Premium fitness operator Third Space created revenues of £36.8m during 2018 – a 13.7 per cent increase on 2017 figures.

Announcing its results for the year to 31 December 2018, the company revealed that nearly a third of its revenues (30 per cent) now come from in-club spend – primarily personal training and food.

Its boutique studio chain, Another Space, achieved year-on-year revenue growth of 76 per cent.

In a statement, the company said its strong financial performance was driven by membership applications to the new City of London club and increased spend from existing members, driven by its model of larger-footprint clubs resulting in "higher than average revenue per member".

Third Space also revealed that it will accelerate its expansion plans, with a development pipeline of signed clubs and planned launches which will double the size of the portfolio over the next five years.

“These results demonstrate that health, wellness and experience are the true currency of our time, and that our model is supported by favourable industry trends," said CEO Colin Waggett.

"The growth story in the industry for the past five years has been all about budget clubs and functional fitness. Our performance demonstrates significant unfulfilled demand for a luxury lifestyle brand that provides a premium experience combining substance and style."

He added that the group expects to "deploy £50-80m for growth investment" over the next five years. In the last four years, Third Space has also invested £12m into existing sites.

“We continue to invest in our existing clubs to enhance our member experience and we have a strong pipeline of iconic locations that would see us achieve strong growth over the next five years in excess of our planned rate of one new club per year," Waggett said.

"Market and demographic trends are firmly in our favour and property owners are increasingly recognising that Third Space can provide a way to differentiate themselves in a changing consumer market. We see tremendous opportunity for further growth.”

Waggett also confirmed that Third Space will open its sixth site in late 2019. Located at the Islington Square retail and leisure complex in London, the £10m club will cover 47,000sq ft and is set to be the largest health club to open in London for more than 10 years.

As well as a topflight club for adults, Third Space Islington Square will incorporate the first kids’ club, Little Space – a kids’ club with a dedicated training pool, sports hall, dance studio, climbing area, and restaurant.

Third Space has also signed a deal with Canary Wharf Group to open a 40,000sq ft club in the Wood Wharf development in Canary Wharf in 2021 and is in advanced talks with respect to two additional sites in central London.

• To read an interview with Colin Waggett in HCM issue 8 2018, click here.