The Gym was one of the pioneering operators of the UK low-cost gym segment and has grown to become the second-largest operator of low-cost gyms in the UK, with 66 gyms and 363,000 members as of 30 September 2015. The low-cost gym segment is an attractive sub-sector of the overall UK health and fitness club market and The Gym Group offers a value-for-money customer proposition with a low price point, 'no-contract' flexible membership and gyms that are open 24 hours a day, seven days a week. It operates an innovative, technology-led disruptive business model and online-only registration process.
The Gym's success has been built around the accessibility it offers to members on price, convenience and its no contract offering; over a third of the Company's members are first-timers; more than a quarter are shift workers and above 10% choose to work out when other gyms are closed. The Company's revenue has increased from GBP 22.3 million in 2012 to GBP 45.5 million in 2014, representing a compound annual growth rate of 43%. The valuation of GBP 250 million means a multiple of 17x 2014th EBITDA.
John Treharne, Chief Executive of The Gym, commented: "Today marks a significant milestone in the development of The Gym and we are delighted at the strong levels of investor interest and support for our IPO. This IPO will allow us to continue our vision to provide affordable access to exercise facilities and expert help to every person who wants to improve their wellbeing, whatever their starting point, whatever their destination. We believe that these factors give us a significant competitive advantage and we look forward to using our listing to realise our growth strategy."
Source: The Gym Group
Picture: The Gym Group