Gym Group on course to meet targets for 2017
by Deven Pamben | 12 Jan 2017
John Treharne says the pipeline for new sites in 2017 is the strongest the company has ever had.
The Gym Group is on course to meet its target of new openings for 2017, with 17 sites in the pipeline.
In a pre-close trading statement, the low-cost gym announced it was on course to meet towards the top end of its guidance range of 15 to 20 openings each year.
Fifteen new gyms opened in 2016, bringing the total estate to 89.
Of the four sites acquired from Fitness First UK in September 2016, one site has opened, two sites are being fitted out and one will shortly have its lease completed.
The statement said for the year to 31 December 2016, total revenue growth was 22.6 per cent for the year versus 2015.
Year-end net debt was down to £5.2m, from £7.1m in 2015.
Membership at the end of 2016 stood at 448,000, up 19.1 per cent from 376,000 at the end of December 2015. Average members for 2016 was 429,000, up 20.8 per cent from 355,000 in 2015.
John Treharne, Gym Group chief executive officer, said: "This has been another year of rapid progress growing the number of sites in our estate by over 20 per cent and achieving our financial goals. Our 2016 openings are performing well.
"Our low-cost highly affordable model, with a known and predictable cost base, is arguably even more relevant in today's uncertain economic climate. Our pipeline for new sites in 2017 is the strongest we have ever had with strong cash generation to fund future openings.
"We remain excited about the growth opportunities that our low-cost model brings and look forward to continued profitable progress in 2017."
The company expects to announce its preliminary results in mid-March.
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The Gym Group is on course to meet its target of new openings for 2017, with 17 sites in the pipeline. In a pre-close trading statement, the low-cost gym announced it was on course to meet towards the top end of its guidance range of 15 to 20 openings each year. Fifteen new gyms opened in 2016, bringing the total estate to 89. Of the four sites acquired from Fitness
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