UK budget fitness chain The Gym Group raises guidance and accelerates expansion

The Gym Group raised financial guidance and announced plans to accelerate expansion following stronger-than-expected performance across both existing and newly opened locations.

The fitness chain reported revenue of £245 million (€290 million) for fiscal year 2025, representing growth of 8 percent compared to the prior year. Like-for-like revenue increased 3 percent, matching company guidance, while the membership base expanded to 945,000 members.

The company opened 16 new sites during the period, exceeding its initial target range of 14 to 16 locations. The network now totals 260 sites across the UK, attracting approximately 70 million visits annually.

Earnings projections lifted above market expectations

Following the performance from both mature and newly opened locations, The Gym Group now expects fiscal 2025 EBITDA less normalized rent to reach slightly above the top end of the consensus range of £52.5 million to £54.9 million (€62.2 million to €65 million). This represents approximately 3 percent above the current market consensus of £53.1 million (€62.9 million).

For fiscal year 2026, the company anticipates maintaining momentum and projects EBITDA less normalized rent will also exceed the upper end of the consensus range of £55.2 million to £59.3 million (€65.4 million to €70.2 million), roughly 4 percent above current market expectations of £57 million (€67.5 million).

Expansion program accelerates to 75 new sites

The company significantly increased its growth ambitions, targeting approximately 75 new locations over the next three years compared to its previous plan of 50 sites. The expansion will be funded through free cash flow, with around 20 new openings planned for fiscal 2026 alone.

Average revenue per member per month reached £21.60 (€25.60), marking a 4 percent year-over-year increase. The company reduced net debt pre-IFRS-16 by £2 million (€2.4 million) to £59 million (€69.9 million).

The budget fitness segment has benefited from heightened health consciousness among Gen Z consumers, with approximately 40 percent of The Gym Group’s members now coming from the younger demographic.

Share buyback signals capital allocation confidence

The Gym Group announced a £10 million (€11.8 million) share buyback program to be completed by the end of fiscal year 2026. The program will be funded from surplus cash generation. The company plans to publish full-year results on March 11.