9th Sep 2026 13:29
(Alliance News) - Gym Group PLC on Wednesday said first-half profit jumped and revenue grew, as it guided for annual earnings at the top end of market forecasts amid a more favourable cost outlook.
Shares in Gym Group were 7.3% higher at 207.00 pence in London on Wednesday afternoon.
The Croydon, England-based low-cost gym operator said pretax profit rose 48% to GBP4.9 million in the six months ended June 30 from GBP3.3 million a year earlier.
Revenue increased 10% to GBP133.1 million from GBP121.0 million, as average membership grew 5% to one million and average revenue per member per month increased 5%. Like-for-like revenue grew 3%.
Adjusted earnings before interest, tax, depreciation and amortisation increased 10% to GBP53.0 million from GBP48.3 million. Adjusted Ebitda less normalised rent rose 12% to GBP30.8 million from GBP27.4 million.
Adjusted pretax profit climbed 31% to GBP6.4 million from GBP4.9 million, while diluted earnings per share increased 28% to 2.3 pence from 1.8p.
Free cash flow increased 10% to GBP27.7 million from GBP25.1 million, funding new gym openings, improvements to existing sites, technology investment and its share buyback programme.
Gym Group did not propose an interim dividend.
Looking ahead, the company said it remains on track to deliver like-for-like revenue growth of 3% for 2026, while like-for-like cost growth is now expected at the lower end of its previously guided 3% to 4% range.
As a result, Gym Group expects full-year adjusted Ebitda less normalised rent at the top end of the current analyst forecast range of GBP60.5 million to GBP62.0 million. This would compare with GBP56.7 million in 2025.
Gym Group opened four new sites during the first half and is currently developing another 11. It expects to open at least 20 sites during 2026, funded from free cash flow, as part of its plan to add around 75 sites over three years.
It also refurbished three gyms during the first half and plans to complete another 18 refurbishments in the second half. Sites refurbished during 2025 have achieved an incremental 10% increase in membership, the company said.
Chief Executive Will Orr said: "We have delivered another strong set of results, reflecting the continued appeal of our high value, low cost proposition, disciplined execution of our growth strategy and sustained customer demand."
"We are confident in delivering full-year results at the top end of the current analysts' forecast range, while creating further value for both shareholders and members," he added.
By Eva Castanedo, Alliance News senior economics reporter
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