FINANCIAL SUMMARY
FINANCIAL SUMMARY
extremely attractive. As a result, we have seen robust demand in our core estate, with the volume of gym visits back to pre-pandemic levels. This has been further supported by the phenomenal performance of new site openings. “Above all, I am proud that PureGym facilitated 98 million gym visits across the UK in 2023, contributing a hard-to-quantify but significant benefit to the physical and mental wellbeing of millions of people.” Part of a global picture While we are focused on PureGym’s UK performance for the purposes of this State of the UK Fitness Industry Report 2024, it is important to recognise that PureGym also operates beyond the UK, with gyms in Denmark and Switzerland, in the Middle East through franchising, plus three in the US under the Pure Fitness brand.
Meanwhile, UK member numbers were up 16 per cent, reaching 1,396,000 at the end of 2023 (up from 1,207,000 at the end of 2022). Again, that number continued to show significant growth in Q1 2024, reaching 1,553,000 UK members by the end of March 2024. Other headlines include a 37 per cent return on capital invested (ROCE) for mature UK gyms opened in and before 2017, with newer UK sites delivering ahead of this at 40 per cent ROCE. “Business conditions in 2023 were once again challenging, with inflation rising, high interest rates and energy costs and political uncertainty affecting consumer sentiment and our business directly,” said PureGym CEO Humphrey Cobbold, announcing the full-year results. “Against this backdrop, our results and progress are outstanding. Our proposition – providing accessible, flexible and affordable fitness – continues to be
PureGym facilitated 98 million visits across the UK in 2023, contributing to the physical and mental wellbeing of millions of people
As a Group, adjusted EBITDA reached £132m for the full year 2023 (+£37m vs 2022) – a performance that was “ahead of expectations”. This performance was delivered by a total international estate of 601 clubs: 581 corporate-owned, plus 20 franchise gyms in the Middle East. The UK therefore accounts for over 60 per cent of PureGym’s total sites, around 66 per cent of revenues and approximately 83 per cent of adjusted EBITDA. 2024 and beyond Identifying “a compelling long-run opportunity at home and overseas”, PureGym is now on-track to open 40–50 new corporate sites in 2024, with the majority of these in the UK.
“We are well positioned to benefit from changing consumer habits and dynamics in the leisure industry, with younger generations now just as attracted to gyms as they are to bars, pubs and nightclubs,” said Cobbold. Longer term, the Group has identified “600 high- quality new site opportunities in the UK”, with management targeting over 150 UK gym openings in the next three to four years. With fixed interest rates and fixed utility contracts throughout 2024 and 2025, and like-for-like revenue growth more than offsetting like-for-like operating cost inflation, the Group is confident it is “well placed to deliver on its growth plans”.
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STATE OF THE UK FITNESS INDUSTRY REPORT 2024
STATE OF THE UK FITNESS INDUSTRY REPORT 2024
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