THE GYM GROUP PLC (GYM) Q2 2026 Earnings Call Transcript

Good morning and welcome to the 2026 half-year results presentation for the Gym Group. Thank you for making time to join us in the room and on the dial-in. After the presentation, we'll take your questions in the room first and then from the webcast. Our CFO, Luke Tate, and I will be doing the presenting today. And here's what we plan to cover. I'll start with an overview before handing to Luke to share our 2026 half-year financial results. I'll then provide a further progress report on our next chapter growth plan and summarise before taking your questions. So, starting with the overview. I'm pleased to report a strong performance for the first half of 2026. Average membership was up 5%, with revenue for the period up 10%, 3% on a like-for-like basis. With this revenue growth and continued cost discipline, EBITDA less normalized rent was up 12% to 30.8 million. The market remains highly attractive. UK gym penetration has reached another new high at circa 18% with high value low cost gyms continuing to grow share. Within our next chapter growth plan we continue to strengthen the core supporting further progress in mature site performance and heroic and we continue to accelerate the rollout of quality new sites we expect to open at least 20 gyms in 2026 all funded from free cash flow so we've maintained strong momentum through the first half and remain confident as we look to the full year 26 and beyond i'll now hand over to luke for the financial results thank you will good morning starting with a summary of our financial kpis the key revenue

