Wattbike Ltd
Wattbike Ltd
Wattbike Ltd
Health Club Management

Health Club Management

Follow Health Club Management on Twitter Like Health Club Management on Facebook Join the discussion with Health Club Management on LinkedIn Subscribe to Health Club Management
UNITING THE WORLD OF FITNESS
Get the latest news, jobs and features in your inbox
Health Club Management

Health Club Management

News

Gym Group and PwC report shows number of low-cost gyms could double by 2026

Independent research confirms that the low cost market can at least double its number of sites, supporting our ambition for future organic growth, alongside the maturing of our current estate.
– Richard Darwin

The Gym Group has tackled investor chatter about stagnation in market penetration by collaborating with PricewaterhouseCoopers (PWC) to release an independent report showing the number of low-cost gyms could double by 2026 to between 1200 and 1400 locations.

The report, 'UK Low Cost Gyms – Market headroom forecasts increased', which was released yesterday in advance of The Gym Group’s full-year results today, dispels concerns that penetration rates are stuck at 14 per cent.

Speaking to HCM, Gym Group CEO, Richard Darwin said: “Independent research confirms that the low-cost market can at least double its number of sites, supporting our ambition for future organic growth, alongside the maturing of our current estate.”

In reporting its annual results, The Gym Group – which bought portfolios of clubs from both Lifestyle and EasyGym in 2017/18 – said it achieved revenues of £123.9m on the combined estate for 2018, a 35.6 per cent increase on the £91.4m recorded in 2017.

Statutory profit before tax was £10m against £9.2m in 2017, giving dividends of £1.30 per share, against £1.20 per share in 2017.

Darwin said the company will continue to upgrade its acquired sites through 2019 and told HCM that once converted to the Gym Group model, the locations are yielding 20 per cent more revenue.

He attributed this significant improvement to 24/7 opening, ‘extra stimulus’ in the form of reduced prices and more powerful marketing – The Gym Group embarked on its first consumer TV advertising campaign earlier this year and is pursuing a ‘balanced media plan’ using social media, digital and TV.

While growth continues in the newer locations, return on capital invested (ROCE) on mature sites remained steady at 31 per cent in 2018, against 32 per cent in 2017.

The company signalled its intention to open a test site for a new small box concept in 2019 and although a location has not yet been revealed, Darwin said the format would be designed to fit a 5,000-8,000sq ft footprint.

He told HCM the new concept will enable The Gym Group to trade in smaller market towns and locations with reduced catchment areas. A rollout will follow once the concept has been proven.

The announcement reflects the direction being taken by Gym Group rival Pure Gym, which announced a small box concept recently, as industry operators continue to pivot their business models in the battle for locations and market share.

Darwin told HCM 2019 has started well for The Gym Group, saying: “We’ve had a successful start to the year and our brand now serves over 800,000 members, with 10 million visits already recorded this year. We plan to open 15-20 gyms in 2019 as we extend access to affordable fitness nationwide.”

On the employee front, he reported that the company’s new-style PT contracts were trialled in 2018 at 24 sites and will be rolled out through 2019 now back-office systems and processes have been fine-tuned to support them, saying: “We aim to be market-leading in terms of our employment proposition, and we expect the new contracts to be rolled out to the entire estate by the end of the year.”

FOOTNOTES

For more details on the Gym Group employment options and vacancies, click here.

Download the PwC report here.

Sign up for FREE ezines & magazines
Related news

Revenues up at The Gym Group as integration of easyGym set to begin

29 Aug 2018
The Gym Group saw revenues jump by 36 per cent to £58.3m during the first ...

Latest Leisure Opportunities news round-up is now live!

