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Pure Gym builds on CEO hire and failed merger by reporting 22.6m underlying profit

Having recruited Cobbled from online cycle retailer Wiggle in January, Pure Gym reported 45 per cent growth in members and said there are now more than 500,000 visits to its 84 sites each week.

Its 2013 figures of 46m for revenue and 2.1m for profit before tax were bettered by 49 per cent and 365 per cent respectively.

Cobbled commented: The time Ive spent getting to know the company since joining in January has reaffirmed my view that this is a very high quality business with great people and tremendous opportunities.

As well as planning to open 30-40 new sites this year, we are exploring additional opportunities which fit with our brand and capability. Its an exciting time as we look to drive a significant revolution in the market for access to fitness facilities, more active lifestyles and the well being of the British people.

Pure Gym claims to be the largest gym company in the UK and will now look to further develop its web, mobile and app platforms to increase the amount of users signing up to membership offers.

The business was set up in 2008 by Peter Roberts, who now serves as chairman, as a way or providing a gym service that did not tie customers into contracts and was open 24 hours a day. His first two gyms were in Manchester and Leeds, after which growth has been supported by private equity investor CCMP Capital Partners.

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In the summer of 2014, it was revealed that a planned merger between Pure Gym and rival low-cost fitness chain The Gym Group had fallen through after it was decided a protracted phase II investigation would have a detrimental effect on both business . The phase II investigation involved determining whether the combined entity would have had an unfair advantage in the market.

Speaking then, Tom Walker, UK managing director of CCMP Capital Advisors, and David Burns, managing partner at Phoenix Equity Partners, said: There are more than 6,000 gyms operating in the UK offering a variety of services, at a range of prices, to more than seven million members. We are surprised that the CMA has concluded that a combination of two young businesses with a combined total of 110 gyms nationwide created a risk of a substantial lessening of competition.

Discussing the companys new set of results, Roberts said: In 2014 we delivered impressive financial performance whilst managing significant expansion.

In just five years Pure Gym has established itself as the leading gym operator in the UK and made gym membership a reality for hundreds of thousands of people. We have further exciting expansion plans for 2015 and look forward to another year of growth.



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