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Gym Group notes "encouraging progress" as revenue jumps 12%

10th Jul 2024 10:23

(Alliance News) - Gym Group PLC on Wednesday reported a jump in interim revenue, as membership numbers improved and more gyms were opened.

Shares in the Croydon, London-based gym chain were up 6.5% to 130.60 pence each in London on Wednesday morning.

In the six months ended June 30, revenue jumped 12% to GBP112.1 million from GBP99.8 million a year earlier. Memberships rose to 905,000 from 867,000.

It noted that in the first half of the year, it opened four new gyms taking the total to 237. Gym Group added that it remains on track to open 10 to 12 new gyms by the year end.

With "further strong cashflow generated in the first half", Gym Group's net debt as at June 30 was GBP54.6 million, compared with GBP66.4 million at the end of 2023.

In June, Gym Group completed a refinancing of its bank debt with its existing banking group comprising NatWest Group PLC, HSBC Holdings PLC and Barclays PLC. The new three-year facility is made up of a GBP45 million term loan and GBP45 million revolving credit facility.

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."

Gym Group will announce interim results on September 11.

By Sophie Rose, Alliance News senior reporter

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