KPIs, which were released in July, have both shown good growth year on year. Average members were just over 1 million in the first half, up 5% year on year. Average revenue per member per month was £22.14, also up 5% on prior year. As a result, revenue was £133.1 million, up 10% on the first half of last year. The additional revenue converted well to profit, with EBITDA less normalised rent of £30.8 million, up 12%, or £3.4 million year-on-year. Adjusted profit before tax increased by 31% to £6.4 million. Free cash flow was £27.7 million, up 10%, supporting our accelerated rollout and the ongoing share buyback. Non-property net debt was £58 million. This was £6.8 million higher than June last year, reflecting the new GIM investment and share buyback programme, but £1.3 million lower than 2025 year-end. Adjusted leverage remained at one times. We'll look at each of these key financial metrics in more detail in the following slides. Starting with the income statement, EBITDA grew strongly in the first half of the year, up 12% versus last year. Revenue was £133.1 million, up by £12.1 million, reflecting growth in both the like-for-like estate and our new openings Cost of sales increased by £0.3 million, reflecting the revenue growth Site costs of £63.7 million were slightly better than expected due to energy optimisation initiatives, including a new energy purchasing programme Central costs increased by 0.9 million, or 7%, well below the rate of revenue growth. As a result, central costs as a proportion of revenue dropped below 11%, as guided. Normalised rent of 22.2 million increased by 1.3 million, or 6%, reflecting new site growth and underlying lease inflation. As a result, EBITDA less normalised rent was 30.8 million, up 3.4 million. EBITDA margin increased by half a percentage point to 23.1%. Moving down the P&L, the growth in EBITDA converted well into profit before tax. Depreciation and amortisation increased by 2.1 million, reflecting the larger estate and continued investment in technology and data. Net financing costs increased by half a million to 10.9 million, reflecting the growth in the property lease base. The higher net debt was broadly offset by lower interest rates. The non-cash share-based payments charge of £3.1 million increased by £0.6 million, largely due to the recent share price growth. Adjusted profit before tax was therefore £6.4 million, up 31%. Non-underlying items of £1.5 million relate principally to the non-capitalisable costs associated with upgrading our member management and payment systems. Statutory profit before tax increased by 48% to $4.9 million. The accounting tax charge reflects the initial unwinding of the deferred tax asset. We expect a full year effective tax rate of circa 18%, but no cash tax charge. As a result, the profit after tax was $4.3 million. Turning now to revenue. Across the total estate, revenue grew by 10% in the first half, with both member volume and average revenue per member per month contributing strongly. Average members increased by 5% to just over £1 million. Average revenue per member per month increased by 5% to £22.14, with maturing sites growing fastest as usual. In the like-for-like estate, revenue grew by 3%. Member volume was maintained with the growth delivered through a 3% increase in average revenue per member per month. Looking now at site costs in more detail, like-for-like site costs increased by 3.5% in the first half, better than our expectations. In utilities, lower commodity prices offset the increase in non-commodity charges that took effect in the fourth quarter of 2025. We also benefited from a new peer-to-peer energy purchasing programme and other ongoing energy efficiency initiatives. Staff and cleaning costs increased as a result of the national living wage increase and the annualisation of the national insurance change from the second quarter of last year. We also made an additional investment in brand awareness during the period. We expect the rate of site cost inflation to slow in the second half as the non-commodity electricity increase annualises in the fourth quarter. Commodity rates are now fixed through to October 2028, with further reduction in future commodity rates secured. We're also implementing time management software to optimise staffing schedules further. As a result, we expect full-year like-for-like site cost inflation to be at the lower end of our guided range of 3% to 4%. Turning now to cash flow. Strong cash flow generation in the first half enabled us to self-fund our expansionary capex and buy shares for the EBT and buyback programme with no change to net debt. The working capital inflow of 7.4 million reflects the cash generative nature of the business model when growing, although some unwind of this inflow is expected by year end. After deducting the cash spend on maintenance capex of 7.1 million, operating cash flow was 31.1 million in line with EBITDA L&R. The cash element of non-underlying costs was 1.2 million and bank interest was 2.2 million. As mentioned earlier, there is no cash tax in the first half. In fact, we do not expect any cash tax until 2030 due to losses incurred during Covid and accelerated capital allowances. Free cash flow was £27.7 million, up 10% year on year. Expansionary capex was £18.5 million. We acquired £4.1 million of shares for the Employee Benefit Trust to avoid dilution and £3.8 million for the share buyback, leaving net debt materially unchanged. This demonstrates the strength of our cash generative model with funding a faster rollout, investing in tech and the existing estate and returning capital to shareholders while maintaining leverage at one times. We continue to reinvest free cash flow to grow the business and maintain a high quality estate. Total cash capex in the first half was £25.6 million compared to £19.9 million last year. Maintenance capex was £7.1 million, property maintenance spend was £5.9 million, equivalent to 4% of revenue, and technology and data maintenance spend was £1.2 million. Expansionary capital expenditure increased to £18.5 million. This included £12.9 million on new sites, £2.1 million on tech and data growth initiatives, and £3.5 million on the Member Management and Payments programme. the member management and payments upgrade is well progressed with all members now successfully migrated to the new system we opened four new gyms in the first half and currently have a further 11 gyms on site we're still expecting to open at least 20 gyms by year end turning to net debt non-property net debt was 58 million at the end of june 1.3 million lower than the december 2025 position of 59.3 million. Adjusted leverage remained at one times and fixed charge cover improved to 2.2 times. In June we amended our facilities increasing total committed facilities by 15 million to 117 million. The facilities now comprise a 60 million term loan and a 57 million revolving credit facility with maturity in June 2028. This provides appropriate headroom and flexibility as we continue to accelerate our self-funded rollout and share buyback. The new site cohorts continue to perform well. The six sites opened in 2023 are currently tracking towards an average ROIC of approximately 25% with this small cohort affected by the unusual competitive environment at one site. The 12 sites opened in 2024 are tracking to deliver more than 30% ROIC. The 16 sites opened in 2025 continue to progress well with strong early member acquisition. Overall, the performance of these cohorts supports our confidence in the 30% ROIC hurdle for new openings. We continue to operate in line with the capital allocation policy we set out in 2023 our first priority is maintaining the existing estate with property maintenance capex continuing at approximately six percent of revenue over the full year our second priority is to maintain leverage below two times at june leverage was one times thirdly we're prioritizing organic new site growth with our accelerated target of approximately 75 new sites over three years and finally we're returning excess capital to shareholders through the 10 million share buyback finally turning to the full year outlook we remain on track to deliver like-for-like revenue growth of approximately three percent for the full year we now expect like-for-like site cost inflation to be at the lower end of our guided range of three to four percent and as a result for the first half as a result of the first half performance we expect the full year rabbit dial less normalized rent to be the top end of current analysts forecast range of 60.5 million to 62 million and in terms of full year expectations for capital allocation we've opened four new gyms to date with a further 11 on site and another five exchanged and two expected to exchange imminently. We expect to deliver at least 20 new openings this year. We've also completed 15 major refurbishments to date, with six further planned by year-end. We expect total capital expenditure to be 60 to 65 million in line with our previous guidance. And finally, we expect the 10 million share buyback to be completed by year-end. year to date we've acquired 3.1 million shares for just under 6 million an average price of £1.81 per share and now we'll hand back to Will for the next chapter progress report.

