and has a reasonable expectation that the
Group has adequate resources to continue in operational existence
for the period to 31 December 2024. As a result, the Directors
continue to adopt the going concern basis in preparing the Interim
Financial Statements. In making this assessment, consideration has
been given to the macroeconomic and geopolitical environment; the
Group's current and future expected trading performance, including
membership levels and behaviours; the Group's financing
arrangements and relationship with its lenders and shareholders;
and the mitigating actions that can be deployed in the event of
reasonable downside scenarios. Further detail is provided in note 2
of the Interim Financial Statements.
Principal risks and uncertainties
The Directors take very seriously their responsibility for
operating a robust risk management and internal controls process,
and for reviewing their effectiveness at least annually. The risk
management framework is designed to effectively identify, assess
and mitigate risks, whilst enabling the Group to deliver its
strategic and operational objectives.
During the period, there has been a continued focus on risk
management. Key risk indicators are monitored quarterly, and
functional risk registers have been updated during the period. We
also continue to monitor the ongoing macroeconomic and geopolitical
uncertainty and assess the impact this could have on the Group's
principal risks.
The principal risks and uncertainties that the Group expects to
be exposed to in the second half of the year are the same as those
described in the 'Principal risks and uncertainties' section of the
Group's Annual Report and Accounts 2022 (pages 54-62), a summary of
which is provided below.
-- Significant business interruption
-- Operational gearing
-- Member experience
-- Trading environment
-- Structural change in the industry
-- Our people
-- IT dependency
-- Cyber and data security
-- Reputation, brand and trust
-- Relationships with key suppliers
However, the ongoing geopolitical tensions, inflationary cost
pressures and interest rate increases, continue to make the
macroeconomic outlook uncertain. T he Directors believe that this
is leading to upward pressure on the 'Trading environment' risk, as
the longer this uncertainty continues, the higher the likelihood
that members may choose to cancel their memberships due to
financial hardship.
The 'People' risk is also trending upwards as the cost-of-living
crisis is making it more difficult to attract people who want to
start their own personal training business; and the cost of
retention is increasing as employees look for higher salaries to
combat high inflation and rising interest rates.
The 'Relationships with key suppliers' and 'Operational gearing'
risks are also increasing as a result of the continued inflationary
pressure on the Group's cost base and site fit-out costs. In
addition, the recent interest rate rises have resulted in a
substantial increase in the cost of servicing the Group's debt.
To mitigate the upward trend on these risks, we continue to use
a variety of tools to attract, retain and motivate staff at all
levels of the business and are currently trialling new gym staffing
models to assist in recruitment and retention. Tight debt and cash
management also remain in place and all new site selection and
capital spend is rigorously challenged to ensure that available
funds are invested in those projects expected to give the best
returns.
Climate change remains an emerging risk for the Group and work
is currently underway to update our climate scenario analysis and
financial modelling.
Responsibility statement
The Directors confirm that, to the best of their knowledge:
-- the condensed consolidated financial statements ('Interim Financial
Statements') have been prepared in accordance with IAS 34 Interim
Financial Reporting as adopted for use in the United Kingdom
and give a true and fair view of the assets, liabilities, financial
position and profit or loss of the Group for the period ended
30 June 2023 as required by the Disclosure Guidance and Transparency
Rules of the UK Financial Conduct Authority ('DTR') 4.2.4R.
-- the half year results announcement includes a fair review of
the significant events during the first six months of the financial
year and a description of principal risks and uncertainties for
the remaining six months of the financial year as required by
DTR 4.2.7R.
-- the notes to the condensed consolidated financial statements
include a fair review of related party transactions and changes
thereto as required by DTR 4.2.8R.
The Directors of the Company are listed on pages 72 and 73 of
the Group's Annual Report and Accounts 2022, subject to the changes
set out below:
-- On 24 March 2023, Richard Darwin resigned as Chief Executive
Officer and Executive Director.
-- At the Group's AGM on 11 May 2023, David Kelly did not seek reappointment
as Non-Executive Director.
-- On 1 September 2023, Will Orr joined the Group and assumed the
role of Chief Executive Officer and Executive Director.
A list of the current Directors is maintained on the Group's
website at www.tggplc.com
O n behalf of the Board
Luke Tait
Chief Financial Officer
12 September 2023
Definition of non-statutory measures
-- Group Adjusted EBITDA - operating profit before depreciation,
amortisation, share based payments and non-underlying items.
-- Normalised Rent - the contractual rent that would have been
paid in normal circumstances without any agreed deferments, recognised
in the monthly period to which it relates.
-- Adjusted Loss/Profit before Tax - loss/profit before tax before
non-underlying items.
-- Adjusted Earnings - loss/profit for the period before non-underlying
items and the related tax effect.
-- Basic Adjusted EPS - Adjusted Earnings divided by the basic
weighted average number of shares.
-- Group Operating Cash Flow - Group Adjusted EBITDA Less Normalised
Rent, movement in working capital and maintenance capital expenditure.
-- Free Cash Flow - Group Operating Cash Flow less cash non-underlying
items, bank and non-property lease interest and tax.
-- Non-Property Net Debt - bank and non-property lease debt less
cash and cash equivalents.
-- Maintenance capital expenditure - costs of replacement gym equipment
and premises refurbishment.
-- Expansionary capital expenditure - costs of fit-out of new gyms
(both organic and acquired), technology projects and other strategic
projects. It is stated net of capital contributions from landlords.
