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)
2019 153.12018 123.92017 91.42016 73.518 / 19+23.6%Definition
Revenue is generated from membership fees and ancillary services such as rental and vending income.
2019 performance
The 23.6% increase in revenue was driven by a 14.9% increase in average member numbers and a 7.6% increase in Average Revenue per Member per Month.
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Group Adjusted EBITDA (£m)
2019 48.52018 39.12017 30.62016 25.418 / 19+24.0%Definition
Group Adjusted EBITDA is calculated as operating profit before depreciation, amortisation, long term employee incentive costs, and exceptional items. This is an important measure used to assess performance of sites which is a proxy for cash and is a measure used internally and externally by investors.
2019 performance
Group Adjusted EBITDA increased by 24.0%, largely due to sites opened during the last two years becoming increasingly mature and improved profitability in the sites acquired from Lifestyle and easyGym.
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Group Operating Cash Flow (£m)
2019 40.82018 34.02017 24.72016 24.918 / 19+20.0%Definition
Group Operating Cash Flow is calculated as Group Adjusted EBITDA less working capital less maintenance capital expenditure. Maintenance capital expenditure comprises the replacement of gym equipment and premises refurbishment.
2019 performance
Group Operating Cash Flow has increased by 20.0% as a result of an increase in Group Adjusted EBITDA and efficient use of working capital.
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Non-Property Net Debt (£m)
2019 47.42018 46.02017 37.52016 5.218 / 19+£1.4mDefinition
Non-Property Net Debt is defined as borrowings from bank facilities less finance leases and cash and cash equivalents.
2019 performance
Non-Property Net Debt increased by £1.4 million largely due to the drawdown of £1.0 million of bank loan facilities to fund site openings.
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Expansionary Capital Expenditure (£m)
2019 32.52018 57.62017 52.52016 20.918 / 19-43.5%Definition
Expansionary Capital Expenditure is expenditure in relation to the fit-out ofnew gyms, acquisition of gyms and technology projects.
2019 performance
Expansionary Capital Expenditure has decreased by 43.5% as the previous year included the acquisition of easyGym sites.
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Mature Gym Site EBITDA (£m)
2019 48.12018 39.02017 32.42016 26.618 / 19+23.5%Definition
Mature Gym Site EBITDA is calculated as Group Adjusted EBITDA contributed by the mature gym portfolio.
2019 performance
Mature Gym Site EBITDA has increased by 23.5% due to gyms opened in 2017 reaching maturity in the current year.
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Return on Invested Capital of Mature Sites (%)
2019 31%2018 30%2017 30%2016 32%201931%Definition
Return On Invested Capital is calculated as Group Adjusted EBITDA of the Group’s mature organic sites, divided by total capital initially invested in the mature sites. This has been added as a financial KPI as it is a useful measure to assess the performance of the mature sites and is a measure used internally and externally by investors.
2019 performance
Return on Invested Capital of mature sites has increased to 31% (2018: 30%).
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Non-property Net Debt to Group Adjusted EBITDA
2019 0.98x2018 1.17x2017 1.23x2016 0.20x20190.98xDefinition
Non-Property Net Debt to Group Adjusted EBITDA is defined as Non-Property Net Debt as a proportion of Group Adjusted EBITDA.
2019 performance
Leverage has reduced due to EBITDA increasing to the point at which the Group can now fund its growth from operating cash flow.
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Total Number of Gyms
2019 1752018 1582017 1282016 8918 / 19+10.8%2019 performance
The total number of sites grew by 10.8% during 2019, with 20 organic site openings, which included the first two of our new ‘small box’ gym sites. -
Total Number of Members ('000)
2019 7942018 7242017 6072016 44818 / 19+9.7%Definition
Total number of members reflects gym memberships at the year end.
2019 performance
Total Number of Members has increased from 724,000 at 31 December 2018 to 794,000 in 2019, as a result of the opening of 20 sites in the year and the maturation of sites opened in recent years.
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Number of Mature Gyms in Operation
2019 1092018 892017 742016 5518 / 19+22.5%Definition
Mature gyms are defined as gyms that have been open for 24 months or more measured at the end of the year.
2019 performance
The Group’s progressive rollout strategy means that gyms opened in 2017 are considered to be mature in 2019.
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Average Revenue per Member per Month (£)
2019 16.022018 14.892017 14.412016 14.3118 / 19+7.6%Definition
Average Revenue per Member per Month is calculated as revenue divided by the average number of members divided by the number of months in the period.
2019 performance
Average Revenue per Member per Month increased by 7.6% due to the maturation of pricing, an increased take-up of LIVE IT and from personal trainer rental income.