The Gym Group, which operates 133 low-cost gyms, said on Thursday that it has raised gross proceeds of around £24m in a placing, which will be used to fund the acquisition of 13 easyGym sites.
The Gym Group posted a jump in full-year profit and revenue on Tuesday as it increases its market share and expands its estate.
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The Gym Group reported a rise in full-year revenue on Tuesday as membership numbers grew and the company opened more sites.
UK-based health and fitness facilities provider The Gym Group announced on Friday that its senior independent non-executive director Paul Gilbert had sold more than £1m worth of shares in the budget gym chain on Thursday.
Barclays Research upped its target on shares of Gym Group from 230p to 250p following its first acquisition since the group floated, purchasing 18 gyms from Lifestyle Fitness.
The Gym Group has bought 18 gyms from Lifestyle Fitness for £20.5m in cash.
The Gym Group reported a 76% jump in first-half pre-tax profit on Wednesday as revenue rose amid strong growth in membership.
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Shares in The Gym Group gained on Thursday as analysts at Barclays upgraded the "fastest growing stock" in its coverage.
Gym Group muscled its way into the black in 2016 and has started 2017 well as it continues to push its disruptive no-contract model as part of its plans for rapid expansion.
The Gym Group reported total revenue growth of 22.6% in the year ended 31 December as it opened 15 new gyms.
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The Gym Group's shares were given a lift after Numis reiterated a 'buy' rating and target price of 275p, saying the business has an "impressive record of profitable growth".
The Gym Group, which listed on the London Stock Exchange in November, reported a rise in revenue as it swung to a profit and announced a maiden interim dividend.
Buy shares in Gym Group, said the Sunday Times' Inside the City column, as they are cheap and the company is in healthy shape. At just over 200p, stock is available for only slightly more than its initial public offer (IPO) price nine months ago, having flexed as high as 274p in the spring. The competitive situation is that Gym Group is a low-price operator with 80 sites, plus 14 more coming by the end of 2017, versus an industry of well over 6,000 gyms.
Buy shares in B&M European Value Retail said the Sunday Times' Inside the City column. As the referendum decision to leave the EU sends the economy into a recession, discounters like B&M should do well. The business model is to attract customers with value groceries and then offer bargain-basement brands that are bought in vast bulk or with some non-grocery items made for B&M out in Asia. B&M's gross profit margin was above 34% in the last two years.
Budget gymnasium chain PureGym reported 2015 revenues of £125m on Friday - an improvement of 82% over 2014, in a year in which the group pushed ahead with serious expansion.
The Gym Group, which floats last November, reported better-than-expected adjusted pre-tax profit for 2015 as membership numbers grew.