The Gym Group is forging ahead with its ambitious growth strategy, targeting the opening of around 50 new gyms over the next three years, according to its CEO, Will Orr.
In its latest interim results, the company revealed that four new gyms had already opened in the first half of the year, with locations in London Euston, Welwyn Garden City, Orpington, and Manchester. Since then, an additional three gyms have launched, bringing the total new openings to seven for 2024.
With a strong development pipeline in place, The Gym Group has secured sites that will allow it to open between 10 and 12 new locations by the end of the year, in line with its previous forecasts. Orr also highlighted the partnership with property agent Savills, which is set to deliver 15 to 20 new sites in 2025, further accelerating the company’s expansion efforts.
This growth comes amid a period of robust financial performance for The Gym Group. The company reported a 12% year-on-year increase in revenue for the six months ending 30 June 2024, reaching £112.1 million. It also returned to profitability, posting an adjusted pre-tax profit of £0.5 million, a significant turnaround from a £5.2 million loss in the same period the previous year.
Looking ahead, The Gym Group expects to achieve a like-for-like revenue growth of 5-6% for 2024. Additionally, with a newly signed £90 million three-year bank facility, the company is well-positioned to continue its expansion, funded through free cash flow.
Will Orr commented: “Our positive trading momentum in the first half reflects the early success of our ‘Next Chapter’ strategy, introduced in March. Membership, revenue, and profit have all increased, and our market-leading offering is resonating more than ever in a growing sector. We’re confident in our ability to deliver strong results for the full year, and our plans for the autumn trading period are firmly in place.”
With the future looking bright, The Gym Group is not only focused on expanding its footprint but also on solidifying its market leadership in the fast-growing fitness sector.
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