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The Gym Group profit jumps as it expands, increases market share
The Gym Group posted a jump in full-year profit and revenue on Tuesday as it increases its market share and expands its estate.
In the year to the end of December 2017, adjusted pre-tax profit rose to £12m from £8.7m in 2016, while statutory pre-tax profit increased to £9.2m from £6.9m. Revenue was up 24% to £91.4m and adjusted earnings before interest, tax, depreciation and amortisation were 23% higher at £28m.
The group proposed a final dividend of 0.90p per share, taking the full-year dividend to 1.20p, up 1p on the previous year.
The Gym Group opened 21 new gyms in the year and acquired 18 from Lifestyle Fitness, increasing the total estate to 128 from 89. Meanwhile, total year end members were up 35.5% on the previous year to 607,000.
The company said the new financial year has started well, with current trading in line with its expectations and 15 to 20 site openings planned for the year, six of which are expected in the first half.
Chief executive officer John Treharne said: "We have made considerable progress in 2017 and were the fastest growing low cost fitness operator, substantially increasing our market share and rapidly expanding our estate.
"We have had a strong start to 2018 and are excited about the future and confident in our team's ability to maximise our opportunity."
At 1050 GMT, the shares were down 1.2% to 253.88p.