Half Year 2024 GYM Group PLC Earnings Call Transcript
Key Points
- Closing membership increased by 4% and yield by 9%, with revenue up 12% year-on-year.
- Strong cash generation with free cash flow up 73% to $24.5 million.
- Net debt reduced by GBP11.8 million since December 2023.
- Refinanced bank debt with improved interest rates and strong support from UK banks.
- On track to open 10 to 12 new sites in 2024, with seven already opened this year.
- Central costs grew ahead of revenue growth due to higher annual salary inflation and investments.
- Net financing costs remained flat year-on-year despite a reduction in net debt.
- Expected like-for-like sales growth revised down to 5% to 6% from the initial 45%.
- Higher than usual annual salary inflation increases impacting central costs.
- Site costs increased due to inflationary pressures from national minimum wage and rateable value rating period.
Well, good morning, and welcome to the 2024 half year results presentation for the GYM Group. Thank you for making the time to join us in the room and also on the dial in. After the presentation, we'll take questions in the room first and then from the webcast, our CFO, Luke Tait and I will be doing the presenting today. It's what we plan to cover.
I'll start with an overview before handing to Luke to share our 2024 half-year financial results. I'll then provide a progress report on the next chapter of growth strategy that we outlined in March this year.
And I'll then summarize before taking questions. So starting with the overview, I'm pleased to report strong performance in the first half of 2024, leaving us well set for the full year. Closing membership was up 4% and yield 9% with revenue for the period up 12%, 9% on a like-for-like basis. Strong cash generation is an important part of our investment case, and we've made good progress here. We've reduced net debt by GBP11.8 million since December 2023 and generated $24.5
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