The Gym Group PLC (LSE:GYM) reported a 48% jump in first-half pre-tax profit as higher membership and pricing boosted revenue, with the low-cost gym operator expecting full-year earnings at the top end of analysts’ forecasts.
Revenue for the six months to 30 June rose 10% to £133.1 million, while adjusted EBITDA less normalised rent increased 12% to £30.8 million. Statutory profit before tax climbed 48% to £4.9 million, with adjusted pre-tax profit up 31% to £6.4 million.
Meanwhile, average membership increased 5% to around 1 million, while average revenue per member per month rose 5%. Like-for-like revenue advanced 3%.
Chief executive Will Orr said reaching one million members during the period was “an encouraging milestone”, adding that the group’s upgraded gym format was supporting improvements at both new and refurbished locations.
The company opened four new sites during the half and is currently developing another 11, with at least 20 openings planned for 2026 as part of a programme targeting around 75 new gyms over three years.
Free cash flow increased 10% to £27.7 million, helping fund new sites, refurbishment, technology spending and its £10 million share buyback programme.
For the full year, The Gym Group maintained its target for 3% like-for-like revenue growth, while cost growth is now expected at the lower end of its previous 3%-4% range.
As a result, adjusted EBITDA less normalised rent is expected to come in at the top end of current analyst forecasts.
