Pre-Close Trading Statement 12 January 2017
The Gym Group plc, the fast growing, nationwide operator of 89 low cost gyms branded "The Gym", announces a pre-close trading update for the year ended 31 December 2016.
- Following another year of rapid development and strong growth in revenue and EBITDA, earnings for the year to 31 December 2016 are expected to be in line with consensus market expectations.
- Total revenue growth of 22.6% for the year versus 2015.
- Within our guidance range, 15 new gyms opened in the year increasing the total estate to 89 sites. Over the last two years 34 sites have opened in line with our guidance of 15-20 sites per annum.
- Total year end members of 448,000, up 19. 1% versus prior year (December 2015: 376,000) and average members for 2016 of 429,000 (2015: 355,000) up 20.8%.
- 8 sites refurbished and rebranded during the year in line with our refurbishment plan.
- Strong balance sheet with year end net debt of £5.2m (2015: £7.1m) with the business cashflow positive and self - financing the gym openings during 2016.
- Significant pipeline progress with 17 new sites exchanged for 2017 (January 2016: 12 exchanged for 2016) towards our annual rollout target of 15 to 20 openings *. As a result of the strength and opening profile of the pipeline we now expect to achieve towards the top end of our guidance range for openings in 2017.
- Recruitment of Board and Senior Management expertise in 2016 to support sustained growth.
- The Company expects to announce its Preliminary Results in mid-March.
*Of the 4 sites acquired fromFitness First UKthat we announced in September 2016, one site has been opened and is trading, two further sites are in fit out and onewill shortly complete its lease assignment
John Treharne, CEO of The Gym Group, commented:
"This has been another year of rapid progress growing the number of sites in our estate by over 20% and achieving our financial goals. Our 2016 openings are performing well.
Our low cost highly affordable model, with a known and predictable cost base, is arguably even more relevant in today's uncertain economic climate. Our pipeline for new sites in 2017 is the strongest we have ever had with strong cash generation to fund future openings.
We remain excited about the growth opportunities that our low cost model brings and look forward to continued profitable progress in 2017."
For further information, please contact
The Gym Group
John Treharne, CEO
Richard Darwin, CFO
Numis Securities Limited
Tel: 020 7260 1000
Tel: 020 7457 2020