Gym Group pumped into black by ‘classless’ custom

The “classless” nature of cheap gyms that are open 24/7 and see “shift workers, hospital consultants, taxi drivers, and hotel and casino staff exercising together” saw The Gym Group storm into the black last year, its boss said today.

John Treharne, chief executive of the exercise chain, said the average £17 monthly bill was part of the reason for The Gym Group’s first full-year profit, which hit £6.9 million in 2016, after a £12.4 million loss a year earlier.

“But,” he added, “it’s also the 24/7 operation that’s attracting a very new market: 34% of our members are gym first-timers … up to 15% of usage is between 10pm and 6am, when most gyms are closed. The whole point of the concept is it’s just classless.”

The Gym Group, which has 89 branches, opened in 2008 when it benefited from the recession.

Treharne said that if Brexit leads to an economic downturn, “that should be good for low-cost operators. But, like Lidl, Aldi, and easyJet, we haven’t seen that as the economy improves, people price up again; they stick with us.”