The Gym Group plc

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 normalised rent was up 12% to $30.8 million. 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 or 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-profit net debt was 58 million this was 6.8 million higher than June last year reflecting the new gym investment and share buyback program 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 amortization 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 for 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, low 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 3-4%. Turning now to cash flow. Strong cash flow generation in the first half enables us to self-fund our expansionary capex and buy shares for the EBT and buy-back 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's 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. We're funding a faster rollout, investing in tech and the existing estate, and returning capital to shareholders while maintaining leverage at one time. 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 program. 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 6% of revenue over the full year. Our second priority is to maintain leverage below two times. At June, leverage was one time. Thirdly, we're prioritising organic new site growth with our accelerated target of approximately 75 new sites over three years. And finally, we are 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 3% for the full year. We now expect like-for-like site cost inflation to be at the lower end of our guided range of 3-4%. and as a result of the first half performance we expect the full year EBITDA or less normalised 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 4 new gyms to date with a further 11 on site and another 5 exchanged and 2 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 I'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 want 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 labour light 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 our 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. With a 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 where 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 used GLP-1s, with that number potentially increasing to 7 million or 13% of the adult population during 2027. We're already seeing this growth within our own estate. In a recent internal survey, 75% of gym group personal trainers said they've trained someone using GLP-1s. 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 have 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 I'll 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 lapsed members based on their modelled propensity to rejoin. And we continued 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 high 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 improved payment success on credit card by 6%. 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 with driving and together they compound into strong light flight revenue, higher returns and more free cash flow. The data on this slide and the next clearly showed 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 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 expert Simon Kucher. 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 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 8 out of 10. 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 modernized 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 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 products. 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 programs. 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 attract 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 site's tracking to deliver a 30% return on the refurbishment capital. And as a result, we've accelerated the major refurb programme 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 strong return on capital while simultaneously making our estate more competitive for the long term, we'll continue to accelerate the refurb program. 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 WellHub is performing ahead of expectations providing an incremental B2B2C route to market 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 pipelines And when it comes to new products and services, we're exploring commercial partnerships in the broader health and fitness ecosystem, including GLP-1s, the opportunity I described earlier. So, that's the latest progress report on our next chapter 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 left normalised rent by 12%. We're accelerating the pace of both new site rollout and our refurb programme. With continued elevation of our gym product, both programmes are achieving 30% rollout. Our capital allocation priorities are unchanged and this year's 10 million pound 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 brace 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. 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 site size, you're looking at big, medium, small, any preference towards that? Any orientation towards type of location and what the site availability is looking at? Yeah maybe I'll do the second one first I mean I think in terms of site availability still very good I think you know as you said 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 15,000 square feet and 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 reopens performing extremely well and then more of those sort of big 20,000 square feet more destination sites like site in Norwich which is going extremely well but I think at the core it'll remain a 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 sites work so an acceleration I think along similar lines but just with a bit more flexibility around trade areas

on refurbs I mean for the moment we are still sticking to that capital allocation policy of the six percent of revenue but obviously revenues increasing year and 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 when we get really comfortable that that 30% work is being consistently delivered. I think there is always an option to actually go a bit faster.

Anna?

Thank you very much. Anna Barnfather from Panmure Librem. Just back onto the 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 next year is quite a specific thing really which is it sounds fairly basic but to deploy a team now working on early 27 sites so in terms of doing the sort of necessary groundwork to get those openings in place in the early part of next year so yeah sort of back way to next year I think it would be back weighted every year but I'd like to think it will 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? Do you adjust it for those refurbishments? No, mature is still on the original investment. So the refurb ROIC is the EBITDA uplift on the refurb spend?

Yes, exactly that. 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 lease expiration we will close I think two this year so we are bit by bit working our way through that tail Ross 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 with the structure underpins that you talked about, or is this about being able to charge the existing group more for a better product?

Yeah I think the second part of that question I think the I mean I think there is more than one aim I think that's okay because I think they're all positive things I think it is about you know good capital allocation 30% return on specifically on that on that referred capital to the previous question and it is about supporting member volume it is about supporting pricing and it is about making it better experience 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 that the estate is competitive and sustainable over the long term and we're extremely committed to making sure that the estate matures with real quality so that for many years to come they can continue to deliver high returns. So there are a few elements to it. The second one was about the corridor.

That was a good question. I don't think I can give you a precise answer. What I think I can say is that we know we have taken reasonable levels of pricing. 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 the answer but I think it does the fact that we don't seem to be moving into that corridor does give good confidence that there's a decent long term pricing opportunity Down the front and then we'll go back to Tim

Thank you, Jack Cummings at Berenberg. First question, just on the refurbs, how are you deciding on which sites to refurbish? Is it Headroom, 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 times, 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 and should we anticipate potentially an additional buyback when it comes to the full year results giving you our 50-60% through the current one thank you yeah so the first one in terms of how we how we prioritize that 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 choose the refurbs 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 uh factors uh as well and then we would look at the gyms themselves and just kind of go is there an opportunity to 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 for gym sort of 3800 I think you know it's a much higher level than contract gyms and so we want to sort of sustain that and then it's a yield weighted revenue growth so I think again these refers kind of I would say at the moment kind of underpinning that sort of revenue growth path and then the third one was that we increased our facility size this year as you've seen in the presentation which gives us the opportunity to go to do another buyback next year as you are asking

and I think that as long as 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 think there's a good chance we would go again next year.

And then Tim.

Good morning, Tim Barrett from Deutsche Univis. Quick question on some of the costs that Luke mentioned. you talked about peer-to-peer energy and investment in brand awareness just love a bit more detail on that if you could lift the lid and then just coming back to the volume question just asked really is there still volume outside in those

pre-COVID gyms that you talked about I know it's ancient history but it would be interesting if in the medium term volumes could move on if you answer that one yeah I mean I think on that one Tim it's probably a little bit similar to you know we're always wanting to sort of beat that number but I think we'll continue to guide to hold the lights you know there is a sort of 1-2% drag on that from competitors to roll out and we expect us and others to continue to roll out for some time to come so I think yeah I'd say we'd guide to hold that lifelike 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 a scheme we started this year whereby committing to specific energy producers particularly in renewable energies 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 sort of 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.

Would you call that a million and a pound figure? Is it too small to quantify?

It was less than a million, is 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 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, 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 strength. and health benefits of strength training so we will allocate a bit more space now to strength and to sort of functional training a little bit less to cardio but it's still it's still a balance and you want to get you know okay you want a gym that's rounded and allows people to work out in a random way but I think certainly will allocate more to strength and then GLP-1s as referenced in in the presentation we know penetration is 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 programs 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, 3 million people we think now using GLP-1 is growing. So yeah, I think a strong tailwind for the gym market there and I think more to come on that. Okay, any on the we have no we have no raised hands honestly so I'll hand back to you okay great well thanks very much for coming I think that's it so thank you