LONDON (ShareCast) - (Sharecast News) - Low-cost gym operator The Gym Group reported a double-digit increase in revenues and profits for 2024, bolstered by membership increases and price hikes, as it guided to 2025 earnings at the top end of analysts' forecasts.
The company said that trading has remained strong over the key member recruitment months of January and February. As a result, full-year adjusted EBITDA minus normalised rent should be at the top end of the consensus range of £49.0m-50.8m.

Group revenues totalled £226.3m in 2024, up 11% on the year before, with the number of members rising 5% to 891,000 by the year-end.

The company also increased the number of gyms by 5% to 245 gyms by year-end, while the average price of its standard membership was £24.53, up 6% over the year.

"Like-for-like revenue growth of 7% reflects a combination of higher headline rates for new members, re-pricing of the existing member base, and more cost-effective promotional activity," the company said.

Group adjusted EBITDA minus normalised rent totalled £47.7m in 2024, up 24% over the year before. Free cash flow rose to £37.5m, up 39% from 2023.

With plans to open a further 14 to 16 new sites in 2025, The Gym Group said it remains on track to open around 50 sites over three years, funded from free cash flow.

"We believe there is still more benefit to come from the Next Chapter growth plan, giving us the confidence to increase guidance again to the top end of the recently revised analyst forecast range for FY25," said chief executive Will Orr.

Shares were up nearly 7% at 143.8p by 0816 GMT.

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