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)
2020 80.52019 153.12018 123.92017 91.419 / 20-47.4%Definition
Revenue is generated from membership fees and ancillary services such as rental and vending income.
2020 performance
Revenue for the year decreased by 47.4% due to lower member numbers and periods of enforced closure as consequence of the COVID-19 pandemic.
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Group Adjusted EBITDA less normalised rent (£m)
2020 -10.22019 48.52018 39.12017 30.619 / 20-121.0%Definition
Group Adjusted EBITDA less Normalised Rent is calculated as operating profit before depreciation, amortisation, long term employee incentive costs and exceptional 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.
This is an important measure used to assess performance of sites which is a proxy for cash profit and is a measure used internally and externally by investors. Note that this measure has been revised since 2019. See footnote 1 on page 45 of Annual Report 2020
2020 performance
Group Adjusted EBITDA less Normalised Rent has fallen 121.0% as a result of the significant reduction in revenue, partially offset by cost saving measures and government support.
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Group Operating Cash Flow (£m)
2020 -16.32019 40.82018 34.02017 24.719 / 20-142.0%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.
2020 performance
Group Operating Cash Flow has decreased by 142.0% as a result of the decrease in profitability.
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Non-Property Net Debt (£m)
2020 47.32019 47.42018 46.02017 37.519 / 200.2%Definition
Non-Property Net Debt is defined as borrowings from bank facilities less finance leases and cash and cash equivalents.
2020 performance
Non-Property Net Debt was broadly unchanged, the cash outflows from operations and capital expenditure being offset by net proceeds of £39.9m from an equity placing.
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Expansionary Capital Expenditure (£m)
2020 21.82019 30.62018 57.62017 52.519 / 20-28.8%Definition
Expansionary Capital Expenditure is expenditure in relation to the fit-out of new gyms, acquisition of gyms and technology projects.
2020 performance
Expansionary Capital Expenditure was 28.8% lower, mainly due to fewer new site openings, partially offset by the timing of supplier payments.
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Mature Gym Site EBITDA (£m)
2020 3.92019 48.12018 39.02017 32.419 / 20-91.9%Definition
Mature Gym Site EBITDA is calculated as Group Adjusted EBITDA contributed by the mature gym portfolio.
2020 performance
Mature Gym Site EBITDA has decreased by 91.9% as a result of the significant reduction in revenue, partially offset by cost saving measures and government support.
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Return on Invested Capital of Mature Sites (%)
2020 2%2019 31%2018 30%2017 30%20202%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.
2020 performance
Return on Invested Capital has fallen to 2% as a result of the decrease in profitability.
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Non-property Net Debt to Group Adjusted EBITDA
2020 -4.64x2019 0.98x2018 1.17x2017 1.23x2020-4.64xDefinition
Non-Property Net Debt to Group Adjusted EBITDA is defined as Non-Property Net Debt as a proportion of Group Adjusted EBITDA.
2020 performance
Non-Property Net Debt to Group Adjusted EBITDA has fallen despite a stable Non-Property Net Debt as a result of the decrease in profitability.
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Total Number of Gyms
2020 1832019 1752018 1582017 12819 / 20+4.6%2020 performance
The total number of sites grew by 4.6% during 2020 with eight organic site openings, one of which was a small box gym.
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Total Number of Members ('000)
2020 5782019 7942018 7242017 60719 / 20-27.2%Definition
Total Number of Members reflects gym memberships at the year end.
2020 performance
Total Number of Members has decreased from 794,000 at 31 December 2019 to 578,000 in 2020, despite the opening of eight sites, as a consequence of the closures and restrictions arising due to COVID-19.
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Number of Mature Gyms
2020 1552019 1092018 892017 7419 / 20+42.2%Definition
Mature gyms are defined as gyms that have been open for 24 months or more measured at the end of the year.
2020 performance
The Group’s progressive rollout strategy means that gyms opened in 2018, along with gyms acquired from Lifestyle in 2017 and easyGym in 2018, are considered to be mature in 2020.
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Average Revenue per Member per Month (£)
2020 17.202019 16.022018 14.892017 14.4119 / 207.4%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.
2020 performance
Average Revenue per Member per Month has increased by 7.4%, driven by a £0.36 increase in average headline price and the take-up of our premium product, LIVE IT, increasing to 22.6% (2019: 18.9%).
Note that in order to provide better year-on-year comparability for yield, the value presented for 2020 is calculated on a site-by-site basis and excludes days where the site was required to be closed due to government restrictions. If closed days were not excluded, the Average Revenue per Member per Month presented would be £9.46.