Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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New openings normally come with a negotiated rent free period. There. An upside. (But most gyms still lose money year one and two)
New openings aren’t going to help IMO. New openings lose cash over the first year or two as membership numbers grow.
Banker2. Can you explain the upside argument please?
I’m comfortable with my short.
Are here warning other investors to sell....or do they want low entry?
Wow. You would think they could get that right wouldn’t you? Any other adjustments the reader should make to this report??
Big pressures on the 3.2 million mortgage holders whose fixed rates are coming to an end could also see folks donning their track suits and pounding them pavements.
It’s a swirling toxic storm that might be difficult to survive.
Where is the potential upside? I don’t think headroom in price/fees works in the current economic environment. Operators have to notify direct debit payers of any increase and those letters often just serve to remind those that have memberships, that they are not using, to cancel!
A few weeks ago I said sub quid soon….But do top up!
DYOR
Take the number 1 off the end and you will have the right number of gyms 224.
Accepting that they have a less labour intensive model than other operators they will still have payroll pressures.
If it snows heavily in January this could be pushed over the edge….
Agreed Cripes
"The Gym Group plc, ('The Gym Group', or 'the Company') the nationwide operator of 2241 low cost, high quality, 24/7 gyms, announces the following trading update for the four months ended 31st October 2022."
2241 gyms? Makes no sense.
Also PE looks ridiculously high: even before covid / cost of living crisis they were producing only low level earnings.
I'll be steering clear of this one.
I’m sure Betamax were achieving their production targets too.
More openings likely means more debt and debt interest. And that debt is going to get more expensive.
Lights out soon. Leave key under mat.
The Company remains on track to achieve its target of 28 new openings in 2022 and 25-30 new openings in 2023
Todays trading update: It looks to me that these numbers just don’t add up. 220 openings in the year? Total number of gyms? Nonsense.
Careless reporting is really unhelpful. Opaque at best.
At this level ...bought more today energy prices are hedged till end 2023...
Top line trading seems very positive but market seems to have been spooked by energy costs forecast. They are not in the Company's control but I expect with wholesale energy prices coming down, they won't be as bad as feared.
I also think they have significant residual pricing power (and more than they think).
I topped up a little.
All IMHO DYOR
Happy
Revenue for the ten months ended 31st October 2022 was £143.2m, up 78% versus the prior year (10 months October 2021: £80.5m
Bought few more today
Wednesday, 9 November 2022...so what is expected? Anyone
Price creeping up nicely.
This is cheap. I wouldn't be surprised!
All IMHO DYOR
Happy
Re RNS of today. Ameriprise seem to agree with me.
Very little comment on this board; reflective of the lack of holders!
Perhaps with Ferdinand leaving they could tap up Arsenal for Jesus? Might be the only one that can help?
Lots of debt, that’s getting more expensive when it comes to refinancing, doubling utility bills (even with government assistance) and a proposition that has appeal to that part of the country that is hardest up. Oh dear oh dear oh dear. And then Ferdinand hangs up his boots…..disastrous.
But do your own research!
Looking a bit oversold to me, so put my money where my mouth is, buying in today. If, and it is a big if, the government provide some meaningful assistance to folks, and the leisure, hospitality and pub sector, with all the much-publicised increased energy and running costs, my hope is that share prices will move forward from these low points.
costs are largely fixed? You mean like utility costs? This is going to rank further when those costs start to be reported.
for periods of lock down / restriction they froze memberships, so did not collect payments. It would have been impossible for them to make money during those yrs.
Their membership numbers are strong & improving, they have some of the best sites up and down the country & significant experience in opening and managing sites. Their recent investor day presentation is worth watching.
PURE GYM is the biggest no frills gym operator in the UK, pre covid GYM group was profitable, whereas PURE gym was not, any good analysis of GYM group would involve also looking @ PURE GYM, from memory, what I could infer GYM group has on average better sites.
In my view this is a a recession proof industry. their costs are largely fixed & having few staff limits the impact of inflation......one can relatively easily calculate what they can / will make using membership numbers & net income of £30m+/yr not unrealistic in the near future......what this will do to the share price i dont know, but I am long :), i also joined gym group & im pretty impressed.
SP of £8 is probably possible only in a dream-world (or perhaps some share consolidation), they are already way too overpriced at least 6x fold (that's assuming return to 5m pa net profits) and taking into consideration their share-printing program as solution for everything (and a total loss of £70m+ over last two years) - I'm very surprised to see it still holding at these crazy high levels.
Sorry ment to send link on wall street app
https://www.lse.co.uk/ShareChat.asp?ShareTicker=GYM&share=Gym-Grp