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
FIBO Exhibition
FIBO Exhibition
FIBO Exhibition
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
Health Club Management

Health Club Management

News

The Gym Group ‘still breaking records’ as profits and revenue increase

The Gym Group has posted record revenues and profits as it strengthens its position in the UK’s low-cost fitness sector.

Speaking to Health Club Management, CEO John Treharne said: “The year was one of many milestones for the Gym Group. It’s great to see we’re still breaking records after 10 years."

Reporting results for the year ending 31 December 2017, the company posted pre-tax profits (EBITDA) of £28m, an increase of 23.2 per cent on the 2016 figure of £22.7m.

Revenue during the year increased by 24.3 per cent, from £73.5m to £91.4m.

“In terms of milestones, we opened our 100th club in 2017 and recorded our highest ever opening-day membership," said Treharne.

“We also had a record 26.7 million gym visits during 2017 – up from 21.7 million in 2016 – and achieved the busiest day ever in one of our gyms, with 2,364 people visiting in a 24-hour period.”

He said these strong results show the company's strategy of focusing on member satisfaction is highly effective.

“Member engagement is big for us and it starts with the induction process,” he said. “It's encouraging to see our average membership tenure has gone from 8.9 months to 10.1 months over the last two years, so members are staying longer in their first period of membership.

“Another measure of our success is the fact we won the FEEFO Trusted Service Award and have held that for the last two years – that’s a clear indication of member satisfaction.”

Another customer service initiative, the premium Live It membership option, has been piloted across 44 sites in the South East and Treharne says a nationwide rollout will be undertaken this year.

Live It membership costs £19.98, compared with £14.99 for a basic membership.

It offers three add-ons – the option to use more than one gym, a Bring a Friend programme, and the use of FitQuest fitness and body composition analysers.

The company is committed to using initiatives like Live It to drive new growth in the mature parts of the estate where it reported EBITDA dipped very slightly from £476,000 in 2016 to £461,000 in 2017. Treharne says this performance is in line with expectations and ROI on the mature estate remained stable at 32 per cent.

On the development front, the group added 39 new clubs during 2017 – 21 new openings, 18 from the acquisition of Lifestyle Fitness in September and a site from Rush Fitness in December.

Looking ahead, Treharne expects to open another 15-20 new clubs during 2018, but says the company is also looking out for further acquisitions.

When it comes to property investment, the group has so far converted eight of the Lifestyle sites, with work currently underway on two further properties.

According to Treharne, strong results at the converted clubs have resulted in a decision to press ahead and convert the remaining eight locations, with that announcement being made today, (20 March 2018) along with the 2017 financial results.

“We’re encouraged by the results in the clubs we've converted so far and will look to overhaul the remaining eight clubs by September 2018,” he said.

Where Lifestyle clubs have had a full overhaul, been rebranded and refurbished, adopted the Gym Group pricing model and moved to 24/7 operation, Treharne says an increase in membership of 10.8 per cent is being achieved.

Where the new pricing model has been introduced in advance of a more comprehensive overhaul, this has still led to an increase of 5 per cent in the number of members.

The Gym Group now operates 130 sites and has 607,000 members, an increase of 35.5 per cent on 2016.

Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
The Gym Group has posted record revenues and profits as it strengthens its position in the UK’s low-cost fitness sector.
HAF,FIT,IND,PTS,PHR
THUMB25687_221368.jpg
Latest News
Temporary measures brought in to support businesses in the UK from insolvency during the pandemic ...
Latest News
Nadine Dorries has replaced Oliver Dowden as the Secretary of State for Digital, Media, Culture ...
Latest News
In a major move against the gym market, Apple has revealed a number of upgrades ...
Latest News
Physical activity professionals in England will soon be able to access free, one-to-one learning with ...
Latest News
Fitness equipment giant Nautilus has acquired VAY, a firm specialising in AI and motion technology. ...
Latest News
An award celebrating outstanding individuals in the fitness sector is to be named in honour ...
Latest News
David Lloyd Leisure (DLL) has reorganised its top team in order to expand its estate ...
Latest News
Downtown Miami’s upcoming mixed-use development Legacy Hotel & Residences has signed a joint venture deal ...
HCM Magazine
Statistics
Hybrid work practices are seeing people combining commuting with working from home – gym operators must ensure they can match this new behaviour
HCM Magazine
Supplier launch
Life Fitness introduces Integrity SL, the next-generation LED console with intuitive functionality and digital connectivity
HCM Magazine
Sponsored
Billed as the ‘2021 Experience Tour’, Egym has taken its connected gym floor experience on the road around the UK
HCM Magazine
HCM People
We first started talking to KSL over two years ago, so this was not a rushed partnership
HCM Magazine
Policy
Generations rarely have the opportunity to reset public opinion and effect behaviour change for good, but post-pandemic two unequal movements with a lot in common will be the focus of governments, says David Minton
HCM Magazine
Tokyo Olympics
GLL is best known for running leisure facilities on behalf of local authorities across the UK, but a lesser-known part of its remit is its GLL Sport Foundation which supports Olympic hopefuls. Liz Terry finds out more
HCM Magazine
Sponsored
Andy Janes and Jamie Whisken explain the vision behind R1SE Bournemouth, and why Technogym was their choice of partner in delivering their unique fusion boutique
HCM Magazine
HCM magazine
The appetite for health clubs is strong among consumers and investors – to take advantage of this, operators must figure out how to meet key challenges in operationally sustainable ways
HCM magazine
Fuel the debate about issues and opportunities across the industry. We’d love to hear from you – [email protected]
HCM magazine
Running booms when health clubs and gyms are closed. Could this enthusiasm result in treadmill training becoming the new spinning? Kath Hudson reports
Featured supplier news
Featured supplier news: EMS personal training: shockingly simple
People's fitness goals are extremely diverse – ranging from an elite athlete focused on the next goal to someone who dislikes all activity due to chronic back pain.
Featured supplier news
Featured supplier news: Uptivo: Individual and group heart rate tracking
Uptivo is an all-in-one digital solution for fitness clubs, fitness boutique studios and personal trainers that provides powerful tools to schedule activities, manage member payments, and monitor heart rate both for remote and on-site classes.
Featured operator news
Featured operator news: Everyone Active bolsters Everyone on Demand and enters second year with five new partnerships
Everyone Active has signed a number of new deals which will see the operator strengthen its digital product offering, Everyone on Demand.
Featured operator news
Featured operator news: Being active helps Parkwood Leisure customers save the NHS £16m
Parkwood Leisure, one of the UK’s leading public leisure facilities operators, helped prevent more than 7,000 cases of stroke, dementia, depression and type 2 diabetes in 2019, saving the NHS £16 million, a new social value report has shown.
Company profiles
Company profile: Matrix Fitness
Matrix provides innovative commercial fitness equipment to facilities in all market sectors including private health ...
Company profiles
Company profile: Magicline GmbH
For more than 30 years, Magicline has been driving the digitalisation of the fitness industry ...
Supplier Showcases
Supplier showcase - Gympass
Catalogue Gallery
Click on a catalogue to view it online
Directory
Independent service & maintenance
Servicesport UK Limited: Independent service & maintenance
Spa software
SpaBooker: Spa software
Management software
Premier Software Solutions: Management software
Uniforms
Service Sport: Uniforms
Hydrotherapy / spa fragrances
Kemitron GmbH: Hydrotherapy / spa fragrances
Whole body cryotherapy
Art of Cryo: Whole body cryotherapy
Salt therapy products
Himalayan Source: Salt therapy products
Lockers/interior design
Fitlockers: Lockers/interior design
Fitness equipment
Precor: Fitness equipment
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Property & Tenders
Welwyn Garden City
Welwyn Hatfield Borough Council
Property & Tenders
Newport, Shropshire
Lilleshall Sports Academy
Property & Tenders
Diary dates
18-19 Sep 2021
Locations worldwide,
Diary dates
21-24 Sep 2021
Messe Stuttgart, Germany
Diary dates
13-14 Oct 2021
Online,
Diary dates
01-03 Feb 2022
Coventry Building Society Arena, Coventry, United Kingdom
Diary dates
07-10 Apr 2022
Exhibition Centre , Cologne, Germany
Diary dates
15-16 Jun 2022
ExCeL London, London, United Kingdom
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates

News

The Gym Group ‘still breaking records’ as profits and revenue increase

The Gym Group has posted record revenues and profits as it strengthens its position in the UK’s low-cost fitness sector.

Speaking to Health Club Management, CEO John Treharne said: “The year was one of many milestones for the Gym Group. It’s great to see we’re still breaking records after 10 years."

Reporting results for the year ending 31 December 2017, the company posted pre-tax profits (EBITDA) of £28m, an increase of 23.2 per cent on the 2016 figure of £22.7m.

Revenue during the year increased by 24.3 per cent, from £73.5m to £91.4m.

“In terms of milestones, we opened our 100th club in 2017 and recorded our highest ever opening-day membership," said Treharne.

“We also had a record 26.7 million gym visits during 2017 – up from 21.7 million in 2016 – and achieved the busiest day ever in one of our gyms, with 2,364 people visiting in a 24-hour period.”

He said these strong results show the company's strategy of focusing on member satisfaction is highly effective.

“Member engagement is big for us and it starts with the induction process,” he said. “It's encouraging to see our average membership tenure has gone from 8.9 months to 10.1 months over the last two years, so members are staying longer in their first period of membership.