19 Jun 2018
The Gym Group acquires most of easyGym sites, too much HIIT could be dangerous, Olympic ...

The Gym Group buys up most of easyGym as it pivots to franchising

13 Jun 2018
The Gym Group is to buy 13 sites from easyGym in a deal worth £20.6m, ...

News

Construction work on The Wave, a £37m indoor water park and leisure centre in Coventry,
Ukactive has revealed the finalists for its annual industry awards. This year's edition is set
Social enterprise Mytime Active has signed a 40-year deal to run 12 leisure facilities in
The Mental Health Foundation (MHF) has chosen body image as the theme for its Mental
Fitness studio operator Bodystreet has expanded its UK operations with the opening of two new
A study on exercise injuries has suggested that people who engage in high-intensity interval training
Les Mills
Les Mills
active-net is supporting the work of blood cancer charity, DKMS, by encouraging greater awareness of
Physical activity is crucial in order to maintain substantial weight loss – and more important
Self-styled life coach 'guru' Tony Robbins and American rapper Pitbull have partnered with entrepreneur Bill
A record 62.6 per cent of the adult population are now classed as physically active,
Boutique HIIT studio operator Ritual Gym will open its first site in the US next
Swim England has called for health professionals to be "more proactive" in prescribing swimming to
Dutch PT and small group exercise operator Gustav Gym has revealed its plans for expansion
Alliance Leisure
Alliance Leisure
In 2019, Wattbike will redefine indoor cycling! Whatever your fitness need, business requirement or training
Yoga studio operator Honor Yoga has revealed plans to expand its footprint and stretch its
As reported in HCM earlier this month, the European health and fitness market continued to
Independently-owned boutique fitness operator Discobarre, which "bridges the gap between fitness and dance", will launch
SIBEC
SIBEC
1 - 15 of 10,875
Features
Research
With a population exceeding one billion, the health club industry in India is in a unique position to serve the health and fitness needs of Indian consumers
Features
Software
New technology is transforming the way the health and fitness industry functions and interacts with customers. Liz Terry catches up with operators around the industry for an update
Features
HCM Celebs
Being a touring musician can be tough on your wellbeing, so country music star, Tim McGraw, developed his own workouts to stay fit. Now he’s collaborating with Snap to launch a gym brand
Features
Analysis
Features
Strength
Do you need strength training kit that fits a smaller space? Julie Fisher takes a look at the options
Features
Cycling
What does the big data around group cycling show? What’s hot, who’s most engaged and what’s up and coming for the year ahead?
Features
Research
Leisure-net’s annual Health and Fitness Omnibus Survey (HAFOS) is now in its 15th year. We talk to Leisure-net’s Mike Hill about what’s changed, and what hasn’t, since 2002
Features
ukactive
The sector’s challenge is to focus its collective efforts on the pillars of public life, delivering a beneficial impact for children and young adults, workers and older people, says Steven Ward
Features
Functional
Having good functional fitness is a lifetime requirement. We speak to operators taking functional fitness back to its roots to aid rehabilitation
Features
Research
The fitness industry in China is growing fast according to The IHRSA Greater China Health Club Report, produced in November 2018 in collaboration with Deloitte China. Kristen Walsh reports
Features
Group Exercise
We look at the current group exercise landscape and ask what’s likely to be trending in the year ahead, as well as tactics club operators can use to improve their results
Features
People
We’re focused on society and existing trends, as well as constantly setting new trends
People
It’s inspiring to be part of a company and an industry that positively empowers people to change their lives. It means I can show up and be my best self, and in turn I hope I can lead and inspire people to be their best too
People
We’ve invested significant resources in R&D in the last 20 years to create products which will enable operators to thrive and be successful
People
I need to keep strong for the rest of my life, ensuring my body can cope with everyday tasks in order to live with a degree of independence
People
We’ll soon be starting work on a mega club, called Eden RAW, which will have four boutique offerings under one roof and is expected to launch in the first quarter of 2020
People
When you’re in the franchising and royalty business and you take 520 locations from doing US$350k to doing US$700k each, it really is like opening another 520 properties
People
This type of studio was unusual for Cornwall at the time and introduced concepts which were new to many people, including online booking and the first hot yoga studio on the county’s north coast
People
We help people break bad habits and change their lifestyles for better health. By monitoring our members’ progress and keeping in touch via our app, we guarantee results
People
In every class, we invite participants to unleash their inner rockstars, let themselves go and rock out with a community of like-minded friends. They can healthily release their aggression and feel a sense of freedom
People
Promotional Feature
Promotional feature
In just a one-month period, we saw a 77 per cent uplift in revenue
Job search
POST YOUR JOB
Featured supplier news
Featured supplier: Dyaco UK launches the Johnny G Spirit Bike with first installation at Feelgood Fitness, Grantham
Dyaco UK has announced the official launch of the long-awaited Johnny G Spirit Bike to the UK, with the first installation in Feelgood Fitness in Grantham
Featured supplier news
Featured supplier: Style and innovation feature in Nizels health club upgrade
Crown Sports Lockers has combined innovative design with changing room provision and project delivery excellence for a refurbishment at Nizels Golf & Country Club in Kent.
Video Gallery
Harlands Group Overview
Harlands Group
An overview of the Harlands Group, the membership management experts. Read more
More videos:
Company profiles
Company profile: Power Plate
Power Plate is a vibrating platform that enhances any movement to help you prepare faster, ...
Company profiles
Company profile: Myzone Group Ltd
At Myzone we reward Effort to solve the pervasive problem of ‘diminishing motivation within exercisers’ ...
Catalogue Gallery
Click on a catalogue to view it online
Directory
Spa software
SpaBooker: Spa software
Fitness equipment
Miha Bodytec GmbH: Fitness equipment
Audio visual
Lightmasters UK Ltd: Audio visual
Direct debit solutions
Harlands Group: Direct debit solutions
Locking solutions
Ojmar: Locking solutions
Hydrotherapy / spa fragrances
Kemitron GmbH: Hydrotherapy / spa fragrances
Architects/designers
Zynk Design Consultants: Architects/designers
Lockers/interior design
Craftsman Quality Lockers Ltd: Lockers/interior design
Skincare
The Tides Wellness: Skincare
Exercise equipment
Origin Fitness: Exercise equipment
Property & Tenders
New Brighton, Wirral, Merseyside
Wirral Borough Council
Property & Tenders
Various Sites
Porters Commercial
Property & Tenders
Diary dates
24-25 Apr 2019
Business Design Centre, London, United Kingdom
Diary dates
05-10 May 2019
Gold Coast Convention and Exhibition Centre, Queensland, Australia
Diary dates
Wattbike Ltd
Wattbike Ltd