GET FIT TECH
Sign up for the FREE digital edition of Fit Tech magazine and also get the Fit Tech ezine and breaking news email alerts.
Not right now, thanksclose this window I've already subscribed!
The Leisure Media Company Ltd | Fit Tech promotion
The Leisure Media Company Ltd | Fit Tech promotion
The Leisure Media Company Ltd | Fit Tech promotion
features

News report: Set for growth

Will Orr has been talking to HCM about the company’s new strategy for 2024, as Kath Hudson reports

Published in Health Club Management 2024 issue 3

Will Orr, CEO of The Gym Group, revealed the company’s results for 2023 recently, along with a trading update and a new strategy, called Next Chapter, which will involve strengthening the core business to increase returns from the estate, accelerating rollouts and establishing new revenue streams.

1. Strengthening core business
“There’s a significant opportunity to improve member retention, which will drive yield and volume,” Orr told HCM. “The highest churn occurs in the first 45 days of a membership, before a habit has formed. We’ll be focusing on helping new members build lasting habits – whether that’s via our expert teams in the gyms, or through digital channels, such as our app.”

A number of growth-drivers have been identified to deliver increased returns: yield and revenue management; member acquisition and improving retention, with Orr’s experience with recurring subscription models at The Times a key reason for his recent appointment.

“Our analysis shows that within the catchment of our existing 233 sites, there are a further circa five million people, who are either members of another gym or considering joining a gym,” said Orr.

2. Accelerating rollout
The company opened six sites in 2023 and is planning 10-12 this year, 16-18 in 2025 and 20 in 2026 to make a total of 50 as growth ramps up.

Analysts have been excited by the company’s plans to open these with an ROI of 30 per cent, against the current 20 per cent. Orr did not divulge how this will be achieved, although Pure Gym and Basic-Fit have been reducing build-costs over the last year, so it’s likely The Gym Group will follow suit as one part of the strategy.

Low-cost gym market potential
As yet unpublished research into the low-cost health club market from PricewaterhouseCoopers (PwC), found the potential for a further 600 to 850 locations in the UK, with two-thirds at the current size and the other third delivered in smaller formats to fit less densely populated areas.

PwC says there’s 10-15 years’ growth potential in the UK market at the current rate of development.

3. Broadening growth – new revenue streams
Broadened growth options are being strategically assessed, but might include further developments to the existing proposition; format innovation; investigating new channels to market; and introducing adjacent revenue streams, such as corporate wellness programmes.

Given the commercially sensitivity of these moves, details were not given, although it’s noteworthy that operators such as Everyone Active are adding access to medical advice to their packages through partnerships with companies such as Health Hero.

More: www.hcmmag.com/TGG14/2/24

• NEWSFLASH:
Will Orr will be speaking at the HCM Summit on 24 October in London. Find out more at www.HCMmag.com/summit

2023 RESULTS REPORT: The Gym Group

Revenues across the business were up 18 per cent year-on-year from £172.9 million to £204.0 million.

2023 closed with membership at 850k, reaching 909k at March 2024. Membership increases were driven by new site openings, not by growth in existing clubs, which remained stable.

Average revenue per member per month was up 9 per cent. The ‘Ultimate’ membership was chosen by 31.7 per cent of members, while off-peak – launched in 2023 and starting at £13.99 – is drawing in new members who are older and have greater time flexibility.

Average visits-per-member were up 10 per cent and 92 per cent of members rated The Gym Group either 4/5 or 5/5 for overall satisfaction.

Group Adjusted EBITDA Less Normalised Rent was up 1 per cent from £38.0 million to £38.5 million and there was a bottom line improvement of 57 per cent on statutory loss after tax, from (-£19.3 million) to (-£8.4 million) through cost control.

Non-property net debt dropped 13 per cent from (-£76 million) to (-£66.4 million) and cashflow was up 62 per cent from £16.7 million to £27.0 million.

