GET HCM
magazine
Sign up for the FREE digital edition of HCM magazine and also get the HCM ezine and breaking news email alerts.
Not right now, thanksclose this window
Les Mills
Les Mills
Les Mills
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 Follow Health Club Management on Instagram
UNITING THE WORLD OF FITNESS
Get the latest news, jobs and features in your inbox
Health Club Management

Health Club Management

News

Pure Gym confirms it has abandoned today's IPO

Humphrey Cobbold, CEO of Pure Gym, has confirmed this morning to Health Club Management that the company has "withdrawn" plans for today's IPO, saying: "Given the challenging IPO market conditions, the board has decided not to proceed with a listing, despite the strong interest shown by potential investors."

According to investor sources, Pure may not have created a strong enough story for investors around why it needed the funds and what it planned to do with them, with its relatively inexperienced management team and Cobbold's lack of operating experience in the health club sector also being contributory factors.

In addition, there are questions about whether the IPO came too soon after Pure's acquisition of LA Fitness and before Cobbold had made a clear enough statement about the progress of that integration.

City investors have long memories and there are still those who remember the 90s and got burned when health club operators overextended themselves. While there is no suggestion that Pure is in this position, many investors lack knowledge of the sector and simply see a company which has made a series of big deals.

However, a source close to Pure Gym highlighted the “general poor conditions” for an IPO in the light of Britain leaving the European Union, the rhetoric around ‘Bad Brexit’ and the value of the pound plummeting.

Pure Gym’s budget rival the Gym Group completed its own IPO last year, and initially experienced strong trading. But since mid-September its shares have fallen from 226p to 188p today (11 October), with the dip partially influencing the decision of Pure Gym.

“The company had two options: drop the price of the shares, or walk away from the deal,” said the source.

An alternative view is that Gym Group may have scooped up the majority of investors who are currently interested in this industry, leaving less support available for Pure Gym, although a number of city analysts have referred to the latter’s underlying business model as “very attractive”.

“They are growing quickly and they are generating excellent returns,” said Numis analyst Wyn Ellis.

If market conditions have made it difficult for health club operators to float, then the sector will need to pause and reflect on how future growth can be funded and how it can expand if can't get access to funding via this route, especially given Pure's strong trading position as one of the industry's leading operators.

Building more and better facilities in which people can exercise is a vital part of the wider activity agenda and if the industry is to thrive, then operators need access to capital.

It is not yet clear whether Pure Gym will attempt to float for a third time in the future. The organisation’s initial move to launch an IPO was stopped following the EU referendum result in June.

“Pure Gym will reflect on what has happened and wait for the dust to settle before making its next move,” added the source.

Background briefing

Pure Gym's sale opened on 28 September, with trading previously expected to start today (Tuesday)

Pure Gym's CEO, Humphrey Cobbold announced on 14 September that the company would be using the IPO to raise £190m to pay off debt and bolster “future growth opportunities”, saying: “We are ready to become a listed company."

Pure Gym's route to market has been a complicated one. Earlier this year, Health Club Management revealed that Cobbold pulled the plug on plans for an earlier IPO, citing the UK’s volatile markets following the Brexit vote as the cause.

Founded in 2008, Pure Gym is the largest gym operator in the UK by both number of gyms (163) and number of members (785,770).

In the first half of 2016 the company opened 27 new gyms, 16 of which were conversions of previously acquired LA Fitness premises. Revenue over the six months was £76.6m, up 51 per cent compared with the first half of 2015.

Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
Humphrey Cobbold, CEO of Pure Gym, has confirmed this morning to Health Club Management that the company has "withdrawn" plans for today's IPO, saying: "Given the challenging IPO market conditions, the board has decided not to proceed with a listing, despite the strong interest shown by potential investors."
HAF
14158_137373.jpg
Latest News
Fitness First has launched a new free digital fitness hub, offering users a wide range ...
Latest News
The Gym Group has brought in Rio Ferdinand and Wais Shaifta as non-executive directors, signalling ...
Latest News
As the global vaccine rollout brings reopening closer and heralds the end of lockdowns, jostling ...
Latest News
Less than half (44.9 per cent) of children and young people in England met the ...
Latest News
An England-wide survey of over 5,000 adults found that 80 per cent of people aged ...
Latest News
The government needs to provide the fitness and physical activity sector with a plan which ...
Latest News
Book4Time, a leading cloud-based business management solution for the global hospitality, spa and wellness industry, ...
Latest News
Some Brits drop their exercise habits, eat unhealthily and drink more alcohol during lockdowns, according ...
HCM Magazine
Sponsored
Technogym introduced live and on-demand functionality to Mywellness in July. Here we find out more about operators who have adopted this solution
HCM Magazine
Profile
The chair of énergie and vice chair of BMF talks to Kate Cracknell about creating an omnichannel approach that brings together indoor, outdoor, online and VR
HCM Magazine
Sponsored
Ruskin Fitness Club has transformed its gym in partnership with Technogym, adding the new Excite Live line, as well as dedicated workout zones
HCM Magazine
Sponsored
Andy Hall, COO of data and tech solutions brand, Volution, looks at the trends we can expect to see emerging in the global fitness market in 2021
HCM Magazine
Supplier showcase
Bulmershe Leisure Centre, run by Places Leisure, is providing its community with state-of-the-art fitness machines from Octane Fitness
HCM Magazine
HCM People
Having someone just feeling comfortable walking into the gym is important
HCM Magazine
The great debate
Given its support for the NHS, should the fitness industry be classified as an essential service, and if so, how do we get the sector reclassified? Kath Hudson asks industry leaders for their views
HCM Magazine
HCM magazine
High quality user experience and good value for the operator. This is the winning formula behind an expanding Physical Company product range, says James Anderson
HCM magazine
How Virtuagym and Thebodycontent created an ecosystem of fitness within a small community
HCM magazine
This was a year when research helped transformed the gym sector into a serious political force. Two pieces of work stand out in terms of timely impact
Featured supplier news
Featured supplier: The Retention People unveil 2020 Member Experience Awards winners
Member engagement software provider The Retention People (TRP) has unveiled the winners of its annual 2020 Member Experience Awards (MEA).
Featured supplier news
Featured supplier: Forget the ‘Netflix effect’ – it’s all about the ‘iFit effect’ to boost member retention
Addiction – a word laden with negativity. But isn’t that exactly what the fitness industry wants? For members to be addicted (in a healthy way) to exercise – not just to increase profits but, most importantly, so they can live happier, healthier and longer lives.
Company profiles
Company profile: Volution
Volution uses data to connect the digital with the physical and partners with health and ...
Company profiles
Company profile: Les Mills UK
Committed to creating a fitter planet, Les Mills UK works with clubs and instructors to ...
Supplier Showcases
Supplier showcase - Bouncing back
Catalogue Gallery
Click on a catalogue to view it online
Directory
Hydrotherapy / spa fragrances
Kemitron GmbH: Hydrotherapy / spa fragrances
Trade associations
International SPA Association - iSPA: Trade associations
Software
Volution.fit: Software
Fitness Software
FunXtion International BV: Fitness Software
Skincare
Comfort Zone - Davines S.p.A: Skincare
Member feedback software
AskNicely: Member feedback software
Red Light Therapy
 Red Light Rising: Red Light Therapy
Exercise equipment
Pendex Fisio S.L.: Exercise equipment
Lockers/interior design
Fitlockers: Lockers/interior design
Spa software
SpaBooker: Spa software
Property & Tenders
11 - 25 Union St, London SE1 1SD
Bankside Open Spaces Trust
Property & Tenders
Waltham Abbey, Essex
Lee Valley Regional Park Authority
Property & Tenders
Diary dates
02-04 Feb 2021
Ericsson Exhibition Hall, Ricoh Arena, Coventry, United Kingdom
Diary dates
23-26 Feb 2021
IFEMA, Madrid, Spain
Diary dates
03-04 Mar 2021
NEC, Birmingham, United Kingdom
Diary dates
03-06 Jun 2021
Expo Centre & Riviera di Rimini, Italy
Diary dates
16-17 Jun 2021
ExCeL London, London, United Kingdom
Diary dates
21-24 Sep 2021
Messe Stuttgart, Germany
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates

News

Pure Gym confirms it has abandoned today's IPO

Humphrey Cobbold, CEO of Pure Gym, has confirmed this morning to Health Club Management that the company has "withdrawn" plans for today's IPO, saying: "Given the challenging IPO market conditions, the board has decided not to proceed with a listing, despite the strong interest shown by potential investors."

According to investor sources, Pure may not have created a strong enough story for investors around why it needed the funds and what it planned to do with them, with its relatively inexperienced management team and Cobbold's lack of operating experience in the health club sector also being contributory factors.

In addition, there are questions about whether the IPO came too soon after Pure's acquisition of LA Fitness and before Cobbold had made a clear enough statement about the progress of that integration.

City investors have long memories and there are still those who remember the 90s and got burned when health club operators overextended themselves. While there is no suggestion that Pure is in this position, many investors lack knowledge of the sector and simply see a company which has made a series of big deals.

