Puregym reports boost in profits and increase in membership
PureGym said it has managed to avoid the worst of the cost-of-living crisis, adding to its profit while still being able to attract new members.
The business, set to open new gyms in Shrewsbury and Tamworth in the coming week, said an extra 190,000 people signed up to one of its 582 sites, spread across several countries, in the six months to the end of June.
It is an 11% increase and takes total membership numbers to a little under 1.9 million, the company said on Thursday.
The number of PureGym sites also rose by 11%, it said, adding 57 new gyms.
It helped operating profit rise by 43% in the period to £40 million, on revenue of £272 million, up 17%.
Membership growth was “ahead of plan”, the business said, “demonstrating the strength of the proposition and the importance of health, wellbeing and fitness to consumers – despite the cost-of-living crisis”.
Chief executive Humphrey Cobbold said: “Whilst we had hoped that operating conditions following the pandemic would be easier, the reality is that the business environment has remained very difficult on multiple dimensions.
“Inflation, and rising energy prices in particular, put significant pressure on our cost base whilst also hitting consumers’ disposable incomes, triggering the cost-of-living crisis.
He added: “Demand for our low-cost, flexible gym memberships remains strong and I am particularly pleased with the join-up rates at our new sites – we have opened 92 corporate-owned sites since the end of the last Covid lockdown period in April 2021.
“I believe the pattern of robust demand in new sites confirms the underlying strength of the proposition and the growing importance of health and wellbeing to consumers.
“Paraphrasing the old saying, our carefully calibrated site selection process and proposition proves that ‘if we build it – they will come’.”
