Gym Group to beat targets, buy back shares after strong 2025

(Sharecast News) - Shares in The Gym Group rose on Tuesday after the budget-friendly, 24-hour gym chain said it expects 2025 results to beat market forecasts and intends to launch a new share buyback programme worth �10m.

Adjusted EBITDA excluding normalised rent is now expected to be "slightly above the top end" of the company-compiled consensus range at �52.5m to �54.9m. That's up from the �47.7m earned in 2024.

The Gym Group, which operated from 260 gyms by the end of 2025 after opening 16 new sites during the year, increased revenues by 8% to �244.9m, with like-for-like revenues growing 3%.

Average members increased 4% over the year to 945,000, with average revenue per member per month also 4% higher at �21.60.

Meanwhile, net debt was reduced to �59.3m from �61.3m the year before, coming in �5m below analysts' expectations, the company said.

"We are taking this momentum into 2026 and expect that FY26 group adjusted EBITDA less normalised rent will also be slightly above the top end of the current group-compiled analyst consensus range of �55.2-59.3m," the firm said.

The company is also now accelerating its plans for new sites and expects to open 20 new gyms in 2026 and a total of 75 over the next three years.

"Taking both the momentum and outlook for the group into account, the board has determined that there is surplus financing capacity and, in line with our capital allocation policy, intends to commence a share buyback programme of up to �10m in due course."

Shares were 3.1% higher at 160.8p by 0944 GMT.