The Gym Group PLC (LSE:GYM)’s chief executive Will Orr said the company’s annual results statement will arrive in line with guidance after “good growth” in membership and yield.
In London, shares in the gym operator were making modest gains - up 2.85% in Wednesday's early deals changing hands at 108p each.
Today's trading statement highlighted an 18% improvement in sales, rising to £204 million for the 12 months to the end of December.
Like-for-like turnover rose by 8% over the year, Gym Group noted.
The company said it closed the year with 850,000 members compared with 821,000 by 31 December 2022, an increase of 4%.
Last year, it opened six new sites and closed two. The average number of members across its gym network was up 8% at 872,000.
Each member brought in £19.50 of revenue for the company each month on average, a 9% increase compared to 2022.
The company said it intends to add 10 to 12 new sites in 2024, after implementing a three-tier pricing structure that includes off-peak membership options.
Gym group said revenue growth offset utility-driven cost inflation in the second half. Net debt at 31 December 2023 was £66.4 million, compared with £76.1 million at 31 December 2022, and it reiterated that leverage is expected to remain within a range of up to 2x.
“These are strong foundations on which to build our 'Next Chapter' growth plan and I will provide an update on this with our full-year results in March," Orr said. He added that the company is “well prepared” for its next key recruitment period in the coming quarter.