Gym Group PLC on Wednesday reported half-year profit and ‘positive trading momentum’, as it expects to deliver full-year results at the top end of market expectations.
The Croydon, London-based gym chain said its pretax profit for the six-month period ended June 30 was £200,000, swinging from a loss of £6.1 million a year prior. Revenue was £112.1 million, a rise of 12% from £99.8 million.
Shares in Gym Group were up 8.3% at 155.80 pence each in London on Wednesday morning.
The gym chain said it has 900,000 members now, up 6% since last year-end and 4% year-on-year. It reported average revenue per member per month has increased by 9%.
Gym Group has secured locations to deliver 10-12 new sites in 2024, and a new national partnership with property agents Savills is expected to deliver a further 15-25 new gyms in 2025. The company currently operates 240 sites across the UK.
Trading momentum continued in July and August, Gym Group said, predicting a like-for-like revenue growth of 5-6% in 2024.
Chief Executive Officer Will Orr said: ‘Further positive trading momentum during the first half reflects the continued early benefit of executing on our next chapter strategy, set out in March. We have increased membership, revenue and profit and our market-leading proposition is more resonant than ever, in a growing market. We are also well on track to deliver our target of opening circa 50 new high quality gyms over the next three years, funded from free cash flow. We have detailed plans in place for the key autumn trading period and are well set to deliver full year results at the top end of recently revised market expectations.’
According to company-compiled analyst forecasts, the range for earnings before interest, taxation, depreciation and amortisation less normalised rent is £42.4 million to £44 million. This would represent a growth of around 12% from £38.5 million in 2023.
Adjusted Ebitda less normalised rent for the first half was £22.1 million, up 28% from £17.2 million.
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