However, a source close to Pure Gym highlighted the “general poor conditions” for an IPO in the light of Britain leaving the European Union, the rhetoric around ‘Bad Brexit’ and the value of the pound plummeting.

Pure Gym’s budget rival the Gym Group completed its own IPO last year, and initially experienced strong trading. But since mid-September its shares have fallen from 226p to 188p today (11 October), with the dip partially influencing the decision of Pure Gym.

“The company had two options: drop the price of the shares, or walk away from the deal,” said the source.

An alternative view is that Gym Group may have scooped up the majority of investors who are currently interested in this industry, leaving less support available for Pure Gym, although a number of city analysts have referred to the latter’s underlying business model as “very attractive”.

“They are growing quickly and they are generating excellent returns,” said Numis analyst Wyn Ellis.

If market conditions have made it difficult for health club operators to float, then the sector will need to pause and reflect on how future growth can be funded and how it can expand if can't get access to funding via this route, especially given Pure's strong trading position as one of the industry's leading operators.

Building more and better facilities in which people can exercise is a vital part of the wider activity agenda and if the industry is to thrive, then operators need access to capital.

It is not yet clear whether Pure Gym will attempt to float for a third time in the future. The organisation’s initial move to launch an IPO was stopped following the EU referendum result in June.

“Pure Gym will reflect on what has happened and wait for the dust to settle before making its next move,” added the source.

Background briefing

Pure Gym's sale opened on 28 September, with trading previously expected to start today (Tuesday)

Pure Gym's CEO, Humphrey Cobbold announced on 14 September that the company would be using the IPO to raise £190m to pay off debt and bolster “future growth opportunities”, saying: “We are ready to become a listed company."

Pure Gym's route to market has been a complicated one. Earlier this year, Health Club Management revealed that Cobbold pulled the plug on plans for an earlier IPO, citing the UK’s volatile markets following the Brexit vote as the cause.

Founded in 2008, Pure Gym is the largest gym operator in the UK by both number of gyms (163) and number of members (785,770).

In the first half of 2016 the company opened 27 new gyms, 16 of which were conversions of previously acquired LA Fitness premises. Revenue over the six months was £76.6m, up 51 per cent compared with the first half of 2015.

Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
Humphrey Cobbold, CEO of Pure Gym, has confirmed this morning to Health Club Management that the company has "withdrawn" plans for today's IPO, saying: "Given the challenging IPO market conditions, the board has decided not to proceed with a listing, despite the strong interest shown by potential investors."
HAF
14158_137373.jpg

