The Gym Group FY results seen at higher-end of expectations

10th Jul 2024 07:41

(Sharecast News) - Gym operator The Gym Group said on Wednesday that full-year results would likely be at the higher end of expectations following a "strong first half" performance.

The Gym Group said revenues had increased 12%to £112.1m in the six months ended 30 June, with membership rising from 867,000 at the end of FY23 to 905,000. First-half average revenue per member was up 9% to £20.44 per month, while like-for-like revenues grew 9% year-on-year.

In the first half, Gym Group opened four new sites, taking its total to 237, and was currently in the fitout stage of its next four sites. Gym Group stated it remains on track to open a total of 10-12 new gyms by the year-end.

Gym Group added that with further strong cashflow generated in the first half, net debt as of 30 June was £54.6m, compared with £66.4m at the 2023 financial year-end.

Chief executive Will Orr said: "We are making encouraging progress with our strategic priorities under our Next Chapter growth plan, delivering good growth in membership and yield. We have further strengthened our financial position, whilst stepping up our opening programme in line with our target to open 50 high-quality sites over the next three years, funded from free cashflow. After a strong first half, we expect to deliver full-year results at the higher end of market expectations."

As of 0950 BST, Gym Group shares were up 5.38 % at 129.20p.

Reporting by Iain Gilbert at Sharecast.com