Key facts
- Gym Group upgraded its earnings forecast to the top end of its £60.5m to £62m range.
- Pre-tax profit for the six months to June was £4.3m, up 48% year-on-year.
- Revenue rose 10% to £133m in the first half of the year.
- Gen-Z consumers are increasingly prioritizing health and fitness in their spending.
- The company opened four new sites and expects to open at least 20 in 2026.
- Membership grew 5% to over 1 million.
Gym Group has upgraded its earnings forecast, anticipating results at the upper end of its £60.5m to £62m range, following a strong summer trading period. The company reported a 48% year-on-year increase in pre-tax profit to £4.3m and a 10% rise in revenue to £133m for the six months ending June.
Despite challenges such as heatwaves, the World Cup, and the cost-of-living crisis, Gym Group has successfully attracted Gen-Z consumers, who increasingly prioritize health and fitness. According to company research, 55% of young people rank health and fitness as a top two spending priority, up from 44% last year.
Will Orr, chief executive, stated that the group is on track to deliver 3% sales growth and highlighted that gyms and fitness are deeply integrated into people's lifestyles. The company opened four new sites in the first half of the year and plans to open at least 20 in 2026, with membership growing by 5% to over 1 million.
Orr appealed to the government for a stable business environment, emphasizing the company's contribution to the economy and national health through affordable fitness. He also cautioned against potential business rate hikes on larger businesses, noting that while Gym Group was largely unaffected by previous changes, further radical tax system alterations could be detrimental.
Analysts at Deutsche Bank expressed confidence in the business's execution and market positioning, supporting its self-financed rollout strategy. The average membership rate was increased by £1.81 to £26.91, largely to keep pace with inflation, while the company continues to enhance its offering with modern designs and innovative equipment.