First half shapes up nicely for The Gym Group

The Gym Group reported a 76% jump in first-half pre-tax profit on Wednesday as revenue rose amid strong growth in membership.

In the six months to 30 June, statutory pre-tax profit increased to £5.9m from £3.4m in the same period a year ago, while adjusted pre-tax profit was up 42% to £6.5m. Revenue came in at £42.8m versus £36.1m in the first half of last year and the interim dividend was lifted by 20% to 0.3p per share.

Membership numbers were up 20% to 508,000 and the company opened six new gyms in the period, bringing the total estate to 95. The Gym Group said it expects to achieve the top end of the guidance range of 15 to 20 site openings for this year.

Chief executive officer John Treharne said: "We have delivered another period of strong growth in membership, revenue and profit. We have continued to expand our footprint across the UK, opening six new gyms in the period, two in H2 to date, with several more currently in fit out.

"Our strategy remains the same: to take advantage of the demand for high quality, low cost, 24/7 gyms whilst continuing to innovate through the use of technology and digital marketing."

At 0922 BST, the shares were up 1.7% to 208.50p.