Cash machine. Subscription model. Reinvesting into new sites. Only major competition is Puregym.
Interesting suggestion, a lot of people I know go to The Gym, although I personally go to Pure Gym.
If there was a recession, or Brexit caused adverse effects, my worry would be that consumers would cut back on spending and subscriptions, like a gym membership could be one of the first things to go.
But undoubtedly gyms are very popular, and in this day and age many people are in to fitness.
There are other commercial chains of gyms. What makes you think The Gym stands out
Good stock to add! Please do it when possible
We’ve just add The Gym Group to the app
Feel free to create a new #investing-and-markets topic & share your thoughts about The Gym Group’s future with the community
Looks like a good set of results.
I like the gym group, but in today’s news their average membership through the year seems to be very close to their membership at year end, suggesting growth has slowed recently, maybe it’s to do with time taken for new openings to reach maturity. I like they’ve increased average revenue per member and their approach to personal trainers.
Agreed, I’ve been long since April 2019. Strongly considering taking my profits or reducing my position. It seems the market is being somewhat saturated with new competitors. That being said I believe the gym sector is like the supermarket sector, the cheap providers will dominate along with the premium providers.
Currently at 93p - certainly one on my radar once this blows over.
If the rumours are true and pubs/cafe/gyms are to shut I see it dropping a lot after its recovery from 79p at today’s open
There is a big risk with GYM. 3 months maybe more with no revenue, so they either keep paying their staff or let them go and have to try and build a workforce again. Too much risk for me.
But will people cancel their membership?
If most don’t … Then the money will keep rolling in
Possibly. I know there’s been some talk about supporting the businesses you care for during this but some people will and a lot of people will have to reassess their finances when the knock on effects start to really kick in. Its all ifs and maybes with most things virus related but months on end of training at home, some people will carry on doing it.
A lot of their staff are self employed PTs - but given some of the new government announcements it shouldn’t drain their cash reserves too much
Always nice to be wrong as it’s rallied up to 1.75 at the close today with 30% growth this week.
I would have assumed the surge would happen once we knew an end date for the lockdown