Describing itself as a pioneer of the low-cost gym model and now operating 237 sites across the UK, Gym Group (GYM) commences a trading update with that it “is pleased to announce that positive trading trends have continued in H1 2024 with good growth in membership and yield”. How ‘positive’ are those though from a share price currently approaching 7% higher to above 130p?
Gyms operator Gym Group (GYM) has announced results for the 2023 calendar year headlined “Positive momentum continuing” and the shares have currently responded more than 7% higher towards 118p. With that though still slightly down from the share price reached in September and comparing to above 140p early last year, what does the trading performance suggest is a fair valuation here?
UK “leading low-cost gym” business The Gym Group (GYM) states that it “is pleased to announce that the positive trading trends highlighted in our H1 results have continued throughout the remainder of the year”. However, on those results and a slightly further down to 111.8p share price, I questioned how well positioned it was to ‘take advantage of growth opportunities’. So what of the trading update today and a current 106.2p share price?
Self-described “leading low cost gym operator” with 230 sites across the UK, Gym Group (GYM) has announced results for the first half of the 2023 calendar year including emphasising “the actions we have taken to strengthen management, our financial position and the group's customer proposition will enable us to continue to take advantage of the many growth opportunities”. So what of a currently slightly further down to 111.8p share price, comparing to above 140p even early this year?
Previously writing on Gym Group (GYM), in November with the shares falling from 123.6p I questioned it stating its “offer will be even more compelling and attractive” and concluded to continue to avoid. So what of the shares currently falling below 100p on the back of a full-year results announcement?
Previously writing on Gym Group (GYM), last year with the shares around 282p I concluded that it looked to need to deliver very impressively to justify the valuation. The shares last closed at 123.6p and are further down today on the back of a “trading update”, so what’s going on now?







