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Business

The Gym Group returns to profit

By: Chris Price

Published: 00:01, 31 August 2016

Updated: 09:24, 31 August 2016

Budget fitness chain the Gym Group leaped back into an underlying pre-tax profit of £4.6 million in the first half of the year.

The company, which has gyms in Ashford, Dartford and Strood, increased revenues by a quarter to £36.1 million compared with the same period in 2015.

It opened six new gyms, taking its national total to 80, and managed a 19.4% boost in membership numbers to 424,000.

People in a gym on treadmill. Stock image

Chief executive hailed “excellent progress” drive by the growth in visitors, as adjusted earnings before interest, taxes and other charges grew by 35.2% to £11.5 million.

He said: “We remain on target for 15 to 20 [new gyms] for the year and have a strong pipeline for 2017.

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“Our existing sites are performing well which has contributed to the group’s strong growth in profitability.

“We are confident that our low cost, disruptive positioning in the market place, our well developed roll out plans and our strong financial position bode well for further rapid and measured profitable development and progress, whatever the economic environment.”

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