Pre-close Trading Statement 12 January 2016
Strong trading in 2015, set for 2016
The Gym Group plc, the fast growing, nationwide operator of 74 low cost gyms branded "The Gym", announces a pre-close trading update for the year ended 31 December 2015.
- Trading results for the year to 31 December 2015 are expected to be in line with consensus market expectations reflecting a further year of strong growth in both revenue and EBITDA
- 19 new gyms opened in the year increasing the total estate to 74 sites*
- Total year end members at 376,000, up 28.3% versus prior year (December 2014: 293,000) **
- Strong balance sheet with net debt of £7.1m which is lower than anticipated
- Strongest pipeline ever with 12 new sites signed towards a target of 15 to 20 openings for 2016; further 21 locations are currently in legals for 2016 and 2017
- The Company expects to announce its Preliminary Results in mid-March
* Two of the 2015 openings in Derby and Croydon were leases acquired from another operator. Both of these were rebranded and fitted out more quickly than expected and therefore opened in December
** Average members for 2015 of 355,000 up 31.0% versus previous year (December 2014: 271,000)
John Treharne, CEO of The Gym Group, commented:
"2015 was an important year for The Gym Group with significant expansion of our estate and a successful IPO. The excellent performance in 2015 has established a strong base from which to execute our planned rollout programme. We operate a 24/7 business model that delivers state of the art, well-maintained gyms which are affordable for customers and well suited to today's marketplace. Member satisfaction remains very high. We plan to continue to disrupt the market and to deliver strong returns for our shareholders."
For further information, please contact
The Gym Group
John Treharne, CEO
Richard Darwin, CFO
via Instinctif Partners
Numis
Oliver Cardigan
Oliver Hardy
Toby Adcock
020 7260 1000
Instinctif Partners
Matthew Smallwood
Justine Warren
0207 457 2020