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Costs hit Gym Group profits but firm remains on track

Revenue continued to rise, jumping 36.1% to £58.3 million.

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The Gym Group has seen revenues rise (Tim Goode/PA)

The Gym Group has seen revenues rise (Tim Goode/PA)

The Gym Group has seen revenues rise (Tim Goode/PA)

Profits at The Gym Group took a knock in the first half of the year as the fitness chain was hit by acquisition costs.

The no-frills firm saw pre-tax profits fall 14% to £5.1 million in the six months to June 30 as its deal to buy easyGym resulted in a £1 million exceptional charge.

However, stripping out the costs, adjusted pre-tax profit came in at £7 million, up 8.4%.

Revenue also continued to rise, jumping 36.1% to £58.3 million.

Boss John Treharne, who will be succeeded by Richard Darwin next month, hailed “another excellent period” for The Gym Group.

He said: “In my last set of results as chief executive, I am confident that the business is in as strong a position as ever to execute its strategy and deliver further accelerated profitable growth.

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“After a strong first half we are on track to meet market expectations for the full year and look forward to further progress in the second half of the year.”

The company pointed to its so called “Live It” premium offering, which has seen take-up grow to 55,000 members.

The Gym Group is also looking to muscle in on some of the shops left vacant by recent retail collapses and store closure programmes.

It now has nearly 150 gyms across the UK and 720,000 members.

“Since the end of the half-year we have expanded again, with the acquisition of 13 easyGyms taking us close to 150 sites.

“In addition, we remain well set to achieve our target range of 15 to 20 organic openings for 2018,” Mr Treharne said.

Shares were down nearly 3% in morning trade.


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