 |
The Gym Group forecasts EBITDA of up to £105m by 2025
25 May 2022
The Gym Group’s (TGG) plans and profit forecasts were presented to analysts and investors during the company’s recent Capital Markets Day.
The event was led by CEO Richard Darwin who said EBITDA is projected to get to £95-105m by 2025, up from £74m in 2019.
Darwin also confirmed that TGG's ambitions to build a 300-strong network are realisable by 2025.
This keeps sight of the company’s previous forecast, where Darwin envisioned a “clear path to 300 sites over the next two to three years”.
The bullish presentation went down well with investors, with brokers tipping the company positively for its 'undervalued structural growth'.
In terms of expansion, 28 further sites will open in 2022, with 61 per cent on retail parks. The next most popular sites are on the high street and adjacent to supermarkets.
Between 25 and 30 clubs are set to launch in 2023 and 2024, with most of these sites already secured.
Darwin said the market currently offers a unique opportunity to accelerate expansion, describing the favourable conditions as 'distress in retail and leisure' – specifically in premium and mid-market sectors, which are providing greater availability of sites at affordable rents – as well as strong and resilient demand for health and fitness from consumers who need low-cost options because of the cost of living squeeze.
He confirmed that in order to optimise revenue going forward, headline prices increased by 8 per cent across 178 sites throughout April as part of a yield management review, with TGG still remaining best value in competing locations when compared with rival clubs.
Existing member renewal prices are being kept below the headline price to reward loyalty and discourage churn.
Membership costs are fluctuating depending on geographical location and whether the club is rural or urban. For example, in South Sunderland, members can sign up for as little as £9.99 per month, but in some areas, such as Oxford and Brighton, the cost can be around £25 per month, with several clubs in London upwards of £35.
Growth in low-cost segments generally is a prevailing trend that shows no sign of abating and is happening in other industries as well as health and fitness. Darwin said a +21 per cent CAGR is typical, compared with only +1 per cent for mid-market and premium businesses. He also noted that budget operators typically outperform the market during downturns.
The company confirmed that its business had transformed since completing an IPO on the London Stock Exchange in November 2015. Highlights include: opening 200 clubs by the end of 2021; launching 104 new sites, with 36 being fast transactions from just four acquisitions; new web and app platforms that enhance members’ experience; and being ranked number 25 in Glassdoor’s top 50 places to work.
It also addressed the new branding and name change from The Gym to The Gym Group which is being rolled out throughout 2022.
New signage will be released in July, the web and app will be rebranded in August and a marketing campaign will launch in September. Darwin expects the new name and look to deliver more awareness for the company and to increase member numbers. The strategy is partly driven by the theory that people are looking for gyms to be friendly, approachable and inclusive.
BACKGROUND
TGG's growth strategy is pitched around the success of three pillars: product and operational delivery, satisfied members and flexible product formats.
The product delivery includes low-cost, no contract membership, free group exercise classes, access to 200 digital classes, gyms with 24/7 access and personal trainer support for members. Satisfaction is based around providing affordable fitness, with 32 per cent of the operator’s offering in the 20 most deprived local authorities, and operational values comprise creating formats that reflect members’ needs, such as app-based workouts and flexible live classes spaces.
According to Darwin, the app improvements, which now include 200 workouts from partner Fiit, a real-time busyness feature to help in-club member flow and contactless entry has won high engagement. Usage and ratings have also increased as it now scores 4.7 on the Apple App Store.
Overall, during Q1 of 2022, there were over 14m gym visits, 19m app sessions and 6.5m web sessions.
Data shows that there continues to be an elevated interest in health and fitness. Referring to Deloitte’s European Health & Fitness Market report – which was analysed in the April 2022 issue of HCM – it showed that fitness frequency is now shown at above pre-COVID levels and expected to increase further. It also observed that the greatest barrier to against people joining a gym is cost.
back
|
| Latest member news |
 |
|
Vision raises the Green Flag once again as nine Redbridge Parks are named best parks across the UK
A record breaking 2208 parks and green spaces across the UK reached the high
standards required for a coveted Green Flag Award in 2022.
read more...
Love talking sport? Tackling dementia, depression and loneliness through the power of sport
Sporting Memories Foundation Scotland in partnership with Edinburgh Leisure will be running a weekly
club, supporting older adults to stay active, connected within their local community, and build amazing
friendships through their common love of sport.
read more...
145 athletes supported by the GLL Sport Foundation head for Birmingham 2022
An impressive 145 past and present athletes supported by the UK’s largest
independent athlete support programme will be competing at the Commonwealth Games
2022 in Birmingham.
read more...
Inverclyde Leisure outpaces the competition for customer experience
Inverclyde Leisure is outpacing the competition when it comes to customer
experience recording a Net Promoter Score (NPS) more than double the national
average.
read more...
Havant and Waterlooville Horizon Leisure Centre celebrates its 25th anniversary
Havant and Waterlooville, 23/05 – ONE of the region’s most loved charities has
hit a major milestone.
read more...