Thank you Luke so in March 2024 I set out our next chapter growth plan and today I wanted to give you another progress update firstly a reminder of the investment case and our commitment to deliver sustained growth from free cash flow for our shareholders. Starting at 12 o'clock on the circle, health and fitness is a large market benefiting from continued structural growth. And within gyms, the high-quality, low-cost sector is growing quickly, supported by consumers' appetite for high-quality, no-frills value and by ever more committed generations of gym-goers. And we address this growing demand with a winning proposition, that delivers strong member satisfaction at low cost through an advantaged labor-like business model. We also have multiple drivers of growth listed on the right-hand side of the slide, and strong execution against those growth drivers is increasing returns from our mature estate and generating the free cash flow that funds are accelerating new site rollout. And the whole model is powered by data and technology, enabling us to deliver our growth plans with precision. And the UK gym market continues to grow strongly. There are now 12.1 million gym members in the UK, spending approximately £7.3 billion a year. Gym penetration increased again in 2026 to 17.6% of the population versus 16.6% prior year and 12% in 2012. And most of that long-term growth has come from high-value, low-cost gyms. Of the 5.5 percentage point increase in penetration since 2012, 4.6 points have been delivered by our segment. High-value, low-cost gyms now account for 29% of UK gym members, reflecting the inherent strength of the proposition. And in this growing market segment, we're one of two brands that account for around 80% member share. A major driver of that growth is the generational shift in fitness engagement. The younger the consumer, the more likely they are to be a gym member. The bar chart on the left shows that 85% of 16 to 34-year-olds have or have had a gym membership. Gyms and fitness is increasingly hardwired into the way young people live. In fact, fitness is the leading discretionary spend priority for Gen Z. and as you can see on the right-hand side, its lead has increased year on year and that's particularly powerful for the gym group when nearly half our members are Gen Z. All that gives us continued confidence in the long-term growth prospects for the market and for the gym group. Managing weight has always been a motivator for gym members and developments in this area are another emerging tailwind. pwc estimates that approximately 3 million uk adults are currently you currently use glp ones with that number potentially increasing to 7 million or 13 percent of the adult population during 2027 we're already seeing this growth within our own estate in a recent internal survey 75 percent of gym group personal trainers said they trained someone someone using glp ones The important point for our sector is what happens to fitness behaviour. PwC's research indicates that fitness is one of the categories where spending increases during treatment and remains elevated after treatment ends. We're actively evaluating the most responsible, sustainable and profitable way to participate in this new ecosystem. The gym group has a clear plan to keep turning these market tailwinds into sustained growth. and as a reminder there are three elements to the next chapter growth plan. Strength in the core is about increasing returns from our existing sites and members driving like-for-like revenue and free cash flow. That cash generation allows us to accelerate the rollout of quality sites in the UK and those first two cogs are our primary focus because the headroom in both is so substantial but we're also taking selective opportunities to broaden our growth and our return to those later. So, turning first to strengthen the core. In H1, we continue to strengthen the core across revenue management, acquisition and retention. On revenue management, we continue to increase new member pricing in a measured and data-led way. This includes a new pricing decision engine using observed site-level elasticities to support more precise decisions. We're also further optimising promotional spend. And for example, in H1, we ran revenue-enhancing trials offering different discounts to different LAPS members based on their modelled propensity to rejoin. And we continue to grow our successful member add-ons with yield from members buying these increasing by 26%. On acquisition, unprompted brand awareness increased again by 5 percentage points, building on recent gains. In social media, we further increased our reach, and web conversion improved by another 10%. And on retention, the proportion of members on higher lifetime value fixed memberships increased to 10% of the base. we're also progressing our payment success program addressing members who churn because they inadvertently fail a payment in h1 we improve payment success on credit card by six percent and moving forward our new payment platform will enable several new initiatives of this kind overall our average member tenure increased again to 18 and a half months These are just some examples of incremental gains we're driving, and together they compound into strong like-for-like revenue, higher returns, and more free cash flow. The data on this slide and the next clearly show the ongoing pricing opportunity we benefit from. Our members pay around £27 a month for a large, well-equipped gym with friendly expert teams and 24-7 access. It's not surprising that members score us so highly on value for money. And while we're similarly priced to other high-value, low-cost players, the mid-market is 55% higher. Our market segment has a clear advantage on value, supporting pricing headroom and ongoing trade down from the mid-market. And we continue to have headroom versus direct competitors in competing locations. The ongoing pricing opportunity is also clear in our consumer data. The graph on the left-hand side of the chart is output from a large quantitative study we refresh each summer with pricing experts Simon Kutcher. It plots perceived price on the y-axis against perceived value on the x-axis and shows that we, along with other high-value low-cost players, remain underpriced with the opportunity to sit nearer or in the blue corridor shown on the Y. the chart so we continue to have both competitor and customer headroom when it comes to pricing and as you can see on the right hand side of the slide while we've modestly increased prices for several years our value for money scores remain high at around eight out of ten to support that value for money equation and our ongoing price increases we continue to enhance the value of the