Revenues up at The Gym Group as integration of easyGym set to begin
by Tom Walker | 29 Aug 2018
The Gym Group saw revenues jump by 36 per cent to £58.3m during the first half of 2018, as it increased the number of clubs in its portfolio to 147.
The company opened six new clubs during the period (six months to 30 June) and also completed the acquisition of easyGym, adding another 13 clubs to its estate. As a result, the number of members increased to 720,000 – up from 508,000 in June 2017.
Profits, however, were hit by both exceptional costs of £1m – mainly due to the easyGym acquisition – and seven months' worth of closures relating to the conversion of 18 Lifestyle Fitness sites, which The Gym Group acquired in September 2017.
As a result, profits were down 14.4 per cent at £5.1m, compared to £5.9m a year before.
Speaking to Leisure Opportunities, CEO John Treharne said that the rebranding of the easyGym clubs will commence as the leases are assigned – and follows on from the successful conversion of the 18 Lifestyle Fitness sites, a process which will be completed this week.
"We'll be implementing the same process with easyGym as we did with Lifestyle," Treharne said. "We already have the development team in place, so there will be a smooth transition."
He added that he expects a "majority" of easyGym estate to be converted by the end of 2018.
Treharne also said that the company will always be open to the opportunity to complete further acquisitions, but that any deals will be in addition to organic growth, which is expected to continue at between 15 and 20 sites a year.
"Acquisitions are part of our roll out programme and I'm sure there will be further opportunities," He said.
Earlier this year, Treharne announced his plans to step down from his role as CEO, with Richard Darwin set to take over the reins in September 2018.
Treharne will remain in the business and on the board as founder director.
The Gym Group John Treharne easyGym
13 Jun 2018
The Gym Group buys up most of easyGym as it pivots to franchising
30 May 2018
John Treharne hands over the reins at The Gym Group
28 Mar 2018
The Gym Group partners with Lifetime to open personal training academy
20 Mar 2018
The Gym Group ‘still breaking records’ as profits and revenue increase
The Gym Group saw revenues jump by 36 per cent to £58.3m during the first half of 2018, as it increased the number of clubs in its portfolio to 147. The company opened six new clubs during the period (six months to 30 June) and also completed the acquisition of easyGym, adding another 13 clubs to its estate. As a result, the number of members increased to 720,000 – up
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