Low-cost fitness operator The Gym Group has increased its revenue by 36.1% to £58.3m for the six months to 30 June compared with H1 2017, as the brand presses on with its rapid site expansion.
Its EBITDA margin dipped to 30.1%, down from 32% in 2017, which the group said reflected its “immature estate profile” as well as the cost of converting sites from its acquisition of smaller rival Lifestyle Fitness last year. Group-adjusted EBITDA grew by 28% to £17.5m during the first half of the year.
Statutory profit before tax dropped by 14.4% to £5.1m, owing to £1m in exceptional costs relating to its acquisition of 13 easyGym sites in July.
Further to its easyGym acquisition, six new gyms opened in the first half of 2018, bringing its site count to 147.
The group also reiterated its intentions to convert 18 Lifestyle Fitness sites by August 2018. It aims to convert the majority of its easyGym estate by the end of the year.
John Treharne, outgoing chief executive of The Gym Group, said: “Since the end of the half year we have expanded again with the acquisition of 13 easyGyms, taking us close to 150 sites. In addition, we remain well set to achieve our target range of 15 to 20 organic openings for 2018.
“In my last set of results as chief executive, I am confident that the business is in as strong a position as ever to execute its strategy and deliver further accelerated profitable growth. After a strong first half we are on track to meet market expectations for the full year and look forward to further progress in the second half of the year.”
Treharne will be replaced as chief executive by Richard Darwin in September; however, Treharne will remain on the board as founder director.
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