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The low-cost fitness operator, The Gym Group, has delivered impressive financial results for the year ending December 2024, surpassing market expectations and setting the stage for accelerated expansion plans.
Membership figures demonstrated remarkable resilience, with average members growing by 4% to 906,000 throughout the year. The company concluded 2024 with 891,000 members, marking a substantial 5% increase from the previous year’s 850,000 members.
Revenue per member showed significant improvement, rising to £20.81 monthly from £19.50 in the previous year. The company’s strategic pricing model, starting at £14.99, continues to attract cost-conscious fitness enthusiasts across various demographics.
Chief Executive Will Orr emphasised the company’s strong market position, noting particular success among younger, health-conscious demographics. The social aspect of gym membership has emerged as a key driver, with exercise increasingly becoming a platform for social interaction among young adults.
The financial performance reflected this positive trajectory, with revenues climbing 11% to £226.3 million. The company’s debt position improved, with net debt reducing to £61.3 million from £66.4 million.
Looking ahead, The Gym Group has announced ambitious expansion plans, targeting 14-16 new site openings in 2025, contributing to their three-year goal of 50 additional locations. The company’s shares responded positively to the announcement, rising 4.7% to 148½p.
The company’s adjusted underlying profit is expected to exceed current market consensus, positioning it strongly for continued growth in the competitive fitness sector. This performance underscores the resilience of the budget gym model in challenging economic conditions
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