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 International
Les Mills International
Les Mills International
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

Gym Group bullish about prospects – on track for £45m EBITDA in 2022

The Gym Group saw its membership grow by 10 per cent during the first six months of 2022 vs 2021
Revenues jumped to £84.2m in H1 2021 – a 187 per cent increase on the first half of the COVID-19 affected 2021. EBITDA was £17m in first half of 2022
The low cost operator, which currently has 215 clubs, is on target to reach 300 by the end of 2025 with 28 opening this year
The company is back to 90 per cent of pre-pandemic numbers, with 790,000 members at 30 June 2022, up from 718,000 in December 2021

The Gym Group saw its membership grow by 10 per cent during the first six months of 2022 to 790,000, with revenues jumping to £84.2m – a 187 per cent increase on the first half of the COVID-19-affected 2021, giving an EBITDA of £17m.

Analysts are predicting a full-year EBITDA of around £45m.

The low-cost operator, which currently has 215 clubs, said it was making "excellent progress" with its recently announced growth strategy.

The group has a target of reaching 300 gyms by the end of 2025, along with an EBITDA between £95-£105m.

It has opened 11 gyms since December 2021, including a 21,000sq ft location in Paddington Basin, London and is on track to launch 28 new sites in total by the end of this year.

Leases for all sites opening in H2 have been exchanged.

Only one site has closed, with the company exercising a break in its lease on a gym at Northend Stadium, Preston, UK, due to access being challenging on match days.

The company now has a range of size models from 7,000sq ft to 21,000sq ft that it can implement depending on catchment.

CEO Richard Darwin told HCM that memberships are now at 90 per cent of pre-pandemic levels when calculated on a like-for-like estate basis and that the company has reduced the number of members it allows at certain sites to improve the member experience as part of implementing competitive price increases.

The move – which is based on offering the most 'exceptional value' in the market – has seen the gap between The Gym Group's average prices and those of the competition narrow from £4/month to between £2.70 and £3.30, with the average price remaining under £21/month.

Darwin said trading has been buoyant, with Monday 5 June was the company's highest-ever acquisition day.

He said the company is buffered against energy price increases, with the whole of 2022 hedged and 70 per cent of 2023 covered, making it "very well positioned to withstand whatever the economy throws at it". The cost of living crisis is not expected to have an impact, given the value-for-money proposition and consumers' commitment to their health and fitness.

He said the company expects to have an exceptionally strong H3, given how many gym locations are near universities and colleges, where students are now returning to face-to-face lectures.

The positive results come ahead of a new brand identity being launched later this month (August 2022), which will see the rebranding of The Gym Group's estate and website, while a new tech platform has also launched.

“We're pleased with our financial and operational performance during the first half of 2022, demonstrating the resilience of our business," Darwin said.

"People across the country rely on our gyms for their physical and mental health, and demand for our affordable fitness experience is recovering well.

"As we expand, we welcome more members in communities across the UK, and we are making further progress with our ambitious growth plan.

"Our new technology platform, combined with our brand relaunch later this month, positions us well to capture the demand for affordable fitness and take advantage of this once-in-a-generation opportunity for growth,” he said.

