In good shape: Pure Gym plans 30 new sites
Pure Gym is to more than double its number of outlets in London this year, as the low-cost gym operator seeks to raise funds to drive its rapid expansion across the UK.
The group, backed by New Look founder Sir Tom Singh’s private-equity firm Magenta Partners, this week opened its fifth gym in the capital in Wandsworth. It plans to add five more this year, in Hammersmith, Enfield, Finsbury Park and Balham, and at one other site as part of its plans to open 30 sites in the UK in 2013.
Pure Gym is working with corporate finance advisory firm Hawkpoint to sell a minority stake to fund its expansion. Rival low-cost operator Gym Group, which has 32 sites, has also teamed up with advisers at McQueen about a potential capital-raising.
Founded in 2009, Pure Gym has thrived during the downturn as cash-strapped consumers have flocked to its 43 gyms, which cost just £25.99 a month in London and are open 24 hours a day, seven days a week. It is understood to have delivered underlying profits of about £9 million for the year to February, a sharp rise on the £5.3 million in 2011-12.
Chief executive Peter Roberts said: “We started this business in the recession and we are still in recession. It is very good for the customer because we are providing something they want at a price they can afford.”
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