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Business Growth Fund backs low cost gym chain Xercise4Less

27 Aug 2013

The UK’s Business Growth Fund (BGF) has backed budget gym chain Xercise4Less with a £5m investment.

Founded in 2006 Xercise4Less currently has around 80,000 members predominantly located across the North of England. Having started as a single unit in Castleford, the business now operates from nine sites and employs over 250 people.

Turnover has more than doubled in the last financial year to £7.5m and the company has exceeded management’s original targets by over 250 per cent in the last five years.

BGF’s investment will provide the business with capital needed to support management’s five-year plan, it said, which includes the rollout of approximately 100 new gyms nationwide.

Xercise4Less founder and CEO, Jon Wright said, “BGF’s funding will give us the financial and operational facilities to continue our expansion at a key time for the market and we look forward to working with Richard and the team over the coming years.”

Richard Taylor, BGF, added,“We are delighted to be working with Xercise4Less; it is an exciting brand with a very simple but attractive consumer offering. The company has established a unique model in a high growth sector and the management team, under Jon’s guidance, has demonstrated its expertise in rolling out new gyms over the past 18 months and consistently delivering a fantastic customer experience at the same time.

“We have no doubt that they will be capable of growing and managing the business on a much larger scale.”

The UK gym market was valued at around £4bn in 2012 with a growing trend whereby more nimble low-cost gyms are increasingly taking market share from mid-market operators.

Just last week BGF invested £2.25m of growth capital in content management system and audience development  platform provider Abacus e-Media.

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