FINANCIAL SUMMARY
FINANCIAL SUMMARY
By the end of the year, 31.7 per cent of members were on a new top membership tier. A new off-peak membership – rolled out across the estate in 2023 and starting at £13.99 a month – completed a new three- tier pricing model alongside the original standard membership, for which the average headline rate increased by 8 per cent in 2023. Yield therefore rose in 2023, with average revenue per member per month +9 per cent to £19.50. Average visits per member were up 10 per cent in 2023 – meaning the average member visited almost six times a month – with more than 60m visits in total during 2023. High levels of member satisfaction were also recorded throughout 2023: 92 per cent of members surveyed rated The Gym Group either 4 or 5 out of 5 for overall satisfaction.
Other results reported for 2023 include: ■ Group Adjusted EBITDA Less Normalised Rent up 1 per cent to £38.5m (vs £38m in 2022) as increased revenue offset cost inflation – particularly on utilities and staff costs. ■ A bottom line improvement of 56 per cent on statutory loss after tax, from (-£19.3m) to (-£8.4m). ■ Net debt lowered by £9.6m to reduce the Group’s leverage to 1.72x. ■ RCF (Revolving Credit Facility) extended to October 2025, with COVID-related covenants removed. ■ £890m of social value delivered in 2023, +18 per cent vs 2022.
There continues to be substantial headroom for low-cost gyms in the UK
THE GYM GROUP
Off the back of a strong performance in 2023, the UK’s only publicly-listed fitness operator plans to open circa 50 new sites from free cash flow over the next three years
record new openings in 2022 – to end the year with 233 open sites. New openings were funded out of free cash flow, which was up 62 per cent (£27m in 2023 vs £16.7m in 2022). This free cash flow also enabled enhancements and investments in over 100 sites, including new equipment, refurbishments, upgrades and the launch of a HYROX collaboration. Where possible, equipment was re-used, renewed and recycled in line with the Group’s commitment to net zero and carbon-neutral status.
The Gym Group performed strongly in 2023, with revenue growth of 18 per cent to £204m (from £172.9m in 2022) thanks to membership growth and an increase in yield. The Group closed the year with membership of 850,000 (+4 per cent vs 2022). Average member numbers throughout the year were also up +8 per cent vs 2022, at 872,000. Six sites opened in 2023 to add net four gyms over the year – deliberately “moderate” growth after
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STATE OF THE UK FITNESS INDUSTRY REPORT 2024
STATE OF THE UK FITNESS INDUSTRY REPORT 2024
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