The Gym Group has reported upbeat trading momentum through the second half of 2025, with full-year revenue climbing 8% to £244.9m from £226.3m the previous year.
Shares in the group rose on Tuesday as investors cheered rising revenues and news that management expected performance for the year to be at the top end of guidance.
Average membership reached 945,000, up 4% from 906,000 in 2024, whilst the group closed the year with 923,000 members, up from 891,000 at 31 December 2024. These are steady gains and show that even at the current scale, the group still has room to grow.
Average revenue per member per month improved 4% to £21.60, up from £20.81 in 2024, reflecting the operator’s pricing power in the value gym segment.
Expansion Programme Delivers
The company opened 16 new sites during the year, at the top end of its 14-16 site target range, bringing the total estate to 260 gyms. Forty locations are now trading in the enhanced format and are performing well.
Net debt fell to £59.3m from £61.3m the previous year, coming in £5m below analyst consensus expectations. The deleveraging positions the group well for its accelerated growth plans.
Outlook and Capital Returns
Group Adjusted EBITDA Less Normalised Rent for FY25 is expected to be slightly above the top end of the current analyst consensus range of £52.5-54.9m. The company anticipates maintaining this momentum into 2026, with FY26 Group Adjusted EBITDA Less Normalised Rent also projected slightly above the top end of the £55.2-59.3m consensus range.
Buoyed by strong trading performance, The Gym Group is accelerating its expansion programme. The company now expects to open around 75 new sites over the next three years, funded from free cashflow, with approximately 20 new gyms set to launch in 2026 alongside ongoing reinvestment in existing sites and technology platforms.
The board has also announced plans to commence a share buyback programme of up to £10m, reflecting confidence in the business model and surplus financing capacity. The programme is expected to be completed by the end of 2026.