The Gym Group PLC (LSE:GYM) has reported a sharp rise in first-half profitability, with pre-tax profit jumping 48% as membership growth and stronger pricing powered revenue higher.
The low-cost gym operator now expects full-year earnings to land at the top end of analyst forecasts, signalling continued confidence in its expansion strategy.
Revenue for the six months to 30 June climbed 10% to £133.1 million, reflecting sustained demand across its growing network of budget-friendly gym locations.
Adjusted EBITDA less normalised rent increased 12% to £30.8 million, while statutory profit before tax rose to £4.9 million from a lower base in the prior year.
Adjusted pre-tax profit also moved higher, rising 31% to £6.4 million, underlining the operational leverage the business is generating as membership scales up.
Average membership across the period increased 5% to approximately one million, with average revenue per member per month also rising 5%, adding further momentum to the top line.
Like-for-like revenue advanced 3%, consistent with the full-year target the company has maintained heading into the second half.
Chief executive Will Orr said reaching one million members during the period was “an encouraging milestone”, adding that the group’s upgraded gym format was supporting improvements at both new and refurbished locations.
The company opened four new sites during the half and is currently developing another 11, with at least 20 openings planned for 2026 as part of a programme targeting around 75 new gyms over three years.
Free cash flow increased 10% to £27.7 million, providing the financial firepower to fund new openings, refurbishment work, technology investment, and a £10 million share buyback programme.
Cost growth is now expected to come in at the lower end of the previously guided 3% to 4% range, giving the business additional room to improve margins in the second half.
With adjusted EBITDA less normalised rent forecast to reach the top end of current analyst expectations, The Gym Group is positioning itself as a resilient operator in an increasingly competitive fitness market.
