Gym Group Plc · LSE:GYM
Gym — The Gym Group — H1 2025 Earnings Presentation
43 slides from Gym's earnings presentation, Sep 10, 2025
Slide 1: Half Year Results
Half Year Results 10 September 2025
Slide 2: Overview
Overview Will Orr Financial Results Luke Tait Next Chapter Growth Plan – Progress Report Will Orr Summary Will Orr
Slide 3: Overview
Overview Will Orr Chief Executive Officer Half Year Results - 2025 3
Slide 4: Strong first half performance
Strong first half performance Closing Membership at Revenue up 8% Group Adj. EBITDA LNR 30 June 2025 up 5% vs H1 2024 up 24% to 949k (30 June 2024: 905k) vs H1 2024 LFL up 3% Yield up 4% vs H1 2024 vs H1 2024 Robust & Growing Market Strengthening The Core Accelerating Rollout of Quality Sites UK gym
Slide 5: Financial Results
Financial Results Luke Tait Chief Financial Officer Half Year Results - 2025 5
Slide 6: Financial summary
Financial summary Average members ARPMM1 Revenue Group Adjusted EBITDA Less Normalised Rent (LNR) 1 953k £21.16 £121.0m £27.4m +4% +4% +8% +24% +39k vs PY +£0.72 vs PY +£8.9m vs PY +£5.3m vs PY (Jun 2024: 914k) (Jun 2024: £20.44) (Jun 2024: £112.1m) (Jun 2024: £22.1m) Statutory Profit before Free Ca
Slide 7: Strong EBITDA LNR growth of 24%
Strong EBITDA LNR1 growth of 24% £m H1 2025 H1 2024 YoY % £m Revenue 121.0 112.1 8.9 8% Cost of Sales (1.4) (1.5) 0.1 7% Gross Profit 119.6 110.6 9.0 8% (1.4) (0.9) 8.9 (1.3) Site Costs (Excl. Normalised Rent) (57.9) (56.4) (1.5) (3%) Central Costs (Excl. Normalised Rent) (13.4) (12.5) (0.9) (7%) No
Slide 8: Revenue growth of 8%
Revenue growth of 8% ARPMM Average Standard Headline Rate (£) Like-for-Like Revenue1 21.50 +4% £26.00 Members £25.10 100% 21.00 £25.00 +£1.16 20.50 £24.00 20.00 £23.00 Yield 19.50 £22.00 103% 19.00 £21.00 Revenue 18.50 £20.00 103% 18.00 £19.00 H1 2024 H1 2025 2023 2024 2025 1 Like-for-like revenue v
Slide 9: Successful cost control in an inflationary environment
Successful cost control in an inflationary environment H1 - LFL site costs down 1% H2 - expect LFL site costs to increase • Utilities • Utilities Commodity prices continued to normalise in H1 - £2m saving Q4 2025 non-commodity cost increases Benefit of energy optimisation programmes • Staff Costs •
Slide 10: Strong free cash flow generated
Strong free cash flow generated £m 8.0 (7.3) (0.5) (2.5) (12.6) 27.4 28.1 25.1 (0.3) (2.1) 10.1 Group Adj. Movement in Maintenance Free Cash Flow Non-Underlying Net interest on Free Cash Flow Expansionary Refinancing fees EBT Share Cash Flow Before EBITDA LNR Working Capital Capex Before Non- Costs
Slide 11: Reinvesting Free Cash Flow to drive the business
Reinvesting Free Cash Flow1 to drive the business Capital expenditure and additions H1 2025 H1 20242 YoY Maintenance £m Property 6.2 4.3 44% Property maintenance spend 5% of revenue in H1 2025 (H1 2024: 4%) as we continue to invest in Tech & Data 1.1 1.2 (8%) existing sites Maintenance Capex1 7.3 5.
Slide 12: Net debt reduced by £10.1m vs Dec 2024
Net debt reduced by £10.1m vs Dec 2024 Amend & Extend £m H1 2025 FY 2024 H1 2024 Agreed June 2025 Bank facility 102.0 90.0 80.0 Bank borrowings (59.0) (61.0) (56.0) Total facilities increased to £102m Cash & cash equivalents 9.3 3.0 7.4 Bank net debt (49.7) (58.0) (48.6) Non-property lease indebtedn
Slide 13: New sites performing well
New sites performing well Revenue vs mature target 100% 25 openings in 2022 on 80% track to deliver 30% ROIC 60% 6 openings in 2023 40% currently tracking to c.25% 20% 12 openings in 2024 progressing well with 0% strong initial volume 1 2 3 4 5 6 7 2022 8 9openings 10 11 12 13 142023 15 16openings 1
Slide 14: Current Trading and Full Year Outlook
Current Trading and Full Year Outlook Current Trading & Rollout Full Year Outlook & Guidance • Trading momentum continues in July and August • LFL revenue expected to grow at c.3% • Opened 5 new gyms to date; on site at a further 8 • LFL cost growth expected to be c.2% • Expect full year Group Adj.