Consolidated Statement of Comprehensive Income
For the period ended 30 June 2023
6 months ended 30 June 6 months ended 30 June
2023 2022
Restated*
Unaudited Unaudited
------------------------------------- -------------------------------------
Underlying Non-underlying Total Underlying Non-underlying Total
(note (note
5) 5)
Note GBPm GBPm GBPm GBPm GBPm GBPm
Revenue 4 99.8 - 99.8 84.2 - 84.2
Cost of sales (1.4) - (1.4) (0.8) - (0.8)
----------------------------- ----- ----------- --------------- ------- ----------- --------------- -------
Gross profit 98.4 - 98.4 83.4 - 83.4
Other income - - - 0.3 - 0.3
Operating expenses
(before depreciation,
amortisation & impairment) (64.7) (0.5) (65.2) (50.8) (1.2) (52.0)
Depreciation, amortisation
& impairment (28.5) (0.1) (28.6) (29.4) (0.1) (29.5)
----------------------------- ----- ----------- --------------- ------- ----------- --------------- -------
Operating profit 5.2 (0.6) 4.6 3.5 (1.3) 2.2
Finance costs (10.4) (0.3) (10.7) (8.2) (1.2) (9.4)
Loss before tax (5.2) (0.9) (6.1) (4.7) (2.5) (7.2)
Tax credit 6 - - - 3.2 0.6 3.8
----------------------------- ----- ----------- --------------- ------- ----------- --------------- -------
Loss for the period
attributable to equity
shareholders (5.2) (0.9) (6.1) (1.5) (1.9) (3.4)
----------------------------- ----- ----------- --------------- ------- ----------- --------------- -------
Other comprehensive
income
Items that may be
reclassified to profit
or loss
----------------------------- ----- ----------- --------------- ------- ----------- --------------- -------
Changes in the fair
value of derivative
financial instruments - - - 0.1 - 0.1
----------------------------- ----- ----------- --------------- ------- ----------- --------------- -------
Total comprehensive
expense attributable
to equity shareholders (5.2) (0.9) (6.1) (1.4) (1.9) (3.3)
----------------------------- ----- ----------- --------------- ------- ----------- --------------- -------
Loss per share (p) 7
Basic and diluted (2.9) (3.4) (0.8) (2.0)
----------------------------- ----- ----------- --------------- ------- ----------- --------------- -------
* Refer to note 3 of the Unaudited Condensed Consolidated
Financial Information for details of the restatement of Finance
costs.
Reconciliation of Operating Profit to Group Adjusted EBITDA Less
Normalised Rent(1)
6 months ended 6 months ended
30 June 2023 30 June 2022
Unaudited Unaudited
Note GBPm GBPm
--------------------------------------------- ----- --------------- ---------------
Operating profit 4.6 2.2
Add back: Non-underlying operating items 5 0.6 1.3
Share based payments (included
in Operating expenses) 13 1.4 0.6
Underlying depreciation and
amortisation 28.5 29.4
Group Adjusted EBITDA 35.1 33.5
Less: Normalised Rent(2) (17.9) (16.5)
----------- -------------------------------- ----- --------------- ---------------
Group Adjusted EBITDA Less Normalised
Rent(1) 17.2 17.0
--------------------------------------------- ----- --------------- ---------------
1 Group Adjusted EBITDA Less Normalised Rent is a non-statutory
metric used internally by management and externally by investors.
It is calculated as operating profit before depreciation,
amortisation, share based payments and non-underlying items, and
after deducting Normalised Rent.
2 Normalised Rent is the contractual rent that would have been
paid in normal circumstances without any agreed deferments,
recognised in the monthly period to which it relates.
Consolidated Statement of Financial Position
As at 30 June 2023
At 30 June At 30 June At 31 December
2023 2022 2022
Restated
Unaudited Unaudited Audited
Note GBPm GBPm GBPm
------------------------------- ----- ----------- ----------- ---------------
Non-current assets
------------------------------- ----- ----------- ----------- ---------------
Intangible assets 91.5 91.8 92.7
Property, plant and equipment 8 171.8 166.8 181.0
Right-of-use assets 9 286.6 289.3 289.4
Investments in financial
assets 1.0 1.0 1.0
Deferred tax assets 6 16.3 20.0 16.3
------------------------------- ----- ----------- ----------- ---------------
Total non-current assets 567.2 568.9 580.4
Current assets
------------------------------- ----- ----------- ----------- ---------------
Inventories 0.8 0.7 0.9
Trade and other receivables 4.9 8.1 8.9
Income taxes receivable - 0.4 -
Cash and cash equivalents 5.1 6.9 5.4
------------------------------- ----- ----------- ----------- ---------------
Total current assets 10.8 16.1 15.2
Total assets 578.0 585.0 595.6
------------------------------- ----- ----------- ----------- ---------------
Current liabilities
------------------------------- ----- ----------- ----------- ---------------
Trade and other payables 35.3 31.1 38.8
Lease liabilities 9 27.6 25.1 25.3
Provisions 0.3 0.6 0.6
Total current liabilities 63.2 56.8 64.7
Non-current liabilities
------------------------------- ----- ----------- ----------- ---------------
Borrowings 10 63.3 57.3 70.0
Lease liabilities 9 320.8 320.0 325.1
Provisions 1.5 1.8 1.8
Total non-current liabilities 385.6 379.1 396.9
Total liabilities 448.8 435.9 461.6
------------------------------- ----- ----------- ----------- ---------------
Net assets 129.2 149.1 134.0
------------------------------- ----- ----------- ----------- ---------------
Capital and reserves
------------------------------- ----- ----------- ----------- ---------------
Own shares held 0.1 0.1 0.1
Share premium 189.8 189.7 189.8
Merger reserve 39.9 39.9 39.9
Retained deficit (100.6) (80.6) (95.8)
------------------------------- ----- ----------- ----------- ---------------
Total equity shareholders'
funds 129.2 149.1 134.0
------------------------------- ----- ----------- ----------- ---------------
* Refer to note 3 of the Unaudited Condensed Consolidated
Financial Information for details of the restatement of Finance
costs.
