Gym Group swings to annual profit amid more members and gyms

(Alliance News) - Gym Group PLC on Wednesday highlighted "strong" trading momentum in the first ...

Alliance News 12 March, 2025 | 1:30PM
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(Alliance News) - Gym Group PLC on Wednesday highlighted "strong" trading momentum in the first two months of the new year, as it plans to open over a dozen new sites before year-end.

The Croydon, London-based gym chain said it swung to a pretax profit of GBP2.5 million in 2024, from a loss of GBP8.3 million in 2023.

Revenue climbed 11% to GBP226.3 million from GBP204.0 million, while operating costs increased just 7.8% to GBP140.0 million from GBP129.9 million. Costs from depreciation, amortisation and impairment came in 3.9% higher, at GBP60.6 million compared to GBP58.3 million.

The company's average headline price for a standard membership in December 2024 was GBP24.53 per month, up 5.9% from GBP23.16 a year prior. This was largely as a result of higher joining fees and price increases for new members, the company said.

The total number of members as at December 31 rose 4.8% to 891,000 from 850,000 a year prior, while the number of gyms climbed 5.2% to 245 from 233.

Gym Group hailed "strong" trading momentum in its peak recruitment months January and February 2025, with revenue after two months up 8% on-year, amid a 4% increase in average members and a 4% growth in yield.

The company plans to open 14 to 16 new sites in 2025, in line with its plan to open about 30 sites over three years funded from free cash flow.

Chief Executive Officer Will Orr said: "We have seen excellent momentum to date with increased membership, revenue and profit; and our market-leading proposition is more resonant than ever, in a sector that is growing. We will continue to execute on initiatives started in 2024 alongside new initiatives in place for 2025, underpinned by our investment in technology and data to drive future growth."

Gym Group shares were 1.1% higher at 136.10 pence each on Wednesday afternoon in London.

By Tom Budszus, Alliance News slot editor

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Gym Group (The) PLC 135.60 GBX 0.74 -

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