The Gym Group is on track to open up to 16 new gyms this year, with bosses anticipating trading will reach the top end of industry targets. Shares in the low-cost fitness firm surged on Wednesday, hitting their highest level since July.
The company reported that strong demand from health-conscious Gen Z customers has driven increased membership and revenues.
For the six months to June 30, revenues grew by 8% to £121 million compared with the previous year.
Meanwhile, membership was up 5% at the end of the period compared with a year earlier, as it was also boosted by more regular trips to the gym by its customers.
Will Orr, chief executive of the firm, said around 40% of the group’s members are Gen Z, highlighting their interest in the group’s value focused offer.
“We are a broad church with 950,000 members, but many of those are Gen Z,” he said
“We have been focusing on being successful with a no frills proposition, being the Premier Inn of gyms, and I think that does resonate with the younger customers.”
The Gym Group has said it has benefited from strong trading at its new stores as it pushes forward with further site openings.
Bosses said it is on track with targets to open between 14 and 16 sites in 2025 and expects to accelerate this to around 20 next year.
The group has previously said it plans to open around 50 sites over the next three years.
Shares in the company were 9% higher at 148.9p.
