Gym Group Plc/The (GYML)

  • Change Today:
  • 52 Week High: 267.50p
  • 52 Week Low: 94.00p
  • Currency: UK Pounds
  • Shares Issued: 128.11m
  • Volume: 25,653
  • Market Cap: 135.79m

The Gym Group profits rise as new gyms opened, membership grows

By Michele Maatouk

Date: Tuesday 19 Mar 2019

LONDON (ShareCast) - (Sharecast News) - The Gym Group reported a rise in full-year profits and revenue on Tuesday as it opened new gyms and increased its membership numbers.
In the year to 31 December 2018, adjusted pre-tax profit was up 19.4% to £14.4m on revenue of £123.9m, up 35.6% from 2017. Analysts had pencilled in pre-tax profit of £13.5m.

The company proposed a final dividend of 0.95p a share, taking the full-year dividend to 1.30p, up from 1.20p the year before.

During the year, the group opened 17 new gyms and bought 13 from easyGym, increasing the total estate to 158.

Meanwhile, total year-end members stood at 724,000, up 19.3% from 2018, with average member numbers up 31.3% to 693,000.

The Gym Group said the new financial year has started well, with current trading in line with the board's expectations and member numbers up 9.5% since the year-end at 793,000 at the end of February.

The company said it expects to achieve its guidance range of 15 to 20 site openings this year. It added that the low-cost gym market is forecast to double in size over the next seven years.

Chief executive officer Richard Darwin said: "During 2018 we accelerated our growth to reach 158 gyms, delivering rapid increases in revenue and profits as well as important projects to support a business of scale in the longer term. Our purpose is to provide affordable access to everyone who wants to improve their wellbeing and we see every day the positive impact we achieve as The Gym continues to make health and fitness available and affordable to all. Independent research confirms the low cost gym market can at least double its number of sites supporting our ambition for further organic growth alongside the maturing of our current estate.

"January and February are peak months for new memberships. We have had a successful start to the year and our brand now serves over 800,000 members with 10 million visits already so far this year. We plan on opening 15-20 gyms in 2019 as we extend access to affordable fitness nationwide."

At 1020 GMT, the shares were up 6.2% at 215p.

Broker Liberum said: "We do not expect changes to consensus but would expect the reassurance on membership, price and expansion headroom to reassure and help the shares recover lost ground."

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GYML Market Data

Currency UK Pounds
Share Price 106.00p
Change Today 3.00p
% Change 2.91 %
52 Week High 267.50p
52 Week Low 94.00p
Volume 25,653
Shares Issued 128.11m
Market Cap 135.79m

What The Brokers Say

Strong Buy 4
Buy 2
Neutral 1
Sell 0
Strong Sell 0
Total 7
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Trades for 02-Dec-2022

Time Volume / Share Price
11:59 1,122 @ 106.00p
11:59 307 @ 106.00p
11:44 1,039 @ 106.00p
11:44 76 @ 106.00p
11:44 471 @ 106.00p

GYML Key Personnel

CEO Richard Darwin

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