The Gym Group shares rise as group sees membership numbers grow

The Gym Group has reported substantial gains in membership and revenue in its latest first-half trading update.

Year-on-year revenue rose by 18.5 per cent to £99.8million for the six months ending 30 June, against £84.2million by the same point a year ago. 

The group had 867,000 members on 30 June, up from 790,000 members a year earlier, and 821,000 members at the end of December.

The Gym Group boasted an 8 per cent rise in average revenue per member per month, reaching £18.81 for the first half.

Like-for-like revenue increased by 7 per cent year-on-year, and comparable sites were currently operating at 97 per cent capacity, surpassing pre-pandemic levels in 2019.

The Gym Group shares rose sharply and were up 8.89 per cent or 8.00p to 98.00p this afternoon, having fallen over 46 per cent in the last year.  

The group opened two new sites while closing one existing location during the period.

Net debt on 30 June stood at £69.7million, narrowing from £76.1million a year ago.  

Will Orr will be joining Gym Group as chief executive on 1 September.

‘After a positive first half, we remain on track with our plans and are well set to meet full year market expectations,’ chairman John Treharne, said.

He added: ‘We have continued to grow our membership and yield, whilst controlling our costs and generating cash.

‘We are delighted that Will Orr will join us as CEO in September.’

Treharne said the company had put in place a new management team with ‘the right blend’ of skills and experience over the last nine months, as well as further bolstering its board.

He said: ‘The Gym Group is therefore well placed for the next stage of its development, bringing a high quality health and fitness proposition at an affordable price point to the communities in which we operate.’

The group will publish its interim months for the six months ending 30 June on 12 September.