Fitness club chain pumps up annual revenues as post-Covid trading improves

Fitness First, the Wigan-based health clubs chain, has pumped up its revenues during the 2024 financial year.

The group, which earlier this week acquired a site in Marylebone, London, its 28th location, saw turnover increase by 12% to £38.4m, which compares with £34.2m the previous year, reflecting recovery in customer membership volumes towards pre-Covid levels.

On a like for like basis, covering 27 sites, membership volumes increased by seven per cent.

Profit before tax decreased to £2.9m from £5.2m in 2023, when an exceptional credit of £12.8m resulting from the settlement of CLBILS debts incurred during the Covid-19 pandemic, inflated the full year result

The group said it progressed against its long term growth strategy by implementing a restructuring programme. This included the closure of 11 loss-making sites and rent reductions, so as to focus on ensuring quality across the remaining sites.

Justin Musgrove was appointed as CEO in October 2023.

His experience in building both UK and international fitness and wellness brands will be invaluable as Fitness First moves into its next stage of growth, it said.

The good momentum delivered by the business during FY24 has continued into the current financial year so far, during the 26 weeks to October 2.

The business has strengthened its senior team with the appointments of Lee Pinnington as Marketing & Communications Director and Lois Woods as Operations Director.

They bring highly relevant experience including roles at Matalan, Intersport and The Football Pools, and Boots and WH Smith, respectively

There has been continued investment in a well-located, premium gym portfolio with four refurbishments completed to date, in Bedford, St Albans, Thomas More Square and Milton Keynes

And Fitness First has launched its enhanced ‘Fitness First Premium’ proposition.

Available at an additional £10 per month, this provides customers with additional perks including access to book remote appointments with a GP, physiotherapist, dietitian and registered mental health counsellor 364 days of the year.

CEO Justin Musgrove said: “FY24 was a period of strong financial and strategic progress for Fitness First.

“Membership volumes increased on a like-for-like basis, reflecting the ongoing recovery from the impact of Covid-19, and following the important actions taken in FY24 to position the business for sustainable, long term growth.”

He added: “We are very encouraged to continue to deliver strong improvements in profitability as we return the business to a growth mind-set.”