proposition in several ways. This includes the ongoing modernisation of our gyms and I'll cover that in some more detail shortly. This summer we reached an important milestone, successfully migrating all our gyms to modern cloud-native platforms for member management and payments. I wanted to share more on this and some of the other ways we've modernised our technology in recent years. The new member management platform unlocks several new commercial opportunities. These include member referral, new tools to increase payment success rates, and new member payment options. The new platforms will also enable us to innovate faster, offer members more self-service options, and simplify processes for our gym teams. Our digital channels are also continuing to improve. we've been continually making the app and website faster and more reliable adding new features and increasing the breadth of our a b testing capability this drives both a better member experience and continued improvements in sales conversion as you'd expect we're also playing applying ai in practical areas where it can improve speed productivity and decision making In software development, for example, we estimate that AI-enabled tools are increasing delivery speed by around 30%. We're also using AI to automate marketing content creation and analyze member feedback more quickly. Behind all of that, we've continued to modernize our cloud data and network infrastructure, improving the speed, resilience and scalability of our systems. And we strengthen the security and operational monitoring, bringing better detection and resolution of issues, and ultimately a more reliable service for our teams and members. All of these investments help to strengthen the business, enabling growth in profit and reduction in risk. So that's some of the ongoing progress we're making to strengthen the core. the resulting free cash flow is being deployed to accelerate the rollout of quality new sites and to enhance our mature estate at the heart of that rollout is the commitment to modern high quality gyms and across both new sites and major refurbishments we're continuing to elevate our product the evolution is visible right across the member journey more welcoming arrival areas continued kit innovation, better zoning, improved group exercise areas, more considered lighting and better changing rooms. We're also responding to how members use gyms today, including dedicated strength areas, women's workout spaces and equipment that reflects the latest training innovation. The objective is to create more premium feeling, more memorable experiences while retaining the cost discipline that sits at the heart of our model. And we're continuing to accelerate the self-funded rollout of new gyms. As a reminder, we expect to open at least 20 sites in 2026 and 75 sites over the three-year period, with an average ROIC of at least 30%. The rollout is supported by a bigger prospective site pipeline, data-driven site selection, our improved design template and ever better launch marketing programmes. And looking beyond that three-year period, a recently updated PwC assessment reinforces the scale of the UK opportunity. PwC has increased its estimates of total potential to between 1,500 and 750 high-value, low-cost gyms in the UK. That means, despite significant sector openings in the last two years, The headroom is still there for a further 600 to 850 locations. PwC's increase in estimated total potential is being driven by growing fitness demand, population growth and the increasing ability for high-value, low-cost operators to succeed across a wider range of trade areas and formats. On this assessment, the segment still has more than 10 years of expansion potential. Alongside the new site rollout we're also increasing the number of major refurbishments in the mature estate. We completed 10 major refurbs in 2025 and have tracked their performance. I'm pleased to say the results have been strong. For this cohort we've seen strong member feedback leading to an average of 10% membership growth and most importantly the sites are tracking to deliver a 30% return on the refurbishment capital and as a result we've accelerated the major refurb program to 21 in 2026 this is consistent with our capital allocation policy and current capex budget by the end of 2026 the elevated design will be present in over a quarter of the estate that comprises 41 new sites and 31 major refurbishments or 72 gyms in total. And if the data on the previous slide continues to show a strong return on capital while simultaneously making our estate more competitive for the long term, we'll continue to accelerate the refurb programme. So that's the progress across the first two elements of the plan, strengthening the core and accelerating the rollout of quality sites turning to the third cog we continue to pursue selective opportunities to broaden our growth the quality hurdles remain unchanged any opportunity must align to core competencies be highly incremental and offer strong returns on new channels our partnership with well hub is performing ahead of expectations providing an incremental b2b2c route to market it. Another new channel could be our existing members. We're currently exploring a scaled member referral scheme enabled by our new member management software. We're also backing new site formats. Early performance in both smaller catchment and larger destination gyms is encouraging, with more of these now in the pipeline. And when it comes to new products and services, we're exploring commercial partnerships in the broader health and fitness ecosystem, including GLP1s, the opportunity I described earlier. So that's the latest progress report on our next chapter at Growth Plan, and I'll now summarise. The gym group has an advantaged labour-like business model in a large market with structural growth. We have multiple opportunities to grow like-for-like revenue and significant UK white space. In the first half of 2026, revenue grew by 10% and EBITDA less normalized rent by 12%. We're accelerating the pace of both new site rollout and our REFER program. With continued elevation of our GIM product both programs are achieving 30% ROIC. Our capital allocation priorities are unchanged and this year's £10 million share buyback is ongoing. Looking to the full year, we expect 2026 EBITDA less normalised rent to be at the top end of the current analyst forecast range of £60.5 to £62 million. Finally, I'd like to thank our committed and expert people across our gyms and support centre. The quality of our team is one of the many reasons I'm very optimistic about our sustained growth prospects. Thank you. And we will now take your questions with a briefing coming in from above.

