PureGym, the Leeds-headquartered low-cost fitness chain, has reported a widening of pre-tax losses to nearly £90 million in 2024, even as it undertook a significant expansion drive that saw it open 80 new locations and create hundreds of jobs. This highlights the complex financial dynamics of rapid growth in the competitive UK fitness market.
Expansion Amidst Financial Pressures
The latest financial year saw PureGym’s pre-tax losses increase to £88.5 million, up from £77.6 million in the previous year. This occurred alongside substantial growth initiatives:
- New Locations: 80 new gyms were opened in 2024, significantly expanding the company’s footprint. This included organic openings and the acquisition of 56 Blink Fitness sites in the USA, giving PureGym a foothold in the world’s largest fitness market.
- Job Creation: The company’s headcount rose from 6,785 to 7,579.
- Revenue Growth: Despite the losses, PureGym’s turnover increased to almost £605 million in 2024, up 10.2% from £549 million in 2023. Reported EBITDA (earnings before interest, taxes, depreciation, and amortisation) also grew by 10.5% to £256 million (Adjusted EBITDA up 16.6% to £154 million).
- Membership Increase: PureGym ended 2024 with over 2.25 million members across its markets, an increase of 21% on the previous year.
PureGym, founded in 2009 by Peter Roberts, is backed by prominent investment firms Leonard Green & Partners and KKR. The company stated that cost inflation remains a key challenge, but its business model is structurally “low cost,” with tight controls on gym costs like rent, labour, and maintenance. Energy pricing was largely fixed for 2024, with future contracts secured for 2025.
Market Context and Future Outlook
The UK fitness market has seen robust growth, with gym memberships increasing, as detailed in the UK Health & Fitness Market Report 2025 by ukactive. This report highlighted that total revenue across the sector rose to £5.7bn in 2024, with 11.5 million people holding memberships.
PureGym’s CEO, Clive Chesser (appointed in August 2024), has expressed confidence in the company’s resilience despite macroeconomic challenges. He noted that the company’s “robust unit economics” remain pleasing and that innovations in their gym offering are making more of the market accessible. The company reported a strong start to its new financial year, with revenue up 23% in the first quarter of 2025 compared to the same period in 2024, and plans to open up to 70 new gyms this year, primarily in the UK, Switzerland, and the US.
The City AM article highlights that management continues to focus on limiting inflationary impacts and improving energy consumption.
Financing Expansion and Managing Costs in the Fitness Sector
The PureGym example illustrates that rapid expansion, while driving revenue and membership growth, can also lead to increased losses in the short term. Businesses in the fitness industry undertaking expansion, or those looking to manage cost pressures and improve profitability, need robust financial strategies. Information on government support and finance options can be a useful starting point. Working with a specialist finance broker provides access to a wide network of lenders and tailored solutions. With connections to over 95 lenders, brokers can help you navigate the market effectively.
Key finance solutions relevant to businesses in the fitness sector include:
- Business Loans (Unsecured and Secured): For funding new site fit-outs, acquiring existing gyms, or investing in new equipment.
- Asset Finance: Specifically for leasing or purchasing gym equipment, technology, and other essential assets.
- Working Capital Loans: To manage day-to-day operational costs, especially during periods of expansion or when facing fluctuating membership income.
- Growth Capital: Equity investment or larger loans to fund significant expansion plans, similar to the backing PureGym has received.
- Refinancing: To restructure existing debt and potentially improve terms or cash flow.
Partnering with a finance broker simplifies finding and applying for the right funding. They understand the specific challenges and opportunities in the fitness industry, can identify suitable options, and guide businesses through the process. For further impartial advice, explore resources from the British Business Bank and guides like the ICAEW Business Finance Guide.
Conclusion
PureGym’s aggressive expansion strategy has significantly grown its revenue and member base, establishing it as a major player in the global fitness market. However, this growth has come with increased financial losses in the short term. The company’s focus on a low-cost model, cost control, and strategic international expansion, including its move into the US market, will be key to its long-term profitability. The case highlights the careful balance businesses must strike between investment in growth and managing bottom-line performance, especially in a competitive and evolving sector like the fitness industry.
Is your fitness business planning an expansion or looking to navigate financial challenges? Explore tailored finance solutions today and connect with our network of over 95 lenders to find the perfect fit for your needs.