Consolidated Statement of Changes in Equity
For the period ended 30 June 2023
Own shares Share Hedging Merger Retained
held premium reserve reserve deficit Total
Note GBPm GBPm GBPm GBPm GBPm GBPm
----------------------- ----- ----------- --------- --------- --------- --------- ------
At 1 January 2023 0.1 189.8 - 39.9 (95.8) 134.0
Loss for the period - - - - (6.1) (6.1)
Other comprehensive
income - - - - - -
----------------------- ----- ----------- --------- --------- --------- --------- ------
Total comprehensive
expense - - - - (6.1) (6.1)
Share based payments 13 1.3 1.3
Deferred tax on
share based payments - - - - - -
----------------------- ----- ----------- --------- --------- --------- --------- ------
At 30 June 2023
(Unaudited) 0.1 189.8 - 39.9 (100.6) 129.2
----------------------- ----- ----------- --------- --------- --------- --------- ------
Consolidated Statement of Changes in Equity (Restated)*
For the period ended 30 June 2022
Own shares Share Hedging Merger Retained
held premium reserve reserve deficit Total
Note GBPm GBPm GBPm GBPm GBPm GBPm
----------------------- ----- ----------- --------- --------- --------- --------- ------
At 1 January 2022 0.1 189.7 (0.1) 39.9 (77.5) 152.1
Loss for the period - - - - (3.4) (3.4)
Other comprehensive
income - - 0.1 - - 0.1
----------------------- ----- ----------- --------- --------- --------- --------- ------
Total comprehensive
expense - - 0.1 - (3.4) (3.3)
Share based payments 13 - - - - 0.6 0.6
Deferred tax on
share based payments - - - - (0.3) (0.3)
----------------------- ----- ----------- --------- --------- --------- --------- ------
At 30 June 2022
(Unaudited) 0.1 189.7 - 39.9 (80.6) 149.1
----------------------- ----- ----------- --------- --------- --------- --------- ------
* Refer to note 3 of the Unaudited Condensed Consolidated
Financial Information for details of the restatement of Finance
costs.
Consolidated Cash Flow Statement
For the period ended 30 June 2023
6 months 6 months
ended ended
30 June 30 June
2023 2022
Restated*
Unaudited Unaudited
Note GBPm GBPm
----------------------------------------------------- ----- ---------- -----------
Cash flows from operating activities
Loss before tax (6.1) (7.2)
Adjustments for:
Finance costs 10.7 9.4
Non-underlying operating items 0.6 1.3
Underlying depreciation of property, plant
and equipment 8 12.0 13.5
Underlying depreciation of right-of-use
assets 9 14.0 13.4
Underlying amortisation of intangible assets 2.5 2.5
Share based payments 13 1.4 0.6
Rent concessions - (0.1)
Decrease/(increase) in inventories 0.1 (0.4)
Decrease/(Increase) in trade and other receivables 3.9 (1.4)
Increase/(decrease) in trade and other payables 3.8 (1.4)
Decrease in provisions (0.3) -
----------------------------------------------------- ----- ---------- -----------
Cash generated from operations 42.6 30.2
----------------------------------------------------- ----- ---------- -----------
Tax received - 0.5
Net cash inflow from operating activities
before non-underlying items 42.6 30.7
Non-underlying items (0.6) (1.1)
----------------------------------------------------- ----- ---------- -----------
Net cash inflow from operating activities 42.0 29.6
----------------------------------------------------- ----- ---------- -----------
Cash flows from investing activities
Purchase of property, plant & equipment 8 (7.7) (13.1)
Purchase of intangible assets (3.9) (2.9)
Business combinations - (5.4)
Bank interest received 0.1 -
Net cash outflow used in investing activities (11.5) (21.4)
----------------------------------------------------- ----- ---------- -----------
Cash flows from financing activities
Repayment of lease liability principal (13.4) (12.6)
Lease interest paid (7.8) (6.8)
Bank interest paid (2.4) (1.1)
Payment of financing fees (0.2) (0.6)
Drawdown of bank loans - 18.0
Repayment of bank loans (7.0) (5.5)
Net cash outflow used in financing activities (30.8) (8.6)
----------------------------------------------------- ----- ---------- -----------
Net decrease in cash and cash equivalents (0.3) (0.4)
Cash and cash equivalents at the start of
the period 5.4 7.3
----------------------------------------------------- ----- ---------- -----------
Cash and cash equivalents at the end of
the period 5.1 6.9
----------------------------------------------------- ----- ---------- -----------
* Refer to note 3 of the Unaudited Condensed Consolidated
Financial Information for details of the restatement of Finance
costs.
Notes to the Condensed Consolidated Financial Information
1. General information
The Directors of The Gym Group plc ('the Company') and its
subsidiaries ('the Group') present their interim report and
unaudited condensed consolidated financial statements ('Interim
Financial Statements') for the six months ended 30 June 2023. The
Group operates low cost, high quality, 24/7, no contract gyms .
The Company is a public limited company whose shares are
publicly traded on the London Stock Exchange and is incorporated
and domiciled in the United Kingdom. The registered address of the
Company is 5th Floor, OneCroydon, 12-16 Addiscombe Road, Croydon,
CR0 0XT, United Kingdom.
The Interim Financial Statements were approved by the Board of
Directors on 12 September 2023. They have not been audited or
formally reviewed by the auditors.
2. Basis of preparation
The Interim Financial Statements have been prepared in
accordance with IAS 34 Interim Financial Reporting as adopted for
use in the UK, and the Listing Rules and the Disclosure Guidance
and Transparency Rules of the UK Financial Conduct Authority (where
applicable).