Related news

The Gym Group forecasts EBITDA of up to £105m by 2025

25 May 2022
The Gym Group’s (TGG) plans and profit forecasts were presented to analysts and investors during ...
Latest News
A new open water swimming venue will has been launched in the heart of Canary ...
Latest News
Peter Roberts, former CEO and founder of Pure Gym, has invested in Another Round, a ...
Latest News
Fitness markets around the globe are demonstrating "reassuring signs of recovery" following the pandemic disruptions ...
Latest News
Mark Sesnan, CEO of GLL, has pushed back on Tower Hamlet Council’s decision to take ...
Latest News
Ohm Fitness, a new franchised studio concept, has opened its first location in Scottsdale, Arizona. ...
Latest News
Easton Leisure Centre in the UK has announced a 100 per cent reduction in heating ...
Latest News
The Gym Group saw its membership grow by 10 per cent during the first six ...
Latest News
Mindbody has announced that Fritz Lanman will become the company’s new CEO from 3 September ...
HCM Magazine
Policy
Measuring the impact of funding locally outside specific projects was also very limited
HCM Magazine
Strength
Creators of strength-training kit have their finger on the pulse when it comes to delivering on consumer engagement. Frances Marcellin asks them to highlight emerging trends
HCM Magazine
Sponsored
BXR is one of the most exciting brands in the fitness industry. Co-founder Alex Nicholl gives us a glimpse behind the scenes
HCM Magazine
Research
Doing the recommended amount of exercise during weekends is just as beneficial as spreading physical activity out across the week, a new study has found
HCM Magazine
Evidence
Tom Walker investigates how £2.2bn worth of London 2012 legacy investment has failed to empower teachers
HCM Magazine
Editor's letter
The urgent need to represent the industry to governments globally has led to the commissioning of a new report into its impact on GDP by the Global Health and Fitness Alliance
HCM Magazine
Interview
The MD of Everlast Gyms is steering the business through a process of unification, rebranding and ‘elevation’, rolling out a hybrid model that he believes will take it to UK number one status. He speaks to Kate Cracknell
HCM Magazine
HCM magazine
HCM People

Shannon Hudson

Founder and CEO, 9Round
“I wanted to bring real kickbox training to the average person in the most convenient format, while taking out the worst part – getting punched in the face!”
HCM magazine
Are you on board with the metaverse or is it something to leave to the tech team? Kath Hudson investigates
HCM magazine
For years the sector has used participation numbers as a measure of success, but policymakers are now calling for a change to measuring outcomes, so value can be established
Featured supplier news
Featured supplier news: EGYM: A digital ecosystem that works for everyone
EGYM has been pioneering the connected gym floor for more than a decade, partnering with operators and other third-party integrations, to create a free-flowing training environment that places the member at the very centre of the experience.
Featured supplier news
Featured supplier news: EGYM announces integration with software provider Fisikal
EGYM has announced an integration with a leading UK-based software company Fisikal to enhance its capabilities to serve the needs of enterprise customers running multi-site operations.
Featured operator news
Featured operator news: New £42m Moorways Sports Village to open on 21 May
Everyone Active will open Moorways Sports Village to the public on Saturday 21 May with a grand opening weekend – in time for the half term holidays.
Featured operator news
Featured operator news: Parkwood Leisure celebrates four award wins and named Outstanding Organisation of the Year at the 2022 ukactive Awards
It was a night to remember at the 2022 ukactive Awards for Parkwood Leisure, as the leisure facilities operator picked up four awards.
Video Gallery
Total Vibration Solutions / Floors 4 Gyms / TVS Sports Surfaces
Mindbody, Inc
Mindbody, Inc
Company profiles
Company profile: miha bodytec
Founded in 2007 in Gersthofen, Germany, miha bodytec is the market-leading supplier of Electro Muscle ...
Company profiles
Company profile: Matrix Fitness
Matrix provides innovative commercial fitness equipment to facilities in all market sectors including private health ...
Supplier Showcases
Supplier showcase - A matched philosophy
Catalogue Gallery
Click on a catalogue to view it online
Featured press releases
Featured press releases: Les Mills and Fitness Time unveil landmark Saudi Arabia partnership
Saudi Arabia’s largest club chain to offer world-leading Les Mills workouts across 151 sites, with plans to roll out across its women’s clubs from August 2022.
Featured press releases
Featured press releases: Myzone U education and Master Trainer sessions accredited by EREPS
In a move to continually raise standards of education within the physical activity professional space, the Myzone U platform and Myzone’s Master Trainer courses have been awarded Approved Training Status by the European Register of Exercise Professionals (EREPS).
Directory
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Spa software
SpaBooker: Spa software
Lockers/interior design
Crown Sports Lockers: Lockers/interior design
Architects/designers
Zynk Design Consultants: Architects/designers
On demand
Fitness On Demand: On demand
Fitness equipment
A Panatta Sport Srl: Fitness equipment
Whole body cryotherapy
Art of Cryo: Whole body cryotherapy
Skincare
Comfort Zone - Davines S.p.A: Skincare
Salt therapy products
Himalayan Source: Salt therapy products
Management software
Premier Software Solutions: Management software
Property & Tenders
Pendine Sands, Carmarthenshire
Carmarthenshire County Council
Property & Tenders
Runcorn
Halton Borough Council
Property & Tenders
Diary dates
12-13 Sep 2022
Wyndham Lake Buena Vista Disney Springs® Resort, Lake Buena Vista, United States
Diary dates
21-21 Sep 2022
Various, London, United Kingdom
Diary dates
25-28 Oct 2022
Messe Stuttgart, Germany
Diary dates
25-28 Oct 2022
Ibiza, Ibiza, Spain
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates
17-18 Mar 2023
Tobacco Dock, London, United Kingdom
Diary dates

