The Gym Group on track to open up to 12 sites this year
The Gym Group has said it is on track to open between 10 and 12 new sites by the end of the year.
This comes as the group releases a trading update for the first half of 2024, a period during which it opened four new gyms, bringing its total estate to 237 sites. The operator is also in the fitout stage of the next four new sites which are expected to open soon.
During the period – which comprised the six months ending 30 June – the gym operator recorded a year-on-year increase in revenue of 12% to £112.1m, which membership reaching 905,000, compared to 867,000 at the same point a year prior.
Average revenue per member per month during the first half of the year was up by 9% year-on-year to £20.44, whilst like-for-like revenue grew 9% year-on-year.
In June, The Gym Group also completed a refinancing of its bank debt with its existing banking group comprising NatWest, HSBC and Barclays. The new three-year facility is made up of a £45m term loan and a £45m revolving credit facility.
Will Orr, CEO of The Gym Group, said: “We are making encouraging progress with our strategic priorities under our Next Chapter growth plan, delivering good growth in membership and yield. We have further strengthened our financial position, whilst stepping up our opening programme in line with our target to open 50 high quality sites over the next three years, funded from free cashflow. After a strong first half, we expect to deliver full year results at the higher end of market expectations.”
Earlier this year, The Gym Group appointed Savills to advise on its expansion plans, as the operator plans to open 50 new sites over the next three years.