Sign up here to get Fit Tech's weekly ezine and every issue of Fit Tech magazine free on digital.
Gallery
More features
Editor's letter

Into the fitaverse

Fitness is already among the top three markets in the metaverse, with new technology and partnerships driving real growth and consumer engagement that looks likely to spill over into health clubs, gyms and studios
Fit Tech people

Ali Jawad

Paralympic powerlifter and founder, Accessercise
Users can easily identify which facilities in the UK are accessible to the disabled community
Fit Tech people

Hannes Sjöblad

MD, DSruptive
We want to give our users an implantable tool that allows them to collect their health data at any time and in any setting
Fit Tech people

Jamie Buck

Co-founder, Active in Time
We created a solution called AiT Voice, which turns digital data into a spoken audio timetable that connects to phone systems
Profile

Fahad Alhagbani: reinventing fitness

The team is young and ambitious, and the awareness of technology is very high. We share trends and out-of-the-box ideas almost every day
Opinion

Building on the blockchain

For small sports teams looking to compete with giants, blockchain can be a secret weapon explains Lars Rensing, CEO of Protokol
Innovation

Bold move

Our results showed a greater than 60 per cent reduction in falls for individuals who actively participated in Bold’s programme
App analysis

Check your form

Sency’s motion analysis technology is allowing users to check their technique as they exercise. Co-founder and CEO Gal Rotman explains how
Profile

New reality

Sam Cole, CEO of FitXR, talks to Fit Tech about taking digital workouts to the next level, with an immersive, virtual reality fitness club
Profile

Sohail Rashid

My vision was to create a platform that could improve the sport for lifters at all levels and attract more people, similar to how Strava, Peloton and Zwift have in other sports
Ageing

Reverse Ageing

Many apps help people track their health, but Humanity founders Peter Ward and Michael Geer have put the focus on ageing, to help users to see the direct repercussions of their habits. They talk to Steph Eaves
App analysis

Going hybrid

Workout Anytime created its app in partnership with Virtuagym. Workout Anytime’s Greg Maurer and Virtuagym’s Hugo Braam explain the process behind its creation
Research

Physical activity monitors boost activity levels

Researchers at the University of Copenhagen have conducted a meta analysis of all relevant research and found that the body of evidence shows an impact
Editor's letter

Two-way coaching

Content providers have been hugely active in the fit tech market since the start of the pandemic. We expect the industry to move on from delivering these services on a ‘broadcast-only’ basis as two-way coaching becomes the new USP
Fit Tech People

Laurent Petit

Co-founder, Active Giving
The future of sports and fitness are dependent on the climate. Our goal is to positively influence the future of our planet by instilling a global vision of wellbeing and a sense of collective action
Fit Tech People

Adam Zeitsiff

CEO, Intelivideo
We don’t just create the technology and bail – we support our clients’ ongoing hybridisation efforts
Fit Tech People

Anantharaman Pattabiraman

CEO and co-founder, Auro
When you’re undertaking fitness activities, unless you’re on a stationary bike, in most cases it’s not safe or necessary to be tied to a screen, especially a small screen
Fit Tech People

Mike Hansen

Managing partner, Endorphinz
We noticed a big gap in the market – customers needed better insights but also recommendations on what to do, whether that be customer acquisition, content creation, marketing and more
More features
In today's rapidly evolving fitness industry, where many online courses promise secret formulas for entrepreneurial success, the reality is that few provide the necessary knowledge to thrive in this fast-changing profession.
Core Health & Fitness: level up your HIIT game
Core Health & Fitness
Looking to level up your HIIT game? Meet the dynamic duo that’s about to revolutionize your workouts: the StairMaster HIIT Rower and HIIT Ski! Read more
Balanced Body is the global leader in Pilates equipment and education. Founded over 47 years ...
Panatta's mission is to create machines that are aesthetically pleasing, functional and competitive in price ...
Digital
Spa software
Cryotherapy
Lockers
Flooring
08-10 Oct 2024
Malaga - FYCMA, Malaga, Spain
In today's rapidly evolving fitness industry, where many online courses promise secret formulas for entrepreneurial success, the reality is that few provide the necessary knowledge to thrive in this fast-changing profession.
Balanced Body is the global leader in Pilates equipment and education. Founded over 47 years ...
Panatta's mission is to create machines that are aesthetically pleasing, functional and competitive in price ...
Core Health & Fitness: level up your HIIT game
Core Health & Fitness
Looking to level up your HIIT game? Meet the dynamic duo that’s about to revolutionize your workouts: the StairMaster HIIT Rower and HIIT Ski! Read more
Get Fit Tech
Sign up for the free Fit Tech ezine and breaking news alerts
Sign up
Digital
Spa software
Cryotherapy
Lockers
Flooring
08-10 Oct 2024
Malaga - FYCMA, Malaga, Spain

