13 March 2024 , 14:42
910
0
The Gym Group, a budget-friendly fitness chain in the UK, is looking to expand with plans to set up around 50 new branches over the next three years.
The company believes it's well-positioned to make gains despite the economic challenges, as many gym-goers are turning to more affordable options. With revenues jumping by 18% to £204 million for 2023 from the previous year, and the average number of members boosting 8%, the Gym Group has its eyes set on further growth.
At the end of 2023, they had roughly 850,000 members across their 233 gyms situated all over the UK. The upward climb in membership kept pace into 2024 too, leading to a noteworthy rise in earnings (16%) in the first two months. Moreover, as the business bumped up its prices, revenues saw a revival last year.
The standard monthly membership fee increased from £21.49 in December 2022 to £23.16 by the end of December 2023. Despite posting a yearly pre-tax loss of £8.3 million the group appears bullish on its expansion agenda.
Last year, it swung open the doors to six new sites and now plans to double that tally this year alone. Will Orr, the chief executive of The Gym Group, revealed that, as part of the ongoing expansion, the Group would mostly aim at urban spots. "We think we can open around 50 new sites over the next three years," he declared confidently.
Woman tells of losing 29 kilos and becoming a bodybuilder in her 60s
"Although we will always prioritise quality. We would rather open 48 of the right sites than try to force ourselves to the 50 numbers. There are some opportunities out there from a real estate point of view and we've had some really exciting new gyms. We have been targeting urban residential areas, so particularly places like Greater London."
Shares in the business jumped 6.4% to 116.6p.