Founded in 2008, PureGym is the UK’s leading gym chain and one of the pioneers of the low cost, high quality fitness experience. In January 2020, PureGym completed the acquisition of Fitness World Group, the largest gym and fitness provider in Denmark, with a growing presence in both Switzerland and Poland. The combined business is now among the largest gym and fitness operators in Europe, with approximately 1.5 million members at the end of 2020 and almost 500 sites across the UK, Denmark, Switzerland and Poland.

Total group visits in the month of June 2021 were 114% of December 2019 levels and in line with June 2019 levels. This is despite the ongoing operational constraints in all territories: Social distancing protocols were still in place across the group. In the UK, capacity limits have been in place. In Denmark, members were only allowed to attend a gym if they could produce a valid covid passport (“Coronapas”). In Switzerland, restrictions required members to wear masks while training. Whilst total visits benefit from a number of new gyms in the UK, the data nevertheless provides reassuring evidence of strong demand. Like for like (LFL) visits in the month of June 2021 were at 91% in the UK, 80% in Denmark and 93% in Switzerland as a percentage of June 2019.

Total group membership as at 30 June 2021 was 92% of the total December 2019 level. Within this, the UK was operating at 97%, Denmark 80% and Switzerland at 88% of the December 2019 member levels. The LFL paying member base as a percentage of 30 June 2019 was 83% in the UK, 82% in Denmark & 76% in Switzerland. This performance represents a significant step up from March 2021 (66%, 71% & 76%, respectively).

The strong member recovery has underpinned a return to positive EBITDA generation in May and June. The Group continues to maintain a strong cash and liquidity position.  GBPm 221 available liquidity as at end of June 2021, comprising GBPm 76 cash and GBPm 145undrawn RCF facilities.

The company believes it is well positioned to take advantage of post-pandemic recovery, increased interest in activity, health, and well-being, and the opportunities presented by competition having been weakened by the rigours of the last 18 months. With this context, management has a strong belief that there will be significant opportunities to deploy capital to accelerate growth through opening many more new sites and also by investing further in existing sites and digital and technology assets. The company is in the early stages of considering options for potentially raising equity, including potentially in the public markets. Management is therefore working closely with Leonard Green & Partners (who co-own PureGym alongside the management team) to review its strategic options.

Source: PureGym
Picture: PureGym