12th Jul 2019 10:18
(Alliance News) - Gym Group PLC on Friday said it expects to post 27% year-on-year rise in first-half revenue on the back of membership growth, and added that it remains on track to meet its operational and financial plans for 2019.
Shares in the company were 3.3% higher at 251.50 pence each in morning trade.
The company, which operates a chain of low-cost gyms, said revenue for the six months to June 30 is predicted to increase to GBP74.0 million from GBP58.3 million in the year ago period.
Total membership numbers at period-end grew 11% to 796,000 from 720,000, while the company's gym estate grew to 165 from 147 a year ago, with eight new site openings in the first half. The business remains on track to open 15 to 20 standard size gyms in 2019 plus a first small box gym towards the end of 2019.
First-half growth in average revenue per member per month - a key profit measure for the company - increased 5.6% to GBP15.47 from GBP14.65, due to membership growth in the company's premium pricing product LIVE IT.
Gym Group said LIVE IT had 135,000 members, with 17% of total membership subscribing by the end of June compared with 11.7% in December 2018.
"The Gym Group has performed well in the first half of 2019. I am pleased with the pace of growth and the delivery of our roll-out which builds on the strong platform and systems put in place to expand the business in 2018," Chief Executive Richard Darwin said.
"The platform we have created means we can continue to expand rapidly, and we expect to meet our roll-out target of 15-20 gyms for 2019 with one small box gym to open later in the year. I am excited about the potential of the Company and look forward to delivering another year of strong profitable growth for shareholders," Darwin added.
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