The Gym Group To Raise GBP24 Million To Fund Acquisitions (ALLISS)

LONDON (Alliance News) - The Gym Group PLC said Wednesday it aims to raise GBP24 million in an ...

Alliance News 13 June, 2018 | 5:37PM
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LONDON (Alliance News) - The Gym Group PLC said Wednesday it aims to raise GBP24 million in an equity placing to fund 13 more gyms acquisitions.

The gym operator said it plans to acquire 13 new gyms for a total of GBP20.6 million, with an additional GBP4.1 million payable when lease extensions are agreed on two sites, from easyGym. The acquisition is expected to be completed on June 20.

The company said the sites will incur GBP280,000 each in rebranding costs, with the acquisition expected to be earning enhancing from 2019.

For the five months to May 31, the gym operator said trading has been "strong" and in line with management views.

The company said it expects to meet 2018 annual expectations.

Total membership increased 32% to 668,000 from 507,000 registered at May 2017. The company's premium pricing initiative, LIVE IT, registered 45,000 members.

The Gym said it will open six more gyms in 2018 taking its estate to 134 sites.

"The easyGym portfolio of 13 well invested gyms is highly complementary to our existing estate. We are confident they will integrate quickly and easily into our existing business. In addition, they will further enhance our market position in the low cost market in London, as well as extending our geographic spread across the UK," Chief Executive Officer John Treharne said.

The Gym Group shares closed 0.8% down at 249.50 pence each.

By Elena Cherubini; elenacherubini@alliancenews.com.

Copyright 2018 Alliance News Limited. All Rights Reserved.

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Security Name Price Change (%) Morningstar
Rating
Gym Group (The) PLC 291.50 GBX -0.17 -
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