LONDON (ShareCast) - (ShareCast News) - The Gym Group reported total revenue growth of 22.6% in the year ended 31 December as it opened 15 new gyms.
The pay-as-you gym operator said earnings for the year are expected to be in line with consensus market views following another year of "rapid development and strong growth" in revenue and earnings before interest, taxes, depreciation and amortisation.

The group increased its total estate by 15 to 89 sites and total year-end members were up 19.1% versus the previous year to 448,000.

The Gym Group said it had a strong balance sheet, with year-end net debt of £5.2m versus £7.1m in 2015 and the business cash flow positive and self-financing the gym openings during the year.

Over the last two years it has opened 34 sites, in line with its guidance of 15-20 sites per year, and now expects to achieve towards the top end of its guidance range for openings this year.

Chief executive officer John Treharne said: "This has been another year of rapid progress growing the number of sites in our estate by over 20% and achieving our financial goals. Our 2016 openings are performing well.

"Our low cost highly affordable model, with a known and predictable cost base, is arguably even more relevant in today's uncertain economic climate. Our pipeline for new sites in 2017 is the strongest we have ever had with strong cash generation to fund future openings.

We remain excited about the growth opportunities that our low cost model brings and look forward to continued profitable progress in 2017. "

At 1142 GMT, the shares were down 2.6% to 195p.

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