Full Year Results for the year ended 31 December 2017 20 March 2018
Full Year Results
Accelerated profitable growth, significant pipeline progress
The Gym Group plc, the fastest growing, nationwide operator of 130 low cost gyms1, announces its full year results for the year ended 31 December 2017.
- Revenue of £91.4 million, an increase of 24.3% (2016: £73.5 million)
- Group Adjusted EBITDA2 of £28.0 million, an increase of 23.2% (2016: £22.7 million)
- Adjusted earnings per share3 increased to 7.4p (2016: 5.6p)
- Adjusted profit before tax4 increased to £12.0 million (2016: £8.7 million)
- Statutory profit before tax of £9.2 million (2016: £6.9 million)
- Proposed final dividend of 0.90p per share, giving a proposed full year dividend of 1.20p per share
- 21 new gyms opened and 18 acquired from Lifestyle Fitness in 2017, increasing the total estate to 128
- Total year end members at 607,0005, an increase of 35.5% versus prior year (2016: 448,000); Average member numbers grew by 23.4% to 528,000 (2016: 428,000).
- Launch of LIVE IT., our premium pricing product, with rollout on course to complete by May 2018
- Return on Capital on mature estate maintained at 32% (2016: 32%)
- Average Mature Site EBITDA6 decreased to £461,000 (2016: £476,000)
- The new financial year has started well and current trading is in line with the Board’s expectations with 664,000 members at the end of February, an increase of 9.4% since the year end
- Expect to achieve guidance range of 15 to 20 sites openings for 2018.
John Treharne, CEO of The Gym Group, commented:
“We have made considerable progress in 2017 and were the fastest growing low cost fitness operator, substantially increasing our market share and rapidly expanding our estate.
We continue to see potential for substantial growth in 2018 as we plan to open a further 15-20 new gyms and benefit from the profitability of those sites opened in recent years reaching maturity.
We have had a strong start to 2018 and are excited about the future and confident in our team’s ability to maximise our opportunity”
An audio webcast of the analyst presentation will be available later today via our website www.tggplc.com
A copy of the Annual Report and Accounts will be available later today via our website.
For further information, please contact:
The Gym Group
John Treharne, CEO
Richard Darwin, CFO
020 7260 1000
0207 457 2020
1 120 sites branded The Gym and 10 sites currently branded Lifestyle Fitness.
2 Group Adjusted EBITDA is calculated as operating profit before depreciation, amortisation, long term employee incentive costs and exceptional
3 Adjusted earnings per share is calculated as the Group's profit for the year before amortisation, exceptional items and the related tax effect,
divided by the diluted weighted average number of shares.
4 Adjusted profit before tax is calculated as profit before tax before amortisation, exceptional items.
5 Average members excludes sites not open at the period end.
6 Average Mature Site EBITDA is calculated as Group Adjusted EBITDA contributed by the mature gym portfolio, divided by the number of mature
sites. Mature sites are defined as gyms that have been open for 24 months or more measured at the end of the year.