Last checked at 14 Jun 2017 07:00
14 June 2017
The Gym Group Plc
Capital Markets Day Trading Update
("the Group")
Continued strong progress and trading
The Gym Group plc, the fast growing, nationwide operator of 94 low cost gyms branded "The Gym", announces a trading update ahead of its Capital Markets Day for institutional investors and analysts being held today. The presentation that will be made at the meeting will be uploaded to the Company's website later today. A site visit to the Group's Lewisham Gym will follow the presentation. No additional trading information other than that disclosed below will be discussed at the meeting.
· Trading for the first five months of the year has met the Board's expectations and profit for the full year 2017 is anticipated to be in line with consensus market expectations.
· Six new gyms will have opened by the end of the first half increasing the total estate to 95 sites. Two of the sites at Holborn Circus and Bloomsbury(1) were sites acquired from Fitness First UK in August 2016 and were subject to a full strip out and refurbishment to the Gym Group specification. The other sites opened are at Edinburgh Murrayfield, High Wycombe, Altrincham and Rotherham. All sites opened in 2017 are trading as expected.
· Total members at 31 May 2017 of 507,000, up 19.6% versus H1 2016 (30 June 2016: 424,000). Average membership for the five months is 498,000 up 18.6% versus H1 2016 (six months to June 2016: 420,000)
· The pipeline continues to be strong for the remainder of 2017 and is building well for 2018. We currently have a further 20 sites exchanged for 2017 and 2018. We reiterate our guidance that we expect to open towards the top end of our expected range of 15 to 20 openings for the full year.
· The Group expects to announce its Interim Results at the end of August 2017.
John Treharne, CEO of The Gym Group, commented:
"The Group continues to trade strongly with membership increasing by nearly a fifth year on year to over 500,000. Six new gyms will have opened in the first half of the year and we are on track to meet our guidance which is towards the top end of our 15-20 range. There remains a substantial opportunity with strong fundamentals underpinning our growth and we are confident in delivering continued profitable progress."
(1) Bloomsbury opens on 21 June 2017
For further information, please contact
The Gym Group John Treharne, CEO Richard Darwin, CFO
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Numis Oliver Cardigan Oliver Hardy Toby Adcock
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