Gym Group Plans Expansion After Profit Surge
What happened
UK-based Gym Group reported a 19% surge in EBITDA and 4% membership growth, announcing plans to open 75 new locations.
Why it matters
The expansion is fueled by a "Next Chapter" growth plan focused on strengthening the core business and broadening growth opportunities. This plan includes improving returns from existing locations and exploring new markets. The Gym Group's "Next Chapter" strategy targets a 30% Return on Invested Capital (ROIC) on mature sites. In 2024, the ROIC reached 25%, and increased to 27% when excluding workforce-dependent gyms. Gen Z is a key demographic, with 40% of members coming from this generation. A 2025 report indicated that 82% of Gen Z believe exercise boosts productivity. The new gyms feature design upgrades aimed at attracting this demographic. The company is also expanding its partnership with Wellhub, a corporate wellness provider. This partnership gives Wellhub members access to Gym Group locations. 60% of Wellhub members didn't have gym memberships before joining the platform. Analysts at Jefferies cite "positive openings, yield progress and membership gains" as indicators of positive performance. The group also started a £10 million share buyback program, expected to finish by the end of 2026.
Key numbers
- UK-based Gym Group reported a 19% surge in EBITDA and 4% membership growth, announcing plans to open 75 new locations.
- The Gym Group's "Next Chapter" strategy targets a 30% Return on Invested Capital (ROIC) on mature sites.
- In 2024, the ROIC reached 25%, and increased to 27% when excluding workforce-dependent gyms.
- Gen Z is a key demographic, with 40% of members coming from this generation.
What happens next
- The expansion is fueled by a "Next Chapter" growth plan focused on strengthening the core business and broadening growth opportunities.
- This plan includes improving returns from existing locations and exploring new markets.
- The Gym Group's "Next Chapter" strategy targets a 30% Return on Invested Capital (ROIC) on mature sites.
Sources
Quick answers
What happened in Gym Group Plans Expansion After Profit Surge?
UK-based Gym Group reported a 19% surge in EBITDA and 4% membership growth, announcing plans to open 75 new locations.
Why does Gym Group Plans Expansion After Profit Surge matter?
The expansion is fueled by a "Next Chapter" growth plan focused on strengthening the core business and broadening growth opportunities. This plan includes improving returns from existing locations and exploring new markets. The Gym Group's "Next Chapter" strategy targets a 30% Return on Invested Capital (ROIC) on mature sites. In 2024, the ROIC reached 25%, and increased to 27% when excluding workforce-dependent gyms. Gen Z is a key demographic, with 40% of members coming from this generation. A 2025 report indicated that 82% of Gen Z believe exercise boosts productivity. The new gyms feature design upgrades aimed at attracting this demographic. The company is also expanding its partnership with Wellhub, a corporate wellness provider. This partnership gives Wellhub members access to Gym Group locations. 60% of Wellhub members didn't have gym memberships before joining the platform. Analysts at Jefferies cite "positive openings, yield progress and membership gains" as indicators of positive performance. The group also started a £10 million share buyback program, expected to finish by the end of 2026.
