The Gym Group plc Annual Report and notice of AGM (7036U)
April 11 2016 - 2:00AM
UK Regulatory
TIDMGYM
RNS Number : 7036U
The Gym Group plc
11 April 2016
11 April 2016
The Gym Group Plc
('the Company')
Annual Report and Accounts 2015 and Notice of 2016 Annual
General Meeting
Following the announcement on 15 March 2016 of its preliminary
results for the year ended 31 December 2015, The Gym Group plc
announces that it has published its Annual Report and Accounts
2015.
The Company also announces that it will hold its Annual General
Meeting at 11.30am on Monday 16 May 2016 at the offices of Allen
& Overy LLP, One Bishops Square, London, E1 6AD.
Copies of the Annual Report and Accounts 2015 and the Notice of
the 2016 Annual General Meeting are available to view on the
Company's website at http://www.tggplc.com/. They have also been
submitted to the National Storage Mechanism and will shortly be
available for inspection at http://www.hemscott.com/nsm.do.
Copies of those documents, together with a form of proxy for use
in connection with the 2016 Annual General Meeting, have been
posted or made available to the Company's shareholders.
For further information, please contact
The Gym Group via Instinctif Partners
John Treharne, CEO
Richard Darwin, CFO
Instinctif Partners
Matthew Smallwood
Justine Warren 020 7457 2020
Appendix
The additional information set out below, which is extracted
from the Annual Report, is included in compliance with Disclosure
and Transparency Rule 6.3.5. This information should be read in
conjunction with the Annual Report as a whole:
Principal Risks
In order to gain an understanding of the risk exposure of The
Gym Group plc ('the Group') we review each area of our business
annually and use a methodology that will assist the Group in
measuring, evaluating, documenting and monitoring its risks within
all areas of its operations.
We use our risk management process as described to identify,
monitor, evaluate and escalate risks as they emerge, enabling
management to take appropriate action wherever possible in order to
control them and also enabling the Board to keep risk management
under review. During the year the Board carried out a robust
assessment of the principal risks facing the Group, including those
that would threaten the Group's business model, future performance,
solvency or liquidity.
The risk factors addressed below are those which we believe to
be the most material to our business model, which could adversely
affect the operations, revenue, profit, cash flow or assets of the
Group and which may prevent us from achieving the Group's strategic
objectives. Additional risks and uncertainties currently unknown to
us, or which we currently believe are immaterial, may also have an
adverse effect on the Group.
Principal risk Impact Mitigation
------------------------ ----------------------- -------------------------------------------------------------------
Competition
----------------------------------------------------------------------------------------------------------------------
The Group may face The ability
increased competition of the Group * Maintain price discipline and leadership.
and pressure from to hold or increase
competitor pricing prices and therefore
decisions. achieve performance * Maintain focus on choosing the best sites in a
targets could geographical area.
be affected.
* Continue to invest in the member proposition.
------------------------ ----------------------- -------------------------------------------------------------------
Organic rollout
------------------------ --------------------------------------------------------------------------------------------
Site scarcity may Delays to our
affect the delivery rollout plan * Our highly experienced property team are focused on
of our rollout may have adverse site selection and sourcing the best deals.
plan. impact on growth
targets and
operational
returns.
------------------------ ----------------------- -------------------------------------------------------------------
Member experience
------------------------ --------------------------------------------------------------------------------------------
Failure to provide Reductions in
members with a actual or perceived * Monitor utilisation, NPS & Feefo scores.
high quality product customer service
and service would could result
damage the Group's in a decrease * Enhance monitoring and feedback processes.
reputation. in membership
numbers and
revenue generation. * Ongoing review of equipment usage to ensure we meet
member requirements.
------------------------ ----------------------- -------------------------------------------------------------------
Staff retention
----------------------------------------------------------------------------------------------------------------------
Loss of key staff A lack of experienced The Group uses
through retention and motivated a variety of techniques
policy and failure staff will have to attract, retain
to manage succession. a detrimental and motivate staff
impact on all at all levels across
areas of the the business. These
business, from techniques include:
operations to * Competitive remuneration packages.
central functions.
* Opportunities to own shares in the Company.
* Opportunities for training and progression.
* Short, clear reporting lines.
* Succession planning.
------------------------ ----------------------- -------------------------------------------------------------------
Information technology dependency
----------------------------------------------------------------------------------------------------------------------
Our ability to Disruption in
enroll members, critical IT * Our primary data systems are hosted by
carry out online systems could fully-qualified organisations in suitable data
marketing activity, have a negative centres.
process payments impact on our
and control gym reputation and
access is dependent our ability * Our primary IT infrastructure is fully managed by
on the performance to collect revenue. specialist IT companies who provide best-practice
of our IT systems. architecture and support.
* All membership and business information is backed up
using third party locations.
* Robust disaster recovery and business continuity
plans are in place.
------------------------ ----------------------- -------------------------------------------------------------------
Data protection
----------------------------------------------------------------------------------------------------------------------
The Group holds Unauthorised
business critical access, loss * The Group's networks are protected by firewalls and
and confidential or disclosure secure passwords.
information of this information
electronically. may lead to
A breach of security legal claims, * All sensitive online data capture and data
or data protection regulatory penalties, presentation is SSL encrypted. Our website and member
rules is a key disruption of management system are scanned quarterly to be PCI
risk. operations and compliant. Access to the central member database
reputational requires 2-Factor Authorisation.
damage.
* All financial data relating to customers is stored on
external PCI Compliant and, where relevant, BACS
approved systems managed by external payment
providers. The Group does not store or retain any
customer financial data in its own online systems.
------------------------ ----------------------- -------------------------------------------------------------------
Outsourcing model
----------------------------------------------------------------------------------------------------------------------
The Group operates As the Group
a largely outsourced grows there * Ensure quality suppliers are chosen through well-run
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model, including is risk that tender processes.
areas such as delivery from
information service providers
technology systems, is either unreliable * Understand and seek to mitigate supplier key-man
payment processing or of unsatisfactory risks.
and marketing. quality.
It risks overdependence
on third party * Service level agreements for all key suppliers.
operational delivery.
* Members of management monitor service levels and hold
suppliers to account.
* Ongoing assessment of whether any services should be
moved to an insourced resource.
------------------------ ----------------------- -------------------------------------------------------------------
Operational gearing
----------------------------------------------------------------------------------------------------------------------
High operational A limited number
gearing from the of corrective * Monthly monitoring and reforecasting of business
fixed cost base. options in the performance at site level.
cost base could
be made to correct
any underperformance * Active yield management on a gym by gym basis.
in membership
numbers, which
could have an * Regular financial management by senior management
adverse impact team and Board.
on profitability.
------------------------ ----------------------- -------------------------------------------------------------------
Regulatory
----------------------------------------------------------------------------------------------------------------------
Failure to adhere Potential reputational
to regulatory damage and penalties. * The Board has oversight over the management of
requirements regulatory risk and compliance, and delegates
such as the Listing specific responsibilities to senior management.
Rules, taxation,
the Data Protection
Act, health and * Expert opinion sought where relevant.
safety requirements,
planning regulations,
noise abatement * Legal advice taken to ensure systems, processes and
and advertising documentation conform with the Data Protection Act.
and marketing
regulations.
* Third party health and safety risks assessments and
audits carried out. Staff conduct periodic health and
safety assessments.
* Employment and continuous training and development of
appropriately qualified staff.
------------------------ ----------------------- -------------------------------------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
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