The Gym Group (LSE:GYM), the low cost gym operator, said it expects full-year group earnings (Adjusted EBITDA Less Normalised Rent) to land at the top end of the current analysts' forecast range.
Revenue for the six months to 30 June rose 10%, with average members up 5% to one million and like-for-like revenue growing 3%. Group Adjusted EBITDA Less Normalised Rent reached £30.8m, up 12% year-on-year, as revenue growth outpaced cost inflation.
Free cash flow rose 10% to £27.7m, funding new sites, refurbishments and a share buyback, of which £3.8m of a planned £10m was completed in the period.
Non-Property Net Debt fell to £58m from £59.3m at December, with adjusted leverage held at 1.0x and bank facilities expanded to £117m from £102m.
The company opened four new sites in the first half and is on site at a further 11, targeting at least 20 openings in 2026 as part of a plan to add roughly 75 sites over three years, funded from free cash flow.
Gyms refurbished in 2025 delivered a 10% incremental membership gain, with three sites refurbished in the first half and 18 more planned for the second half.
"We have delivered another strong set of results, reflecting the continued appeal of our high-value, low-cost proposition," said chief executive Will Orr, adding the group is "confident in delivering full-year results at the top end of the current analysts' forecast range."
The company said full-year like-for-like cost growth is now expected at the lower end of its guided 3-4% range, with like-for-like revenue growth on track at 3%.
News Intelligence what this means for the company
The Gym Group raised full-year EBITDA guidance to the top end of analyst forecasts after first-half results showed revenue up 10%, average members up 5% to 1 million, and adjusted EBITDA less normalised rent up 12% to £30.8m. The company is also tightening cost guidance to the lower end of its 3–4% range, signalling confidence that revenue growth is outpacing inflation.
The upgrade reflects operational momentum: membership growth, pricing power (average revenue per member up 5%), and cost discipline are all moving in the right direction. With free cash flow of £27.7m funding expansion (at least 20 new sites targeted for 2026), refurbishments (which delivered 10% incremental membership gains), and a £10m buyback, the company is self-funding growth while holding leverage at 1.0x and reducing net debt.
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