The Interim Financial Statements provide comparative information
in respect of the previous period. The financial information shown
for the half year periods ended 30 June 2023 and 30 June 2022 does
not constitute statutory financial statements within the meaning of
section 434 of the Companies Act 2006. The information shown for
the year ended 31 December 2022 has been extracted from the Group's
Annual Report and Accounts 2022 and does not constitute statutory
accounts within the meaning of section 434 of the Companies Act
2006.
The Interim Financial Statements should be read in conjunction
with the Group's Annual Report and Accounts 2022. The Consolidated
Financial Statements for the year ended 31 December 2022 have been
filed with the Registrar of Companies. The Independent Auditors'
Report on the Group's Annual Report and Accounts for 2022 was
unqualified and did not contain a statement under 498(2) or (3) of
the Companies Act 2006.
The functional currency of each entity in the Group is pounds
sterling. The Interim Financial Statements are presented in pounds
sterling and all values are rounded to the nearest one hundred
thousand pounds, except where otherwise indicated.
Accounting policies
The accounting policies adopted in the preparation of the
Interim Financial Statements are consistent with those described in
the Group's Annual Report and Accounts 2022, except for new
standards effective as of 1 January 2023. The Group has not early
adopted any other standard, interpretation or amendment that has
been issued but is not yet effective.
The table below sets out those new and revised IFRS standards
that have been issued and are relevant to the Group and effective
for the current reporting period. Adoption of the below has not had
a material impact on the Interim Financial Statements.
New pronouncement Effective
date
Definition of Accounting Estimates - Amendments to IAS 1 January
8 Accounting policies, Changes in Accounting Estimates 2023
and Errors
----------
Disclosure of Accounting Policies - Amendments to IAS 1 January
1 Presentation of Financial Statements and IFRS Practice 2023
Statement 2
----------
Deferred Tax related to Assets and Liabilities arising 1 January
from a Single Transaction - Amendments to IAS 12 Income 2023
Taxes
----------
Going concern
The Interim Financial Statements have been prepared on a going
concern basis under the historical cost convention as modified by
the recognition of derivative financial instruments, financial
assets and other financial liabilities at fair value through the
profit and loss and the recognition of financial assets at fair
value through other comprehensive income.
In assessing the going concern position of the Group for the
period ended 30 June 2023, the Directors have considered the
following:
-- the Group's trading performance in the first half of 2023 and
in July and August;
-- future expected trading performance to December 2024 (the going
concern period), including membership levels and behaviours;
-- the macroeconomic and geopolitical environment; and
-- the Group's financing arrangements and relationship with its
lenders and shareholders.
Trading in the first half of 2023 has been encouraging and the
Group has generated significant levels of free cash flow.
Membership at 30 June 2023 was 867,000, up 9.7% year on year (Jun
2022: 790,000) and up 5.6% since the end of 2022 (Dec 2022:
821,000) and yields have continued to strengthen. As a result,
revenue increased by 18.5% year on year in the first half of 2023,
offsetting inflationary cost increases. Trading in July and August
has continued to be encouraging.
The Group continues to have access to a combined GBP80m
revolving credit facility ('RCF') as well as GBP13.65m of finance
lease facilities (GBP15m permitted under the RCF). As at 30 June
2023, the Group had Non-Property Net Debt (including finance
leases) of GBP69.7m, a reduction of GBP6.4m since 31 December 2022,
resulting in GBP22.1m of headroom (calculated off bank debt less
cash) under the RCF.
On 5 September 2023, the Group agreed a number of amendments to
its GBP80m RCF. These included an extension of the facilities to
October 2025 and the inclusion of Barclays within the syndicate
alongside HSBC and NatWest. In addition, Covid-related covenants
have been removed. The RCF is subject to quarterly financial
covenant tests on leverage (Net Debt to Group Adjusted EBITDA Less
Normalised Rent) and fixed charge cover (Adjusted EBITDAR to Net
Finance Charges and Normalised Rent).
Despite the positive trading to date in 2023, the Directors
expect the macroeconomic uncertainty to continue for some time
which may impact consumer behaviour. As a result, we have taken a
cautious approach to preparing the financial plan that underpins
the going concern review.
The base case forecast for the period to 31 December 2024
anticipates continued growth in yields across the whole estate as a
result of pricing actions that have already been taken. However,
modest increases in membership levels are driven largely by the
sites opened in 2022 and not by growth in the mature estate. In
addition, the Directors have continued to take a measured approach
to new site openings throughout the plan period, with all new sites
assumed to be self-financed. Under this scenario, all financial
covenants are passed with good levels of headroom and the Group can
operate within its financing facilities.
The Directors have considered a downside scenario which
anticipates a greater impact of the macroeconomic uncertainty and
resultant weaker trading throughout the period under review. Under
this scenario, membership numbers in the mature estate start to
deviate from the base case from September 2023 such that they are
approximately 14% lower by the end of 2024. Under this scenario,
the number of new site openings is reduced, and discretionary
performance-related bonuses removed to ensure that all financial
covenants continue to be passed with reasonable levels of headroom,
and the Group continues to operate within its financing
facilities.
In the event of a more severe downside scenario, the Directors
would introduce additional measures to mitigate the impact on the
Group's liquidity, covenants and cash flow, including: (i) further
reductions in controllable operating costs, marketing and capital
expenditure; (ii) discussions with lenders to secure additional
debt facilities and/or covenant waivers; (iii) deferral of, or
reductions in, rent payments to landlords; and (iv) the potential
to raise additional funds from third parties. The Directors
consider such a scenario to be highly unlikely.
