Gym Group had delivered solid H1 momentum with +3% LFL growth (vs a tough 9% comp) - in line with our FY assumption - supported by good gains in membership and yield. Total revenue is +8%. New sites are performing strongly, while overall new openings as expected will be H2 biased, with no change to FY guidance. Management remains confident in the full-year outlook; we hold forecasts for now. We like GYM for its exposure to structural growth, an improving returns profile, and clearer execution under new leadership. The shares are up 6% YTD and trade on 6.7x/6.1x YR1/YR2 EV/EBITDA with a 7.5%/11% FCF yield. We reiterate our Buy rating and 205p 12-month PT, implying a blended 7.5x EV/EBITDA and 5% FCF yield.
