GYM CHAIN MAKES FRIST PROFIT IN YEARS AFTER ATTRACTING NEW MEMBERS

Total Fitness returned to the black for the first time since 2015 during its latest financial year after its turnover returned to near pre-pandemic levels.

The Cheshire-headquartered gym group has reported a pre-tax profit of £961,000 for the 12 months to June 30, 2022, up from the £8.5m loss it posted in the prior 18 months.

Its turnover also jumped from £26.6m to £36m over the same period. Total Fitness has sites across the North West, East Midlands, Yorkshire, North East and North Wales.

The last time the company reported a pre-tax profit was the £2.7m it achieved in the 12 months to December 31, 2015. In the last year before the Covid-19 pandemic, Total Fitness reported a turnover of £37.2m and a pre-tax loss of £1m.

A statement signed off by the board said: “During the year the business restored its member base on a like-for-like basis to the pre-Covid-19 pandemic, joining a record number of new members, continuing a programme to enhance the facilities offered.

The broad range of wet and dry side facilities continue to attract new members looking to expand their fitness experience. The underlying macro trends which were driving sector growth pre-Covid-19 remain forecast to grow pos-Covid-19 with industry outlooks projecting further growth to a market penetration of 20% by 2030 (an addition of five million more members).

Clearly there are headwinds given the economic landscape that apply to the entire health club sector (and others), but for Total Fitness specifically the post-Covid-19 landscape favours the suburban, destination model and with the scale/space to afford members the distancing and workout space they now demand.”

It also stated: “The joiner trend supports this thesis with 44% of joiners surveyed post-re- opening being ‘switchers’ (from competitors) with the majority of them choosing to ‘trade up’ from low cost budget gym chains.

This suggests a more proposition-conscious purchase decision making process with breadth of variety, space and availability noted as being key drivers. The continued improvement in facilities saw a number of clubs attracting substantial capital investment with further investment announced for the following 12 months.”