LONDON (ShareCast) - (ShareCast News) - The Gym Group's shares were given a lift after Numis reiterated a 'buy' rating and target price of 275p, saying the business has an "impressive record of profitable growth".
"The Gym Group is growing rapidly in the UK with a disruptive model based on an affordable, flexible subscription offer and the intelligent use of technology," Numis said.

"It has established itself as a leader in a vibrant low-cost segment which has revolutionised the fitness market in the UK by both growing the market and taking share from traditional operators."

The company, which listed on the London Stock Exchange in November, reported on Wednesday a rise in half year revenue as it swung to a profit and announced a maiden interim dividend.

In the six months to the end of June, revenue rose 25.1% from the same period last year to £36.1m as adjusted pre-tax profit came in at £4.6m versus a loss of £0.8m.

The group declared a maiden interim dividend of 0.25p per share.

The firm opened six new gyms in the period, taking its total estate to 80. It also saw a 19.4% increase in membership numbers versus the previous year to 424,000.

"Recent interims (31 Aug) were encouraging and confirmed Gym's strong trading momentum. Structural growth opportunities for low-cost gym operators (where Gym is the strong market No.2) continue to be very promising, in our view," Numis said.

"If the consumer environment deteriorates post-Brexit we believe the Group is well placed for increased demand from customers trading down from more expensive gyms."

Shares jumped 6.21% to 223.04p at 0951 BST.

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