Gym Group - excellent Trading Update should spur the shares higher

Mark Watson-Mitchell - 13.01.2026

The Gym Group (LON;GYM) has this morning stated that it anticipates full-year results for 2025 to exceed analyst forecasts, driven by an 8% revenue increase to £244.9m and a 3% like-for-like revenue growth.

The group declared that the numberr of members rose 4% to 945,000, with average revenue per member per month increasing to £21.60.

Last year, the company opened 16 new sites, taking the total up to 260.

It also reported that its net debt of £59.3m, came out some £5m below consensus.

Adjusted EBITDA Less Normalised Rent for FY25 is expected to be above the £52.5-54.9m consensus, with FY26 also projected to exceed its £55.2-59.3m consensus.

The Group plans to accelerate new site openings, aiming for approximately 75 over three years, and intends to initiate a share buyback program of up to £10m.

Taking both the momentum and outlook for the Group into account, the Board has determined that there is surplus financing capacity and, in line with our capital allocation policy, intends to commence a share buyback programme of up to £10m in due course.

The programme, expected to be completed by the end of 2026, will enable sustained purchasing over several months, with execution guided by a disciplined, strategic framework to maximise returns.

Management Comment

CEO Will Orr stated that:

"This has been another year of strong progress for the Group, and we now expect the FY25 outturn to be at the top end of our previous guidance.

Our Next Chapter growth strategy is delivering, and we see significant opportunities ahead in a market with structural growth tailwinds.

As a result, we are accelerating our organically funded rollout to c.75 new sites over the next three years.

We entered the key new-year member recruitment period well prepared, and our high-value, low-cost offering, enabled by an advantaged business model, continues to resonate strongly with consumers.

In addition, we are generating strong free cashflow that supports returning surplus capital to shareholders while maintaining the financial strength to invest in the Group's long-term growth."

The Group will publish audited FY25 results on 11 March 2026.

My View

As I stated in yesterday's Profile on the company, I am impressed with the group's earnings predicted at a record level and that the group is enjoying a strong momentum.

I consider that its shares are totally ready for a further lift-up in price, following this positive Trading Update.

In the last year, they have been as low as 119p and peaked at 160.80p, so now at 159p they do offer investors attractive upside in price in 2026.

(Profile 11.04.19 @ 220p set a Target Price of 300p*)

(Profile 12.03.25 @ 138p set a Target Price of 170p)