Gym Group trading set to hit ‘higher end’ of expectations
Membership numbers grew to 905,000 at the end of June, from 850,000 at the end of last year.
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The Gym Group has revealed a jump in membership and said trading for the year is set to be at the “higher end” of targets as a result.
The 237-strong gym chain saw shares tick higher on Wednesday morning as a result.
Membership numbers grew to 905,000 at the end of June, from 850,000 at the end of last year.
People see we are charging an average of about £20 and some people at mid-range gym operators can be paying £50 to £60. I think many recognise that, given the quality of our offer, it is a really good way to spend your money
Will Orr, boss of the company, told the PA news agency it benefited from gymgoers switching from more expensive rivals.
“There are a good amount of people joining us who are new to gyms, particularly when we open in a new location,” he said.
“We’ve also seen some trading down from others in the market because of the consumer backdrop.
“People see we are charging an average of about £20 and some people at mid-range gym operators can be paying £50 to £60.
“I think many recognise that, given the quality of our offer, it is a really good way to spend your money.”
After a strong first half, we expect to deliver full-year results at the higher end of market expectations
The company revealed that revenues increased by 12% to £112.1 million for the half-year to June 30, compared with the same period a year earlier.
The Gym Group was also boosted by four new gym openings over the first half of 2024.
It said four new sites are currently being fitted to open soon, with it on track to open between 10 and 12 sites for the year as a whole.
Last year, the company said it planned to open 50 sites by the end of 2026 as it continues to expand across the UK.
Mr Orr added: “We are making encouraging progress with our strategic priorities under our next chapter growth plan, delivering good growth in membership and yield.
“After a strong first half, we expect to deliver full-year results at the higher end of market expectations.”
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