Total Fitness reports encouraging financial results
by Chris Dodd | 08 Aug 2013
Total Fitness says it's turning things around
Total Fitness has filed its consolidated group accounts for 2012, which show an improvement on 2011, with the company’s EBITDA increasing to £2.6m on £29.7m sales
Half-year trading results to June 30th 2013 also show the business has managed to reduce debts by over £3m since January, while also achieving increased levels of profit growth.
Total Fitness membership levels have increased by 5.2 per cent this year. Like-for-like membership growth is understood to be ahead of the sector average and retail industry LFL sales performance so far.
Total Fitness is also pushing ahead with its turnaround strategy and investments are being made to refurbish clubs and develop IT.
The business has just commenced a major refurbishment programme at clubs in Bolton, Whitefield, Huddersfield and Sefton, with further announcements planned for all other clubs.
These developments have been supported by a number of new managerial appointments.
Board changes have also occurred in the last eight months, with Brian Davidson and Warwick Ley (non-executive Chairman and Director) appointed in December 2012, while Richard Millman came in as CEO in February and Andy Mellor as Finance Director in May.
Commenting on the results, Liz Terry, Editorial Director of Health Club Management magazine, said: "A combination of factors hit the health club industry simultaneously – the recession, the disruptive and successful budget gym model and – in the case of Total Fitness – a disproportionate slow-down in the economy in the north of England.
"It's encouraging to hear the company's turning things, around because however competitive the health club operators are with each other, ultimately, it's in everyone's best interests for the sector as a whole to thrive: failure is bad for everyone.
"We expect to see increased innovation and energy in the health club market in the coming year as the economy improves and businesses which were hit by the recession adjust their business models, right themselves and begin to look forward and strive for growth and increased profitability. Run well, health clubs can be very profitable businesses and as a result, our sector can help drive the recovery."
Total Fitness has filed its consolidated group accounts for 2012, which show an improvement on 2011, with the company’s EBITDA increasing to £2.6m on £29.7m sales Half-year trading results to June 30th 2013 also show the business has managed to reduce debts by over £3m since January, while also achieving increased levels of profit growth. Total Fitness membership levels have increased by 5.2 per cent this year. Like-for-like membership growth
HAF,FIT
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