11th Sep 2024 11:31
(Alliance News) - Gym Group PLC on Wednesday reported half-year profit and "positive trading momentum", as it expects to deliver full-year results at the top end of market expectations.
The Croydon, London-based gym chain said its pretax profit for the six-month period ended June 30 was GBP200,000, swinging from a loss of GBP6.1 million a year prior. Revenue was GBP112.1 million, a rise of 12% from GBP99.8 million.
Shares in Gym Group were up 8.3% at 155.80 pence each in London on Wednesday morning.
The gym chain said it has 900,000 members now, up 6% since last year-end and 4% year-on-year. It reported average revenue per member per month has increased by 9%.
Gym Group has secured locations to deliver 10-12 new sites in 2024, and a new national partnership with property agents Savills is expected to deliver a further 15-25 new gyms in 2025. The company currently operates 240 sites across the UK.
Trading momentum continued in July and August, Gym Group said, predicting a like-for-like revenue growth of 5-6% in 2024.
Chief Executive Officer Will Orr said: "Further positive trading momentum during the first half reflects the continued early benefit of executing on our next chapter strategy, set out in March. We have increased membership, revenue and profit and our market-leading proposition is more resonant than ever, in a growing market. We are also well on track to deliver our target of opening circa 50 new high quality gyms over the next three years, funded from free cash flow. We have detailed plans in place for the key autumn trading period and are well set to deliver full year results at the top end of recently revised market expectations."
According to company-compiled analyst forecasts, the range for earnings before interest, taxation, depreciation and amortisation less normalised rent is GBP42.4 million to GBP44 million. This would represent a growth of around 12% from GBP38.5 million in 2023.
Adjusted Ebitda less normalised rent for the first half was GBP22.1 million, up 28% from GBP17.2 million.
By Emily Parsons, Alliance News reporter
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.