The Gym Group expects to open a further 15 to 20 sites, spending between £1.3m and £1.4m on fit-outs per site, during 2019.
Its total number of gyms stood at 158 at 31 December 2018 with 17 new openings and 13 gyms acquired from easyGym. Half of the gyms are in the South East, with 55 within the M25.
In its latest full-year results, the company said rental expenses increased from £17.3m in 2017 to £23m in 2018 as the number of gyms increased. This expansion was also primarily behind the 38.2% increase in the company’s administration expenses.
Revenue for 2018 increased by 35.6% to £123.9m and group adjusted EBITDA increased by 31.6% to £36.8m.
Basic adjusted earnings per share grew to 8.4p in 2018, up from 7.4p the previous year and profit before tax was £10m, up from £9.2m in 2017.
Net debt stood at £46m.
The company said its strong, listed company covenant was “highly attractive” to landlords allowing it to secure the best sites that come on to the market.
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