Shares of The Gym Group PLC (LSE:GYM) rose 5% in early trading after the company reported strong performance for the first half of 2024.
Revenue increased by 12% to £112.1 million, up from £99.8 million in the comparable period last year, driven by growth in membership and yield.
Membership numbers reached 905,000 by June 30, compared with 867,000 a year earlier. The average revenue per member per month rose 9% to £20.44.
The company opened four new gyms in the first half, bringing the total to 237, with more openings planned.
Strong cash flow reduced net debt to £54.6 million from £66.4 million at the end of 2023. The Gym Group also refinanced its bank debt with a new three-year facility.
"The core estate is rebuilding profitability, new openings are continuing to perform strongly and net debt falling," said broker Peel Hunt, repeating its 'buy' advice and 225p price target.
The shares were up 6.6p to 129.20p in early trading.