Conclusion
The Board has reviewed the financial forecasts and downside
scenario of the Group and has a reasonable expectation that the
Group has adequate resources to continue in operational existence
for the period to 31 December 2024. As a result, the Directors
continue to adopt the going concern basis in preparing these
Interim Financial Statements. In making this assessment,
consideration has been given to the current and future expected
trading performance and liquidity position; the macroeconomic and
geopolitical environment; the Group's financing arrangements and
relationship with its lenders and shareholders; and the mitigating
actions that can be deployed in the event of reasonable downside
scenarios.
3. Adjustments to prior year
Remeasurement of borrowings
The Group has borrowings in the form of an RCF which should be
measured at amortised cost using the effective interest method.
Following changes made to the banking facilities in May 2022, the
valuation of the borrowings at amortised cost was not correctly
reflected in the financial statements at 30 June 2022. Correction
of this error results in finance costs decreasing by GBP1.4m with a
corresponding reduction in the carrying value of the borrowings on
the balance sheet. The tax effect of the adjustment is a decrease
in the tax credit in the income statement of GBP0.4m and a
corresponding reduction in the deferred tax asset on the balance
sheet. There is no impact to Adjusted earnings as the remeasurement
of borrowings is excluded from this key performance indicator.
Condensed consolidated income statement for the six months ended
30 June 2022 (extract):
As reported Remeasurement of borrowings Restated
GBPm GBPm GBPm
Operating profit 2.2 - 2.2
Finance costs (10.8) 1.4 (9.4)
--------------------------------------------------------------- ------------ ---------------------------- ---------
Loss before tax (8.6) 1.4 (7.2)
Tax credit/(charge) 4.2 (0.4) 3.8
Changes in the fair value of derivative instruments 0.1 - 0.1
--------------------------------------------------------------- ------------ ---------------------------- ---------
Loss for the period and total comprehensive loss attributable
to equity shareholders (4.3) 1.0 (3.3)
--------------------------------------------------------------- ------------ ---------------------------- ---------
Loss per share pence pence pence
Basic and diluted (2.6) 0.6 (2.0)
--------------------------------------------------------------- ------------ ---------------------------- ---------
Condensed consolidated statement of financial position as at 30
June 2022 (extract):
As reported Remeasurement of borrowings Restated
GBPm GBPm GBPm
------------------------------- ------------ ---------------------------- ---------
Non-current assets
Deferred tax assets 20.4 (0.4) 20.0
------------------------------- ------------ ---------------------------- ---------
Total non-current assets 569.3 (0.4) 568.9
Total assets 585.4 (0.4) 585.0
Non-current liabilities
Borrowings 58.7 (1.4) 57.3
------------------------------- ------------ ---------------------------- ---------
Total non-current liabilities 380.5 (1.4) 379.1
Total liabilities 437.3 (1.4) 435.9
Net assets 148.1 1.0 149.1
------------------------------- ------------ ---------------------------- ---------
Condensed consolidated cash flow statement for the six months
ended 30 June 2022 (extract):
As reported Remeasurement of borrowings Restated
GBPm GBPm GBPm
Loss before tax (8.6) 1.4 (7.2)
Adjustments for:
Net finance costs 10.8 (1.4) 9.4
-------------------------------- ------------ ---------------------------- ---------
Cash generated from operations 30.2 - 30.2
-------------------------------- ------------ ---------------------------- ---------
4. Revenue
The principal revenue streams for the Group are membership
income, rental income from personal trainers and ancillary income.
The majority of revenue is derived from contracts with customers
and all revenue arises in the United Kingdom.
Disaggregation of revenue
In the following table, revenue is disaggregated by major
products and service lines and timing of revenue recognition.
6 months 6 months
ended ended
30 June 2023 30 June 2022
Unaudited Unaudited
GBPm GBPm
----------------------------------------- -------------- --------------
Major products/service lines
Membership income 94.3 79.1
Rental income from personal trainers 3.9 3.9
Ancillary income 1.6 1.2
----------------------------------------- -------------- --------------
99.8 84.2
----------------------------------------- -------------- --------------
Timing of revenue recognition
Products transferred at a point in time 1.8 1.6
Products and services transferred over
time 98.0 82.6
----------------------------------------- -------------- --------------
99.8 84.2
----------------------------------------- -------------- --------------
Contract liabilities at 30 June 2023 amounted to GBP11.6m (H1
2022: GBP8.3m). Contract liabilities relate to membership fees
received at the start of a contract, where the Group has an
obligation to provide a gym membership over a period of time and
are included within trade and other payables in the Statement of
Financial Position.
The Group operates in a market that experiences a small degree
of seasonality. The majority of members join during the first
quarter of the year as a result of a post-Christmas drive to
improve fitness levels and general health. A second wave of new
joiners is experienced in September and October as students return
to university, with quieter periods experienced during the school
holidays. Marketing expenditure is phased towards peak joining
periods, particularly the January/February campaign.
5. Non-underlying items
6 months 6 months
ended ended
30 June 2023 30 June 2022
Restated
Unaudited Unaudited
GBPm GBPm
------------------------------------------------ -------------- --------------
Affecting operating expenses before
depreciation, amortisation and impairment
Costs of major strategic projects and
investments 0.1 1.3
Restructuring and reorganisation (income)/costs
(including site closures) 0.4 (0.1)
Total affecting operating expenses before
depreciation, amortisation and impairment 0.5 1.2
Affecting depreciation, amortisation
and impairment
Amortisation of business combination
intangible assets 0.1 0.1
------------------------------------------------ -------------- --------------
Total affecting depreciation, amortisation
and impairment 0.1 0.1
------------------------------------------------ -------------- --------------
Total affecting operating expenses(1) 0.6 1.3
Affecting finance costs
Refinancing and remeasurement of borrowings 0.3 1.2
------------------------------------------------ -------------- --------------
Total affecting finance costs 0.3 1.2
Total all non-underlying items before
tax 0.9 2.5
Tax on non-underlying items - (0.6)
------------------------------------------------ -------------- --------------
Total non-underlying charge in income
statement 0.9 1.9
------------------------------------------------ -------------- --------------
(1) The cash flow on non-underlying operating items was GBP0.6m
(H1 2022: GBP1.1m). Depreciation, amortisation and impairment and
remeasurement of borrowings are non-cash items.
