Expansion limbers up growth in revenue and profit at Pure Gym
Leeds-based PureGym has seen revenues climb 24% in a year where membership grew to 927,000 and 20 new sites were opened across the UK.
Reporting on the 12 months on 31 December 2017, the group said revenues stood at £198m, up 24% from £159m in 2016. Its EBITDA grew £64m from £39m – which it said was driven by new site rollout and innovative membership propositions.
PureGym opened 20 new gyms in 2017, taking the year-end total to 192, and saw a 13% growth in members to 927,000. It was acquired by California-based investment firm Leonard Green & Partners in November 2017. Pure Gym continued its expansion throughout the year, investing £32m in its nationwide network.
Humphrey Cobbold, chief executive of PureGym, said: “2017 was a landmark year for PureGym.”
The firm said it benefited from growth in its mature estate and the ramp up of newer gyms including the 31 gyms acquired from LA Fitness in 2015, all of which have now been converted to the PureGym format.
Cobbold added: “We delivered on the full promise of the sites acquired or opened in 2015/2016; we continued to invest in technology that drives both better experiences for our members and delivers higher revenues and great profit growth to the business; and we managed a transition in ownership from CCMP to Leonard Green & Partners.
“Above all, however, we have benefitted from the truly extraordinary commitment of our colleagues in gyms and service centres across the country. These individuals – and the teams in which they work – stop at nothing to support our members’ efforts in the gym.
“We believe firmly that the positive structural trends in our market will continue to intensify and we’re confident that we have the right processes, systems, and capabilities in place, to remain at the forefront of our industry in the years to come. Everyone who works at PureGym is committed to helping the UK become a more active, healthier and happier nation.”
In January, the business refinanced its debt, successfully placing £360m of bonds in an offer that was heavily over-subscribed.