“Another measure of our success is the fact we won the FEEFO Trusted Service Award and have held that for the last two years – that’s a clear indication of member satisfaction.”

Another customer service initiative, the premium Live It membership option, has been piloted across 44 sites in the South East and Treharne says a nationwide rollout will be undertaken this year.

Live It membership costs £19.98, compared with £14.99 for a basic membership.

It offers three add-ons – the option to use more than one gym, a Bring a Friend programme, and the use of FitQuest fitness and body composition analysers.

The company is committed to using initiatives like Live It to drive new growth in the mature parts of the estate where it reported EBITDA dipped very slightly from £476,000 in 2016 to £461,000 in 2017. Treharne says this performance is in line with expectations and ROI on the mature estate remained stable at 32 per cent.

On the development front, the group added 39 new clubs during 2017 – 21 new openings, 18 from the acquisition of Lifestyle Fitness in September and a site from Rush Fitness in December.

Looking ahead, Treharne expects to open another 15-20 new clubs during 2018, but says the company is also looking out for further acquisitions.

When it comes to property investment, the group has so far converted eight of the Lifestyle sites, with work currently underway on two further properties.

According to Treharne, strong results at the converted clubs have resulted in a decision to press ahead and convert the remaining eight locations, with that announcement being made today, (20 March 2018) along with the 2017 financial results.

“We’re encouraged by the results in the clubs we've converted so far and will look to overhaul the remaining eight clubs by September 2018,” he said.

Where Lifestyle clubs have had a full overhaul, been rebranded and refurbished, adopted the Gym Group pricing model and moved to 24/7 operation, Treharne says an increase in membership of 10.8 per cent is being achieved.

Where the new pricing model has been introduced in advance of a more comprehensive overhaul, this has still led to an increase of 5 per cent in the number of members.

The Gym Group now operates 130 sites and has 607,000 members, an increase of 35.5 per cent on 2016.

Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
The Gym Group has posted record revenues and profits as it strengthens its position in the UK’s low-cost fitness sector.
HAF,FIT,IND,PTS,PHR
THUMB25687_221368.jpg

News

Temporary measures brought in to support businesses in the UK from insolvency during the pandemic
Nadine Dorries has replaced Oliver Dowden as the Secretary of State for Digital, Media, Culture
In a major move against the gym market, Apple has revealed a number of upgrades
Physical activity professionals in England will soon be able to access free, one-to-one learning with
Fitness equipment giant Nautilus has acquired VAY, a firm specialising in AI and motion technology.
An award celebrating outstanding individuals in the fitness sector is to be named in honour
Innovatise UK Ltd
Innovatise UK Ltd
Power Plate has teamed up with Myzone to provide its community with new class experiences
David Lloyd Leisure (DLL) has reorganised its top team in order to expand its estate
Downtown Miami’s upcoming mixed-use development Legacy Hotel & Residences has signed a joint venture deal
Colin Waggett has revealed that the recent deal, which saw KSL Capital Partners acquire a
3d Leisure has acquired franchised studio operator Yourzone45 from Elms Fitness Group for an undisclosed
A new, one-day conference will create a platform for a debate on how the global
The Gym Group says it intends to exploit "the most favourable property market in its
Les Mills
Les Mills
Uptivo is an all-in-one digital solution for fitness clubs, fitness boutique studios and personal trainers
New data from the ukactive Research Institute shows that for every 100,000 visits to UK
The basal metabolic rate at which a body burns calories peaks at a much earlier
Rainer Schaller's RSG Group has set 20 September as the opening date for its first
Fitness is the world's most popular physical activity and more than 50 per cent of
Shares in Peloton have fallen after the company revealed fourth-quarter losses. It also said that
PureGym says it is looking to expand its operations beyond Europe, after experiencing a strong
Life Fitness (UK) Ltd
Life Fitness (UK) Ltd
As Surge expands its offer with the launch of a third dedicated Electronic Muscle Stimulation
Johnson Health Tech (JHT) has acquired its distributor, Matrix Fitness South Africa. Following the deal,
A consultation has been launched to review the current provision of fitness and leisure facilities
Miha Bodytec GmbH
Miha Bodytec GmbH
1 - 20 of 12,018
HCM Magazine
Statistics
Hybrid work practices are seeing people combining commuting with working from home – gym operators must ensure they can match this new behaviour
HCM Magazine
Supplier launch
Life Fitness introduces Integrity SL, the next-generation LED console with intuitive functionality and digital connectivity
HCM Magazine
Sponsored
Billed as the ‘2021 Experience Tour’, Egym has taken its connected gym floor experience on the road around the UK
HCM Magazine
HCM People
We first started talking to KSL over two years ago, so this was not a rushed partnership
HCM Magazine
Policy
Generations rarely have the opportunity to reset public opinion and effect behaviour change for good, but post-pandemic two unequal movements with a lot in common will be the focus of governments, says David Minton
HCM Magazine
Tokyo Olympics
GLL is best known for running leisure facilities on behalf of local authorities across the UK, but a lesser-known part of its remit is its GLL Sport Foundation which supports Olympic hopefuls. Liz Terry finds out more
HCM Magazine
Sponsored
Andy Janes and Jamie Whisken explain the vision behind R1SE Bournemouth, and why Technogym was their choice of partner in delivering their unique fusion boutique
HCM Magazine
HCM magazine
The appetite for health clubs is strong among consumers and investors – to take advantage of this, operators must figure out how to meet key challenges in operationally sustainable ways
HCM magazine
Fuel the debate about issues and opportunities across the industry. We’d love to hear from you – [email protected]
HCM magazine
Running booms when health clubs and gyms are closed. Could this enthusiasm result in treadmill training becoming the new spinning? Kath Hudson reports
HCM magazine
HCM people

