The Gym Group Valued At £250m On London Stock Exchange

Pioneering low-cost gym operator The Gym Group has successfully completed its Initial Public Offering (IPO) on the main market of the London Stock Exchange, with a flotation valuation of £250 million.

Founded in 2008, the gym chain has carved a niche for itself among the explosion of high-end boutique fitness studios by offering an affordable pay-as-you-go model that has seen the business grow to become the second-largest operator of low-cost gyms in the UK.

The company, which now operates 66 gyms with 363,000 members has seen its revenue double from £22.3 million in 2012 to £45.5 million in 2014 – a compound annual growth rate of 43%. And as the only listed gym company on the LSE, the IPO marks a proud moment for founder and CEO John Treharne, who commented:

“Today marks a significant milestone in the development of The Gym and we are delighted at the strong levels of investor interest and support for our IPO. Our new shareholders recognise that The Gym is a pioneer in the low-cost gym sector, benefiting from a compelling customer proposition with affordable, ‘no-contract’ flexible membership and gyms that are open 24 hours a day, seven days a week.

“The Gym gives members the freedom and flexibility to improve their health and fitness on their own terms, removing the old barriers of fixed, high-cost contracts which have served to reduce accessibility in the past.”

The Gym’s 195p-a-share float price, will translate into £90 million of gross proceeds for the company, which will allow the team to build on their commitment to provide affordable access to exercise facilities and expert help to every person who wants to improve their wellbeing – factors that have given the company a significant advantage in a highly competitive market.

Prior to today’s IPO, The Gym Group had raised £125 million from new investors, which will be used to support the continuation of the company’s growth strategy, including the opening of between 15 and 20 gyms in 2015 and each year thereafter over the medium term.