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|
|No fixed term contract|
|24/7 gym opening hours1|
|Typical £17 monthly cost2|
|No premium to pay for extras you won’t use|
|Online members’ area|
|High spec gym equipment|
|Professional, helpful staff|
|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.
- 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.
- 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.