Shares in The Gym Group PLC rose on Tuesday after it said that positive trading momentum has continued through the second half of the year, driving strong like-for-like revenue growth.

The Croydon-based gym chain said revenue increased by 11% to £226.3 million for the year ended December from £204.0 million a year prior, with like-for-like revenue growing 7% year-on-year.

As a result, Gym Group expects full-year adjusted earnings before interest, tax, depreciation and amortisation to be slightly above the top end of the current market forecast range of £43.5 million to £45.5 million.

In response, shares in Gym Group were 5.5% higher at 149.80 pence each in London on Tuesday afternoon.

Average members grew 3.9% to 906,000 in 2024 from 872,000 a year ago, the firm said, while average revenue per member per month increased 6.7% to £20.81 from £19.50.

Gym Group said it closed the year with 891,000 members, up 4.8% from 850,000 at the end of 2023.

Twelve new sites were opened in the period, at the top end of the projected range of 10 to 12, taking the total to 245.

A further 14 to 16 new sites are forecast in 2025 and Gym Group said it remains on track to deliver the target of around 50 sites over three years funded from free cashflow.

Net debt as at the end of December was £61.3 million, down from £66.4 million a year prior.

Chief Executive Will Orr said there is ‘plenty more still to come’ and that he looks to 2025 with confidence.

‘We are well prepared for our key member recruitment period in the current quarter and beyond, with our strengthening new site pipeline and our flexible, high value, low cost offer making gym membership more accessible for all,’ he added.

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