The Gym Group plc Pre-Close Trading Statement (9435T)
12 January 2017 - 6:00PM
UK Regulatory
TIDMGYM
RNS Number : 9435T
The Gym Group plc
12 January 2017
12 January 2017
The Gym Group plc
("the Company")
Strong profitable progress
The Gym Group plc, the fast growing, nationwide operator of 89
low cost gyms branded "The Gym", announces a pre-close trading
update for the year ended 31 December 2016.
-- Following another year of rapid development and strong growth
in revenue and EBITDA, earnings for the year to 31 December 2016
are expected to be in line with consensus market expectations.
-- Total revenue growth of 22.6% for the year versus 2015.
-- Within our guidance range, 15 new gyms opened in the year
increasing the total estate to 89 sites. Over the last two years 34
sites have opened in line with our guidance of 15-20 sites per
annum.
-- Total year end members of 448,000, up 19. 1% versus prior
year (December 2015: 376,000) and average members for 2016 of
429,000 (2015: 355,000) up 20.8%.
-- 8 sites refurbished and rebranded during the year in line with our refurbishment plan.
-- Strong balance sheet with year end net debt of GBP5.2m (2015:
GBP7.1m) with the business cashflow positive and self -financing
the gym openings during 2016.
-- Significant pipeline progress with 17 new sites exchanged for
2017 (January 2016: 12 exchanged for 2016) towards our annual
rollout target of 15 to 20 openings *. As a result of the strength
and opening profile of the pipeline we now expect to achieve
towards the top end of our guidance range for openings in 2017.
-- Recruitment of Board and Senior Management expertise in 2016 to support sustained growth.
-- The Company expects to announce its Preliminary Results in mid-March.
* Of the 4 sites acquired from Fitness First UK that we
announced in September 2016, one site has been opened and is
trading, two further sites are in fit out and one will shortly
complete its lease assignment
John Treharne, CEO of The Gym Group, commented:
"This has been another year of rapid progress growing the number
of sites in our estate by over 20% and achieving our financial
goals. Our 2016 openings are performing well.
Our low cost highly affordable model, with a known and
predictable cost base, is arguably even more relevant in today's
uncertain economic climate. Our pipeline for new sites in 2017 is
the strongest we have ever had with strong cash generation to fund
future openings.
We remain excited about the growth opportunities that our low
cost model brings and look forward to continued profitable progress
in 2017. "
For further information, please contact
The Gym Group via Instinctif
John Treharne, CEO
Richard Darwin, CFO
Numis
Oliver Cardigan
Oliver Hardy
Toby Adcock 020 7260 1000
Instinctif
Matthew Smallwood
Justine Warren 0207 457 2020
This information is provided by RNS
The company news service from the London Stock Exchange
END
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