The costs of major strategic projects and investments in the
period of GBP0.1m relate predominantly to the Group's work in
relation to introducing a three-tier price product architecture. As
noted earlier in this report, the trial results have been
encouraging and we are now evaluating and optimising the results
and preparing a potential rollout plan.
Restructuring and reorganisation costs in the period of GBP0.4m
include the costs associated with the change of Group CEO and other
Board and Executive Committee changes, as well as restructuring
within the Central Support Office team, partly offset by accrual
true-ups and lease surrender income associated with the closure of
a small number of gyms in recent years.
Non-underlying costs affecting depreciation, amortisation and
impairment in the period amounted to GBP0.1m (H1 2022: GBP0.1m) and
relate to the amortisation of business combination intangibles
acquired as part of the Lifestyle, easyGym and Fitness First
acquisitions .
Non-underlying items affecting finance costs amounted to GBP0.3m
in the period (H1 2022 restated: GBP1.2m) and reflect the costs
associated with making certain changes to the Group's RCF earlier
in the year, as well as the periodic remeasurement of the Group's
RCF.
6. Taxation
The tax credit in the Consolidated Statement of Comprehensive
Income of GBPnil (H1 2022 restated: credit of GBP3.8m) has been
calculated based on management's best estimate of the annual income
tax rate expected for the full financial year, applied to the loss
before tax for the half year ended 30 June 2023. The effective tax
rate on the statutory loss before tax for the period ended 30 June
2023 was therefore 0% (H1 2022 restated: 52.8%).
The net deferred tax asset recognised at 30 June 2023 was
GBP16.3m (31 December 2022: GBP16.3m; 30 June 2022 restated:
GBP20.0m). This comprised deferred tax assets in respect of tax
losses and other temporary differences where the Directors believe
it is probable that these will be recovered within a reasonable
period. Short term timing differences are generally recognised
ahead of losses on the basis that they are likely to reverse more
quickly.
The financial forecast used in the Going Concern assessment was
also used to assess the deferred tax recoverability at 30 June
2023, and the Directors believe that this plan provides convincing
evidence to support the continued recognition of the deferred tax
assets that were recognised at 31 December 2022. However, given the
ongoing macro-economic and geopolitical uncertainty, the Directors
do not believe it is appropriate to recognise additional deferred
tax assets at 30 June 2023.
7. Loss per share
Basic loss per share is calculated by dividing the loss
attributable to equity shareholders by the weighted average number
of Ordinary shares outstanding during the period, excluding
unvested shares held pursuant to The Gym Group plc's share based
long term incentive schemes.
Diluted loss per share is calculated by adjusting the weighted
average number of Ordinary shares outstanding to assume conversion
of all dilutive potential Ordinary shares. During the period ended
30 June 2023, the Group had potentially dilutive shares in the form
of share options and unvested shares issued pursuant to The Gym
Group plc's share based long term incentive schemes. As the Group
is in a loss-making position, all potential dilutive share options
will not be dilutive.
6 months ended 6 months ended
30 June 2023 30 June 2022
Restated
Unaudited Unaudited
------------------------------------------- --------------- ---------------
Loss (GBPm)
Loss for the period attributable to
equity shareholders (6.1) (3.4)
Adjustment for non-underlying items 0.9 1.9
------------------------------------------- --------------- ---------------
Adjusted loss for the period attributable
to equity shareholders (5.2) (1.5)
Weighted average number of shares
Basic and diluted weighted average
number of shares 178,373,139 176,618,656
Earnings per share (p)
Basic and diluted loss per share (3.4) (2.0)
Adjusted basic and diluted loss per
share (2.9) (0.8)
------------------------------------------- --------------- ---------------
At 30 June 2023, 9,575,032 share awards (H1 2022: 7,443,898)
were excluded from the diluted weighted average number of Ordinary
shares calculation because their effect would be anti-dilutive.
