Next Chapter growth plan continues to deliver strong progress
Leading low cost gym operator, The Gym Group, announces its interim results for the six month period ended 30 June 2025.
Key financial metrics1
| Six months ended 30 June 2025 | Six months ended 30 June 2024 | Movement | |
| Revenue (£m) | 121.0 | 112.1 | +8% |
| Group Adjusted EBITDA (£m) | 48.3 | 41.7 | +16% |
| Group Adjusted EBITDA Less Normalised Rent (£m) | 27.4 | 22.1 | +24% |
| Adjusted profit/(loss) before tax (£m) | 4.9 | 0.5 | +5.7% |
| Statutory profit/(loss) before tax (£m) | 3.3 | 0.2 | +3.1m |
| Statutory profit/(loss) after tax (£m) | 3.3 | 0.2 | +3.1m |
| Adjusted Basic and Diluted profit/(loss) per share (p) | 2.7 | 0.3 | +2.4p |
| Statutory Basic and Diluted profit/(loss) per share (p) | 0.1 | 0.1 | +1.7p |
| Free cash flow (£m) | 24.5 | 23.3 | +8% |
| Non-Property Net Debt (£m) (as at period end) | (51.2) | (54.6) | Reduced by £3.4m |
Financial highlights
- Revenue for the period increased by 8%, with average members up 4% and average revenue per member per month (‘ARPMM’) up 4%; like-for-like3 revenue grew 3%; closing membership up 5% year on year
- Group Adjusted EBITDA Less Normalised Rent at £27.4m was 24% ahead of the prior year period as revenue growth continues to outpace cost inflation
- Strong free cash flow generated in H1, up 8% to £25.1m, funding new sites, enhancements to existing sites and continued technology investment, including new member management and payment capabilities
- Non-Property Net Debt at £51.2m, reduced by £10.1m in the period (Dec 2024: £61.3m); Adjusted Leverage4 reduced to 1.0x; bank facilities increased to £102m (was £90m) and maturity extended to June 2028
Business and operational highlights
- Both mature sites and new sites performing well, reflecting benefits of Next Chapter growth plan, and driving growth in Group Adjusted EBITDA Less Normalised Rent
- Sustained pricing opportunity supporting yield growth, plus advantaged, labour-light business model, delivering strong growth in site performance
- Data-driven approach to revenue growth levers continues to deliver benefits, supported by steps to further increase appeal to Gen Z member demographic in particular, through targeted marketing and enhanced site experience
- Five new sites opened year to date (three in H1) and currently on site at a further eight; on track to open 14-16 new sites in 2025, in line with our plan to open circa 50 sites over three years, funded from free cashflow
- Continued to build on high levels of member engagement and satisfaction, with 94% of members rating The Gym Group 4 or 5 out of 5 for overall satisfaction; proportion of members visiting 4+ times a month increased by 108bps
Current trading and outlook
- Trading momentum continued in July and August underpinning confidence that we will deliver c.3% like-for-like revenue growth for the full year
- Expect full year Group Adjusted EBITDA Less Normalised Rent to be at the top end of analysts’ forecast range
Will Orr, CEO of The Gym Group, commented:
This strong set of half year results reflects continued progress against the strategic objectives set out in our Next Chapter growth plan 18 months ago. Our high value, low cost proposition continues to resonate, with members visiting the gym more often than ever.
Encouragingly, the sites opened this year, which reflect new design features, are performing ahead of expectations, and we are on track to deliver our target of opening 14-16 new gyms this year, all funded from free cash flow, taking us beyond 250 sites. In a growing sector, we have once again increased membership, revenue and profit and are well set to deliver full year results at the top end of market expectations6.
A live audio webcast of the analyst presentation will be available at 9:00 a.m. today via the following link: https://storm-virtualuk.zoom.us/webinar/register/WN_96KBJ1VfSiSaQwatE2NGSQ
A copy of the presentation and recording of the webcast will be published on the Company’s website.
1Refer to the ‘Definition of non-statutory measures’ section for definitions of non-statutory measures used in the table.
2Free cash flow for the six months ended 30 June 2024 has been restated to reallocate £1.2m of Technology and Data spend from Expansionary capital expenditure to Maintenance capital expenditure.
3Like-for-like revenue vs 2024 includes all sites open as at 31 December 2022.
4Adjusted Leverage calculated as Non-Property Net Debt divided by LTM Group Adjusted EBITDA Less Normalised Rent.
5Current Company-compiled analysts’ forecast range for Group Adjusted EBITDA Less Normalised Rent is £50.6m-£52.8m.
Download the full announcement
For further information, please contact:
The Gym Group
Will Orr, CEO
Luke Tait, CFO
Katharine Wynne, Investor Relations
via Instinctif
Instinctif Partners (Financial PR)
Justine Warren
Tim Pearson
+44 (0)20 7457 2020