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Pure Gym to work out London stock market listing | Pure Gym to work out London stock market listing |
(35 minutes later) | |
Pure Gym, the UK's biggest gym operator, plans to raise £190m by listing on the London stock market to help fund expansion. | Pure Gym, the UK's biggest gym operator, plans to raise £190m by listing on the London stock market to help fund expansion. |
The chain has 163 gyms, including 40 within the M25, and more than 780,000 members who pay about £20 a month. | The chain has 163 gyms, including 40 within the M25, and more than 780,000 members who pay about £20 a month. |
The low monthly fee has helped Pure Gym to attract customers from more expensive operators, as well as newcomers to working out. | The low monthly fee has helped Pure Gym to attract customers from more expensive operators, as well as newcomers to working out. |
The company was founded in 2008 by entrepreneur Peter Roberts. | The company was founded in 2008 by entrepreneur Peter Roberts. |
Pure Gym was bought in May 2013 by a group of investors and senior managers and expanded two years later by taking over the LA Fitness chain. | Pure Gym was bought in May 2013 by a group of investors and senior managers and expanded two years later by taking over the LA Fitness chain. |
Its gyms are open 24 hours a day, have minimal staffing and do not lock customers into 12-month contracts. | Its gyms are open 24 hours a day, have minimal staffing and do not lock customers into 12-month contracts. |
Tony Ball, chairman, said its growth from a start-up to UK market leader today is a "story of disruption and shows how entrepreneurial vision can build real business success". | Tony Ball, chairman, said its growth from a start-up to UK market leader today is a "story of disruption and shows how entrepreneurial vision can build real business success". |
"Our successful model is built around our members' needs and it has made gym membership accessible for hundreds of thousands of people ... I am hugely excited about its potential for the future," he said. | "Our successful model is built around our members' needs and it has made gym membership accessible for hundreds of thousands of people ... I am hugely excited about its potential for the future," he said. |
Humphrey Cobbold, chief executive of Pure Gym, said the listing would further raise Pure Gym's profile by building brand awareness and reward staff. | Humphrey Cobbold, chief executive of Pure Gym, said the listing would further raise Pure Gym's profile by building brand awareness and reward staff. |
"As well as opening more gyms, we will continue to invest in technology and the innovation it supports," he said. | "As well as opening more gyms, we will continue to invest in technology and the innovation it supports," he said. |
Pure posted a 51% rise in revenue for the six months to 30 June to £76.6m and a 23% increase in adjusted profits to £16.5m. | Pure posted a 51% rise in revenue for the six months to 30 June to £76.6m and a 23% increase in adjusted profits to £16.5m. |
The company believes the UK budget gym market can double in size to 950 sites in the coming years, with between 3.5 million and 4.5 million members - up from 1.9 million as of March 2016. | |
Record high | |
It plans to open about 38 gyms this year, 25 to 30 in 2017 and 20 to 25 new sites a year thereafter. | |
The number of UK gym members hit a record 9.2 million this year, meaning a record 1 in 7 people belong to a fitness club, with just over 6,400 gyms. | |
In 2014 Pure Gym attempted to merge with discount rival The Gym Group, but the deal was abandoned after the competition regulator raised objections. | |
Upmarket operator Virgin Active was bought by South African investment group Brait in 2015 for £682m. | |
In June Brait announced that 35 clubs would be sold to Nuffield Health, leaving it with 61 UK sites. | |
Virgin Active charges about £130 a month for membership, | |
The gym market has faced similar pressures to the retail sector, with those at the bottom and top prospering, while those in the middle suffering. | |
Fitness First - one of the squeezed mid-market operators - could be broken up, with JJB Sports founder Dave Whelan taking on most of its 70 sites, Sky News reported. | |
The others could be bought by The Gym Group and GLL, the charitable social enterprise set up by Greenwich council in the 1990s that operates council-owned gyms and pools under the Better brand. |
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