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.

  • Revenue (£m)

    2019 153.1
    2018 123.9
    2017 91.4
    2016 73.5
    18 / 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.

  • Group Adjusted EBITDA (£m)

    2019 48.5
    2018 39.1
    2017 30.6
    2016 25.4
    18 / 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.

  • Group Operating Cash Flow (£m)

    2019 40.8
    2018 34.0
    2017 24.7
    2016 24.9
    18 / 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.

  • Non-Property Net Debt (£m)

    2019 47.4
    2018 46.0
    2017 37.5
    2016 5.2
    18 / 19
    +£1.4m

    Definition

    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.

  • Expansionary Capital Expenditure (£m)

    2019 32.5
    2018 57.6
    2017 52.5
    2016 20.9
    18 / 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.

  • Mature Gym Site EBITDA (£m)

    2019 48.1
    2018 39.0
    2017 32.4
    2016 26.6
    18 / 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.

  • Return on Invested Capital of Mature Sites (%)

    2019 31%
    2018 30%
    2017 30%
    2016 32%
    2019
    31%

    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%).

  • Non-property Net Debt to Group Adjusted EBITDA

    2019 0.98x
    2018 1.17x
    2017 1.23x
    2016 0.20x
    2019
    0.98x

    Definition

    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.

  • Total Number of Gyms

    2019 175
    2018 158
    2017 128
    2016 89
    18 / 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 794
    2018 724
    2017 607
    2016 448
    18 / 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.

  • Number of Mature Gyms in Operation

    2019 109
    2018 89
    2017 74
    2016 55
    18 / 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.

  • Average Revenue per Member per Month (£)

    2019 16.02
    2018 14.89
    2017 14.41
    2016 14.31
    18 / 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.