Gym Group gets in shape with 75% rise in profits
Low-cost fitness chain The Gym Group pumped up revenues and profits in the first half of the year, helped by a rising number of Britons trying to get fit.
The company posted an 18.8% rise in revenue to £42.8 million in the six months to June 30, while statutory pre-tax profit rocketed 75.5% to £5.9 million.
Membership numbers increased by 19.8% to 508,000 and boss John Treharne said The Gym Group is limbering up for its next raft of openings.
He said: "We have delivered another period of strong growth in membership, revenue and profit.
"We have continued to expand our footprint across the UK, opening six new gyms in the period, two in H2 to date, with several more currently in fit out.
"Our strategy remains the same: to take advantage of the demand for high-quality, low-cost, 24/7 gyms whilst continuing to innovate through the use of technology and digital marketing."
Mr Treharne added that the firm, which has 95 gyms, expects to open 15 to 20 sites in 2017.
The Gym Group said it has seen a fall in the number of local authority gyms as a result of "ongoing funding pressures on councils", creating an opportunity for the business to "fill the gap".
"In the last year, we have opened in some of the most inactive areas of the UK with successful sites in areas such as Dagenham, Peckham and Lewisham," the group said.