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Highlights

  • The Gym Group gets BUY consensus with a 20.16% upside to a target price of GBp 191.3.

  • H1 2025 revenue grew 8% to £121 million, with membership and yield both rising 4%.

  • Analysts from Berenberg, Jefferies, Investec, and Panmure Liberum expect 15–34% upside in stock price.

The Gym Group (LSE:GYM) has delivered a robust pre-close trading update for the six months ending 30 June 2025, reporting an 8% increase in revenue to £121 million compared to £112.1 million in the prior year. The growth was underpinned by a 4% rise in both average membership—now at 953,000—and average revenue per member per month (ARPMM), which improved to £21.16 from £20.44.

Membership numbers closed at 949,000 as of 30 June, up from 891,000 at year-end 2024 and 905,000 a year ago. CEO Will Orr credited targeted marketing and evolving site strategies for the solid performance and reiterated confidence in the full-year outlook, with interim results set to be released on 10 September 2025.

Buy Ratings and Price Target Upside

The Gym Group is receiving analyst support, with a current consensus recommendation of 1.8 – BUY. The average target price stands at GBp 191.3, reflecting a potential 20.16% upside from the current share price of GBp 159.2.

Analyst recommendations from disclosed institutions underscore the stock’s bullish sentiment:

  • Berenberg’s Jack Cummings issued a “BUY” rating with a price target of GBp 195, implying 25% upside.

  • Jefferies’ James Wheatcroft maintained a “BUY” recommendation with a target of GBp 180, offering 15.38% upside.

  • Investec’s Roberta Ciaccia set a target of GBp 210 and rated the stock “BUY,” suggesting a 34.62% potential gain.

  • Panmure Liberum’s Anna Barnfather also assigned a “BUY” rating and projected GBp 210, in line with Investec’s view.

Network Expansion and Capital Position

The company opened three new gyms in the first half and is currently developing four additional sites. It remains on track to meet its full-year goal of opening 14–16 new locations, in line with its three-year strategy to open approximately 50 sites using free cash flow.

Financially, The Gym Group has improved its leverage profile. Net debt reduced to £51.2 million as of 30 June 2025, down from £61.3 million at end-2024. The company also secured a one-year extension and £12 million increase to its revolving credit facility in June, bringing its total funding capacity to £102 million

Upgraded Guidance and Analyst Confidence

Given continued momentum through peak recruitment months and consistent yield improvement, The Gym Group now expects its FY25 Adjusted EBITDA less Normalised Rent to be at the top end of the forecast range (£49.0m–£50.8m).