Thank you both. If you have a question and you are in the room, please raise your hand and wait for a microphone. If you are joining us via Zoom and have a question, please use the raised hand function and we will prompt you to unmute and ask your question. If you could please state your name and the company you represent. We will start with any questions from the room.

Thank you, Douglas Jack at Peel Hunt. Two questions, if it's okay. Just in terms of the enhanced format refurbs, how many do you think you might do next year? And what's the typical cost of one of those on average?

And then the second question was, in terms of expansion, in terms of the size, you're looking at big, medium, small. any preference towards that um any orientation towards type of location and what the site availability is looking at yeah maybe i'll i'll do the do the second one um the second one first i mean i think in terms of um site availability still still very good i think you know um as as we said that the openings this year are quite back-weighted but we've been seeing a pipeline of really strong opportunities and we're seeing that into next year and even the year beyond in terms of some really good sites coming through. I think the kind of core will remain that sort of, you know, 14,000, 15,000 square feet, you know, Greater London, other of those sort of, you know, urban sorts of locations, but then at the sort of, at the margins, more of that smaller catchment the one that we open is performing extremely well and then more of those sort of big 20,000 square feet more destination sites like the site in Norwich which is going extremely well but I think at the core it'll remain a relative that relatively familiar format that we know works very well and we continue to be able to make a range of you know high

street retail park mixed-use development I think we can make a nice wide range of of sites work so an acceleration i think along similar lines but just with a bit more flexibility around trade areas so on refurbs i mean for the moment we are still sticking to that capital allocation policy of six percent of revenue but obviously revenue is increasing year on year so i think we would be looking at more like sort of 25 plus next year i think we have a decision to make that if you know when we get really comfortable that that 30% work is being consistently delivered I think there is that there is always a an option to actually go a bit faster.

