Latest News

Back to Latest News back

 

Stock market launch for Club Lime owner Viva Leisure reflects positive fitness industry performance

Stock market launch for Club Lime owner Viva Leisure reflects positive fitness industry performance
October 18, 2018

The opening of an initial public offering (IPO) this week for fitness club owner and operator Viva Leisure is being seen as a reflection of not only the Canberra-based business’ success and growth potential but also marks confidence in future prospects for the fitness industry.

As reported by the Australian Financial Review, the group, which has 24 facilities and more than 42,500 members, is seeking to raise fresh funds at six-to-seven times forecast earnings before interest, tax, depreciation and amortisation and 21-to-23-times forecast profit.

Stockbroker Ord Minnett started marketing for the company's IPO this week, booking funds to meet Viva Leisure management and calling for bids into the bookbuild (the process through which a company generates, captures and records investor demand when raising capital) by 22nd October.

Viva Leisure is seeking to raise $30 million  in fresh funds to pursue growth ($20.5 million), repay related party debt ($3.5 million), allow shareholders to selldown ($4 million) and pay for the IPO ($2 million), according to documents in front of potential buyers.

While only a small IPO by Australian Stock Exchange (ASX) standards, Viva Leisure’s move is reflective of positive sentiment about the ongoing potential of the Australian fitness industry.

Potential investors have been told Australia's fitness industry will be worth $2.5 billion a year by 2023, representing 3.6% a year compound annual growth for 10-years leading into that date.

Linked to this is the potential for industry consolidation, with a reported 42% of the market made up of smaller independent gyms and local government owned facilities.

With Quadrant Private Equity's Fitness and Lifestyle Group occupying 27.5% of the market, Viva Leisure is part of the 42% market.

Formed in the ACT in 2004 with one facility, the Viva Leisure entity was created in 2016 to manage the assets and operations of The Club Group. It has two fitness club brands - Club Lime, a mixed gender health club, and Club Pink, the ladies-only health clubs - as well as the Gymmy PT personal training division.

It expects $31.3 million revenue and $7 million EBITDA in the 2019 financial year.

The AFR has speculated that other fitness groups may be considering floats or sales, highlighting Crunch Fitness, run in Australia by husband-and-wife team Selena Short and Lusiano Afeaki, and private equity-backed Next Gen Health & Lifestyle Clubs.

In addition, the AFR suggests that Quadrant, owner of the Fitness and Lifestyle Group - Australia's biggest gym owner, with Jetts Fitness, Goodlife​ Health Clubs, Fitness First and Snap Fitness among its brands - may, “like all private equity investors ... have one eye on the exit as it seeks to get the combined group running smoothly.”

Related Articles

21st September 2018 - VIVA Leisure group acquires Wagga Wagga’s Xceler8 24hr Fitness

5th September 2018 - Viva Leisure acquires South Canberra’s Elite Physique fitness club

29th August 2018 - Life Fitness equips Club Lime, CISAC with Australia’s first Apple GymKit application

7th August 2018 - Club Lime opens latest ACT club

2nd July 2018 - Club Lime to open new Googong facility

4th May 2018 - Club Lime opens 20th fitness club

12th March 2018 - Australian fitness industry revenues to grow to $2.4 billion by 2022/23

12th March 2018 - Club Lime to open four new facilities in 2018

5th March 2018 - New $20 million lifestyle and wellness facility opens in Canberra

4th October 2017 - Club Lime introduces live club traffic statistics to assist member scheduling

19th August 2016 - Ardent Leisure sells Goodlife​ Health Clubs in $260 million deal

23rd February 2015 - Australian gym market to reach saturation within five years

17th December 2014 - Club Lime achieves industry first with ISO 9001:2008 Quality accreditation

4th December 2014 - Club Lime highlights $500,000 in annual community donations

5th November 2014 - Club Lime backs Diabetes ACT with $180,000 sponsorship

6th June 2014 - Club Lime fitness clubs named Canberra’s most trusted brand

3rd August 2010 - Crunch Fitness Set for first Australian opening


Asking a small favour
We hope that you value the news that we publish so while you're here can we ask for your support?

The news we publish at www.ausleisure.com.au is independent, credible (we hope) and free for you to access, with no pay walls and no annoying pop-up ads.

However, as an independent publisher, can we ask for you to support us by subscribing to the printed Australasian Leisure Management magazine - if you don't already do so.

Published bi-monthly since 1997, the printed Australasian Leisure Management differs from this website in that it publishes longer, in-depth and analytical features covering aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues management.

Subscriptions cost just $90 a year.

Click here to subscribe.

 

supplier directory

The Complete Guide to Leisure Industry Products & Services.

See the directory see all

The Retention People Australia

TRP help health clubs, leisure centres and gyms across the globe create happy, loyal members through our user-friendly software which enables effective engagement and the delivery exceptional customer…

read more

Fitness / Marketing / Recreation / Technology / Wellness

 
 

Australian Innovative Systems

Australian Innovative Systems (AISystems) is a multi-award winning, Australian owned leader in the design, production and supply of commercial and residential chlorine generators and water…

read more

Aquatics / Safety / Technology

 
 

Hadley/Series Australia Pty Ltd

Hadley Australia and Series Australia Pty Ltd are the leading quality theatre chair manufacturers in the southern hemisphere. The businesses work closely with architects, interior designers and…

read more

Arts / Culture / Design / Entertainment / Venues

 
 

Crystal Pools

Crystal Pools has a solid history of performance on a wide variety of government and commercial projects and is the name behind many of Australia’s most innovative and ambitious aquatic…

read more

Aquatics / Design

 
 

Worldwide Sports Management

Principal Consultant Simon Weatherill has spent the last 20 years developing the world renowned Melbourne Sports Hub, as former Chief Executive Officer of the State Sports Centres Trust…

read more

Aquatics / Consultants / Recreation / Sport / Venues

 
 

WATERPLAY Solutions Corp

Whether your goal is increasing your centre's revenues or creating an engaging environment, why not add play to your project? If you're looking for stylish aquatic play features, kid-tested…

read more

Aquatics / Attractions / Play / Recreation / Waterparks

 
 

BODY BIKE AUSTRALIA

BODY BIKE® International is a leading manufacturer of indoor bikes with a 20-year track record of creating the best indoor bikes. Stay connected with Body Bike Australia…

read more

Fitness / Recreation / Sport / Technology / Wellness

 
 

LANDER & ROGERS

Lander & Rogers' Sports Business Group is the leading sports law practice in Australia, representing over 150 national and international sporting bodies. Our clients include international…

read more

Legal

 
 
 
 

get listed with our suppliers directory

Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!

list your business