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(Sharecast News) - The Gym Group said on Wednesday that full-year earnings were set to be at the top end of forecasts as it reported a rise in first-half profit and revenue as membership numbers grew.
In the six months to 30 June, adjusted pre-tax profit rose 31% to £6.4m, with revenue up 10% from the same period a year earlier to £133.1m. Average members were 5% higher at 1 million and average revenue per member per month ticked up 5%.
Group adjusted EBITDA less normalised rent increased 12% to £30.8m, as revenue growth continued to outpace cost inflation.
Four new sites were opened in the first half and Gym Group is currently developing a further 11 sites. It expects to open at least 20 new sites in 2026, in line with its plan to open around 75 sites over three years.
The company said it remains on track to deliver full-year like-for-like revenue growth of 3%. Meanwhile, adjusted EBITDA less normalised rent is expected to be at the top end of the current range of analysts' forecasts for between £60.5m and £62m.
Chief executive Will Orr said: "We have delivered another strong set of results, reflecting the continued appeal of our high value, low cost proposition, disciplined execution of our growth strategy and sustained customer demand. Reaching one million members during the period was an encouraging milestone for the group.
"I've also been pleased to see our elevated gym design supporting performance gains in both new and refurbished gyms. This continued focus on product excellence is one of the ways we can build on the momentum we have. Our teams remain focused on executing our Next Chapter growth plan, including the acceleration of our rollout programme, and we are confident in delivering full year results at the top end of the current analysts' forecast range, while creating further value for both shareholders and members."
Dan Coatsworth, head of markets at AJ Bell, said: "Gym Group has flexed its muscles with memberships, revenue and profit all up in the first-half period, and full-year earnings seen at the top end of forecasts.
"The company is seeing the benefits of doing some heavy lifting on its sites, with upgraded gym formats resulting in improved performance at both new and refurbished locations.
"This investment is fuelled by strong free cash flow, and it continues to roll out new sites while still having cash on hand to fund share buybacks.
"Investors will be alive to the risks of the gym industry becoming oversaturated after significant site expansion across the UK in recent years.
"While there has been a lifestyle shift with younger age groups prioritising their health and fitness over pub trips and other areas of discretionary spend, this may have a limit.
"For now, the expansion in Gym Group's memberships is reassuring, with growth in this area modestly higher in the first half of 2026 than it was for 2025 as a whole."
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