The Gym Group has announced plans to open at least 16 additional gyms in 2026, capitalising on robust demand from younger members. The low-cost gym operator reported a 5% increase in average member numbers to just over one million for the six months ending June 30, 2024, with total revenues rising 10% to £133.1 million compared to the same period last year.
Strong Performance and Growth Strategy
The company’s like-for-like revenues grew by 3% as expected, bolstered by new site openings. In the first half of the year, The Gym Group launched four new locations, bringing its total UK estate to 264 gyms. The firm is currently working on two additional sites and has exchanged contracts on 11 more. The expansion is set to accelerate in the second half of 2024, with a target of at least 20 new gyms by the end of 2026.
Chief Executive Will Orr stated: “We are pleased with our trading performance year to date which reflects the continued appeal of our proposition and strength of customer demand. Reaching one million members during the period is an encouraging milestone for us in a UK fitness market that continues to grow.”
Financial Outlook and Debt Levels
The Gym Group expects its net debt to rise from £58 million by the end of 2026 as it funds new openings and refurbishments. The company’s shares were down 1.4% on the day of the announcement. Orr added that the group has a “full pipeline” of new locations, including sites in central London and other parts of the UK, supporting its disciplined growth strategy.
