Profits pump up at the Gym Group

Turnover rose 25.1 per cent to £36.1m in the first half of the year, with pre-tax profits coming in at £4.6m.

Boss John Treharne said: “Excellent progress has been achieved so far in 2016 as demonstrated by the growth in membership. Our existing sites are performing well which has contributed to the group’s strong growth in profitability.”

Mr Treharne added that should the economy take a turn for the worse, the Gym Group will become “even more attractive to consumers”.

“If the external environment becomes more challenging our value proposition will become even more attractive to consumers - the Gym Group opened its first gym in the wake of the financial crisis in 2008 and its model is designed to perform well in all types of economic conditions,” he said.

The company reported a 19.4 per cent surge in members over the first half and now has 424,000 people on its books. The group, which listed on the stock market in November, opened six new gyms in the period, bringing the total estate to 80.

Mr Treharne said the Gym Group is on track to meet full-year expectations, with analysts pencilling in pre-tax profits of up to £9m.