14 Jul 2023
Gym Group shares jump after lifts in memberships and revenues
BY Tom Walker
Shares in The Gym Group have jumped sharply, after it reported substantial gains in membership and revenue following a period of trading with founder John Treharne at the helm.
Treharne took back control of the business in January this year following the resignation of CEO Richard Darwin.
Publishing its trading update for the first half of 2023, the budget operator said year-on-year revenues hit £99.8million during the six months ending 30 June, an increase of 18.5 per cent from the £84.2million seen in the same period last year.
Like-for-like revenue was up by 7 per cent year-on-year.
Across its estate, the group had 867,000 members on 30 June, up from 790,000 members a year earlier. The increase highlights the success of the company's work to rebuild its numbers, which are still down on pre-pandemic levels.
There was also an 8 per cent rise in average revenue per member per month, reaching £18.81 for the first half.
The group's net debt – as at 30 June 2023 – was £69.7m, compared with £76.1m at the financial year end.
The markets reacted positively to the figures, with the group's shares jumping from just under 90p to more than 100p.
Treharne commented: “After a positive first half, we remain on track with our plans and are well set to meet full year market expectations.
"We have continued to grow our membership and yield, while controlling our costs and generating cash.
"The Gym Group is therefore well placed for the next stage of its development, bringing a high quality health and fitness proposition at an affordable price point to the communities in which we operate.”
Earlier this year, The Gym Group announced that it had appointed Will Orr, the former MD of The Times, as its new CEO.
"We are delighted that Will Orr will join us as CEO in September," Treharne added.
"We have put in place a new management team with the right blend of skills and experience over the past nine months, as well as further strengthening our Board."
One of Treharne's first moves on taking back control, was the appointment of Simon Jones – MD for Premier Inn and Restaurants UK and global commercial director at Whitbread – as a non exec.
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