The Gym with strong recovery

Today, The Gym Group published its financial results for the year 2021. The company has seen a significant increase in membership numbers following its re-opening in April 2021, with total members at 31 December 2021 of 718,000, up from 547,000 at the end of February 2021 (Dec 2020: 578,000). Yield has been strengthened with an average price of a standard membership at £19.27 in December 2021 compared to £18.81 one year before and penetration of premium membership at 27.1%. The Group Adjusted EBITDA Less Normalised Rent was £5.7m for FY 2021 (FY 2020: loss of £10.2m).

Most currently, the company realized an encouraging start into 2022 with membership growing 14.9% in the first two months despite the impact of Omicron on early January trading; 825,000 members at 28 February 2022 (50% growth since Feb 2021). It is planned to open 28 sites in 2022 with 20 leases already exchanged. The rollout target has been increased to 25 - 30 openings for 2023 and 2024. A new technology platform is launching in April 2022 to drive website traffic, engagement and conversion.

Richard Darwin, CEO of The Gym Group, commented: “The Gym Group has had an encouraging start to the year, building on the momentum of our excellent recovery in 2021. We have now grown our membership by 50% in the 12 months to February 2022. Our rollout program is accelerating with a further 28 openings planned in 2022, increasing the number of communities that can access our high quality, great value gyms. We are confident that our high margin, low-cost business model and our yield optimization strategy will help to mitigate the impacts of the current inflationary environment. Our pace of change is accelerating through the launch of a new technology platform and a brand transformation in 2022 as we position our business to take advantage of the many growth opportunities within the low cost gym market.”

Quelle: Gym Group
Picture: Gym Group

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