Business
Trading Update
Trading Update.
About this update from Gym Group Plc
[{"type":"text","content":"\n \n \n 9 November 2022\n \n \n \n The Gym Group plc\n \n \n \n \n \n \n \n \n \n Trading Update\n \n \n \n \n \n \n \n \n \n RESILIENT PERFORMANCE WITH FURTHER MEMBERSHIP AND YIELD GROWTH\n \n \n \n \n \n \n \n \n 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.\n \n \n \n \n \n \n Key highlights\n \n \n \n \n \n \n \n \n •\n \n \n \n \n \n Membership increased through the period, reaching 838,000 at 31st October 2022, an increase of 16.7% from the end of last year (Dec 2021: 718,000)\n \n \n \n \n \n \n \n •\n \n \n \n \n \n Revenue for the ten months ended 31st October 2022 was £143.2m, up 78% versus the prior year (10 months October 2021: £80.5m)\n \n \n \n \n \n \n \n •\n \n \n \n \n \n Like for like revenue in the majority of the pre-Covid mature estate (sites open up to end of 2018) was 93% in October 2022 compared to October 2019; however, performance in 16 workforce-dependent sites continues to be significantly impacted by changes in working practices\n \n \n \n \n \n \n \n •\n \n \n \n \n \n The Company remains on track to achieve its target of 28 new openings in 2022 and 25-30 new openings in 2023\n \n \n \n \n \n \n \n •\n \n \n \n \n \n Following tight cost control, leading to strong margins and cash flow in the period, Non-Property Net Debt at the end of October 2022 was £68.5m. The Company intends to remain within its stated guidance of 1.5-2.0x Non-Property Net Debt : Group Adjusted EBITDA Less Normalised Rent \n \n \n \n \n \n \n \n •\n \n \n \n \n \n We continue to manage our utility and other costs carefully. Energy volumes are 63% hedged until the end of 2023 \n \n \n \n \n \n \n \n \n \n \n Business performance\n \n \n \n The business has continued to make good progress against its long-term strategy. Performance in 138 of our 1542 mature sites has been encouraging and the 47 new gyms opened between 2019 and 2021 and the 233 gyms opened in 2022 are maturing well, in line with expectations. However, as has been well publicised, there has been a structural shift in working patterns which has impacted the performance of 16 workforce-dependent sites.\n \n \n \n \n \n Like for like revenue in the pre-...