The Gym Group eyes Toys R Us sites as it targets further expansion
Toys R Us sites are among the opportunities being considered by fast-growing budget gym operator The Gym Group, which reported annual results this morning.
The company, which is the only London-listed fitness group, is targeting another 15 to 20 new openings in 2017, on top of the current estate of 128.
Chief executive John Treharne told City PM: "Clearly the unfortunate news about Toys R Us recently opens other opportunities." He confirmed that the group has looked at some of the toy shop's 100 UK stores, which are all set to close.
This came as the group reported a 24 per cent jump in revenue to £91.4m for 2017, and pre-tax profit of £12m.
It flexed its muscles with organic growth of 21 new openings, ahead of targets, while 18 more sites were acquired from Lifestyle Fitness.
Average Ebitda for a mature site decreased to £461,000 from £476,000 in 2016, though return on capital was maintained at 32 per cent. Finance chief Richard Darwin said the group needed around 5,500 members for the average site to break even.
Overall member numbers reached 607,000 by the end of the year, and this has since increased to 664,000 during the crucial post-Christmas period.
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