latest fit tech news

Employee wellness app GoJoe has teamed up with Les Mills for a major new content offering, giving access to hundreds ...
news • 16 Jul 2024
Mindbody, has launched a specialist insurance programme for its customers which is being delivered through its platform. Organised in partnership ...
news • 12 Jul 2024
Boutique fitness software platform, Xplor Mariana Tek, has launched in-app gamification to help studios motivate more members to reach their ...
news • 09 Jul 2024
A UK-based technology has created a sensor-enabled performance running track with advanced sensors, paired with cameras, to generate real-time data ...
news • 08 Jul 2024
In today's rapidly evolving fitness industry, where many online courses promise secret formulas for entrepreneurial success, the reality is that ...
promotion • 04 Jul 2024
F45 Training has become the first health and fitness operator to make its functional/HIIT group workouts available on Strava, the ...
news • 27 Jun 2024
Nike and recovery brand, Hyperice, have partnered to create two tech-driven recovery products – a vest and boots – ahead of Paris ...
news • 22 Jun 2024
Apple has previewed the upcoming watchOS 11, which has more health and fitness insights and offers more personalisation than ever ...
news • 12 Jun 2024
Noraxon’s next-generation motion capture system, MyoMotion, can be used by PTs to enable custom training programmes, minimise injuries and help ...
news • 11 Jun 2024
New research shows that following social media health influencers motivates young people to exercise more vigorously and eat more fruit ...
news • 28 May 2024
More fit tech news
features

News report: Set for growth

Will Orr has been talking to HCM about the company’s new strategy for 2024, as Kath Hudson reports

Published in Health Club Management 2024 issue 3

Will Orr, CEO of The Gym Group, revealed the company’s results for 2023 recently, along with a trading update and a new strategy, called Next Chapter, which will involve strengthening the core business to increase returns from the estate, accelerating rollouts and establishing new revenue streams.

1. Strengthening core business
“There’s a significant opportunity to improve member retention, which will drive yield and volume,” Orr told HCM. “The highest churn occurs in the first 45 days of a membership, before a habit has formed. We’ll be focusing on helping new members build lasting habits – whether that’s via our expert teams in the gyms, or through digital channels, such as our app.”

A number of growth-drivers have been identified to deliver increased returns: yield and revenue management; member acquisition and improving retention, with Orr’s experience with recurring subscription models at The Times a key reason for his recent appointment.

“Our analysis shows that within the catchment of our existing 233 sites, there are a further circa five million people, who are either members of another gym or considering joining a gym,” said Orr.

2. Accelerating rollout
The company opened six sites in 2023 and is planning 10-12 this year, 16-18 in 2025 and 20 in 2026 to make a total of 50 as growth ramps up.

Analysts have been excited by the company’s plans to open these with an ROI of 30 per cent, against the current 20 per cent. Orr did not divulge how this will be achieved, although Pure Gym and Basic-Fit have been reducing build-costs over the last year, so it’s likely The Gym Group will follow suit as one part of the strategy.

Low-cost gym market potential
As yet unpublished research into the low-cost health club market from PricewaterhouseCoopers (PwC), found the potential for a further 600 to 850 locations in the UK, with two-thirds at the current size and the other third delivered in smaller formats to fit less densely populated areas.

PwC says there’s 10-15 years’ growth potential in the UK market at the current rate of development.

3. Broadening growth – new revenue streams
Broadened growth options are being strategically assessed, but might include further developments to the existing proposition; format innovation; investigating new channels to market; and introducing adjacent revenue streams, such as corporate wellness programmes.

Given the commercially sensitivity of these moves, details were not given, although it’s noteworthy that operators such as Everyone Active are adding access to medical advice to their packages through partnerships with companies such as Health Hero.

More: www.hcmmag.com/TGG14/2/24

• NEWSFLASH:
Will Orr will be speaking at the HCM Summit on 24 October in London. Find out more at www.HCMmag.com/summit

2023 RESULTS REPORT: The Gym Group

Revenues across the business were up 18 per cent year-on-year from £172.9 million to £204.0 million.

