LONDON (ShareCast) - (ShareCast News) - Gym Group muscled its way into the black in 2016 and has started 2017 well as it continues to push its disruptive no-contract model as part of its plans for rapid expansion.
For the calendar year, the company turned over £73.5m, an increase of 22.6% o the previous year, with adjusted earnings before interest, tax, depreciation and amortisation up 33% to £22.7m.

This, plus disciplined cost control, helped produce an adjusted profit before tax of £8.7m, an improvement of £10.7m from the £2m loss the prior year, and resulting in adjusted earnings per share increased to 5.6p from the prior year's loss per share of 1.8p.

At the statutory level, PBT of £6.9m reverse the £12.4m loss from 2015.

With operating cash flow increased by 34% to £24.9m the board was happy to propose a final dividend of 0.75p per share, giving a proposed full year dividend of 1.0p per share.

Chief executive John Treharne said the new financial year has started well, in line with the board's expectations.

"January and February are the two most significant trading months of the year for any gym business. Membership numbers at the end of February had increased to 495,000, a record level, with a 10.5% increase since December 2016.

"This level of member growth will help to underpin our performance for the rest of the year."

For 2017, Treharne said he expects to open towards the top end of the guidance range of 15-20 sites, with openings weighted to the second half of the year and six sites expected in the first half of the year.

"Our existing estate continues to deliver excellent returns and our low cost, 24/7, no contract model is disrupting the market and attracting new members," he said.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE