Cheers, yes, I pointed out the maintenance and repair costs, rather like airlines.
However the growth and cashflow significantly outweighs that for me and without the sauna and stuff the higher end subscription models provide, they are at an advantage there imo.
I'm expecting cashflow to improve significantly too.
Yes, but 2k staff isn't as high per site as many retailers. It affects all businesses so it doesn't put them at a competitive disadvantage to other gyms and I expect all will recoup it in price rises as retailers seem to be doing.
I floated this company in Nov 2015. The issue is the relatively high maintenance capital intensity. The business model is sound - like LCCs like RYA - lowest cost and lowest cost to serve
Thanks Richard. You mentioned you you owned the shares but are you a member! Another great plus is that the gyms are open 24 hours which most aren’t. Perhaps there will be a flood of new members after the Xmas indulgences trying to take off the extra pounds.
Cheers, yes, I pointed out the maintenance and repair costs, rather like airlines.
However the growth and cashflow significantly outweighs that for me and without the sauna and stuff the higher end subscription models provide, they are at an advantage there imo.
I'm expecting cashflow to improve significantly too.
Yes, but 2k staff isn't as high per site as many retailers. It affects all businesses so it doesn't put them at a competitive disadvantage to other gyms and I expect all will recoup it in price rises as retailers seem to be doing.
Me, a member of a gym - that's funny :-)
Yes, I should have mentioned they are 24/7 which suits a lot of people more.
Thanks
I floated this company in Nov 2015. The issue is the relatively high maintenance capital intensity. The business model is sound - like LCCs like RYA - lowest cost and lowest cost to serve
Rising NI staff costs and energy bills also a concern
Thanks Richard. You mentioned you you owned the shares but are you a member! Another great plus is that the gyms are open 24 hours which most aren’t. Perhaps there will be a flood of new members after the Xmas indulgences trying to take off the extra pounds.