Total Fitness turnaround on track
TOTAL Fitness, the chain of 16 health clubs, is starting to get in shape by paying down its debt and growing earnings.
The Wilmslow-based group’s accounts for 2012 have just been filed and show a double digit growth in EBITDA to £2.6m on sales of £29.7m.
Since the turn of the year a new management team has been appointed, including chief executive Richard Millman, while operational performance has continued to improve.
Strong cash generation and 5.2% like-for-like membership growth has allowed debt to be cut by £3m to around £19m.
The current like-for-like membership growth is believed to be significantly ahead of the sector average.
Richard Millman, who joined the business in February, said: “We are on a long journey with Total Fitness, however it is pleasing to see the turnaround strategy now gathering significant momentum.
“There is a renewed confidence and clarity within the business as demonstrated by our membership results, increasing profitability, and the major investment programme we have launched in the last few weeks.”
Total Fitness, which is being advised by operational turnaround strategists Brian Davidson and Warwick Ley of RooGreen Ventures, has begun investing in refurbishing some of its clubs and also upgrading IT systems.
The business has just begun revamping four clubs (Bolton, Whitefield, Huddersfield and Sefton) with further investments planned for the coming months.
