Success of Ipswich branch boosts profits at The Gym Group
PUBLISHED: 13:36 29 August 2019 | UPDATED: 13:36 29 August 2019
The Gym Group has reported a huge bump in profits due to surging membership and a string of successful new sites.
In April, the budget fitness firm took over the former sites of Flux Freestyle and Chimichanga in Ipswich's Cardinal Park.
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The move was part the company's rapid expansion plans across the UK which saw it acquire 13 sites from EasyGym last June and open a further eight new sites during the first half of the year.
Already the firm seems to be reaping the rewards of the aggressive roll-out strategy.
The Gym Group saw membership numbers bounce 10.6% higher to 790,000, as it continued to open new sites across the UK.
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Pre-tax profits for the group rose 53.3% to £7.1 million in the six months to June , as it was buoyed by the increase in membership as well as a rise in people choosing more expensive subscriptions.
The Gym Group said its new openings have met expectations over the start of the year and it is on track to open between 15 and 20 sites in 2019.
This roll-out programme will also see the launch of its first "small box" format as it looks to open mini-gyms in a bid to increase the number of towns it can open in.
Chief executive Richard Darwin said: "Our rapid and profitable growth has been achieved through operating high-quality, great-value gyms that offer affordable fitness for all.
"Our growing membership visited a record 24 million times in the first half of the year, demonstrating the wide and diverse appeal of The Gym.
"Continued investment in systems, infrastructure and people to scale the business is enabling us to take advantage of the huge growth potential that exists in the low-cost gym market."