The Gym Group acquires four new sites from rival operator
by Deven Pamben | 31 Aug 2016
The four sites are likely to open in Q1 2017
The Gym Group has exchanged contracts to take over four sites from another operator – thought to be Fitness First – as part of its continued growth.
In its interim report for the first six months of 2016, the company said: “As part of our rollout strategy we have recently exchanged contracts on four sites from another operator that meet our acquisition criteria and will be fitted out to our high specifications. The four sites following assignment of the leases, closure and fit out are likely to open in Q1 2017.”
A non-disclosure agreement is in place regarding the acquisition.
As reported in Health Club Management on Sunday, Dave Whelan’s DW Sports is likely to acquire the majority of Fitness First sites, with operators, such as The Gym Group, GLL and others picking up parts of the portfolio.
When The Gym Group chief executive John Treharne was asked by Health Club Management if the sites were being acquired from Fitness First he declined to comment, adding: "Part of our strategy is that we acquire sites from other operators.”
The Gym Group has more than 80 sites nationwide, with six gyms opening so far this year. More are scheduled to meet the 2016 target of 15-20. New sites are due to open in Greater London, including at Sunbury, Lewisham and Dagenham. Openings are also planned for Blackpool, Doncaster, Oldham and Edinburgh.
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.”
The company had a buoyant first six months of the year.
Its results showed that revenue for the first half year of 2016 rose to £36.1m from £28.9m in the same period in 2015, representing a year-on year increase of 25.1 per cent. Results for the six months to 30 June showed that pre-tax profits stood at £3.4m, against a £3.3m loss in the same period last year.
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The Gym Group has exchanged contracts to take over four sites from another operator – thought to be Fitness First – as part of its continued growth. In its interim report for the first six months of 2016, the company said: “As part of our rollout strategy we have recently exchanged contracts on four sites from another operator that meet our acquisition criteria and will be fitted out to our
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