The Gym Group PLC (LON:GYM) predicted another bumper year ahead as revenue and membership numbers grow strongly.
The low-cost gym chain posted £153.1mln revenue in 2019, up 23.6% from 2018, while average revenue per member per month rose 7.6% to £16.02.
Members hit 794,000 at year-end, up 9.7%, with an average 796,000 during the year or 14.9% higher than 2018.
The premium LIVE IT offering, which offers customers discounts, the ability to bring friends and access to multiple gyms, made “good” progress as it is now extended to nearly a fifth of the members.
Net debt rose 3% to £47.4mln as the 18 standard sites were mostly paid for with cash flow.
TGG also opened two box gyms, which are designed for smaller towns.
During 2020, TGG intends to open 15-20 standard gyms and 5-8 small box sites.
Analysts at house broker Peel Hunt upped their target price to 375p from 350p adding it “ticks all the boxes” for the limited competition, strong demand and minimal cost pressure due to low labour costs.