News

Fitness First has launched a new free digital fitness hub, offering users a wide range
The Gym Group has brought in Rio Ferdinand and Wais Shaifta as non-executive directors, signalling
As the global vaccine rollout brings reopening closer and heralds the end of lockdowns, jostling
Less than half (44.9 per cent) of children and young people in England met the
An England-wide survey of over 5,000 adults found that 80 per cent of people aged
The government needs to provide the fitness and physical activity sector with a plan which
Volution.fit
Volution.fit
Matrix Fitness has announced an exclusive partnership with Primal Strength to target an increased strategic
Book4Time, a leading cloud-based business management solution for the global hospitality, spa and wellness industry,
Some Brits drop their exercise habits, eat unhealthily and drink more alcohol during lockdowns, according
New year, new celeb workout as Mark ‘Bez’ Berry announces the launch of his own
Frasers Group will open three new regional flagship Flannels-branded retail stores during 2021 – each
The closing of gyms, leisure centres and swimming pools under COVID-19 restrictions is costing the
The UK physical activity sector will lose around £400m a month during lockdown. The figure,
MyZone Group Ltd
MyZone Group Ltd
Addiction – a word laden with negativity. But isn’t that exactly what the fitness industry
HIIT brand 1Rebel has entered the Middle Eastern market for the first time, with the
ukactive has called on the UK government to draft a new National Physical Activity Plan
David Lloyd Leisure has become the latest operator to have its auditors flag up the
An international panel of experts have examined how social prescribing can play a role in
UK-based boutique operator TRIB3 will open its first site in The Netherlands next year. Due
David Lloyd Clubs will develop a new programme in January 2021, designed to help people
Miha Bodytec GmbH
Miha Bodytec GmbH
Core Health & Fitness is proud to have signed an exclusive supplier agreement for the
Virgin Active has become the latest big-box operator to signal its intention to raise cash
An independent gym in New York City has "returned to normal" and opened its doors
fibodo Limited
fibodo Limited
1 - 20 of 11,743
HCM Magazine
Sponsored
Technogym introduced live and on-demand functionality to Mywellness in July. Here we find out more about operators who have adopted this solution
HCM Magazine
Profile
The chair of énergie and vice chair of BMF talks to Kate Cracknell about creating an omnichannel approach that brings together indoor, outdoor, online and VR
HCM Magazine
Sponsored
Ruskin Fitness Club has transformed its gym in partnership with Technogym, adding the new Excite Live line, as well as dedicated workout zones
HCM Magazine
Sponsored
Andy Hall, COO of data and tech solutions brand, Volution, looks at the trends we can expect to see emerging in the global fitness market in 2021
HCM Magazine
Supplier showcase
Bulmershe Leisure Centre, run by Places Leisure, is providing its community with state-of-the-art fitness machines from Octane Fitness
HCM Magazine
HCM People
Having someone just feeling comfortable walking into the gym is important
HCM Magazine
The great debate
Given its support for the NHS, should the fitness industry be classified as an essential service, and if so, how do we get the sector reclassified? Kath Hudson asks industry leaders for their views
HCM Magazine
HCM magazine
High quality user experience and good value for the operator. This is the winning formula behind an expanding Physical Company product range, says James Anderson
HCM magazine
How Virtuagym and Thebodycontent created an ecosystem of fitness within a small community
HCM magazine
This was a year when research helped transformed the gym sector into a serious political force. Two pieces of work stand out in terms of timely impact
HCM magazine
We’ve stepped off the path this month to bring you a special 2020 review edition of HCM and to propose emerging priorities going forward, as we gird our loins to tackle 2021
HCM magazine
Nu Physio and Fitness has placed Egym at the heart of its protection and prevention model
HCM magazine
Power Plate UK's Davide Ferreira and Stuart Stokes from ReferAll write to HCM
HCM magazine
Steve Ward celebrates the transformational energy being unleashed in the fitness industry by the pandemic
HCM magazine
New research from the Karolinska Institutet in Sweden, has established why people who exercise when suffering from cancer generally have better outcomes
HCM magazine
To book a class through Amazon Alexa… is something nobody has done before and I’m proud to have delivered this to the market
HCM magazine
Featured supplier news
Featured supplier: The Retention People unveil 2020 Member Experience Awards winners
Member engagement software provider The Retention People (TRP) has unveiled the winners of its annual 2020 Member Experience Awards (MEA).
Featured supplier news
Featured supplier: Forget the ‘Netflix effect’ – it’s all about the ‘iFit effect’ to boost member retention
Addiction – a word laden with negativity. But isn’t that exactly what the fitness industry wants? For members to be addicted (in a healthy way) to exercise – not just to increase profits but, most importantly, so they can live happier, healthier and longer lives.
Company profiles
Company profile: Volution
Volution uses data to connect the digital with the physical and partners with health and ...
Company profiles
Company profile: Les Mills UK
Committed to creating a fitter planet, Les Mills UK works with clubs and instructors to ...
Supplier Showcases
Supplier showcase - Bouncing back
Catalogue Gallery
Click on a catalogue to view it online
Directory
Hydrotherapy / spa fragrances
Kemitron GmbH: Hydrotherapy / spa fragrances
Trade associations
International SPA Association - iSPA: Trade associations
Software
Volution.fit: Software
Fitness Software
FunXtion International BV: Fitness Software
Skincare
Comfort Zone - Davines S.p.A: Skincare
Member feedback software
AskNicely: Member feedback software
Red Light Therapy
 Red Light Rising: Red Light Therapy
Exercise equipment
Pendex Fisio S.L.: Exercise equipment
Lockers/interior design
Fitlockers: Lockers/interior design
Spa software
SpaBooker: Spa software
Property & Tenders
11 - 25 Union St, London SE1 1SD
Bankside Open Spaces Trust
Property & Tenders
Waltham Abbey, Essex
Lee Valley Regional Park Authority
Property & Tenders
Diary dates
02-04 Feb 2021
Ericsson Exhibition Hall, Ricoh Arena, Coventry, United Kingdom
Diary dates
23-26 Feb 2021
IFEMA, Madrid, Spain
Diary dates
03-04 Mar 2021
NEC, Birmingham, United Kingdom
Diary dates
03-06 Jun 2021
Expo Centre & Riviera di Rimini, Italy
Diary dates
16-17 Jun 2021
ExCeL London, London, United Kingdom
Diary dates
21-24 Sep 2021
Messe Stuttgart, Germany
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates
Search news, features & products:
Find a supplier:
Les Mills
Les Mills