David Beckham

Global partner, F45
This partnership with F45 is an exciting business venture for me
HCM magazine
The speed of the bounceback has been staggering. By the end of July, we’d regained our pre-pandemic membership levels
HCM magazine
Booming membership sales, busy suburban clubs and members visiting during the working day. Operators are reporting it’s good to be back. Kath Hudson finds out what business has been like since the re-set button was pressed
HCM magazine
The Gym Group has taken its digital hybrid strategy full circle, piloting in-gym workout pods and studios with its home workout delivery partner, Fiit. HCM talks to the team driving the project
HCM magazine
Dr Davina Deniszczyc talks us through the findings of the first Nuffield Healthier Nation Index, which has benchmarked activity levels and attitudes to exercise among the UK population
HCM magazine
Changes to DNA which occur during exercise give protection against a wide range of diseases, according to new research from the Univesity of Copenhagen
HCM magazine
Featured supplier news
Featured supplier news: EMS personal training: shockingly simple
People's fitness goals are extremely diverse – ranging from an elite athlete focused on the next goal to someone who dislikes all activity due to chronic back pain.
Featured supplier news
Featured supplier news: Uptivo: Individual and group heart rate tracking
Uptivo is an all-in-one digital solution for fitness clubs, fitness boutique studios and personal trainers that provides powerful tools to schedule activities, manage member payments, and monitor heart rate both for remote and on-site classes.
Featured operator news
Featured operator news: Everyone Active bolsters Everyone on Demand and enters second year with five new partnerships
Everyone Active has signed a number of new deals which will see the operator strengthen its digital product offering, Everyone on Demand.
Featured operator news
Featured operator news: Being active helps Parkwood Leisure customers save the NHS £16m
Parkwood Leisure, one of the UK’s leading public leisure facilities operators, helped prevent more than 7,000 cases of stroke, dementia, depression and type 2 diabetes in 2019, saving the NHS £16 million, a new social value report has shown.
Company profiles
Company profile: Matrix Fitness
Matrix provides innovative commercial fitness equipment to facilities in all market sectors including private health ...
Company profiles
Company profile: Magicline GmbH
For more than 30 years, Magicline has been driving the digitalisation of the fitness industry ...
Supplier Showcases
Supplier showcase - Gympass
Catalogue Gallery
Click on a catalogue to view it online
Directory
Independent service & maintenance
Servicesport UK Limited: Independent service & maintenance
Spa software
SpaBooker: Spa software
Management software
Premier Software Solutions: Management software
Uniforms
Service Sport: Uniforms
Hydrotherapy / spa fragrances
Kemitron GmbH: Hydrotherapy / spa fragrances
Whole body cryotherapy
Art of Cryo: Whole body cryotherapy
Salt therapy products
Himalayan Source: Salt therapy products
Lockers/interior design
Fitlockers: Lockers/interior design
Fitness equipment
Precor: Fitness equipment
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Property & Tenders
Welwyn Garden City
Welwyn Hatfield Borough Council
Property & Tenders
Newport, Shropshire
Lilleshall Sports Academy
Property & Tenders
Diary dates
18-19 Sep 2021
Locations worldwide,
Diary dates
21-24 Sep 2021
Messe Stuttgart, Germany
Diary dates
13-14 Oct 2021
Online,
Diary dates
01-03 Feb 2022
Coventry Building Society Arena, Coventry, United Kingdom
Diary dates
07-10 Apr 2022
Exhibition Centre , Cologne, Germany
Diary dates
15-16 Jun 2022
ExCeL London, London, United Kingdom
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates
Search news, features & products:
Find a supplier:
FIBO Exhibition
FIBO Exhibition