2023 closed with membership at 850k, reaching 909k at March 2024. Membership increases were driven by new site openings, not by growth in existing clubs, which remained stable.

Average revenue per member per month was up 9 per cent. The ‘Ultimate’ membership was chosen by 31.7 per cent of members, while off-peak – launched in 2023 and starting at £13.99 – is drawing in new members who are older and have greater time flexibility.

Average visits-per-member were up 10 per cent and 92 per cent of members rated The Gym Group either 4/5 or 5/5 for overall satisfaction.

Group Adjusted EBITDA Less Normalised Rent was up 1 per cent from £38.0 million to £38.5 million and there was a bottom line improvement of 57 per cent on statutory loss after tax, from (-£19.3 million) to (-£8.4 million) through cost control.

Non-property net debt dropped 13 per cent from (-£76 million) to (-£66.4 million) and cashflow was up 62 per cent from £16.7 million to £27.0 million.

Sign up here to get Fit Tech's weekly ezine and every issue of Fit Tech magazine free on digital.
Gallery
More features
Editor's letter

Into the fitaverse

Fitness is already among the top three markets in the metaverse, with new technology and partnerships driving real growth and consumer engagement that looks likely to spill over into health clubs, gyms and studios
Fit Tech people

Ali Jawad

Paralympic powerlifter and founder, Accessercise
Users can easily identify which facilities in the UK are accessible to the disabled community
Fit Tech people

Hannes Sjöblad

MD, DSruptive
We want to give our users an implantable tool that allows them to collect their health data at any time and in any setting
Fit Tech people

Jamie Buck

Co-founder, Active in Time
We created a solution called AiT Voice, which turns digital data into a spoken audio timetable that connects to phone systems
Profile

Fahad Alhagbani: reinventing fitness

The team is young and ambitious, and the awareness of technology is very high. We share trends and out-of-the-box ideas almost every day
Opinion

Building on the blockchain

For small sports teams looking to compete with giants, blockchain can be a secret weapon explains Lars Rensing, CEO of Protokol
Innovation

Bold move

Our results showed a greater than 60 per cent reduction in falls for individuals who actively participated in Bold’s programme
App analysis

Check your form

Sency’s motion analysis technology is allowing users to check their technique as they exercise. Co-founder and CEO Gal Rotman explains how
Profile

New reality

Sam Cole, CEO of FitXR, talks to Fit Tech about taking digital workouts to the next level, with an immersive, virtual reality fitness club
Profile

Sohail Rashid

My vision was to create a platform that could improve the sport for lifters at all levels and attract more people, similar to how Strava, Peloton and Zwift have in other sports
Ageing

Reverse Ageing

Many apps help people track their health, but Humanity founders Peter Ward and Michael Geer have put the focus on ageing, to help users to see the direct repercussions of their habits. They talk to Steph Eaves
App analysis

Going hybrid

Workout Anytime created its app in partnership with Virtuagym. Workout Anytime’s Greg Maurer and Virtuagym’s Hugo Braam explain the process behind its creation
Research

Physical activity monitors boost activity levels

Researchers at the University of Copenhagen have conducted a meta analysis of all relevant research and found that the body of evidence shows an impact
Editor's letter

Two-way coaching

Content providers have been hugely active in the fit tech market since the start of the pandemic. We expect the industry to move on from delivering these services on a ‘broadcast-only’ basis as two-way coaching becomes the new USP
Fit Tech People

Laurent Petit

Co-founder, Active Giving
The future of sports and fitness are dependent on the climate. Our goal is to positively influence the future of our planet by instilling a global vision of wellbeing and a sense of collective action
Fit Tech People

Adam Zeitsiff

CEO, Intelivideo
We don’t just create the technology and bail – we support our clients’ ongoing hybridisation efforts
Fit Tech People

Anantharaman Pattabiraman

CEO and co-founder, Auro
When you’re undertaking fitness activities, unless you’re on a stationary bike, in most cases it’s not safe or necessary to be tied to a screen, especially a small screen
Fit Tech People

Mike Hansen

Managing partner, Endorphinz
We noticed a big gap in the market – customers needed better insights but also recommendations on what to do, whether that be customer acquisition, content creation, marketing and more
More features