Business model

Our vision

To provide affordable access to exercise facilities and expert help to every person who wants to improve their wellbeing, whatever their starting point, whatever their destination.

An attractive member position

The Gym Traditional Health Club
24/7 gym opening hours1

No fixed term contract

Typical £17 monthly cost2

No premium to pay for extras you won’t use

Online members’ area

High spec gym equipment

Professional, helpful staff

Eco-friendly equipment

Receptionist / office

Wet facilities (e.g. pool, sauna)

Tennis / squash courts

Health and wellbeing spa

Café / bar offering

1. All gyms open 24/7 excluding three gyms as at 31 December 2016 due to licensing restrictions
2. £17 average membership per month across all 89 gyms as at 31 December 2016

DRIVEN BY TECHNOLOGY

  • A simple online joining process that can be completed in minutes.
  • Membership and joining fees can be paid by credit card, debit card and direct debit.
  • Members can manage their accounts, view class timetables and book classes using computer, tablet or mobile.
  • Automated access control and 24 hour CCTV enhances safety and enables staff to dedicate time to serving members.
  • Electronic monitoring of gym equipment usage means fit-outs are tailored to member requirements.

EFFICIENT OPERATIONAL STRUCTURE

  • The use of technology results in an efficient staffing model, with no need for dedicated in-gym sales and marketing teams.
  • Staffing model means managers are freed from many traditional health club tasks and focus on running successful gyms and serving the needs of our members.
  • Benefits from economies of scale as we continue to roll out new gyms.
  • A disciplined and rigorous approach to site selection, with a flexible fit-out approach meaning we are able to use a wide variety of building types and use space intensively.
  • Outsourced support functions to reduce costs and enable focus on core operations.

DELIVERING VALUE

  • 24/7, flexible, low cost gym memberships that suit all lifestyles and occupations.
  • High specification gyms with an average of 170 equipment stations.
  • Gyms located in accessible areas, with lots of space and light.
  • An affordable opportunity to improve members’ wellbeing.
  • Our low cost operating model drives strong operating margins and high returns on capital. 
  • Embedded growth within our business strategy is supported by a well-developed pipeline.
  • Strong cash generation from mature sites.
  • General managers at gyms are empowered to independently run their own sites, with bonus targets linked to gym performance and clear promotion paths available.
  • Staff are offered competitive remuneration and the opportunity to share in our success through share incentive plans.

COMPETITIVE ADVANTAGES

  • We leverage our scale to purchase more efficiently and amortise one-off or fixed costs across a larger estate.
  • The strong operating margins and returns on capital necessary to operate in the low cost gym market are optimised.
  • Technology is a key part of a successful low cost offering. Establishing bespoke technology requires significant time and capital investment.
  • We have created innovative, highly specialised, bespoke systems which minimise the requirement for large back office support functions.
  • We have an advantage over most other operators since we have built a business on capturing high levels of quality data over a long time period.
  • This data is used to improve our member proposition, inform marketing strategies and assist the site selection process.
  • We have a dedicated, highly experienced property team that is well-networked with landlords and agents to enable us to source the best sites and deals.
  • Our consistent financial performance, strong covenant and strong brand means we offer an attractive proposition for prospective landlords.
  • A proven track record enables access to a wider pool of capital to support sustained growth. Raising capital is more difficult for new entrants or smaller operators.
  • We have £30.0 million of undrawn bank facilities to finance our rollout plans.