News

Gym Group bullish about prospects – on track for £45m EBITDA in 2022

The Gym Group saw its membership grow by 10 per cent during the first six months of 2022 vs 2021
Revenues jumped to £84.2m in H1 2021 – a 187 per cent increase on the first half of the COVID-19 affected 2021. EBITDA was £17m in first half of 2022
The low cost operator, which currently has 215 clubs, is on target to reach 300 by the end of 2025 with 28 opening this year
The company is back to 90 per cent of pre-pandemic numbers, with 790,000 members at 30 June 2022, up from 718,000 in December 2021

The Gym Group saw its membership grow by 10 per cent during the first six months of 2022 to 790,000, with revenues jumping to £84.2m – a 187 per cent increase on the first half of the COVID-19-affected 2021, giving an EBITDA of £17m.

Analysts are predicting a full-year EBITDA of around £45m.

The low-cost operator, which currently has 215 clubs, said it was making "excellent progress" with its recently announced growth strategy.

The group has a target of reaching 300 gyms by the end of 2025, along with an EBITDA between £95-£105m.

It has opened 11 gyms since December 2021, including a 21,000sq ft location in Paddington Basin, London and is on track to launch 28 new sites in total by the end of this year.

Leases for all sites opening in H2 have been exchanged.

Only one site has closed, with the company exercising a break in its lease on a gym at Northend Stadium, Preston, UK, due to access being challenging on match days.

The company now has a range of size models from 7,000sq ft to 21,000sq ft that it can implement depending on catchment.

CEO Richard Darwin told HCM that memberships are now at 90 per cent of pre-pandemic levels when calculated on a like-for-like estate basis and that the company has reduced the number of members it allows at certain sites to improve the member experience as part of implementing competitive price increases.

The move – which is based on offering the most 'exceptional value' in the market – has seen the gap between The Gym Group's average prices and those of the competition narrow from £4/month to between £2.70 and £3.30, with the average price remaining under £21/month.

Darwin said trading has been buoyant, with Monday 5 June was the company's highest-ever acquisition day.

He said the company is buffered against energy price increases, with the whole of 2022 hedged and 70 per cent of 2023 covered, making it "very well positioned to withstand whatever the economy throws at it". The cost of living crisis is not expected to have an impact, given the value-for-money proposition and consumers' commitment to their health and fitness.

He said the company expects to have an exceptionally strong H3, given how many gym locations are near universities and colleges, where students are now returning to face-to-face lectures.

The positive results come ahead of a new brand identity being launched later this month (August 2022), which will see the rebranding of The Gym Group's estate and website, while a new tech platform has also launched.

“We're pleased with our financial and operational performance during the first half of 2022, demonstrating the resilience of our business," Darwin said.

"People across the country rely on our gyms for their physical and mental health, and demand for our affordable fitness experience is recovering well.

"As we expand, we welcome more members in communities across the UK, and we are making further progress with our ambitious growth plan.

"Our new technology platform, combined with our brand relaunch later this month, positions us well to capture the demand for affordable fitness and take advantage of this once-in-a-generation opportunity for growth,” he said.

