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Total Fitness memberships help boost revenues

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Member sales and retention helped revenues at Total Fitness Health Clubs Ltd grow by 8 per cent in the year to 31 December 2015, according to the gym chain's latest accounts.

The 12-month trading results show that revenues stood at £33.77m, up from £31.31m in 2014.

The accounts of Total Fitness, which operates 17 leisure clubs in the north of England and north Wales, also showed earnings before tax, depreciation and amortisation increased by 19 per cent to £5m in 2015, up from £4.2m in 2014.

The chain said growth was driven by new member sales and retention levels, which resulted in membership increasing by 9 per cent to more than 90,000.

In addition, other revenue streams performed well, including the chain’s tie-up with Olympic stars Becky Adlington and Beth Tweddle, who deliver children’s swimming and gymnastics lessons respectively. 

In March 2015, a management buy-out of Total Fitness took place, which saw NorthEdge Capital, RooGreen Ventures and the management team invest into the business.

 A £15m-plus investment programme in facilities and health and fitness products is ongoing, with the chain investing in a new club in Wrexham, Wales, in April 2015.

 Richard Millman, Total Fitness chief executive, said: “Our continued growth over the last 12 months is the result of the focus, commitment and hard work of our colleagues across the business. Total Fitness continues to differentiate itself versus the competition in a strongly polarised market and we continue to pursue our strategic plan to be the health club of choice for consumers and families in the North.”

 Ray Stenton, partner at NorthEdge and non-executive director at Total Fitness, said: “Since partnering with Total Fitness in March 2015, we have been impressed by the progress made to date. Growth has been achieved through major investment across all sites, creating a fitness environment to suit all ages and needs.

"This has resulted in growth in membership levels while also improving overall member retention. The focus for the next 12 months will be on maintaining the highest standards, continuing to improve our offering for our members and targeting new clubs across the north of England and Wales.”

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Member sales and retention helped revenues at Total Fitness Health Clubs Ltd grow by 8 per cent in the year to 31 December 2015, according to the gym chain's latest accounts.
HAF
Richard Millman, Total Fitness chief executive, says the chain 'continues to differentiate itself in a strongly polarised market'.
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