Gym Group avoids mentioning loss in market update, but says it’s trading in line with market expectations this year
The Gym Group this morning said that it is performing in line with full-year market expectations, in terms of its key profit measure of adjusted Ebitda less normalised rent, but failed to update the market on the status of its company losses.
Instead, it focused on its robust recovery in membership numbers this year since it reopened its sites after Covid lockdowns, and said total numbers grew from 547,000 in February to 753,000 at the end of October. But numbers declined slight in November to 735,000, which the group said was “in line with seasonal norms”.
The UK operator of 198 contract-free gyms said it “remains on track” to deliver its rollout plan of 40 new openings in the 18 months to next December, and said that by the end of this month, it will have opened 19 sites this year – 15 of which were opened in the second half.
“The market opportunity and growth potential for The Gym Group is very exciting,” said CEO Richard Darwin.
“Whilst we are mindful of the near-term uncertain outlook as a result of the new Covid variant, we have the growth strategy, financial resources and expertise required to capitalise on those opportunities, widening access to inclusive and affordable gyms for all over the long term.”