Shares of The Gym Group (LON: GYM) are gaining on Wednesday after the company said trading since the re-open has outperformed expectations, reflecting strong demand for the return to gyms.
The fitness company re-opened its gyms in England on 12 April, followed by gyms in Scotland on 26 April and Wales on 3 May. All branches are now open and trading.
Total memberships have increased from 547,000 at the end of February to 729,000 by 24 May versus 794,000 in December 2019, with all members now paying after the membership freeze option was removed.
The Gym Group has also opened four new gyms since April in Chichester, York, Cambridge and London Sydenham, taking the total estate to 187.
Looking ahead, the company warned that they expect to see limited net gains in overall membership over the next three months, in line with seasonal norms.
At the end of April, Net debt was £63.1 million, with outstanding deferred rent and VAT of a further £9.4 million, versus a total bank facility of £100 million.
“Our members are delighted to be working out in the gym once more with visits per member and new joiner sign-up rates at record levels. With membership levels growing strongly, we are building our pipeline of new gyms to take advantage of what we see as a unique opportunity to extend affordable fitness to even more locations across the UK,” commented Richard Darwin, CEO of The Gym Group.
The Gym Group's share price is up over 4.8% on Wednesday, at 271.5p.
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