The Gym Group PLC (LSE:GYM) saw its shares fall by more than 13% in early trading after it warned rising costs would offset improvements in full-year revenue.
In a statement alongside results for the 12 months to December 31, 2022, the no-contract gym operator said it expects the current difficult macroeconomic environment and its impact on consumer demand to continue throughout the year.
As a result, the firm said, it now anticipates “full year revenue increases from yield improvements and new site openings to be broadly offset by cost increases.”
The company reported an uneven start to 2023 compared to its expectations, with membership at the end of February of 890,000, up 8.4% from the end of 2022. Revenue after two months is up 18.7% year-on-year, reflecting the membership growth and yield growth of 10%.
The company still anticipates opening up to 12 sites, with all openings being self-financed.
For the 12 months to December 31. 2022, Gym Group saw revenue jump by 63% to £172.9mln, the statutory loss narrowed to £19.3mln from £35.4mln, and the loss per share was 10.9p compared to 20.7p in 2021.
Shares in The Gym Group plunged 13% to 102.40p in early exchanges.