Gym Group back in profit as membership increases

Growing membership numbers and price increases have helped The Gym Group record its first pre-tax profit in more than four years.

The budget health club operator has reported pre-tax losses for each six-month period since the COVID-19 pandemic began severely disrupting operations in the first half of 2020.

The company, which currently operates 240 gyms across the UK, reported pre-tax profits of £200,000 for the six months to 30 June – compared to a £6.1m loss in the same period last year. Revenues increased by 12 per cent to £112m while EBITDA was up 19 per cent to £41.7m. The results follow the launch of The Gym Group’s growth plan in March 2024. Titled Next Chapter, the growth strategy focuses on driving up returns in the mature gym estate through higher yield, reduced promotion and “better-targeted customer acquisition”.

Will Orr, CEO of The Gym Group, commented: “Further positive trading momentum during the first half reflects the continued early benefit of executing on our Next Chapter strategy.

“We have increased membership, revenue and profit and our market-leading proposition is more resonant than ever, in a growing market. “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. We have detailed plans in place for the key autumn trading period and are well set to deliver full year results at the top end of recently revised market expectations.”