Low-cost gym operator opened 15 new sites during the year, now has 500,000 members
Companies: Gym Group Plc
Low-cost gym operator The Gym Group has swung to a profit in its 2016 full-year results, reporting 22.6% revenue growth to £73.5m, adj EBITDA up 33.4% to £22.7m, and pre-tax profit of £8.7m (up from a loss of £2m last year).
On a statutory basis, the firm reported pre-tax profit of £6.9m, up from a loss of £12.4m last year. As a result, the board has proposed a final dividend of 0.75p a share, bringing its full-year payout to 1p/share.
Operationally, the firm said it opened 15 new gyms during the year, bringing its total to 89, with each "mature" site averaging £476k in EBITDA. Membership numbers hit 450k by the end of the year, and have since increased to nearly 500k.
CEO John Treharne said it had been a good year with strong financial and operational progress being made. He said it had been an encouraging start to 2017, with January and February showing record membership levels, hitting 500k:
"2016 has been a good year with strong financial and operational progress. Our existing estate continues to deliver excellent returns and our low cost, 24/7, no contract model is disrupting the market and attracting new members. We will continue to expand rapidly in 2017 through a well developed site pipeline."
Shares in Gym Group jumped 3% in early trading on Tuesday, but they are down 25% in the past year.