Newport partnership wins national Levelling the Playing Field award
A unique partnership of services in Newport has been given a national award for
the life-changing support it offers local ethnically diverse children.
read more...
New youth leadership award focuses on environment
High Life Highland is launching a new youth leadership award focused on the
environment.
read more...
|
|
Ukrainian sisters skate their way to success thanks to Link Leisure Centre
Two Ukrainian sisters who came to the UK in May have been able to resume their
dream of figure skating success, thanks to a new refugee initiative that offers
free skating memberships at The Link Leisure Centre in Swindon. Now the Riasna
sisters have competed in their first national UK competition.
read more...
Housing Associations collaborate with Newport Live this Summer
Newport Live have an extensive programme of fun activities and events this Summer
for children, young people, and families to take part in!
read more...
Aura’s impact in Flintshire since 2017
As Aura Wales, home to Flintshire’s leisure centres, libraries and heritage
services, approaches its fifth birthday we look back on the charitable
organisation’s highlights and impact over the past five years.
read more...
Care Home on Ice Returns to Forum Ice Arena!
Back in February 2020 White House Care Home became an overnight sensation thanks
to their very special feature on ITV’s This Morning, which saw Dancing on Ice’s
Matt Evers visit care home staff and residents as they took to the ice at
Billingham Forum Ice Arena.
read more...
Campaign aimed at getting more young people more active more often wins national award…
Halo Leisure have picked the prestigious Activation Award at the UKActive
Uprising Awards for their programme supporting the health and wellbeing of young
people in Herefordshire.
read more...
Care experienced young people project receives major funding boost
The Scottish Children’s Lottery has awarded £10,000 to Edinburgh Leisure’s You
Can project, which uses the power of sport and physical activity to support care
experienced young people aged 14-26 to improve their health, wellbeing, and
quality of life.
read more...
Redbridge Sports And Leisure Celebrates 50 Years of Serving the Community
Redbridge Sports & Leisure is one of the UK’s longest-running sporting Charitable
Trusts, celebrating 50 years of service to the sports and fitness sector in North
East London.
read more...
|
|
|
|
| Events |
 |
|
|
For more information about Special Interest Group and regional / national members meetings, please contact [email protected]
|
|
| Regional Meetings |
|
|
Single Sites Network
20 September 2022
|
Scotland Meeting
21 September 2022
|
North East and Yorkshire Meeting
22 September 2022
|
| Special Interest Groups |
|
|
Scotland Health SIG
18 August 2022
|
Safeguarding SIG
6 September 2022
|
Sustainable Buildings Research Group
6 September 2022
|
Wales Health SIG
8 September 2022
|
iTrent Group
13 September 2022
|
Culture SIG
14 September 2022
|
Swimming & Aquatics SIG
21 September 2022
|
Environment and Sustainability SIG
22 September 2022
|
Scotland Health SIG
22 September 2022
|
| Carbon Trust Workshops |
|
|
Workshop 1: Carbon Footprinting Fundamentals during a Climate Emergency
29 September 2022
|
Workshop 2: Practical Guidance to Saving Energy in Leisure and Cultural Facilities
10 October 2022
|
Workshop 3: Tackling Scope 3 Emissions and Promoting the Sustainability Agenda
20 October 2022
|
|
Further details...
|
|
| Job vacancies |
|
|
Exercise Therapist
Salary: £28,837 - £31,539pa pro rata
Location: Glenburnie Road, London SW17 7DJ, UK
Company: South West London & St.Georges NHS
Read more and apply
|
Fitness Instructor (part-time)
Salary: £19,312 to £19,698pa pro rata
Location: Southport, UK
Company: Sefton Council
Read more and apply
|
Assistant Development Officer (Lifestyles)
Salary: £19,650 - £20,444
Location: Netherton, Bootle, UK
Company: Sefton Council
Read more and apply
|
Activity Manager
Salary: £36,061 - £41,222pa + bonus + pension + benefits package
Location:
Company: Welsh Water
Read more and apply
|
Leisure Centre Manager
Salary: £38,781 - £44,716 + 25% completion gratuity + relocation package
Location: Falkland Islands
Company: Falkland Islands Government
Read more and apply
|
Water Quality Engineer
Salary: £33,513 - £37,236pa
Location: Edinburgh, UK
Company: Edinburgh Leisure
Read more and apply
|
National Volunteer Manager
Salary: £25,000 - £27,000pa
Location: Warrington, UK
Company: Wheels for All
Read more and apply
|
Deputy Sports Centre Manager
Salary: £21,943.00 - £24,184.00
Location: Frimley, Camberley, UK
Company: The Prospect Trust
Read more and apply
|
Sports Coach
Salary: £21,470 - £28,680pa + excellent benefits
Location: Chelmsford, UK
Company: New Hall School
Read more and apply
|
Lifeguards
Salary: £19,294 - £20,043 pro rata
Location: Trowbridge, UK
Company: Wiltshire Council
Read more and apply
|
|
|
