The Gym Group says openings on track as first-half sales rise

(Sharecast News) - Low-cost gym chain The Gym Group was able to grow revenues by 8% in the first half, helped by increased member numbers and new openings. The company, which opened three new gyms over the six months to 30 June, is currently on site at a further four sites, and said it remains on track to open 14 to 16 this year. With one site closing, the chain had a network of 247 gyms at the half-year stage.

Meanwhile, average member numbers rose 4% over last year to 953,000, with average revenue per member per month also up 4% at £21.16.

As a result, revenues totalled £121m for the period, up from £112.1m in the first half of last year, with like-for-like revenues rising by 3%.

Net debt fell to £51.2m by the end of the half, from £61.3m at the year end, though is expected to rise back to previous levels due to gym opening and refurbishments planned.

"We have delivered continuing momentum in the first half of the year, with further good growth in membership and yield. We are seeing excellent performance in our new sites, supported by a more tailored marketing approach and the evolution of our site proposition," said chief executive Will Orr.

"We remain confident in the full year outlook and look forward to updating the market more fully in September."

Shares were up 1.5% at 160.44p by 0922 BST.