Anna? Thank you very much. Anna Barnfather from Panmiel Libram. Just back onto this a rollout and the Q4 waiting. I know it's a feature of the industry but I imagine it puts quite a lot of stress on your delivery teams on that is there anything you can do internally to smooth that progress particularly as you step up to 25 and then 30?

Yeah and as you say it's always been it's always been somewhat back-weighted in truth it's a bit more back-weighted this year than I would want it to be though I am still expecting that we'll open at least at least the 20 and then yeah I think what we're looking at for for next year is a quite specific thing really which is to it sounds fairly basic but to deploy it to to deploy a team now um working on um early 27 sites so so in terms of doing doing the sort of necessary groundwork to get those to get those openings in place in the early part of uh of next year so yeah sort of back way to next year i think it'll be back weighted every year but i'd like to think it'll be a bit smoother next year we've got quite a specific plan in place to try and do that.

Thank you. And then, question, Luke, technically, when we're looking at the mature ROIC and we're looking at the refurb ROIC, how are those calculated? Is the mature ROIC still on initial capital investment, or do you adjust it for those refurbishments?

No, the mature, it's still on the original investment.

So the refurb ROIC is the EBITDA uplift on the refurb spend, is it?

Yes, exactly. So it's the incremental EBITDA on incremental capex, essentially.

And then just a final question. You mentioned before the worker-dependent sites kind of bringing down that mature site ROIC. Do you have any loss-making sites? and are there any kind of action plans to address that?

So we've got, I mean, the benefit of being a high-margin business is the sort of tail, the loss-making tail is very, very small. We've got literally a handful of loss-making sites and we have been closing about one or two of those a year as they naturally come up for sort of lease expiration. We will close, I think, two this year. So we are bit by bit working our way through that tail.

Ross Broadfoot from RBC what would being in the magic blue corridor mean for pricing versus the sort of 27 headline rate and this might sound like an obvious question but what is the primary aim of these refurbs is this about driving new members through the door you know with the underpin structural underpins that you've talked about or is this about being able to charge the existing group more for a for a better product uh yeah i i think the second part of that uh of that question i think the i mean i think there is more than one aim but i think that's okay because i think they're all positive things i think it is about um yeah good capital allocation

30 return yeah on on specifically on that on that referred capital to the to the previous question and it is about supporting member volume it is about supporting pricing and it is about making it a better experience for the for the members and all those things are true and then if it's doing all those things and it's a good use of capital I think it's also ensuring the the the estate is competitive and sustainable over the long term and yeah we're extremely committed to making sure that the estate matures with real quality so that you know for many years to come and they can continue to deliver high returns. So I'm afraid there are a few elements to it. The second one was about the corridor. Do you want to take the corridor off?

That's a good question. I don't think I can give you a precise answer. But what I think I can say is that we know we have taken reasonable levels of pricing, always considering what our cost inflation is each year for a number of years now. we've not seen it move materially so I don't know I don't know the answer but I think it does the fact that how we don't seem to be moving into that corridor does give good confidence that there's you know a decent long-term pricing opportunity on the front and then we'll go back to Tim thank you Jack Cummings at Berenberg and first question just on the refurbs how are you deciding on which sites to to refurbish is it headroom and or how is that

decision being made. Second question is, I think in the release, members are now visiting more often. The average tenure of your members is also going up. Could that support faster than 3% like-for-like growth, or does that kind of play into the 3%? And then final question, leverage up one time, target two times. I know you've mentioned maybe a bit of a working capital reversal. There's obviously a lot of capex in H2, but you're still well below two times.

