LONDON (ShareCast) - (Sharecast News) - The Gym Group's interim results were welcomed by investors on Wednesday, with the 24/7 budget fitness chain's share price rising strongly on the back of upgraded guidance following a big jump in profits in the first half.
As a result of a strong summer period, The Gym Group expects profits to be at the "top end" of market forecasts that have been upgraded since its last trading update in July.

Company-compiled consensus forecasts currently point to EBITDA minus normalised rent of £42.4m to £44m in 2024, up from £38.5m in 2023.

The company also said that full-year revenues should increase by 5-6% on a like-for-like basis, up from earlier guidance of 4-5%.

Revenues in the first six months of the year were up 12% at £112.1m, helped by a 3% increase in member numbers and a 9% jump in average revenue per member per month.

Adjusted EBITDA less normalised rent totalled £22.1m, up 28% on the year before, while free cash flow surged 73% to £24.5m, funding four new sites during the period and a further three since the period-end.

"We have increased membership, revenue and profit and our market-leading proposition is more resonant than ever, in a growing market," said chief executive Will Orr.

"We are also well on track to deliver our target of opening circa 50 new high quality gyms over the next three years, funded from free cash flow."

The stock was up 8.2% at 155.6p by 1018 BST.

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