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Pure Gym revenues jump 82 per cent to hit £125m

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Pure Gym has given itself a solid launchpad for its expected summer IPO, reporting significant growth across the business in its 2015 financial results.

The UK’s biggest gym chain – thought to be planning to follow budget rival The Gym Group onto the stock market with a float worth £500m or more – had revenues of £125.2m in 2015, an 82 per cent increase on the previous year. The 2015 revenue figure is double that of The Gym Group, which completed its £250m float in November and whose shares have since risen more than 20 per cent to see the company valued at £315m.

Pure Gym saw group EBITDA grow by 46 per cent to reach £28m, although these figures don’t take into account the estimated £70m it paid to acquire 42 LA fitness clubs last year. Boosted by the LA fitness takeover – of which the £30m conversion of clubs into Pure Gyms is due to complete this summer – overall membership in 2015 leapt 63 per cent to 670,000.

“Pure Gym has had an exceptional year in which we have seen a significant increase in membership of all ages, reinforcing the demand for access to affordable, flexible and high-quality gyms across the country," said Pure Gym CEO Humphrey Cobbold.

“The acquisition of LA Fitness, the strengthening of our management team, the investment in rebranding and launching new initiatives has put us on the front foot for another successful year ahead.”

During 2015, Pure Gym strengthened its management team with the appointment of Dan Glyde as chief technology officer, Stephen Rowe as chief marketing officer, Eve Sukhnandan as HR director and Francine Davis as director of strategic and commercial development. The chain also announced tie-ups with Olympic cycling legend Sir Chris Hoy and the UK’s biggest mass participation running series, The Great Run Company.

Cobbold said sights were set firmly on maintaining the momentum in 2016 and the company appears to have made a strong start. Since the beginning of the year, Pure Gym has opened 18 more sites across the UK, including nine LA Fitness conversions, and now has more than 780,000 members. Pure Gym opened its 150th gym, in Oxford, at the beginning of April.

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Pure Gym has given itself a solid launchpad for its expected summer IPO, reporting significant growth across the business in its 2015 financial results.
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