15th Jan 2019 10:22
LONDON (Alliance News) - Gym Group PLC said Tuesday that "strong growth" in membership numbers resulted in 36% jump in annual revenue.
For 2018, the gym operator expects revenue to rise to GBP123.9 million from GBP91.4 million. Total year-end membership numbers were up 19% to 724,000 from 607,000, with average members of 693,000.
During the year, the company expanded its site numbers by 23% and now operates 158 gyms, with 17 organic openings and 13 sites acquired from easyGym. It plans between 15 and 20 openings during 2019.
As a result of the strong trading performance, the company now expects annual adjusted earnings before interest, taxes, depreciation and amortisation to be around GBP37 million. A year ago, adjusted Ebitda came in at GBP28.0 million.
"The Gym Group continues to deliver strong, profitable growth whilst also establishing the platform for a bigger business in the future," Chief Executive Richard Darwin said.
He added: "We are confident that in 2019 we will continue to develop and build the business to deliver another year of profitable growth for shareholders."
Gym Group shares were trading down 6.4% at 210.69 pence each.
Gym Group will publish its annual results on March 19.
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