The Gym Group's strategy is to continue our strong track record of opening and operating high quality, low cost gyms and deliver profitable growth and strong returns on capital. The key elements of the Group's strategy are:
DRIVE THE PERFORMANCE OF RECENTLY OPENED GYMS
In 2017 our mature sites contributed £34.1 million towards our EBITDA, compared to £26.2 million in 2016.
This growth was achieved by the sites opened in 2015 reaching maturity.
We expect the contribution from mature sites to increase in the future as sites opened in 2016 and 2017 reach maturity.
IMPROVE OPERATING EFFICIENCIES
The implementation of operating cost savings in 2016 continue to benefit the business with site EBITDA margin marginally lower at 40.6% (2016: 40.8%).
This has resulted in maintaining ROCE at 32%.
ROLLOUT AND EXPANSION
We opened 21 new gyms during 2017, all of which offer a consistently high quality look and feel, genuinely low cost experience for members. In addition we acquired 18 gyms as part of the Lifestyle acquisition.
CONTINUE TO IMPROVE THE MEMBER PROPOSITION
During the year we launched LIVE IT. our premium pricing product. LIVE IT. gives members four specific benefits; the ability to bring a friend, multi-site access, use a fitness measurement machine (Fitquest) and affiliate members offers from third parties.
We refurbished and rebranded 17 sites during the year in line with our refurbishment plans. We also completed 21 gym openings including our 100th gym in Feltham and acquired a further 18 gyms from Lifestyle Fitness. In addition we welcomed our 100th million member.
In February 2018 we were awarded the prestigious FEEFO Trusted Customer award for exceptional customer services as voted for by our members.
FOCUS ON PEOPLE
During 2017 the Group introduced two training programmes to facilitate staff development and enhance customers experience. The programmes were:
- Emerging talent programme to train Assistant General Managers to provide a pipeline of future General Managers.
- Heads Up programme designed to ensure fantastic customer service is well maintained throughout the business.
Each year a variety of awards are issued to recognise employee success and achievement. These include awards for Best Gym, Colleague of the Team and Rising Star. We also offer long service awards to employees employed by the business for more than five years.