15th Mar 2016 09:12
LONDON (Alliance News) - The Gym Group PLC on Tuesday reported a wider pretax loss in 2015 resulting from costs associated with its initial public offering in November and gym opening administration fees, but revenue rose as its pipeline of sites builds and membership grows.
The low-cost, all-hours gym operator said its pretax loss in 2015 widened to GBP12.4 million from GBP9.4 million in 2014, due to costs relating to its London IPO and increased administration fees as a result of new gym openings.
Stripping out these charges, adjusted earnings before interest, tax, depreciation and amortisation grew to GBP17.0 million from GBP14.7 million.
Revenue, meanwhile, rose to GBP60.0 million from GBP45.5 million, boosted by the new gym openings and an increase in members.
A total of 19 new gyms were opened during the year, taking the estate to 74, and total year-end members grew to 376,000 from 293,000. This figure then surpassed 400,000 in January. Gym Group is opening a further site this week and plans to open six new gyms by the end of the first half.
"A strong site pipeline for 2016 will see us continue to expand at a fast rate to take advantage of our considerable opportunity. We have a proven model, strong market fundamentals and financial strength to continue to prosper and deliver value for shareholders both in 2016 and much further beyond," Chief Executive John Treharne said in a statement.
Gym Group will not pay a final dividend due to the short period of time between the IPO and year-end, but intends to pay an interim dividend for the first half of 2016. The total dividend for 2016 is expected to be between 10% and 20% of adjusted earnings, it said.
Shares in Gym Group were trading down 4.5% at 234.10 pence on Tuesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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