Results for the period ended 31 December 2018

RNS Number : 0608X

Pure Gym Ltd

25 April 2019

 

Commercial and digital innovation delivers continued growth

Financial Results for the period ended 31 December 2018

• Over one million members - new UK record for gym membership and 9% YoY growth;
• 50% more new gyms opened in 2018 vs 2017 - 30 new and converted gyms opened in 2018, including 26 organic openings and four Soho Gym conversions, taking the year-end total to 222;
• Continued expansion in early 2019 - as of 24 April there are 235 PureGym sites open;
• Strong forward property pipeline for rest of the year;
• New app launched - top rated UK Gym App on App Store;
• New 'small box' format tested successfully and now rolling out;
• Continued double digit growth in revenue and profitability;
• New ambassador - Dina Asher-Smith (Olympian and world's fastest woman in 2018) - joining Sir Chris Hoy as a supporter of PureGym;
• New partnership established with Mental Health UK focused on role of physical activity in treating mental health related issues.

	20181	2017	Change (%)
Revenue (£'000)	228,403	198,032	+ 15%
Group EBITDA (£'000)	73,141	64,405	+ 14%
Gyms2	222	192	+ 16%
Members3	1,012,000	927,000	+ 9%

April 25, London - PureGym, the UK's leading gym operator, today announces its annual results for 2018, reporting another period of significant growth driven by ongoing format development and commercial and digital innovation. 

The Group maintained its position as market leader, for the fourth year running, building on a consistent track record of exceptional growth and excellent financial returns. Alongside continued strong financial performance, PureGym set a new UK record for gym membership numbers and successfully integrated Soho Gyms following the acquisition of 10 fitness clubs in June 2018.

In 2018, PureGym consolidated its market leadership through digital, product and format innovation. The Group invested further in its market-leading proprietary technology, launching a new app to provide an even better user experience. In response to demand, the Group also opened four small box format gyms as trials, widening access to millions of potential customers in smaller local markets. These have been well received by members and landlords and further the Group's mission to provide affordable, flexible gym facilities to as many people across the country as possible. Roll out of the smaller box format will now be accelerated.

PureGym is also proud to today announce its partnership with Olympian Dina Asher-Smith, who is joining PureGym as an investor and brand ambassador. Dina is a British sprinter and was the fastest woman in the world in 2018, setting new British records for the 100m and 200m and winning three Golds at the 2018 European Championships. She is passionate about giving people the opportunity to exercise and getting more young people and females into fitness and sport. 

Humphrey Cobbold, Chief Executive of PureGym, said:

"As PureGym celebrates its 10-year anniversary this year, we remain totally committed to our mission of making gym membership more accessible and to our vision of inspiring a healthier nation. I'd like to thank all of our colleagues whose incredibly hard work and commitment has made our achievements possible. In just 10 years we have grown from start up to established market leader with more members than any gym company has ever had in the UK and gyms in every major city in the UK, allowing over a million members to exercise in a flexible and affordable way across our 235+ gyms.

We're seeing great demand for new sites as people become increasingly aware of the importance of leading healthy lifestyles. As well as continued innovation, expansion remains a key focus for the year ahead, and with our new formats we can welcome more people than ever to our gyms. Since January we have already opened 13 new and converted gyms and we're confident that 2019 will be a strong year for new site opening performances. Against this context we are delighted to welcome Dina Asher-Smith as an ambassador for PureGym. She is an exceptional young athlete and as someone with outstanding values as an advocate for physical activity and wellbeing, alongside Sir Chris Hoy, she will be a valuable addition to our company."

PureGym has a strong property pipeline and is well placed in the current retail environment to benefit from the increasing number of vacant premises, with the increased footfall of a PureGym site providing benefits for both landlords and retailers. The small box format has enabled PureGym to utilise previously vacant sites on high streets and in retail parks and shopping centres.

In June 2019, colleagues at PureGym will come together as one team to take part in a non-stop, week-long National Relay from Aberdeen to Plymouth. By partnering with Mental Health UK, PureGym aims to use the event to raise awareness of the importance of physical exercise in managing mental health and raise £250,000 for the charity.

This year also sees PureGym celebrate its 10^th anniversary since opening its first gym in 2009. Looking ahead, PureGym is exceptionally well placed to maintain its position as the UK's leading gym through continued innovation and evolving formats, products and pricing proposition.

ENDS

Media enquiries: Teneo - Robert Morgan/Rebecca Hislaire/Hamish Docherty, 020 7420 3140 or [e-mail]

Notes to editors

1.   PureGym is the UK's leading gym operator providing low-cost and high-quality fitness facilities for over one million members spread across 235+ sites. PureGym was launched in 2009 and pioneered the model for affordable, flexible, high-quality fitness clubs in the UK. Members pay monthly and have no contract commitment. Most of its 235+ gyms are open 24 hours a day across the UK and offer a full range of top of the line equipment including cardiovascular equipment, fixed-resistance and free weights. Each gym typically offers over 220 pieces of fitness equipment and up to 80 group exercise classes each week delivered by around 2,500 personal trainers. In November 2017, affiliates of Leonard Green & Partners, L.P. acquired a controlling interest in the business.

2.   Dina Asher-Smith is the fastest British woman in history. She currently holds British records in the 100m (10.85 secs), 200m (21.89 secs) and 4x100m (41.77 secs); British Junior records in the 100m (11.14 secs) and 200m (22.61 secs) and the European Junior Indoor record in the 200m (23.15 secs). She is also the world's fastest teenager ever over 60m and 200m. In the Summer of 2018 Dina won triple gold (100m, 200m, and 4x100m) at the European T&F Championships in Berlin.

3.   The PureGym National Relay will bring together over 1,500 colleagues across PureGym's network of 235+ gyms to take part in a 7-day, non-stop relay travelling from Aberdeen to Plymouth via all major UK cities. The Relay comes as PureGym celebrates its 10-year anniversary this year.

The Relay will take place between 18^th and 25^th June, with PureGym colleagues running, walking and cycling their way across the country. PureGym members are encouraged to support their local gym through fundraising activities, as well as cheering on the team as the Relay passes through their area.

PureGym ambassador, Sir Chris Hoy, will also be taking part in the Relay, launching it on 18^th June in Aberdeen, before joining the final stage of the Relay from Exeter to Plymouth on 25^th June.

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[1] Restated on a like for like basis for the 12 months to 31 December 2018

[2] Total sites excluding unconverted Soho Gym sites

[3] Total membership number excluding unconverted Soho Gym sites

 

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