At a headline and operational level today’s interims make positive reading, whilst the tenor should please the bulls. We acknowledge some positive aspects to the results but would temper any enthusiasm this morning by flagging that: (a) underlying EBITDA margin is a significant 180bps lower, once the change in depreciation policy is backed out; and (b) there is no momentum in average revenue per member despite an improving maturity profile. Both these points raise concerns about underlying LFL’s ....
30 Aug 2017
N+1 Singer - Gym Group - Margin pressure
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N+1 Singer - Gym Group - Margin pressure
Gym Group Plc (GYM:LON) | 115 0 0.0% | Mkt Cap: 205.7m
- Published:
30 Aug 2017 -
Author:
Sahill Shan -
Pages:
4
At a headline and operational level today’s interims make positive reading, whilst the tenor should please the bulls. We acknowledge some positive aspects to the results but would temper any enthusiasm this morning by flagging that: (a) underlying EBITDA margin is a significant 180bps lower, once the change in depreciation policy is backed out; and (b) there is no momentum in average revenue per member despite an improving maturity profile. Both these points raise concerns about underlying LFL’s ....