Gym Group is on track with strong half-year results following Will Orr’s strategy reboot

The Gym Group has built on the positive momentum of 2023, with a strong half-year performance in the first half of 2024, showing an uplift in membership, yield and like-for-like revenue.

For the period ending 30 June, the low-cost operator increased revenue by 12 per cent to £112.1m (H1 2023: £99.8m).

Membership continues to grow and stood at 905,000 on 30 June, compared with 867,000 at 30 June 2023 and 850,000 at 31 December 2023.

Average revenue per member per month for the period was up 9 per cent to £20.44 (H1 2023: £18.81) and like-for-like revenue also grew by 9 per cent.

Four new gyms have been opened this year – bringing the total to 237 – and four more are being fitted out and will open soon. Will Orr, The Gym Group CEO, confirms the company is on track to meet its target of 10 to 12 new sites this year, as set out in its year-end results in March, along with the company’s new strategy, Next Chapter.

Orr said: “We're making encouraging progress with our strategic priorities under our Next Chapter growth plan, delivering good growth in membership and yield.

“We've further strengthened our financial position, while stepping up our opening programme in line with our target to open 50 high quality sites over the next three years with high ROIC, funded from free cashflow.

"After a strong first half, we expect to deliver full year results at the higher end of market expectations.”

With further strong cashflow generated in the first half, net debt stood at £54.6 million at 30 June, compared with £66.4 million at the 2023 financial year end.

In June, the company completed a refinancing of its bank debt. The new three-year facility is made up of a £45 million Term Loan and £45 million Revolving Credit Facility, at a minimum annual interest rate of 2.75 per cent above SONIA. Terms permit the distribution of surplus cashflow to shareholders in line with the capital allocation policy, which prioritises organic growth.

Will Orr will be a keynote speaker at the HCM Summit on 24 October in London. Find out more at www.HCMsummit.live