Key Performance Indicators
We use a number of financial and non-financial key performance indicators (‘KPIs’) to measure our performance over time. We select KPIs that demonstrate the financial and operational performance underpinning our strategic drivers.
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Revenue (£m)
2023 204.02022 172.92021 106.02020 80.522 / 23+18%Definition
Revenue is generated from membership fees, non-refundable joining fees, rental income from
personal trainers and other ancillary services, including the sale of goods through vending machines, advertising through the use of media screens and the sale of day memberships.Link to 2023 strategy
High quality estate
Compelling member experience
Innovative technology and marketing
2023 performance
Revenue for the year increased by 18%, with average members up 8% to 872,000 (2022: 808,000), and average revenue per member per month (‘ARPMM’) up 9% to £19.50 (2022: £17.82). Like-for-like revenue grew 8% year on year.
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Return on Invested Capital %
2023 19.42022 20.02021 18.02020 18.022 / 23-60bpsDefinition
Group Adjusted EBITDA Less Normalised Rent contributed by mature sites, divided by total
capital initially invested in the mature sites. Mature sites are defined as those sites that have
been open for 24 months or more at the period end and exclude acquisition sites.Link to 2023 strategy
High quality estate
Compelling member experience
Innovative technology and marketing
2023 performance
Declined slightly in the year as utilities and fixed cost increases more than offset revenue growth in the mature sites.
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Group Adjusted EBITDA less normalised rent (£m)
2023 38.52022 38.02021 5.72020 -10.222 / 23+1%Definition
Operating profit before depreciation, amortisation, long term employee incentive costs and non-underlying items and after deducting Normalised Rent.
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.
Link to 2023 strategy
High quality estate
Compelling member experience
Innovative technology and marketing
2023 performance
Increased by 1% in the year as the increase in revenue noted above was largely offset by cost inflation, particularly in utilities and staff.
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Adjusted Leverage (x)
2023 1.72022 2.02021 7.72020 -4.622 / 230.3xDefinition
Non-Property Net Debt divided by Group Adjusted EBITDA Less Normalised Rent.
Non-Property Net Debt is defined as bank and non-property lease debt less cash and cash
equivalents and is the leverage measure used in the Group’s banking covenantsLink to 2023 strategy
High quality estate
Compelling member experience
Innovative technology and marketing
2023 performance
Adjusted Leverage improved in the year, reflecting an increased uptake of pay-up-front and student products and careful working capital management, together with fewer new site openings funded entirely from free cash flow.
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Free Cash Flow (£m)
2023 27.02022 16.72021 2.02020 -16.622 / 23+63%Definition
Group Adjusted EBITDA Less Normalised Rent and movementin working capital, less maintenance capital expenditure, cash non-underlying items, bank and non-property lease interest and tax.
See Note 24 to the Consolidated financial statements for a reconciliation to Net cash inflow from operating activities.
Link to 2023 strategy
High quality estate
Compelling member experience
Innovative technology and marketing
2023 performance
Increased by 62% in year, reflecting an increased uptake of pay-up-front and student products and the normalisation of rent payments.
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Total Number of Gyms
2023 2332022 2292021 2022020 18322 / 23+4 sitesDefinition
Number of gyms open at the end of the year.
Link to 2023 strategy
High quality estate.
2023 performance
Increased by a net four during 2023, as the Group opened six new sites and closed two city centre workforce-dependent sites
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Total Number of Members ('000)
2023 8502022 8212021 7182020 57822 / 23+4%Definition
Total gym memberships at the end of the year.
Link to 2023 strategy
Compelling member experience
Growing sustainably
2023 performance
Closed the year with 850,000members, an increase of 4% on 2022, and reflecting the full year impact of sites opened in 2022, as well as the incremental volume from new sites opened in 2023.
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Average Revenue per Member per Month (£)
2023 19.502022 17.822021 17.602020 17.2022 / 23+9%Definition
Revenue divided by the average number of members divided by the number of months in the period.
Link to 2023 strategy
High quality estate
Compelling member experience
Innovative technology and marketing
2023 performance
Increased by 9.4% in 2023, driven by an increase in the average headline price of a Standard membership of £1.67and an increase in the take-up of our premium product, Ultimate, (from 29.6% of total members in2 022 to 31.7% in 2023).
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Members that visit 4+ Times in a Month %
2023 50.82022 47.22021 32.62020 23.922 / 23+3.6Definition
The percentage of total members that have visited the gym four or more times in a month, calculated as a rolling 12 month average.
Link to 2023 strategy
Compelling member experience
Sustainablility
2023 performance
Increased again in 2023, demonstrating that members continue to get significant value from their gym membership.
Research shows that people who visit the gyms 4+ times per month are also more likely to continue their membership and gain significant health benefits from it which, in turn, drives increased Social Value.
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Employee Engagement Score
2023 8.52022 8.42021 7.62020 6.422 / 23+10bpsDefinition
A measure of how committed and enthusiastic employees are about their work and the organisation.
We use four engagement categories (Engagement, Belief, Loyalty, Satisfaction) to calculate a score on a 0-10 scale,and all responses are averaged out to give a score out of 10.
In 2023, we changed the way we measure employee engagement. We partnered with Peakon, an engagement specialist, and adopted a more accurate and comprehensive approach using a 0-10 scale rating system, moving away from a percentage score (Top Box).
Link to 2023 strategy
Unique team and culture
2023 performance
In 2023, we continued to make progress with employee engagement and achieved an engagement score of 8.5 out of 10, with a 90% completion rate. The score of 8.5 puts us in the top 25% in Peakon’s consumer services benchmarking for overall engagement.