The Gym Group PLC (LSE:GYM) jumped over 9% on Wednesday morning after lifting full-year guidance following growth across the board over the first half.
Like-for-like revenue is now expected to tick up by 5% to 6% in 2024, the gym operator said in results on Wednesday, against guidance for between 4% and 5% previously.
Pre-tax earnings excluding normalised rent should also reach the top end of market expectations, the group added, of £42.4 million to £44.0 million.
This would follow a 12% uptick in revenue to £112.1 million during the six months to June, alongside a 28% increase in adjusted earnings less normalised rent to £22.1 million.
Statutory post-tax profit also climbed into positive territory over the half year, from a £6.1 million loss previously to £0.2 million this time around.
Chief executive Will Orr noted the improvements followed the start of the company’s plan to improve returns from March through the likes of customer acquisitions and retention, alongside by offering fewer promotions.
“We have increased membership, revenue and profit and our market-leading proposition is more resonant than ever in a growing market,” Orr commented.
Seven gyms have been opened over the year so far, placing the company on course for 10 to 12 new sites in 2024 and around 50 over the next three years.
These are set to be funded by free cash flow, Orr added, which jumped 73% from £14.2 million to £24.5 over the first half.
Shares climbed 9.4% on Wednesday.