Related news

The Gym Group forecasts EBITDA of up to £105m by 2025

25 May 2022
The Gym Group’s (TGG) plans and profit forecasts were presented to analysts and investors during ...

News

A new open water swimming venue will has been launched in the heart of Canary
Peter Roberts, former CEO and founder of Pure Gym, has invested in Another Round, a
Fitness markets around the globe are demonstrating "reassuring signs of recovery" following the pandemic disruptions
Mark Sesnan, CEO of GLL, has pushed back on Tower Hamlet Council’s decision to take
Ohm Fitness, a new franchised studio concept, has opened its first location in Scottsdale, Arizona.
Easton Leisure Centre in the UK has announced a 100 per cent reduction in heating
Crown Sports Lockers
Crown Sports Lockers
Expert comment from Ernst De Neef, CEO, Funxtion In just over two years, the fitness
Mindbody has announced that Fritz Lanman will become the company’s new CEO from 3 September
Parkour Generations has joined forces with Gymbox to bring parkour into the UK’s mainstream fitness
Amazon has acquired primary healthcare organisation One Medical in a US$3.9bn deal that will see
Nearly half (47 per cent) of men employed by fitness companies work in leadership roles
Scandinavian fitness chain SATS has reported Q2 results showing a 53 per cent increase in
The World Active Forum (WAF) – a new network of national fitness associations and organisations
Fitness On Demand
Fitness On Demand
EGYM has been pioneering the connected gym floor for more than a decade, partnering with
Mark Wahlberg- and David Beckham-backed F45 Training has announced a reduction in its core workforce
Total Fitness says its membership numbers are back to pre-COVID-19 levels. With fifteen clubs in
Edinburgh’s new Meadowbank Sports Centre has opened after a five-year, £47m build which saw the
UK Active and Nike have launched the 2022 Open Doors programme. The scheme provides children
RSG Group has launched the flagship club for Heimat – the gym giant’s new fitness
Twenty Four, a new automated gym and sports facility, where all equipment is self-powered, has
Les Mills
Les Mills
Questex’s Sibec Europe-UK, Europe’s leading hosted buyer event for the fitness industry, will take place
Community benefit society Leisure in the Community (LITC) and 1Life Leisure Management Solutions (1Life) have
Peloton has announced that it will exit all owned manufacturing operations, cease making its own
1 - 20 of 12,300
HCM Magazine
Policy
Measuring the impact of funding locally outside specific projects was also very limited
HCM Magazine
Strength
Creators of strength-training kit have their finger on the pulse when it comes to delivering on consumer engagement. Frances Marcellin asks them to highlight emerging trends
HCM Magazine
Sponsored
BXR is one of the most exciting brands in the fitness industry. Co-founder Alex Nicholl gives us a glimpse behind the scenes
HCM Magazine
Research
Doing the recommended amount of exercise during weekends is just as beneficial as spreading physical activity out across the week, a new study has found
HCM Magazine
Evidence
Tom Walker investigates how £2.2bn worth of London 2012 legacy investment has failed to empower teachers
HCM Magazine
Editor's letter
The urgent need to represent the industry to governments globally has led to the commissioning of a new report into its impact on GDP by the Global Health and Fitness Alliance
HCM Magazine
Interview
The MD of Everlast Gyms is steering the business through a process of unification, rebranding and ‘elevation’, rolling out a hybrid model that he believes will take it to UK number one status. He speaks to Kate Cracknell
HCM Magazine
HCM magazine
HCM People

Shannon Hudson

Founder and CEO, 9Round
“I wanted to bring real kickbox training to the average person in the most convenient format, while taking out the worst part – getting punched in the face!”
HCM magazine
Are you on board with the metaverse or is it something to leave to the tech team? Kath Hudson investigates
HCM magazine
For years the sector has used participation numbers as a measure of success, but policymakers are now calling for a change to measuring outcomes, so value can be established
HCM magazine
RSG Group has opened Heimat, a members-only concept fitness club and a new way to ‘work out and live well’, as Liz Terry reports
HCM magazine
From VR to personalisation, here’s what we can expect to see in wellness in the coming months, says Lauren McAlister
HCM magazine
HCM People

