Strong Performance in FY25#
The Gym Group has reported its financial results for FY25, showing an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of £56.7 million, which is 2% above market expectations. This figure represents a 19% increase from the previous year. The company's revenues also rose by 8% to £245 million, with a like-for-like growth of 3%.
Membership Growth and Expansion#
The budget gym operator saw its membership numbers increase by 4% year-on-year, reaching a total of 945,000 members. Additionally, the average revenue generated per member each month grew by 4% to £21.60. The Gym Group expanded its presence by opening 16 new locations, bringing its total to 260 gyms.
Reduced Debt and Future Expectations#
The company successfully reduced its net debt by £2 million, bringing it down to £59 million. Looking ahead to FY26, The Gym Group has raised its EBITDA guidance to the upper end of analyst forecasts, expecting £60.7 million, which is a 1% increase over current estimates.
Continued Growth Plans#
In the early months of FY26, trading has been promising, with revenues up 9% year-on-year. The Gym Group plans to open at least 20 new sites in FY26, with a goal of approximately 75 new openings over the next three years. This expansion will be funded through the company's free cash flow. The company anticipates a like-for-like revenue growth of 3% and site cost inflation of 3% to 4% in FY26, particularly in the first half of the year.