Gym Group says slower openings, outlet conversions to weigh on earnings
Source - SMW
The Gym Group said adjusted earnings for the full year would take a hit from a lower openings programme last year and a one-off impact associated with converting outlets acquired from Lifestyle Fitness.
Full-year adjusted earnings for 2018 were expected at around £37m, the company said.
The new openings programme had been more weighted towards the end of the year than originally planned, resulting in fewer trading weeks than expected in the second half, the company said.
Lifestyle conversions also hampered performance as they resulted in more site closures than initially expected.
For the year ended 31 December, total revenue growth of 35.6% to £123.9m for the year and total year-end membership numbers were up by 19.3% to 724,000 from a year earlier, with average members up 13.2% to 693,000.
The company expected to open 15 to 20 new gyms in 2019.
'We are well placed to continue to generate high levels of growth whilst maintaining strong returns on capital. We are confident that in 2019 we will continue to develop and build the business to deliver another year of profitable growth for shareholders,' the company said. At 9:19am: (LON:GYM) The Gym Group Plc share price was -12p at 213p