Half Year 2026 GYM Group PLC Earnings Call Transcript
Key Points
- Revenue grew 10% to GBP133.1 million, with average membership up 5% and average revenue per member per month up 5% to GBP22.14.
- EBITDA less normalized rent increased 12% to GBP30.8 million, and adjusted profit before tax rose 31% to GBP6.4 million.
- Free cash flow was strong at GBP27.7 million, up 10%, funding accelerated new site rollout and share buybacks while maintaining leverage at 1x.
- New site cohorts are performing well, with 2024 openings tracking above 30% ROIC and 2025 openings progressing strongly, supporting confidence in the 30% ROIC hurdle.
- The company is accelerating its rollout with at least 20 new gyms planned for 2026 and 75 over three years, all self-funded, and has a robust pipeline with significant UK white space.
- Like-for-like revenue growth was only 3%, with member volume maintained but not growing, partly due to a 1-2% drag from competitor rollout.
- Site cost inflation remains a headwind, with like-for-like site costs up 3.5% in H1, though expected to slow in H2.
- The new site rollout is heavily back-weighted, with only 4 gyms opened in H1 and 11 on site, putting pressure on delivery teams to meet the 20-gym target.
- Central costs increased by 7%, and non-underlying costs of GBP1.5 million were incurred for system upgrades, impacting statutory profitability.
- The company has a small number of loss-making sites, with plans to close one or two per year, indicating some operational challenges in the estate.
Good morning, and welcome to the 2026 half year results presentation for The Gym Group. Thank you for making time to join us in the room and on the dial-in. After the presentation, we'll take your questions in the room first and then from the webcast. Our CFO, Luke Tait and I will be doing the presenting today. And here's what we plan to cover.
I'll start with an overview before handing to Luke to share our 2026 half year financial results. I'll then provide a further progress report on our Next Chapter growth plan and summarize before taking your questions.
So starting with the overview. I'm pleased to report a strong performance for the first half of 2026. Average membership was up 5% with revenue for the period up 10%, 3% on a like-for-like basis. With this revenue growth and continued cost discipline, EBITDA (sic â see half year results slide 4, "adjusted EBITDA") less normalized rent was up 12% to GBP30.8 million. The market remains highly attractive.
UK gym penetration has reached another new high at
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