Full Year Results 2022 16 March 2023

2022 Full Year Results
The Gym Group, the nationwide operator of 2301 low cost, high quality, 24/7 no contract gyms, announces its full year results for the year ended 31 December 2022.


  Year ended 31 December 2022 Year Ended 31 December 2021 Movement
Revenue (£m) 172.9 106.0 +63%
Group Adjusted EBITDA (£m) 71.3 35.4 +101%
Group Adjusted EBITDA Less Normalised Rent (£m) 38.0 5.7 +32.3
Adjusted Loss for the year (£m) (6.9) (28.5) +21.6
Basic and Diluted Adjusted Loss per share (p) (3.9) (16.7) +12.8
Statutory Loss for the year (£m) (19.3) (35.4) +16.1
Basic and Diluted Statutory Loss per share (p) (10.9) (20.7) +9.8
Free cash flow (£m)  16.6  2.0 +14.6
Non-Property Net Debt (£m)  (76.1) (44.1)  -32.0


Financial highlights

  • Membership ended the year at 821,000, an increase of 14.3% from the end of the previous year (Dec 2021: 718,000)

  • Yield continued to strengthen with average price of a standard DO IT membership increasing to £21.49 at 31 December 2022 (Dec 2021: £19.27) and LIVE IT penetration growing to 29.6% of total membership (Dec 2021: 27.1%)

  • Revenue and EBITDA Less Normalised Rent both significantly ahead of the prior year reflecting the higher number of trading days and post Covid-19 recovery; statutory loss after tax reduced significantly

  • Free cash flow generation of £16.6m partially funds the site rollout programme and investment in technology

  • Non-Property Net Debt increased to £76.1m (Dec 2021: £44.1m) to fund the remainder of the site rollout programme and acquisition of three sites from Fitness First

Strategic and operational highlights

  • 281 new site openings in 2022 – highest number in a single year

  • Successful delivery of the new technology platform and brand relaunch

  • Our high margin, low cost model has demonstrated its ability to drive strong financial returns

  • Visit frequency and satisfaction scores remain materially higher than pre Covid-19 scores

  • Focus on sustainability continues with £3.3m of social value3 per gym created in 2022; UK's first carbon neutral gym chain

Outlook and current trading

  • Uneven start to 2023 vs Board expectations, with membership at the end of February of 890,000, up 8.4% from the end of 2022 (2022: 14.9%)

  • Revenue after two months up 18.7% year on year, reflecting membership growth of 8% and yield growth (ARPMM) of 10%; LFL revenue for the two months reached 97% of the pre Covid-19 level, driven by increases in ARPMM whilst remaining the lowest cost nationwide gym chain

  • As previously disclosed, energy costs anticipated to be c.£10m higher in 2023 compared to 2022; 96% hedged for FY23

  • Expect current difficult macroeconomic environment and its impact on consumer demand to continue throughout the year; therefore now anticipate full year revenue increases from yield improvements and new site openings to be broadly offset by cost increases

  • As previously indicated, intend to take a more measured approach to new site openings in 2023; anticipate opening up to 12 sites, with all openings being self-financed

  • Leverage4 expected to remain within the range of 1.5 to 2.0x

John Treharne, Chair of The Gym Group, commented:

“This time last year, we reflected on emerging from the pandemic and indicated that we hoped 2022 would see a return to a more normal trading environment. It is now clear that it will take a longer time to return to pre Covid-19 levels as a result of both the changes to customers’ everyday lives and lifestyles and the macroeconomic headwinds that we are all facing. Therefore, it is right to manage the business tightly in 2023 and to focus on providing low cost, high quality, 24/7 gyms to our members. Against that backdrop I am proud of the progress TGG has made through the year successfully completing our biggest ever site opening programme, growing member numbers and yield, and delivering on a number of key projects.

Richard was instrumental in delivering this programme and leaves the business in robust order. We thank him for his contribution over many years and wish him well. We are making good progress in the search for our new CEO and we will update the market at the appropriate time."

A live audio webcast of the analyst presentation will be available at 09:00 a.m. today via the following link:



The Gym Group
John Treharne, Chair
Richard Darwin, CEO
Luke Tait, CFO

via Tulchan Communications

James Macey-White
Laura Marshall
0207 353 4200

1As at 15 March 2023 – includes two openings and one closure in January 2023; 229 sites as at 31 December 2022 – 25 organic openings in the year plus three sites acquired from Fitness First and one closure (31 Dec 2021: 202).

2For a summary of KPI definitions used in the table see the ‘Definition of non-statutory measures’ section.

3A measure of the value we are creating through regular exercise in the communities in which we operate. It is derived using a model created by Sheffield Hallam University and used extensively by Sport England, local authorities and the UK Government. £756m total value created in 2022 divided by 229 sites open at year end.

4Calculated as Non-Property Net Debt : Group Adjusted EBITDA Less Normalised Rent.

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