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Health Club Management

Health Club Management

News

Boosting membership at The Gym Group helps revenue grow by a quarter

Growth in membership helped revenue at The Gym Group rise to £36.1m in the first six months of 2016 from £28.9m in the same period in 2015, representing a year-on year increase of 25.1 per cent.

In its interim report for the half year to 30 June, results showed that pre-tax profits stood at £3.4m, against a £3.3m loss in the same period in 2015.

The increase in revenue was mainly a result of the 22.8 per cent growth of members in the half-year period to 420,000, from 342,000 in the same period in 2015. Average revenue per member per month has increased by 1.6 per cent to £14.31, from £14.08 last year.

The Gym Group has 80 sites nationwide, with six gyms opening so far this year and more scheduled before the end of the year to meet the 2016 target of 15-20.

With 450 low-cost gyms in the UK, the business believes there is substantial opportunity for growth in the market.

The company expects to rollout out more gyms at an overall cost of between £1.3m and £1.4m per site. The interim report said: “We have substantial firepower from which to fund and develop the business, with a total of £40m of available financing facilities.”

Commenting on the results, John Treharne, The Gym Group chief executive, said: “Excellent progress has been achieved so far in 2016 as demonstrated by the growth in membership. Our rollout is on track with six sites opened in H1. We remain on target for 15-20 for the year and have a strong pipeline for 2017.

“Our existing sites are performing well which has contributed to the group’s strong growth in profitability. We are confident that our low cost, disruptive positioning in the market place, our well-developed roll out plans and our strong financial position bode well for further rapid and measured profitable development and progress, whatever the economic environment.”

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Growth in membership helped revenue at The Gym Group rise to £36.1m in the first six months of 2016 from £28.9m in the same period in 2015, representing a year-on year increase of 25.1 per cent.
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