8. Property, plant and equipment
Amounts recognised in the Consolidated Statement of Financial
Position in respect of property, plant and equipment are as
follows:
For the period ended 30 June 2023
Fixtures,
Assets Leasehold fittings Gym and Computer
under construction improvements and equipment other equipment equipment Total
GBPm GBPm GBPm GBPm GBPm GBPm
-------------- -------------------- -------------- --------------- ----------------- ----------- --------
Cost
---------------------------------------------------------------------------------------------------------------
At 1 January
2023 2.3 240.8 11.6 90.0 5.6 350.3
Additions 2.0 1.6 - 1.0 0.2 4.8
Disposals (0.1) - - - - (0.1)
Transfers (1.2) 0.8 - (1.5) - (1.9)
-------------- -------------------- -------------- --------------- ----------------- ----------- --------
At 30 June
2023 3.0 243.2 11.6 89.5 5.8 353.1
-------------- -------------------- -------------- --------------- ----------------- ----------- --------
Accumulated depreciation
------------------------------------ -------------- --------------- ----------------- ----------- --------
At 1 January
2023 - (95.2) (9.6) (60.5) (4.0) (169.3)
Charge for
the period - (7.9) (0.3) (3.4) (0.4) (12.0)
At 30 June
2023 - (103.1) (9.9) (63.9) (4.4) (181.3)
-------------- -------------------- -------------- --------------- ----------------- ----------- --------
Net book value
---------------------------------------------------------------------------------------------------------------
At 30 June
2023 3.0 140.1 1.7 25.6 1.4 171.8
-------------- -------------------- -------------- --------------- ----------------- ----------- --------
For the period ended 30 June 2022
Fixtures,
Assets Leasehold fittings Gym and Computer
under construction improvements and equipment other equipment equipment Total
GBPm GBPm GBPm GBPm GBPm GBPm
--------------------- -------------------- -------------- --------------- ----------------- ----------- --------
Cost
----------------------------------------------------------------------------------------------------------------------
At 1 January
2022 2.1 208.7 11.5 86.6 4.3 313.2
Additions 5.1 7.1 0.1 0.8 0.4 13.5
Business
combinations - 1.1 - 0.1 - 1.2
Transfers (1.2) 1.1 - 0.1 - -
--------------------- -------------------- -------------- --------------- ----------------- ----------- --------
At 30 June
2022 6.0 218.0 11.6 87.6 4.7 327.9
--------------------- -------------------- -------------- --------------- ----------------- ----------- --------
Accumulated depreciation
----------------------------------------------------------------------------------------------------------------------
At 1 January
2022 - (79.2) (9.1) (55.9) (3.4) (147.6)
Charge for
the period - (7.9) (0.4) (4.9) (0.3) (13.5)
At 30 June
2022 - (87.1) (9.5) (60.8) (3.7) (161.1)
--------------------- -------------------- -------------- --------------- ----------------- ----------- --------
Net book value
----------------------------------------------------------------------------------------------------------------------
At 30 June
2022 6.0 130.9 2.1 26.8 1.0 166.8
--------------------- -------------------- -------------- --------------- ----------------- ----------- --------
Included within additions for the period is GBP2.9m of accrued
capital expenditure (31 December 2022: GBP6.2m).
Outstanding capital commitments at 30 June 2023 totalled GBP5.8m
(31 December 2022: GBP0.8m).
9. Right-of-Use Assets and Leases
Amounts recognised in the Consolidated Statement of Financial
Position in respect of right-of-use assets are as follows:
For the period ended 30 June 2023
Property Non-property
leases leases Total
GBPm GBPm GBPm
-------------------------- --------- ------------- --------
Cost
-------------------------- --------- ------------- --------
At 1 January 2023 420.5 15.3 435.8
Additions 8.2 1.1 9.3
Transfers - 1.9 1.9
At 30 June 2023 428.7 18.3 447.0
-------------------------- --------- ------------- --------
Accumulated depreciation
-------------------------- --------- ------------- --------
At 1 January 2023 (144.6) (1.8) (146.4)
Charge for the period (13.0) (1.0) (14.0)
At 30 June 2023 (157.6) (2.8) (160.4)
-------------------------- --------- ------------- --------
Net book value
-------------------------- --------- ------------- --------
At 30 June 2023 271.1 15.5 286.6
-------------------------- --------- ------------- --------
For the period ended 30 June 2022
Property Non-property
leases leases Total
GBPm GBPm GBPm
-------------------------- --------- ------------- --------
Cost
-------------------------- --------- ------------- --------
At 1 January 2022 388.2 7.2 395.4
Additions 16.8 1.8 18.6
Business combinations 3.6 - 3.6
Disposals (0.8) - (0.8)
-------------------------- --------- ------------- --------
At 30 June 2022 407.8 9.0 416.8
-------------------------- --------- ------------- --------
Accumulated depreciation
-------------------------- --------- ------------- --------
At 1 January 2022 (114.0) (0.2) (114.2)
Charge for the period (12.6) (0.7) (13.3)
At 30 June 2022 (126.6) (0.9) (127.5)
-------------------------- --------- ------------- --------
Net book value
-------------------------- --------- ------------- --------
At 30 June 2022 281.2 8.1 289.3
-------------------------- --------- ------------- --------
The split of lease liabilities between current and non-current
is as follows:
31 December
30 June 2023 30 June 2022 2022
Unaudited Unaudited Audited
GBPm GBPm GBPm
------------------------- ------------- ------------- ------------
Current 27.6 25.1 25.3
Non-current 320.8 320.0 325.1
------------------------- ------------- ------------- ------------
Total Lease liabilities 348.4 345.1 350.4
------------------------- ------------- ------------- ------------
The maturity analysis of lease liabilities is as follows:
31 December
30 June 2023 30 June 2022 2022
Unaudited Unaudited Audited
GBPm GBPm GBPm
----------------------------- ------------- ------------- ------------
Within one year 43.2 41.1 40.4
Greater than one year but
less than two years 43.9 40.4 43.4
Greater than two years but
less than three years 41.1 38.8 40.5
Greater than three years
but less than four years 39.6 37.3 38.6
Greater than four years but
less than five years 38.9 37.4 38.7
Five years or more 237.5 245.3 246.0
444.2 440.3 447.6
Less: unearned interest (95.8) (95.2) (97.2)
----------------------------- ------------- ------------- ------------
Total Lease liabilities 348.4 345.1 350.4
----------------------------- ------------- ------------- ------------
During the period, the Group entered into additional leasing
arrangements with a total available facility of GBP1.0m to finance
portals that are used in the fit-out of new gyms, increasing the
total available facilities to GBP13.65m (31 December 2022:
GBP12.5m; 30 June 2022: GBP12.5m). As at 30 June 2023, the amount
outstanding on these facilities was GBP11.8m (31 December 2022:
GBP11.5m; 30 June 2022: GBP7.0m).
10. Borrowings
The carrying value of the Group's bank borrowings at 30 June
2023 was GBP63.3m (31 December 2022: GBP70.0m; 30 June 2022:
GBP58.7m).
