The Gym Group swings to profit in H1, declares maiden interim dividend

In the six months to the end of June, revenue rose 25.1% from the same period last year to £36.1m as adjusted pre-tax profit came in at £4.6m versus a loss of £0.8m.

The company declared a maiden interim dividend of 0.25p per share.

The group said it opened six new gyms in the period, taking its total estate to 80. It also saw a 19.4% increase in membership numbers versus the previous year to 424,000.

In addition, it saw 11.2m visits in the period, up 2.1m compared to the first half of 2015.

Chief executive officer John Treharne said: “Excellent progress has been achieved so far in 2016 as demonstrated by the growth in membership. Our rollout is on track with six sites opened in H1. We remain on target for 15-20 for the year and have a strong pipeline for 2017. 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."

At 0930 BST, shares were down 3% to 222.50p.