The Gym Group reports record revenues – plans to tackle the impact of Covid-19
by Tom Walker | 19 Mar 2020
The number of members across The Gym Group's estate grew by 9.7 per cent to 794,000
/ The Gym Group
– Richard Darwin
The Gym Group saw revenues and profit increase during 2019, a year in which it opened 20 new gyms, taking the number of sites in its portfolio to 175.
Two of the new locations were the first two "small box" formats, as the budget operator looks to access new markets.
The new openings resulted in the total number of members to grow by 9.7 per cent to 794,000.
Revenue for the year (to 31 December 2019) surged to £153.1m, up from £123.8m in 2018 – an increase of 23.6 per cent. Adjusted profit before tax for the year was £14.0m, up 36.0 per cent from the 2018 figure of £10.3m.
It also revealed that its premium offer, LIVE IT, continues to grow with around 150,000 members now taking up the option – representing 18.9 per cent of the total membership. At the end of 2018, the proportion of members opting for LIVE IT – which offers multiple gym access, unlimited body composition measurements and discounts and perks – was 11.7 per cent of total members.
Despite the strong results, CEO Richard Darwin said the company was now preparing for the negative effects of COVID-19 (Coronavirus).
“While 2019 was another successful year in which we delivered substantial growth in members, revenue and profits, we are now focused on planning for the potential impact on our business of Covid-19," Darwin said.
"To date, we have seen a small impact on trading and all of our gyms remain open.
"We go into a period of anticipated disruption with an established membership base, a cash generative business model and a strong balance sheet. As the scale of the outbreak escalates we have contingency plans in place.
"Our business has a significant reach with over 10 million member visits already this year and our focus is to be in a strong position when we emerge from the Covid-19 disruption to extend access to affordable fitness across the UK."
He added that the company had already launched four new sites since 31 December 2020, increasing the number of gyms to 179.
The Gym Group LIVE IT Richard Darwin COVID-19 Coronavirus17 Jan 2020
The Gym Group plans further expansion as revenues hit £150m mark
29 Aug 2019
Premium memberships provide Gym Group with profit boost as it prepares to launch small-box model
The Gym Group saw revenues and profit increase during 2019, a year in which it opened 20 new gyms, taking the number of sites in its portfolio to 175. Two of the new locations were the first two "small box" formats, as the budget operator looks to access new markets. The new openings resulted in the total number of members to grow by 9.7 per cent to 794,000. Revenue for
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