The Gym Group expects earnings for the year ended 31 December to be in line with consensus market forecasts after another year of rapid development and strong growth in revenue and EBITDA.
- Total revenue growth of 22.6% for the year versus 2015.
- 15 new gyms opened in the year, within guidance range, increasing the total estate to 89 sites. Over the last two years 34 sites have opened in line with guidance of 15-20 sites per annum.
- Total year end members of 448,000, up 19. 1% versus prior year (December 2015: 376,000) and average members for 2016 of 429,000 (2015: 355,000) up 20.8%.
- 8 sites refurbished and rebranded during the year in line with refurbishment plan.
- Strong balance sheet with year end net debt of £5.2m (2015: £7.1m) with the business cashflow positive and self-financing the gym openings during 2016.
- Significant pipeline progress with 17 new sites exchanged for 2017 (January 2016: 12 exchanged for 2016) towards the annual rollout target of 15 to 20 openings. As a result of the strength and opening profile of the pipeline the group now expects to achieve towards the top end of its guidance range for openings in 2017.
Chief executive John Treharne said: "This has been another year of rapid progress growing the number of sites in our estate by over 20% and achieving our financial goals. Our 2016 openings are performing well.
"Our low cost highly affordable model, with a known and predictable cost base, is arguably even more relevant in today's uncertain economic climate. Our pipeline for new sites in 2017 is the strongest we have ever had with strong cash generation to fund future openings.
"We remain excited about the growth opportunities that our low cost model brings and look forward to continued profitable progress in 2017. "
At 9:48am: (LON:GYM) The Gym Group Plc share price was -6.37p at 193.88p