Should we anticipate potentially an additional buyback when it comes to the full-year results, given you are 50 60 percent through the the current one thank you yeah so so first one in terms of how we how we prioritize that we've we've done a lot of work on that and we've got quite a sort of sort of quite multi-dimensional piece when it comes to how we how we choose the refurbs it's it's sort of a combination of you sort of said it sort of headroom and we talked before about you know we sort of built this statistical model with Simon Kutcher again actually to sort of to look at where we think that the headroom is on volume in the estate. So that's one piece. And then we would look at some of the sort of trade dynamics as well. So we sort of take in sort of competitive factors as well. And then we would look at the gyms themselves and just kind of go, is there an opportunity to turn this from a really good gym into a really great gym so it's sort of a combination of factors I think on on what it does on like for like I think we continue to guide that you know we've got strong members per gym sort of 3,800 members per gym I think you know yeah it's a much higher level than sort of contract gyms and so we want to sort of sustain that and then it's a year weighted revenue growth so I think again these refurbs kind of I would say at the moment kind of underpinning that sort of revenue growth path and then we we we increased our facility size this

year as you seen in the presentation which gives us the opportunity to go to to do another buyback next year as you are asking and I think that as long as you know we are going as fast as we think is appropriate on the other areas of spend which are delivering really high ROICs and leverage still as you say remains nice and low I you know I think was a good chance we would go again next year.

And then Tim.

Good morning Tim Barrett from Deutsche and you miss um quick question on um some of the costs that luke mentioned uh you talked about peer to peer energy and investment in brand awareness and just love a bit more detail on that if you could lift the lid um and then just coming back to the volume question just asked really um is there still volume upside in those pre-covered gyms that you talked about um i know it's ancient history but it would be interesting if in the medium term volumes could move on uh you answer that one thanks yeah i mean i think on that one tim it's probably a little bit similar to you know we we're always um we're always wanting wanting to to sort of beat that beat that number but well i think we'll continue to to guide to to hold the light like for likes

you know there is a sort of one to two percent um drag on on that from competitor uh rollout and we expect us and others to continue to roll out for some time to come so i think um yeah i'd say we'd guide to hold that life like volume number and if we can beat it we'd obviously be pleased to do that I might leave peer-to-peer energy matching to you Luke sure so it's it's a scheme we started this year whereby committing to specific energy producers particularly in renewable energies you we can actually reduce the commodity rate that we're paying and on the second question around

brand awareness so we did do a trial as i mentioned on brand awareness we did see as will said a good jump in unprompted brand awareness as a result what we're still monitoring is how that actually converts to incremental members and i think when we get to you know once we've um sort of uh completed that analysis it would sort of help guide us into next year as to whether we do that sort of thing again or not in the pound figure is there is it too small to quantify um It was less than a million.

Good morning, it's Nigel Parson from Cavendish. I just had a couple of questions on actual gym usage. Are you seeing any difference in trends, say, between strength and cardio? And is GLP-1 starting to affect how people want to use the gym? And does that affect how you sort of allocate the equipment that you buy and so on? and are there any other trends you are beginning to spot that are interesting?

Yeah, I think that you sort of, in a way, I guess I referenced it. I think there's a sort of, there has been a sort of ongoing, yeah, sort of the rise of strength. I think you've seen that over the last few years, continue to see that. So I think people really across age ranges actually sort of increasingly understand the benefits of strength training, sort of physical mental and health benefits of strength training so we will allocate a bit more space now to to strength and to sort of functional training a little bit less to to cardio but it's still it's still a balance and you want to get you okay you want a gym that's rounded and allows people to to work out and around a way but i think certainly will allocate more to strength and then And then GLP-1s as referenced in the presentation, we know penetration's growing and we know that people look to gyms again on that sort of strength piece to sort of sustain muscle mass while they're on those programmes and then also to sort of build sort of sustained habits and also I think that if people are doing that, for some people doing the GLP-1 treatment will give them some additional confidence to come into the gym. So still relatively early days, well it's not that early days, it's three million people we think now using GLP-1s is growing. So yeah, I think a strong tailwind for the gym market there and I think more to come on that. Okay, any coming in?

We have no raised hands on Zoom, so I will hand back to you.

Okay, great. Well, thanks very much for coming. I think that's it. So thank you.