Austere times prove healthy for Gym Group

Budget fitness club operator Gym Group has benefited from the squeeze on consumer spending as it rolls out an “accelerated” growth plan, writes Scott Reid.

The firm yesterday said the “low-cost” sector offered “significant growth opportunities” amid a flat overall health and fitness market. It hopes to have a total of 35 sites open or in fit-out by the end of 2012.

The company’s estate currently numbers 23 sites, including a single Scottish club, in Glasgow. Edinburgh is among the five locations where facilities are set to open soon, with the others to follow before the year end.

Unveiling an 88 per cent hike in full-year turnover to £13.5 million, Gym Group chief executive John Treharne said: “We are confident that the business is well placed to deliver accelerated growth in 2012. The current year has got off to a very strong start.”

The firm, which was founded in 2008, said underlying earnings in 2011 grew by 82 per cent to £3.1m.