PureGym: Losses near £90m amid huge expansion drive
Losses at PureGym widened to almost £90m as it created hundreds of jobs and opened new locations in 2024, it has been revealed.
The Leeds-headquartered low-cost chain has posted a pre-tax loss of £88.5m for its latest financial year, after having also lost £77.6m in the prior 12 months.
In 2024, PureGym increased its headcount from 6,785 to 7,579 as it opened 102 new locations.
The results, newly filed with Companies House, come after PureGym announced at the end of April that it increased its turnover to almost £605m in 2024.
The chain has also said its reported EBITDA (earnings before interest, taxes, depreciation and amortisation) had grown by 10.5 per cent to £256m.
PureGym has said its net loss increased as a result of its debt going up as a result of the company taking in additional debt to acquire Blink Fitness.
Its finance costs increased to £183.7m in 2024 from £173.2m and debt went from £665.8m in 2023 to £784.7m. However, its net leverage fell from 4.4x to 4.3x.
The business also pointed to both its adjusted EBITDA and run rate adjusted EBITDA increasing in the year.
PureGym was founded in 2009 by Peter Roberts and is backed by Leonard Green & Partners as well as KKR.
As well as the UK, the brand operates gyms in the USA, Denmark and Switzerland.
‘Cost inflation remains a key challenge’
A statement signed off by the board said: “Along with other businesses, cost inflation remains a key challenge but the group’s business model is structurally ‘low cost’ and management continues to focus on limiting inflationary impacts.
“Gym costs continue to be tightly controlled in all of the key areas including rent, labour, cleaning and maintenance.
“Energy pricing was substantially fixed throughout the year and future supply contacts are locked in at acceptable and known levels through 2025.
“Alongside this, good progress has been made with energy consumption reduction and this will remain a focus going forwards.
“All of these factors, together with PureGym’s market-leading revenue, pricing and performance management system, ensure the group’s return on capital employed remains robust.”
PureGym: Budget chain ‘remains resilient’
Earlier in May, PureGym confirmed its revenue had increased by 23 per cent in the first quarter of its new financial year compared to the same period in 2024.
In August 2024, PureGym poached the chief executive of Punch Pubs & Co as its new boss.
Clive Chesser succeeded Humphrey Cobbold who became PureGym’s chairman.
On its future, PureGym’s CEO said: “Many challenges remain in the macroeconomic environment; cost inflation, uncertain consumer confidence and the impact of government policy. However, PureGym remains resilient.
“Management continue to be successful in addressing cost pressures and the group’s relatively low staffing model means that the effects of payroll tax increases, while substantial, impact PureGym less than some other operators.
“The group’s robust unit economics, in both the mature estate and new sites, continue to be pleasing, and innovations in gym offering mean that more of the market is accessible in key geographies.”