Low-cost gym operator Gym Group (GYM) looks to be in good shape ahead of its first-half results, due to be released 11 September.

In a pre-close statement on 10 July the company raised its full-year profit expectations to the top end of market forecasts after continued positive trading.

Company-compiled analysts forecasts for EBITDA (earnings before interest, tax, depreciation, and amortisation) less normalised rent sit in the range of £38 million to £43.1 million.

First-half revenue increased by 12% to £112.1 million driven by the opening of four new gyms, a 9% increase in average revenue per member per month and higher memberships which reached 905,000 on 30 June. Like-for-like revenue was 9% ahead compared with the first half of 2023.

Analyst Douglas Jack at Peel Hunt expects full year revenue growth to be first half-weighted due to the timing of price increases, reduced promotional activity and tougher second-half comparisons.

By contrast Jack sees expansionary growth to be second-half weighted with 11 new sites slated to open during the period. He believes the new openings have been performing well.

The business has been raising headline prices more than peers and Jack thinks there is room for further increases given Peel Hunt’s in-house survey indicates its prices are around £1.50 per month below rival PureGym’s on average. 

UK UPDATES OVER THE NEXT 7 DAYS

FULL-YEAR RESULTS

11 Sept: Dunelm, Frontier Developments, Pan African Resources

12 Sept: Brooks Macdonald, Kier, Renishaw

FIRST-HALF RESULTS

9 Sept: Symphony Environmental Technologies, Equals Group, Pebble Group, Sigmaroc, Norman Broadbent

10 Sept: Property Franchise Group, Tissue Regenix, MPAC, Elecosoft Public Limited Company, Inspects, Chesnara, Lords Group Trading, Luceco, Serica Energy, IQE, Futura Medical, Nexteq, Central Asia Metals, Flowtech Fluidpower, Hvivo, Finseta 

11 Sept: M Winkworth, Anpario, Gym Group, Trustpilot, 

12 Sept: Keystone Law, Inspired, Spire Healthcare 

TRADING ANNOUNCEMENTS

9 Sept: Computacenter

10 Sept: Associated British Foods

‹ Previous2024-09-05Next ›