Monday, February 19, 2024 8:47am
Total Fitness’ membership numbers have “significantly exceeded” pre-pandemic record levels as gym users switched from lower-cost competitors, new figures show.
The Cheshire-based group, which is backed by NorthEdge Capital, said its turnover rose from £36m to £39.9m in the year to 30 June 2023, with pre-tax profits of £96m. The amount increased from £1,000 to £1.2 million.
The new accounts filed with Companies House come after Total Fitness turned a profit last financial year for the first time since 2015.
During the most recent fiscal year, Total Fitness’ average employment decreased from 632 to 580 people.
Total Fitness operates 155 locations across the North West, North East, Yorkshire, East Midlands and Wales.
A statement signed by the board said: “During the year, the business continued to grow its membership base despite a number of macroeconomic shocks, with membership numbers significantly exceeding pre-pandemic record levels (on a like-for-like basis). ” he said.
“Our diverse board of wet-side and dry-side facilities continues to attract new members looking to expand their fitness experience.
“The underlying macro trends that were driving sector growth pre-pandemic are expected to continue to grow post-pandemic, with industry outlook forecasting market penetration of 20% by 2030, up from 14% pre-pandemic. % and is predicted to increase by an additional 5 million people.”
“While there are clearly headwinds given the economic conditions that apply to the consumer sector and others, the gym sector has shown exceptional resilience, and for Total Fitness in particular, the post-pandemic situation will continue to support the suburban destination model and membership. It favors those that have the scale and space to provide the distance and training space they are looking for right now.
“44 percent of participants surveyed post-reopening were ‘switchers’ from competitors, with the majority choosing to ‘trade in’ from low-cost/budget gym chains. Trends support this hypothesis.
“This suggests a more proposition-driven purchasing decision-making process, with variety, space and availability noted as key drivers.
“Additionally, recent data (May 2023) shows that in our local market, 18 percent of all non-members are likely to join a club in the next 12 months, and 60 percent of former members are likely to join a club in the next 12 months. It is believed that they intend to return to Total Fitness by 25 per cent in the next 12 months – both indicating a stable pipeline for future growth.”
Total Fitness added that it had completed its internal voluntary agreement during the year “earlier than expected” as a result of its “strong performance”.
The company announced it would enter the CVA process in March 2021 after being hit hard by the pandemic.
It also said the £6.5m refinancing “strengthens the company’s offer to deploy capital investment to further grow its membership base through a facility enhancement programme”.