Grant Campbell

GM, Nobu Hotel London, Portman Square Portman Square
It was important to create a high-end gym that offers as much value to the local community as it does to hotel guests
HCM magazine
We’ve got four boutique partners – Mile High Run Club, Physique 57, Humming Puppy and Fhitting Room
HCM magazine
Colin Milner, CEO of the International Council on Active Aging explains the latest research into opportunities in the active-ageing sector
HCM magazine
Fuel the debate about issues and opportunities across the industry. We’d love to hear from you – [email protected]
HCM magazine
Featured supplier news
Featured supplier news: EGYM: A digital ecosystem that works for everyone
EGYM has been pioneering the connected gym floor for more than a decade, partnering with operators and other third-party integrations, to create a free-flowing training environment that places the member at the very centre of the experience.
Featured supplier news
Featured supplier news: EGYM announces integration with software provider Fisikal
EGYM has announced an integration with a leading UK-based software company Fisikal to enhance its capabilities to serve the needs of enterprise customers running multi-site operations.
Featured operator news
Featured operator news: New £42m Moorways Sports Village to open on 21 May
Everyone Active will open Moorways Sports Village to the public on Saturday 21 May with a grand opening weekend – in time for the half term holidays.
Featured operator news
Featured operator news: Parkwood Leisure celebrates four award wins and named Outstanding Organisation of the Year at the 2022 ukactive Awards
It was a night to remember at the 2022 ukactive Awards for Parkwood Leisure, as the leisure facilities operator picked up four awards.
Video Gallery
Total Vibration Solutions / Floors 4 Gyms / TVS Sports Surfaces
Mindbody, Inc
Mindbody, Inc
Company profiles
Company profile: miha bodytec
Founded in 2007 in Gersthofen, Germany, miha bodytec is the market-leading supplier of Electro Muscle ...
Company profiles
Company profile: Matrix Fitness
Matrix provides innovative commercial fitness equipment to facilities in all market sectors including private health ...
Supplier Showcases
Supplier showcase - A matched philosophy
Catalogue Gallery
Click on a catalogue to view it online
Featured press releases
Featured press releases: Les Mills and Fitness Time unveil landmark Saudi Arabia partnership
Saudi Arabia’s largest club chain to offer world-leading Les Mills workouts across 151 sites, with plans to roll out across its women’s clubs from August 2022.
Featured press releases
Featured press releases: Myzone U education and Master Trainer sessions accredited by EREPS
In a move to continually raise standards of education within the physical activity professional space, the Myzone U platform and Myzone’s Master Trainer courses have been awarded Approved Training Status by the European Register of Exercise Professionals (EREPS).
Directory
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Spa software
SpaBooker: Spa software
Lockers/interior design
Crown Sports Lockers: Lockers/interior design
Architects/designers
Zynk Design Consultants: Architects/designers
On demand
Fitness On Demand: On demand
Fitness equipment
A Panatta Sport Srl: Fitness equipment
Whole body cryotherapy
Art of Cryo: Whole body cryotherapy
Skincare
Comfort Zone - Davines S.p.A: Skincare
Salt therapy products
Himalayan Source: Salt therapy products
Management software
Premier Software Solutions: Management software
Property & Tenders
Pendine Sands, Carmarthenshire
Carmarthenshire County Council
Property & Tenders
Runcorn
Halton Borough Council
Property & Tenders
Diary dates
12-13 Sep 2022
Wyndham Lake Buena Vista Disney Springs® Resort, Lake Buena Vista, United States
Diary dates
21-21 Sep 2022
Various, London, United Kingdom
Diary dates
25-28 Oct 2022
Messe Stuttgart, Germany
Diary dates
25-28 Oct 2022
Ibiza, Ibiza, Spain
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates
17-18 Mar 2023
Tobacco Dock, London, United Kingdom
Diary dates
Search news, features & products:
Find a supplier:
Les Mills International
Les Mills International
Partner sites