More people are lacing up their trainers and heading to Gym (GYM) locations – 19 per cent more to be exact, as the group has clocked an average 500,000 members. To accommodate them, six new sites were opened over the period, bringing the total number to 95. As such, cash profit reported was nearly a fifth higher at £13.7m, although this was helped by an accounting change that added £0.8m to the bottom line. Margins also appeared stable at 32 per cent although, take into account that change in depreciation policy, and underlying margins actually fell 180 basis points. What's more, there also appeared to be little momentum in average revenue per customer, which remained relatively flat at £14.49.
But Gym is pressing on with new plans, specifically with a trial of its premium membership across 40 of its locations. For an extra £5 a month premium members will enjoy access to multiple Gym sites, be able to bring a friend, and access services that help track their fitness progress. A new digital member management system was launched in July, which chief executive John Treharne believes will make operations more efficient by cutting staff costs.
Analysts at Numis expect pre-tax profit of £12.4m in the year to December 2017, giving EPS of 7.5p, compared with £8.7m and 5.6p in 2016.
| GYM (GYM) | ||||
| ORD PRICE: | 206p | MARKET VALUE: | £264m | |
| TOUCH: | 206-208p | 12-MONTH HIGH: | 235p | LOW: 155p |
| DIVIDEND YIELD: | 0.5% | PE RATIO: | 34 | |
| NET ASSET VALUE: | 92p* | NET DEBT: | 4% | |
| Half-year to 30 June | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016 | 36.1 | 3.4 | 2.0 | 0.25 |
| 2017 | 42.8 | 5.9 | 3.5 | 0.30 |
| % change | +19 | +75 | +75 | +20 |
| Ex-div: | 07 Sep | |||
| Payment: | 29 Sep | |||
| *Includes intangible assets of £48.8m, or 38p a share | ||||
