Gym Group shares are rising as the company generates stronger member numbers and revenue increases
- The Gym Group saw sales increase by more than 18% in the six months ended June 30
- The London-listed group had 867,000 members as of June 30
The Gym Group has reported significant gains in membership and revenue in its latest first half trading update.
Year-on-year sales were up 18.5 per cent to £99.8m for the six months ended 30 June, up from £84.2m at the same point a year ago.
The group had 867,000 members as of June 30, up from 790,000 members a year earlier, and 821,000 members at the end of December.
Getting fitter: The Gym Group saw the number of members rise sharply in the first half
The Gym Group boasted an 8 per cent increase in average revenue per member per month, to £18.81 for the first half of the year.
Like-for-like revenue was up 7 percent year-over-year, and comparable sites were currently running at 97 percent capacity, surpassing pre-pandemic levels in 2019.
The Gym Group shares rallied sharply, rising 8.89 percent or 8.00p to 98.00p this afternoon, after falling more than 46 percent in the past year.
During that period, the group opened two new locations and closed one existing location.
Net debt at 30 June was £69.7m, down from £76.1m a year ago.
Will Orr will join Gym Group as CEO on September 1.
“After a positive first half, we remain on track with our plans and are well prepared to meet market expectations for the full year,” said chairman John Treharne.
He added, “We have continued to grow our membership and revenue while controlling our costs and generating cash.
“We are excited to have Will Orr join us as CEO in September.”
Treharne said the company has been assembling a new management team with “the right mix” of skills and experience over the past nine months, and further strengthening its board of directors.
He said: ‘The Gym Group is therefore well positioned for the next phase of its development, bringing high quality health and fitness offerings at an affordable price to the communities in which we operate.’
The group will publish its interim months for the six months ending June 30 on September 12.