The Gym Group “well on track” with new opening pipeline
The chief executive of The Gym Group has said the operator is “well on track” to delivering its target of around 50 new gyms over the next three years.
This comes as the gym operator releases its interim results for the first half of the year, a period during which it opened four sites, located in London Euston, Welwyn Garden City, Orpington in Greater London, and Manchester.
Since the period end, The Gym Group has opened a further three venues, and said it has secured the locations enabling it to open between 10 and 12 new gyms in 2024, as per its previous guidance.
The operator said its “strong pipeline” is building, aided by its partnership with Savills – which is expected to deliver between 15 and 20 new sites in 2025.
This aggressive expansion policy comes amid strong results for The Gym Group, which recorded a revenue of £112.1m during the six months ending 30 June, a year-on-year improvement of 12%. The group also saw a return to the black, recording an adjusted pre-tax profit of £0.5m in the first half of 2024, up from a loss of £5.2m during the same period the previous year.
The operator – which also signed a £90m three-year combined bank facility June 2024 – said it expects to deliver like-for-like revenue growth of 5-6% in 2024.
Will Orr, CEO of The Gym Group, said: “Further positive trading momentum during the first half reflects the continued early benefit of executing on our Next Chapter strategy, set out in March. We have increased membership, revenue and profit and our market-leading proposition is more resonant than ever, in a growing market. We are also well on track to deliver our target of opening circa 50 new high quality gyms over the next three years, funded from free cash flow. We have detailed plans in place for the key autumn trading period and are well set to deliver full year results at the top end of recently revised market expectations.”