Slide 15: Next Chapter Growth Plan – Progress Report
Next Chapter Growth Plan – Progress Report Will Orr Chief Executive Officer Half Year Results - 2025 15
Slide 16: Investment case: sustained growth from free cash flow
Investment case: sustained growth from free cash flow Robust and growing Multiple growth drivers market …to reinvest Price optimisation in high quality Low cost new site and yield enhancement model taking expansion share New customer volume Data-driven around existing sites and tech-enabled Retentio
Slide 17: Demand for gyms continues to grow
Demand for gyms continues to grow Change 2012 - 25 UK Gym Market 16.6% Total +4.5 ppts 15.9% 14.6% 15.1% 4.5% 4.7% Low Cost +4.2 ppts £6.5bn 12.1% 3.8% 4.1% 0.5% Market Size Gym Rest of 11.6% 11.4% 11.9% 4.1% CAGR 2012-25 Penetration 10.8% 11.0% Market +0.3 ppts (% of Population) 2012 2022 2023 2024
Slide 18: Increasing tailwind from Gen Z
Increasing tailwind from Gen Z High & growing fitness engagement Fitness spend is a priority Key Gen Z fitness attitudes % of Gen Z exercising at least 2x per week1 % of Gen Z ranking category as 1st / 2nd priority for discretionary spend2 +11ppts Highly engaged (gym visits & frequency) (+18%) Healt
Slide 19: Our winning proposition continues to resonate well
Our winning proposition continues to resonate well More members visiting 4x per month Higher proportion scoring us 5 / 5 Leading reviews in low cost sector % Members Visiting 4+ Times per Month1, % Member Satisfaction Scoring 5 out of 52, Distribution of Average Google Review Scores by H1 2023 vs H1
Slide 20: A clear plan: The Next Chapter
A clear plan: The Next Chapter Drive like-for-like revenue and Create funds for future growth generate cash options Accelerate Strengthen rollout of Broaden our the core quality growth sites Half Year Results - 2025 20
Slide 21: Pricing & Revenue Management
Pricing & Revenue Management Strengthen the core Member Acquisition Member Retention Half Year Results - 2025 21
Slide 22: TGG offers excellent value compared to other major gyms
Pricing & Revenue Management TGG offers excellent value compared to other major gyms TGG remains the lowest cost national gym chain, with mid-market players priced 57% higher on average Average monthly fee among top gym players (£, all locations)1 Price gap to TGG £25.10 £ % Other Low Cost £26.49 £1
Slide 23: Pricing headroom remains an opportunity
Pricing & Revenue Management Pricing headroom remains an opportunity Continued opportunity to price ahead of inflation Value for money maintained despite increasing prices Simon-Kucher Price / Value Map (Latest View Aug 2025) High TGG Headline Rate TGG Value for money (0 to 10) Position on the chart
Slide 24: We continue to unlock clear opportunity for yield growth
Pricing & Revenue Management We continue to unlock clear opportunity for yield growth Key Wins in H1 25 We remain cheaper in competing locations New Member Pricing Average difference to The Gym Group in competing Continued to unlock long term pricing opportunity with increased headline rate. Gap to
Slide 25: Ongoing gains in marketing effectiveness and returns
Member Acquisition Ongoing gains in marketing effectiveness and returns Key Wins in H1 25 Example – Growing Local Brand Awareness Winning Brand Locally Unprompted awareness near our gyms1 Local focus in brand message continuing to grow awareness & consideration near our gyms 18-44 target audience wi
Slide 26: Increasing Gen Z appeal
Member Acquisition Increasing Gen Z appeal Social Site Design & Marketing We are improving our capability and investment in We are evolving our brand visuals and site design local and national social channels to increase appeal to Gen Z Key point of influence for Gen Z member prospects Rolling out a
Slide 27: Retention progress throughout the member lifecycle
Member Retention Retention progress throughout the member lifecycle Key Wins in H1 25 Example – Early Life App Nudges Driving Early Life Visits Encouraging early results using app “nudge” messages to drive Impact of trial on initial Visits & Retention initial ‘early life’ visit habits after member s
Slide 28: The Next Chapter
