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Gym Group spends on converting acquired sites

Gym Group spends on converting acquired sites

Gym Group (GYM) is in the process of converting the 13 locations bought from easyGym in June into its own branded sites, just as it completes the rebranding of the gyms acquired from Lifestyle. These conversions have constricted profitability in the period under review, with branding expenses and closure periods combining to reduce the cash profits margin by 190 basis points to 30.1 per cent. However, chief executive John Treharne expects the transitional effects won't be as pronounced in the second half as easyGym locations should be cheaper and faster to convert.

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