The Gym Share Discussion Threads

[from8to800] 18/7/2018 15:51

Being a member of Vauxhall's gym I can confirm, particularly at rush hour (5-7pm) the place is virtually packed. Many a times have I gone home before I could finish my session because virtually all machines are in use.

Whilst this may appear good at face value, this overdose of customers may put some other off.

At any rate, equipment has good quality, PTs are approachable and, aside that feared rush hour, it is an excellent value for money option.

Has anyone had a similar experience on other gyms? Just wondering if Vauxhall is an outlier due to prime location?

[shauney2] 15/6/2018 11:26

Berenberg new target price 320p (300p)

[shauney2] 14/6/2018 10:43

They must have been in a hurry to acquire easyGYM.Placing last night and RNSd this morning.I can see why.It looks good value.Earnings enhancing in 2019.

The Acquisition

The Board believes that the Acquisition has a compelling strategic and financial rationale which is outlined below.

-- Strategic rationale:

o Eight of the 13 sites are located within London and this diversifies the geographical mix in this fast developing part of the country.

o The acquisition of the easyGym sites will add to TGG's existing rollout plans for 2018 and help drive future growth:

-- opportunity to increase member numbers closer to TGG mature estate levels (average easyGym 4,850 vs TGG 5,477) through focus on TGG member service proposition and further investment into the facilities;

-- roll-out of LIVE IT. multi-site membership proposition to easyGym members; and

-- economies of scale from utilising TGG's existing infrastructure.

o Acquisition further underpins TGG's aim to reach 200 sites by 2020.

-- Financial rationale:

o Well-invested sites requiring limited cost to rebrand (c. GBP0.28 million per site).

o The 13 sites being acquired earned site EBITDA (excluding central costs) of GBP4.3 million in the 12 months to 31 March 2018 with revenues of GBP12.9 million.

o Acquisition multiple of 5.7x LTM Mar-18 Site EBITDA.

o Upfront and deferred consideration deal structure ensures that TGG does not overpay for assets.

o The post-transaction structure will represent opening leverage of 1.2x(1) combined 2017 TGG EBITDA and easyGym LTM Mar-18 EBITDA of GBP32.3million.

o The Acquisition on a standalone basis is expected to be earnings enhancing in 2019.

Outlook

-- The Board is pleased with underlying business performance and expects that a combination of the strong uptake from LIVE IT. and the easyGym acquisition will be materially earnings enhancing in 2019 and beyond.

[davr0s] 22/3/2018 18:26

Nice price action all things considered - rejected 130 and back into the consolidation area

[davr0s] 22/3/2018 08:52

I'm considering adding if the price can turn back up - would be my second add. Probably not today as market needs to digest this a bit. Surprised price was so static after results - maybe word of placing was doing the rounds so no institutions wanted to step further in front of it knowing they could pick it up a little cheaper

[izztre] 22/3/2018 08:48

Is this a time to top up given how strong the results were?

[izztre] 20/3/2018 07:24

Great results

[dtaliadoros] 19/1/2018 19:20

I suspect it will only be a matter of time before we see puregym come back to the market

[dtaliadoros] 19/1/2018 08:33

They are not necessarily better than pure gym. But at least I can buy shares in gym. I can't in pure gym. I believe both will grow market share. The comparison I make is to look at the low cost airline industry. Easy jet, Ryanair, and Norwegian are all thriving together to the detriment of the traditional scheduled airlines. The high cost airlines are having to change their product offerings (look at BA), but will ever be able to get their costs down as cheap as the budgets. My budget airline shares are some of my best performing.....i see similar happening with budget gyms. Jump in whilst you can.

[lullabite] 18/1/2018 21:18

I meant could they expand outise of the UK*

[lullabite] 18/1/2018 21:17

My main concern with gym group is why are they better than their low cost peers?? Whats their market share in the UK?There are a lot of low cost gyms mcfit(Europe) puregym (uk) What makes gym group better? Mcfit is quite good low pricing nice equipment puregym is also great And they have a lot of olimpic equipment (instead of a ridiculous amount of treadmills ) As far as i know the main advantages in the low cost industry are price equipment And locations , so why do you think gym group is better positioned to grow than their peers(mcfit puregym etc ) Could they expand outside of the US ? taking into account that there are already low cost gyms brands , i know is a tricky question cause in the low cost gym industry is hard to have a competitive advantage but im wondering who Will be the Big winner after this trend towards low cost gyms Hope you can help me out with these questions And thanks ?

[invincibles] 18/1/2018 18:58

We are the Invincibles, and we are here to serve you better, we are pro in all form of hacks and available for hire, we help in securing company websites, hack any form of social media, we are available for any special project but all hack must come with a reasonable proposal as we don't just accept any hack without a legit or legal reason. You can reach our website to read more and hire us. We are invincibles, we keep our words.

[dtaliadoros] 18/1/2018 18:48

The only threat I see to this valuation is another attempt by puregym to list, after last years failed attempt. That is a real possibility that will no doubt knock a few percentage points off gym

[dtaliadoros] 18/1/2018 18:47

I think there is much more growth to come in this sector. Quite simply, the more locations they roll out to, the more visibility they will get and member of gyms costing 1000+ a year will seriously begin to question why they are paying so much. Another thing to consider is that the younger generation increasingly living temporary/freelance lifestyles. Ownership being it things or contract commitments is not something that is attractive to them.....so this contract free gym model will grow and grow!

[davr0s] 17/1/2018 17:58

Breaking out. I'm holding and considering adding.

[zoolook] 17/1/2018 11:47

Like the business but price getting too racy for me so sold. No doubt will regret it. Good luck to holders.

[tradekeeper] 17/1/2018 10:51

QuePassa, I could not agree more! Same goes for my local Nuffield facility, people are leaving due to high cost. I believe we are looking at a recession in the near future, if this is the case then people will soon be reviewed their spending habits, and looking into other options. Is this company recession proof? I think it must be, as well as a great fitness facility it is also great social environment people are in the gym more than pubs now. I have been to one of these clubs and they are great I can't believe how cheap they are. The only downside is they are extremely busy in the evenings!

[mdbucky] 16/1/2018 20:49

16 Jan 18 Numis
Recommend Buy
Target 287.00

16 Jan 18 Peel Hunt
Recommend Buy
Target 260.00

[mdbucky] 16/1/2018 19:47

Gym Group reports fastest growth in the budget sector