The Gym Group positive trading momentum drives strong LFL revenue growth
Gym operator said on Tuesday that positive trading momentum had continued through H2, driving strong like-for-like revenue growth.
The Gym Group said revenue for the year ended 31 December increased by 11% to £226.3m, with like-for-like revenue growing 7% year-on-year. Average members grew 4% to 906,000, and average revenue per member per month was up 7% to £20.81.
As a result of the "strong delivery of like-for-like growth" and new site performances, Gym Group predicts group adjusted underlying earnings less normalised rent for FY24 to be "slightly above" the top end of the current market forecast range of £43.5m-45.5m.
The FTSE 250-listed firm also said FY25 group adjusted EBITDA less normalised rent will be at the top end of the current market forecast range of £47.2m-49.7m.
Chief executive Will Orr said: "We have delivered strong progress and momentum in our Next Chapter growth plan, that will result in FY24 profits ahead of the top end of previous guidance. There is plenty more still to come as we execute our plan and we look to 2025 with confidence.
"We are well prepared for our key member recruitment period in the current quarter and beyond, with our strengthening new site pipeline and our flexible, high value, low-cost offer making gym membership more accessible for all."
As of 0940 GMT, Gym Group shares were up 6.20% at 150.80p.
Reporting by Iain Gilbert at Sharecast.com
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.