19th Mar 2019 10:50
LONDON (Alliance News) - Gym Group PLC on Tuesday reported a strong double-digit increase in its annual revenue as memberships continued to grow.
For 2018, the gym owner and operator posted a pretax profit of GBP10.0 million, up from GBP9.2 million in 2017.
Revenue jumped 36% year-on-year to GBP123.9 million from GBP91.4 million as total year-end members rose 19% to 724,000 from 607,000.
The company proposed a final dividend of 0.95 pence per share, increasing its total payout by 8.3% to 1.30p per share from 1.20p.
During the year, Gym Group opened 17 new gyms and acquired 13 from easyGym, increasing its total estate to 158. It guides for between 15 to 20 new site openings in 2019.
"During 2018 we accelerated our growth to reach 158 gyms, delivering rapid increases in revenue and profits as well as important projects to support a business of scale in the longer term," Chief Executive Officer Richard Darwin said.
He added: "Our purpose is to provide affordable access to everyone who wants to improve their wellbeing and we see every day the positive impact we achieve as The Gym continues to make health and fitness available and affordable to all."
Looking ahead, the company said it started the new year well as current trading is in line with the board's expectations.
"January and February are peak months for new memberships. We have had a successful start to the year and our brand now serves over 800,000 members with 10 million visits already so far this year," Darwin said.
Gym Group shares were trading up 6.2% at 215.00 pence each.
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