Interim Results for the six month period ended 30 June 2019 29 August 2019

2019 Interim Results
Strong first half delivering continued profitable growth

The Gym Group plc, the fast growing, nationwide operator of 1661 low cost 24/7 no contract gyms2, announces its interim results for the six month period ended 30 June 2019.

Financial Highlights

CaptureNote: for a summary of KPI definitions used in the table see section provided below the financial review.

  • Revenue of £74.0 million, an increase of 26.9% (H1 2018: £58.3 million)
  • Group Adjusted EBITDA of £24.0 million, an increase of 28.0% (H1 2018: £18.8 million); EBITDA margin increases to 32.5% (H1 2018: 32.2%)
  • Adjusted profit before tax of £7.1 million, up 53.3% (H1 2018: £4.6 million)
  • Statutory profit before tax increased by 80.5% to £5.6 million (H1 2018: £3.1 million)
  • Adjusted EPS of 4.0p, an increase of 42.9% (H1 2018: 2.8p)
  • Non-Property Net Debt broadly flat at £47.2 million (December 2018: £46.0 million)
  • Interim dividend of 0.45 pence per share declared, up 28.6% (H1 2018: 0.35 pence)

Strategic and Operational Progress

  • 8 new gyms opened in H1 2019 bringing total estate to 1651
  • Membership numbers increased by 10.6% to 796,000 (H1 2018: 720,000)3
  • New operating model (New Gym Team) transition to be completed by 1 September 2019
  • LIVE IT take-up grows to 135,000 (H1 2018: 55,000) representing 16.9% of total members at 30 June 2019
  • Increase in the average revenue per member per month to £15.47 (H1 2018: £14.65) of which £0.16 was from rental income from personal trainers under the New Gym Team operating model

Current Trading and H2

  • In the first two months of H2, the Company has continued to trade well and in line with our expectations
  • On track to meet opening schedule of 15 -20 standard catchment gyms in 2019
  • First small box site to open in Newark, Nottinghamshire at capital cost of £0.70-0.75 million
  • The Company is on track to achieve our financial and operational plans for the full year

Richard Darwin, CEO of The Gym Group, commented:

“Our rapid and profitable growth has been achieved through operating high quality great value gyms that offer affordable fitness for all. Our growing membership visited a record 24 million times in the first half of the year demonstrating the wide and diverse appeal of The Gym. Continued investment in systems, infrastructure and people to scale the business is enabling us to take advantage of the huge growth potential that exists in the low cost gym market. We are on track to open between 15 and 20 standard catchment gyms this year whilst our new “small box” format further increases the number of towns that we can go to. We are confident that we can deliver further profitable growth both this year and in the years to come.”

An audio webcast of the analyst presentation will be available live on at 9.30 today.

For further information, please contact

The Gym Group
Richard Darwin, CEO
Mark George, CFO
via Instinctif Partners

Instinctif Partners 
Matthew Smallwood
Justine Warren 
020 7457 2020

Luke Bordewich
George Price
020 7260 1000

Peel Hunt
Dan Webster
George Sellar
020 7418 8900

1 165 as of 30 June 2019 (vs 158 at 31 December 2018) with eight new sites opened in H1 2019 and one site recently closed (Birmingham Corporation Street). 166 sites as at 29 August 2019
2 All gyms open 24/7 excluding nine gyms as at 30 June 2019 due to licensing restrictions.
3 Average number of members grew 20.0% to 797,000 (H1 2018: 664,000). Average members excludes new sites not open at the period end. Proforma members of 720,000 as at 30 June 2018 (including easyGym members acquired on 4 July 2018)

Forward-looking statements
This announcement includes statements that are, or may be deemed to be, "forward-looking statements". By their nature, such statements involve risk and uncertainty since they relate to future events and circumstances. Actual results may, and often do, differ materially from any forward-looking statements. Any forward-looking statements in this announcement reflect management’s view with respect to future events as at the date of this announcement. Save as required by law or by the Listing Rules of the UK Listing Authority, the Company undertakes no obligation to publicly revise any forward-looking statements in this announcement following any change in its expectations or to reflect subsequent events or circumstances following the date of this announcement.

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