The Next Chapter Drive like-for-like revenue and Create funds for future growth generate cash options Accelerate Strengthen rollout of Broaden our the core quality growth sites Half Year Results - 2025 28
Slide 29: Accelerating rollout of 30% ROIC sites with proven characteristics
Accelerating rollout of 30% ROIC sites with proven characteristics New Site targets by year, 2024 - 2026 c.50 new sites over 3 years with an average 30% ROIC c.50 new sites over 3 years Targeting same characteristics as our 180+ gyms that return an average of 30% or more with an average 30% ROIC 18
Slide 30: Elevating our site experience and driving value perception
Elevating our site experience and driving value perception Developed with 5 core principles 01 Build on current strengths & drivers of high customer satisfaction Picture of Gen Z people (WO suggestion, but need to try to find one 02 Evolved look & feel for Gen Z; more ‘on-trend’ and premium in a new
Slide 31: Strong initial performance of enhanced new sites
Strong initial performance of enhanced new sites Performance in 8 new sites since starting to introduce enhanced design in Dec 24: Membership well ahead of historic growth curve Google Review rating 4.8 Edinburgh Meadowbank Stratford Elephant & Castle Shepherd’s Bush Gillingham Greenford Surbiton St
Slide 32: Prioritising mature estate investment based on headroom data
Prioritising mature estate investment based on headroom data Local market analysis indicates significant latent demand around existing sites Local member headroom by site Two major applications 01 Site selection for major refits to maximise return on investment 02 Targeting local commercial performa
Slide 33: Mature estate investment example: Bristol Longwell Green
Mature estate investment example: Bristol Longwell Green Data suggested good local headroom and spare site capacity Refurb conducted using maintenance capex budget Encouraging early performance Half Year Results - 2025 33
Slide 34: The Next Chapter
The Next Chapter Drive like-for-like revenue and Create funds for future growth generate cash options Accelerate Strengthen rollout of Broaden our the core quality growth sites Half Year Results - 2025 34 34
Slide 35: Pilot in scale B2B2C channel – Wellhub
Pilot in scale B2B2C channel – Wellhub Broaden our growth Investigating adjacent opportunities, aligned to core competencies Half Year Results - 2025 35
Slide 36: Summary
Summary Will Orr Chief Executive Officer Half Year Results - 2025 36
Slide 37: Summary & Outlook
Summary & Outlook 1 Large market with structural growth tailwinds 2 Advantaged, labour-light business model 3 Multiple LFL growth opportunities and significant white space 4 FY25 H1 Group Adjusted EBITDA LNR of +24%; further progress expected in mature site ROIC in 2025 5 Accelerating self-funded ro
Slide 38: Q&A
Q&A
Slide 39: Appendix
Appendix Half Year Results - 2025 39
Slide 40: Appendix - Business KPIs (5 year)
Appendix - Business KPIs (5 year) Financial (£m) H1 2025 H1 2024 H1 2023 H1 2022 H1 2021 YoY Revenue 121.0 112.1 99.8 84.2 29.3 8% Group Adj. EBITDA Less Normalised Rent (LNR) 1 27.4 22.1 17.2 17.0 (8.1) 24% Free Cash Flow1, 2 25.1 23.3 14.2 6.9 (4.4) 8% Expansionary Capital Expenditure1, 2 12.6 10.
Slide 41: Appendix - IFRS16 charges are currently £2.4m higher than cash rent
Appendix - IFRS16 charges are currently £2.4m higher than cash rent Depreciation & Interest vs Property Payments IFRS 16 - Annual Charge 240,000 FY 2024 £m 220,000 Right of use asset depreciation 27.0 200,000 Property lease interest 15.0 180,000 Total 42.0 160,000 140,000 Property lease payment 39.6
Slide 42: Advantaged business model
Advantaged business model Revenue – virtuous circle • No contract & flexible membership options drives c.3x volume of members compared with contract gyms • High volume (& low cost model) drives highly competitive headline rates Kit-led gyms • Gyms are kit-led • No pools – water & heating & rent • Ki
Slide 43: Definition of non-statutory measures
Definition of non-statutory measures Group Adjusted EBITDA Less Normalised Rent (LNR) Free Cash Flow Operating profit before depreciation, amortisation, share based payments Group Adjusted EBITDA LNR and movement in working capital, less and non-underlying items; less Normalised Rent. maintenance ca