The Group has in place an RCF which is syndicated to a
three-lender panel of banks. Funds drawn under the RCF bear
interest at a minimum annual rate of 2.85% above the Sterling
Overnight Index Average (SONIA) plus a credit adjustment spread.
The average interest rate paid in the period on drawn funds was
7.60% (H1 2022: 3.23%). Undrawn funds bear interest at a minimum
annual rate of 1.14%.
The Group's borrowings are held at amortised cost using the
effective interest method. Each reporting period, the Group reviews
its cash flow forecasts and if these have changed since the
previous reporting period, the borrowings are remeasured using the
effective interest rate. Any remeasurement of borrowings is treated
as non-underlying and excluded from Adjusted earnings.
The RCF is subject to financial covenants relating to leverage
and fixed charge cover.
At 30 June 2023, the Group had drawn down GBP63.0m under the
RCF, leaving GBP17.0m undrawn and available.
Non-Property Net Debt at the period end was as follows:
31 December
30 June 2023 30 June 2022 2022
Unaudited Unaudited Audited
GBPm GBPm GBPm
--------------------------------- ------------- ------------- ------------
Bank borrowings 63.0 57.5 70.0
Less: Cash and cash equivalents (5.1) (6.9) (5.4)
--------------------------------- ------------- ------------- ------------
Non-Property Net Debt excluding
non-property leases 57.9 50.6 64.6
Non-property leases (note
9) 11.8 7.0 11.5
--------------------------------- ------------- ------------- ------------
Non-Property Net Debt 69.7 57.6 76.1
--------------------------------- ------------- ------------- ------------
11. Financial instruments and investments in financial
assets
IFRS 7 requires fair value measurements to be recognised using a
fair value hierarchy that reflects the significance of the inputs
used in the value measurements:
Level 1: quoted prices in active markets for identical assets
-- and liabilities
Level 2: inputs other than quoted prices included within Level
-- 1 that are observable for the asset or liability, either directly
(i.e. as process) or indirectly (i.e. derived from prices)
Level 3: inputs for the asset or liability that are not based
-- on observable market data (unobservable market data)
There were no transfers between levels throughout the periods
under review.
With the exception of the Group's borrowings, the carrying value
of financial assets and liabilities equal their fair value. The
carrying value of borrowings of GBP63.3m (June 2022: GBP58.7m;
December 2022: GBP70.0m) have a fair value of GBP63.0m (June 2022:
GBP57.5m; December 2022: GBP70.0m). The fair values of financial
derivatives and borrowings have been calculated by discounting the
future cash flows at prevailing market interest rates. Other than
the fair value of financial assets at fair value through profit and
loss that are categorised as Level 3, the fair value of all other
financial assets and liabilities are categorised as Level 2.
In February 2020, the Group purchased convertible loan notes in
Fiit Limited for cash consideration of GBP1.0m. These notes are
measured at fair value through profit and loss and the carrying
value at 30 June 2023 was GBP1.0m (31 December 2022 and 30 June
2022: GBP1.0m). This is a level 3 valuation under the fair value
hierarchy and was determined based on the performance of the
business post-acquisition against the business plan produced at the
time of the investment. The range of sensitivity in the valuation
of 30 June 2023 to reasonably possible changes in the assumptions
used is not considered to be material.
12. Issued capital
The total number of shares in issue at 30 June 2023 was
178,401,999 (31 December 2022: 178,039,002).
13. Share based payments
The Group operates share based compensation arrangements under
The Gym Group plc Share Incentive Plan (SIP), The Gym Group plc
Performance Share Plan (PSP), The Gym Group plc Restricted Stock
Plan (RSP), The Gym Group plc Long Service Award Plan and The Gym
Group plc Save as You Earn Plan (SAYE) .
During the period, a total of 3,324,866 share awards were
granted under the Group's share based compensation schemes. These
grants and their vesting criteria are similar in nature to those
awarded during 2022, except in the case of the deferred shares
granted as part of the Deferred Share Bonus Plan for Executive
Directors (details of which were set out on page 93 of the Annual
Report and Accounts 2022), and an equivalent grant for other
members of the senior management team, which are subject to
continued employment over a two year or 18-month period
respectively and have no other performance conditions.
For the period ended 30 June 2023, the Group recognised a total
charge of GBP1.4m (H1 2022: GBP0.6m) in respect of the Group's
share based payment arrangements and related employer's national
insurance.
14. Related party transactions
The Group's significant related parties are as disclosed in Note
28 on page 158 of the Group's Annual Report and Accounts 2022. In
March 2023, two dormant entities, Derwent Fitness NW Limited and
Derwent Fitness GS Limited, were struck off. There have been no
other significant changes to the nature of the Group's related
parties during the period.
15. Subsequent events
On 5 September 2023, the Group agreed a number of amendments to
its GBP80m RCF. These included an extension of the facilities to
October 2025 and the inclusion of Barclays within the syndicate
alongside HSBC and NatWest. In addition, Covid-related covenants
have been removed.
[1] For a summary of KPI definitions used in the table see the
'Definition of non-statutory measures' section
[2] Like-for-like revenue vs 2022 includes all sites open as at
31 December 2020
[3] Includes Standard product in sites where three-tier price
product architecture is being trialled
[4] Includes Ultimate product in sites where three-tier price
product architecture is being trialled
[5] Calculated as Non-Property Net Debt : Group Adjusted EBITDA
Less Normalised Rent
[6] Like-for-like revenue vs 2022 includes all sites open as at
31 December 2020
[7] Like-for-like revenue vs 2019 includes all sites open as at
31 December 2018
[8] Overall Satisfaction score surveys undertaken by Service
Management Group
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END
IR EAPNFFFNDEFA
(END) Dow Jones Newswires
September 12, 2023 02:00 ET (06:00 GMT)
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