Shares in Gym Group PLC (LON:GYM) pumped higher on Thursday as the low-cost gym operator reported a 36% jump in half-year profits.
Adjusted pre-tax profits rose to £9.1mln in the six months ended 30, up from £6.7mln in the same period of last year.
Revenue climbed by a quarter to £74.0mln (H1 18: £58.3mln).
READ: Gym Group on track to meet targets after strong first half
The growth was driven by an 11% rise in memberships, which totalled 796,000 at the end of June (H1 18: 720,000), while revenue per member hit £15.47 per month (H1 18: £14.65), reflecting the increasing popularity of the premium LIVE IT membership.
Gym Group opened eight new sites in the first half and remains on track to open another 7-12 gyms later this year.
“Our growing membership visited a record 24 million times in the first half of the year demonstrating the wide and diverse appeal of The Gym,” said chief executive Richard Darwin.
“Continued investment in systems, infrastructure and people to scale the business is enabling us to take advantage of the huge growth potential that exists in the low cost gym market.
“We are confident that we can deliver further profitable growth both this year and in the years to come.”
City broker said the results were “strong” as it repeated its 330p price target and ‘buy’ rating.
Shares rose 3% to 246p on Thursday morning.