The Gym Group plc Trading Statement (2054D)
July 05 2016 - 2:00AM
UK Regulatory
TIDMGYM
RNS Number : 2054D
The Gym Group plc
05 July 2016
5 July 2016
The Gym Group Plc
("the Company")
Strong trading momentum, rollout continues to plan
The Gym Group plc, the fast growing, nationwide operator of 80
low cost gyms branded "The Gym", announces a trading update for the
half year ended 30 June 2016.
-- Trading for the half year has met the Board's expectations
and profit for the full year 2016 is anticipated to be in line with
consensus market expectations
-- In line with plan, 6 new gyms opened in the first half
increasing the total estate to 80 sites with 4 of the openings
within the M25
-- Total members at 30 June 2016 of 424,000, are up 19.4% versus
H1 2015 (June 2015: 355,000). Average membership for H1 of 420,000
is up 22.8% (H1 2015: 342,000) (1)
-- Strong cash generation in the period with net debt reduced to
GBP2.5m at 30 June 2016 (December 2015: GBP7.1m)
-- Pipeline continues to strengthen with a further 8 sites
having exchanged contracts or on site. The pipeline for the next
financial year (2017) is more advanced than at the corresponding
time last year. The Board is confident of achieving its guidance of
15 to 20 openings for 2016 and 2017.
-- During the first half the Performance Share Plan, and Share
Incentive Plan (including a free shares issue and a partnership
share scheme open to all employees) were implemented. The Board now
expects the charge for long term employee incentives for the full
year 2016 to be GBP0.7m rising to GBP0.9m in 2017 and GBP1.5m in
2018 (2). Fixed Asset Depreciation is expected to be 17% of revenue
for the full year.
-- A number of Board changes and Executive appointments are
outlined in a separate announcement
-- The Company expects to announce its Interim Results at the end of August 2016
John Treharne, CEO of The Gym Group, commented:
" This is another strong performance underlining the strength of
our business model, the power of our low cost proposition and the
success of our roll out. We are on track at the half way stage and
are now focussed on delivering our goals in the rest of the year to
come."
1. On a comparable basis: average members for H1 2015 of 342,000
(with corresponding average revenue per member per month in H1 2015
of GBP14.08)
2. The Company will report going forward Group Adjusted EBITDA
excluding the charge for long term employee incentives. Group
Adjusted EBITDA is operating profit before depreciation,
amortisation, exceptional items, other income and long term
employee incentives charge. Adjusted Profit before Tax will include
the charge for long term employee incentives. Adjusted Profit
before Tax is Group Adjusted EBITDA less depreciation, long term
employees incentives charge and interest.
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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